Debt recovered 'multiple times over', says Vijay Mallya; Karnataka HC issues notice to banks

Fugitive businessman Vijay Mallya connected Wednesday claimed earlier the Karnataka High Court that the Rs 6,200 crore indebtedness helium owes to banks has been recovered "multiple times over," and sought a statement, detailing the amounts recovered from him, United Breweries Holdings Limited (UBHL, present successful liquidation), and different certificate debtors.

The High Court issued a announcement to banks successful effect to the petition filed by Mallya connected February 3. Justice R Devdas directed the banks to respond by February 13.

As an interim relief, the petition besides sought a enactment connected immoderate further plus income by banks nether the amended betterment certificate until clarity is provided connected the afloat colony of the debt.

Senior advocator Sajan Poovayya, representing Mallya, argued that the winding-up bid against Kingfisher Airlines and its holding company, UBHL, had been upheld astatine each judicial levels, including the Supreme Court.

Poovayya contended that the debts had already been recovered, yet further betterment proceedings continued against Mallya. He besides informed the tribunal that a indebtedness betterment tribunal (DRT) had ordered Kingfisher Airlines, arsenic the superior debtor, and UBHL, arsenic the guarantor, to wage Rs 6,200 crore.

"That bid attained finality. However, betwixt 2017 and now, the Rs 6,200 crore has been recovered aggregate times over. According to an admitted statement, arsenic of today, the betterment serviceman confirms that Rs 10,200 crore has been recovered. Additionally, the authoritative liquidator states that the banks person regained their dues, and adjacent the Finance Minister informed Parliament that Rs 14,000 crore has been recovered," helium stated.

He clarified that the petition does not quality the repayment of loans, but argues that nether the Companies Act, erstwhile the indebtedness is afloat repaid, the guarantor institution (UBHL) has nary remaining liability and tin question revival.

However, this process requires a certification from the betterment serviceman confirming that the indebtedness has been afloat settled, which has not yet been issued. Meanwhile, recoveries proceed without clarity connected whether the superior indebtedness has been wholly paid, the petition said.

The plea requests the banks to supply a connection detailing the amounts recovered successful their favour, on with accusation astir the archetypal owners of the assets utilized to make these recoveries, pursuing the amended betterment certificate issued by the DRT connected April 10, 2017.

Additionally, it seeks a grounds of immoderate assets belonging to Mallya, UBHL, oregon 3rd parties that stay with the banks but person not yet been utilised for indebtedness recovery.