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SBI-led lenders informed the Bombay High Court that Vijay Mallya still owes ₹8,752 crore as of August, contradicting his claims of resolved debt. Mallya seeks to terminate criminal charges, but banks 3 Min Read Vijay Mallya is once again in the news; this time, it's about an update on the colossal amount owed to the fugitive and former liquor baron's lenders in the country. In the latest development in the matter, a consortium of lenders led by the government-owned State Bank of India (SBI) has notified the Bombay High Court that approximately ₹8,752 crore remains outstanding and recoverable from fugitive businessman Vijay Mallya as of August, the Economic Times reported.
The ET report said that this recent communication from some of the biggest banking names in the country directly contradicts Mallya's assertions that financial institutions have successfully recovered all outstanding amounts owed to them. The matter has emerged as Mallya, who established the now-defunct Kingfisher Airlines and previously served as Chairman of United Breweries Group, petitions for the termination of criminal charges against him. In 2020, Mallya filed an application with the Bombay High Court contending that his financial disagreement with the lending consortium had been resolved following the recovery of assets.
Nevertheless, pursuant to an affidavit submitted in compliance with High Court directives, the banking institutions have stated that although a debt recovery officer has "provisionally recovered" ₹10,270 crore supported by a bond guarantee and an additional ₹544.58 crore was recovered before initiating proceedings in the Debt Recovery Tribunal, considerable sums remain unsettled. As of January 2026, Mallya still owed ₹8,135.63 crore. When legal fees and miscellaneous charges are included, this amount increased to ₹8,751.86 crore by August 31 following additional accruals, according to the documentation.
While the Enforcement Directorate reports that assets valued at approximately ₹14,132 crore have been returned to SBI, it maintained in submissions to the high court that civil recoveries do not eliminate criminal accountability under the Prevention of Money Laundering Act (PMLA). Mallya, who received designation as a fugitive economic offender in 2019, contends that asset recoveries surpassing the original adjudicated debt should result in the closure of the case. In their opposition to Mallya's application seeking dismissal of his money laundering prosecution, the lending consortium informed the court that his challenge to a prior order issued on December 31, 2019, lacks merit.
The financial institutions further indicated that specific attached equity holdings in the proceedings remain undisposed of and have not been liquidated. The judicial proceedings continue simultaneously on two distinct fronts: civil recovery of bank liabilities and criminal prosecution by the Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI) concerning alleged bank fraud, criminal conspiracy, and money laundering. The Bombay High Court is slated to hear the matter next on October 13.
Also Read: Nasdaq hits new record high, US markets close in green even as US job growth undershoots expectations (Edited by : Juviraj Anchil) First Published: Oct 3, 2026 9:07 AM IST Home India News Vijay Mallya debt recovery: SBI-led consortium of banks tells Bombay High Court ₹8,752 crore still recoverable
Source: CNBC TV18
