How can ED, banks take twice the debt? Mallya refutes FM’s claim

New Delhi: Businessman Vijay Mallya has contested claims made by Finance Minister Nirmala Sitharaman in Parliament regarding the recovery of debts from him and asked the government agencies to justify how they have taken more than two times the debt. On Tuesday, Sitharaman informed the Lok Sabha that public sector banks (PSBs) had recovered Rs 14,131.6 crore through the sale of assets belonging to Mallya. This amount is part of a larger effort to recover dues from fugitive economic offenders. In response, Mallya, speaking from his base in the UK, denied the claims, stating that the Debt Recovery Tribunal had adjudicated his Kingfisher Airlines (KFA) debt at Rs 6,203 crore, including Rs 1,200 crore in interest. He questioned the recovery figure of Rs 14,131 crore, asserting that it was more than twice the debt amount and demanding legal justification from the Enforcement Directorate (ED) and the banks for this discrepancy. “I am entitled to relief, which I will pursue,” Mallya stated.

Sitharaman’s address highlighted that the total value of restored properties through ED actions stood at Rs 22,280 crore, with Rs 14,131 crore attributed to Mallya alone. Additionally, assets of other offenders, including Nirav Modi and Mehul Choksi, were also retrieved in separate actions. Despite these recoveries, the ED’s efforts have been scrutinised, with criticism over its low conviction rate under the Prevention of Money Laundering Act (PMLA), where only 4.6 per cent of cases have led to convictions since 2019. Mallya, who fled India in 2016, remains at the centre of a protracted extradition case in the UK.