World · India Bureau
Banks dispute Mallya's claims, say ₹8,752 crore debt remains outstanding
A consortium of Indian banks led by SBI has rejected businessman Vijay Mallya's assertion that his outstanding loans have been fully repaid, telling the court that approximately ₹8,752 crore remains due as of August 31, 2026.
LSN India ·
The SBI-led banking group filed its response in court this week, directly contradicting Mallya's recent claims that lenders had recovered amounts exceeding the original default value. According to the banks' submission, the outstanding amount in the case against Mallya stands at roughly ₹8,752 crore, substantially undermining the businessman's position that his financial obligations have been settled.
Mallya, the former chief of the now-defunct Kingfisher Airlines, has been at the center of a protracted legal and financial dispute with multiple Indian financial institutions over unpaid loans. The latest court filing marks another significant development in the high-profile case that has spanned several years and multiple jurisdictions.
In a related development, the Enforcement Directorate stated that recovery of assets does not automatically terminate money laundering proceedings against the accused. The ED's position suggests that criminal investigations into the financial aspects of Mallya's case may continue independently of debt repayment efforts or asset seizures.
The case underscores the complexity of India's efforts to recover funds from high-profile loan defaulters while simultaneously pursuing parallel criminal investigations. As the legal battle continues, both the banking consortium and investigative agencies appear committed to exhausting all available remedies in their respective proceedings.