{"id":2401,"date":"2026-10-03T08:34:02","date_gmt":"2026-10-03T08:34:02","guid":{"rendered":"https:\/\/newsraise.com\/in\/2026\/10\/03\/sbi-lenders-vijay-mallya-owes-8752-crore\/"},"modified":"2026-10-03T08:34:02","modified_gmt":"2026-10-03T08:34:02","slug":"sbi-lenders-vijay-mallya-owes-8752-crore","status":"publish","type":"post","link":"https:\/\/newsraise.com\/in\/2026\/10\/03\/sbi-lenders-vijay-mallya-owes-8752-crore\/","title":{"rendered":"SBI-led lenders say Vijay Mallya still owes Rs\u202f8,752\u202fcrore"},"content":{"rendered":"\n<!-- Quick Adsense WordPress Plugin: http:\/\/quickadsense.com\/ -->\n<div class=\"9fece8afa224fd09e54b043d0febfb58\" data-index=\"1\" style=\"float: none; margin:10px 0 10px 0; text-align:center;\">\n<script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js\"><\/script>\r\n<!-- NR ATF -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-8898941184964366\"\r\n     data-ad-slot=\"4839033563\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script>\n<\/div>\n<p>Vijay Mallya, the founder of the now\u2011defunct Kingfisher Airlines and former chairman of United Breweries Group, faces a renewed financial showdown with a consortium of banks led by the State Bank of India (SBI). In an affidavit submitted to the High Court, the lenders assert that as of August\u202f31, Mallya\u2019s unpaid liability amounts to Rs\u202f8,751.86\u202fcrore, a figure that starkly contrasts with the businessman\u2019s own contention that the banks have already recovered more than the original debt.<\/p>\n<h2>Background of the dispute<\/h2>\n<p>The controversy dates back to 2020, when Mallya approached the High Court seeking dismissal of criminal cases filed against him. In his petition, he argued that the dispute with the banks had been settled because the lenders had fully recovered their dues. The Enforcement Directorate (ED) subsequently entered its response, and the court, in a recent order, directed SBI to file an affidavit addressing Mallya\u2019s plea.<\/p>\n<p>The matter is slated for further hearing on October\u202f13. The current affidavit forms part of the court\u2019s proceedings on Mallya\u2019s request to quash a money\u2011laundering case under the Prevention of Money Laundering Act (PMLA). The consortium of lenders, which includes SBI and other financial institutions, has opposed the plea, describing the criminal application that challenges a December\u202f31,\u202f2019 order as \u201cmisconceived\u201d and urging its dismissal.<\/p>\n<h2>Bank recoveries and outstanding debt<\/h2>\n<p>According to the affidavit, the debt recovery officer attached to the case reported a \u201ctemporary\u201d recovery of Rs\u202f10,270\u202fcrore, a sum backed by a bond undertaking from the consortium. In addition, the banks recovered Rs\u202f544.58\u202fcrore before filing a suit in the Debt Recovery Tribunal (DRT). At the time of an earlier affidavit filed in January\u202f2026, the lenders indicated that Rs\u202f8,135.63\u202fcrore remained recoverable, excluding legal and other costs.<\/p>\n<p>Subsequent calculations presented in the latest filing show that the outstanding amount has risen to Rs\u202f8,751.86\u202fcrore as of the end of August, again excluding legal and other expenses. The increase reflects the banks\u2019 assessment that earlier recoveries do not fully offset the total liability. The disclosure is significant because Mallya has repeatedly told the court that the consortium has already recovered more than the amount originally due.<\/p>\n<p>The banks also informed the court that certain shares attached in the case remain intact and have not been sold, indicating that asset attachment continues to be part of the recovery strategy.<\/p>\n<h2>Legal proceedings and the ED\u2019s stance<\/h2>\n<p>The dispute runs on two parallel tracks: civil recovery of bank dues and criminal prosecution for alleged financial misconduct. While the banks have pursued recovery through the DRT and by seeking sale or restitution of attached assets, the ED and the Central Bureau of Investigation (CBI) have advanced separate cases alleging bank fraud, criminal conspiracy, and money laundering linked to loans extended to Kingfisher Airlines.<\/p>\n<p>The ED has reported that assets worth about Rs\u202f14,132\u202fcrore have been restored to SBI. However, the agency maintains that such civil recoveries do not automatically extinguish pending criminal proceedings under the PMLA. In a written reply, the ED emphasized that the restoration of assets under Section\u202f8(8) of the PMLA is a statutory mechanism for restitution to a claimant with a legitimate interest, and it does not, by itself, determine the existence of a scheduled offence or the offence of money laundering. Consequently, the agency argues that the subsequent recovery of assets cannot be interpreted as extinguishing or rendering infructuous the ongoing PMLA proceedings.<\/p>\n<p>Mallya, declared a fugitive economic offender in 2019, continues to argue that the lenders\u2019 recoveries exceed the original decreed debt and therefore seeks closure of all proceedings against him. The latest affidavit from the SBI\u2011led consortium effectively puts its position on record, stating that the recoveries already made do not eliminate Mallya\u2019s outstanding liabilities.<\/p>\n<p>The High Court\u2019s upcoming hearing on October\u202f13 will determine whether Mallya\u2019s plea to quash the money\u2011laundering case can proceed, and it will also consider the banks\u2019 detailed financial statements that underline the remaining debt. The outcome will have implications not only for Mallya\u2019s personal legal standing but also for the broader framework of how large\u2011scale corporate defaults are resolved in India\u2019s banking and criminal justice systems.<\/p>\n\n<div style=\"font-size: 0px; height: 0px; line-height: 0px; margin: 0; padding: 0; clear: both;\"><\/div>","protected":false},"excerpt":{"rendered":"<p>A fresh affidavit filed by a consortium of banks led by SBI states that Vijay Mallya\u2019s outstanding liability stands at Rs\u202f8,751.86\u202fcrore, contradicting his claim of full repayment.<\/p>\n","protected":false},"author":3,"featured_media":2402,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[299],"tags":[2630,2631,527,130,2629],"class_list":["post-2401","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-bank-recovery","tag-debt-recovery-tribunal","tag-money-laundering","tag-sbi","tag-vijay-mallya","entry"],"_links":{"self":[{"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/posts\/2401","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/comments?post=2401"}],"version-history":[{"count":0,"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/posts\/2401\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/media\/2402"}],"wp:attachment":[{"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/media?parent=2401"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/categories?post=2401"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/tags?post=2401"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}