Vijay Mallya Seeks Relief from ED as Banks Recover Double the Loan Amount; Sitharaman Reports ₹14,130 Crore Recovered

Fugitive businessman Vijay Mallya has sought relief from the Enforcement Directorate (ED). Mallya wrote on his X handle that the ED and banks have recovered double the amount of the loan he took.

Mallya stated that the Debt Recovery Tribunal estimated Kingfisher Airlines (KFA) loan at ₹6203 crore, including ₹1200 crore in interest, but the banks have recovered more than ₹14,130 crore.

Vijay Mallya’s Statement on X Regarding ED and Loan Recovery

Vijay Mallya wrote on X, stating: “The Finance Minister said that instead of a loan of ₹6203 crore, the bank, through the ED, has recovered ₹14,131.6 crore by selling my property, yet I am still considered a financial criminal. As long as the ED and the bank do not legally prove how they recovered more than double the loan amount, I am entitled to relief, and I will continue to strive for it.”

He further mentioned, “As the guarantor of the loan at KFA, everything I have stated can be legally verified. Over ₹8000 crore has been recovered both before and after the judgment date.”

Mallya added, “I have never borrowed a single rupee from anyone, nor have I stolen anything. However, as a guarantor for the KFA loan, the CBI has accused me of colluding with IDBI Bank officials to fraudulently obtain a ₹900 crore loan from the bank. The IDBI credit committee and the board approved that loan. The entire loan and interest have been repaid. Why, after 9 years, are there no conclusive evidence of fraud or misappropriation of funds?”

Finance Minister Says ₹22,280 Crore Recovered from Fugitives

Two days ago, Finance Minister Nirmala Sitharaman stated in Parliament that banks have recovered over ₹14,130 crore by selling Vijay Mallya’s property.

Additionally, the Enforcement Directorate (ED) and banks have recovered a total of ₹22,280 crore from fugitives, including ₹1,052.58 crore from diamond trader Nirav Modi, ₹2,565.90 crore from Mehul Choksi and others.

Vijay Mallya Fled India in 2016 Amid Financial Irregularities Allegations

Amid allegations of financial irregularities related to Kingfisher Airlines, businessman and former Member of Parliament Vijay Mallya fled India in 2016 and escaped to the UK. On January 5, 2019, Mallya was declared a fugitive. 

He is facing pending charges of fraud and money laundering. The Indian government is making efforts to bring him back to the country.

Mehul Choksi Accused of ₹14,000 Crore Scam

Mehul Choksi, former chairman of Geetanjali Gems, along with Nirav Modi, is accused of a ₹14,000 crore scam at the Punjab National Bank’s Brady House branch in Mumbai. 

Between 2011 and 2018, they allegedly transferred money to foreign accounts using fake Letters of Undertaking (LOUs) in collaboration with bank officials. Both are currently outside the country.

Mehul Choksi Acquired Antigua and Barbuda Citizenship in 2017

Mehul Choksi fled the country in January 2018, and it was later discovered that he had acquired citizenship of Antigua and Barbuda in 2017. Agencies like the Central Bureau of Investigation (CBI) and Enforcement Directorate (ED), which are investigating the scam, are attempting to extradite him.

Choksi has refused to return to India, citing poor health, and his presence is often recorded via video conferencing. Many of his properties in India have also been confiscated.