Mumbai. A consortium of banks has rejected fugitive businessman Vijay Mallya’s claim that lenders have already recovered more than the amount he owed them. The consortium, led by the State Bank of India (SBI), has told the Bombay High Court that around ₹8,752 crore is still outstanding from Mallya. According to the banks, the amount received so far cannot be treated as the final recovery, and a substantial liability remains after accounting for the total dues, interest and other adjustments.
During the hearing, the banks opposed Mallya’s contention that his liability had already been cleared and that lenders had recovered more than what was due. The consortium said the ₹10,270 crore received by the Debt Recovery Officer under a bond undertaking could not be treated entirely as a final recovery. The banks described the amount as a temporary recovery and said the final liability would have to be determined after taking into account all relevant financial adjustments.
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According to the banks, despite the receipt of ₹10,270 crore, Mallya’s liability has not been fully settled. After accounting for interest and the total amount due, around ₹8,752 crore still remains to be recovered. The consortium has therefore challenged Mallya’s claim that lenders have already recovered more than the outstanding amount.
The dispute is part of the long-running bank loan case linked to Kingfisher Airlines, which collapsed after accumulating substantial debt. Mallya has faced proceedings over the repayment of loans taken from several banks. He left India and has been living in the United Kingdom while facing legal proceedings connected with the matter in Indian courts and before investigating agencies.
Banks and investigating agencies have for years pursued the identification, attachment and sale of assets linked to Mallya as part of the recovery process. Several claims and counterclaims have emerged in courts over different assets and the amounts recovered from them. Against this backdrop, Mallya has argued that the banks have allegedly recovered more than the actual amount outstanding against him.
The bank consortium, however, has sought to explain the difference between the amount received and the total liability in its submissions before the Bombay High Court. The lenders have maintained that treating an amount received during the recovery process as the final recovery would not present the complete picture of the outstanding liability. According to their position, interest and other financial liabilities have to be taken into account before determining the final amount payable.
The ₹8,752 crore figure is significant because it directly relates to Mallya’s claim that his liabilities to the banks have already been cleared or that lenders have recovered more than what was due. The banks have maintained before the court that the liability has not been fully extinguished.
The latest submission before the Bombay High Court marks another stage in the long-running financial dispute between Mallya and the lender consortium. The banks have told the court that, according to their calculations, around ₹8,752 crore remains to be recovered even after the receipt of ₹10,270 crore.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
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