Where is the 'chori?' Vijay Mallya claims overpayment, but banks say otherwise

Vijay Mallya, the embattled former liquor baron and founder of the now-defunct Kingfisher Airlines, has once again stoked controversy over the long-running default saga.

In a recent podcast interview with Raj Shamani, Mallya claimed that Indian banks have recovered more than double the original debt owed by him - claims strongly contested by the lenders involved, as per media reports.

"The government of India, Ministry of Finance, has published a report, their annual report, in which they have acknowledged ₹14,100 crore recovered from me. The Union Finance Ministry has confirmed in writing that banks have recovered ₹14,100 crore from me against a DRT (debt recovery tribunal) judgment debt of ₹6,203 crore. Why the blatant discrimination?" Mallya questioned in the podcast interview.

The flamboyant businessman also rejected the popular portrayal of him as a "fugitive", arguing, "“I didn’t run away; I flew out of India on a pre-scheduled visit… I didn’t return for reasons I consider valid. But where is the ‘chor’ coming from?”

The Kingfisher Airlines account was declared a non-performing asset in December 2011. In June 2013, the DRT ruled that Mallya and his airline owed Rs 6,203.35 crore in principal and interest at 11.5%. Since then, interest and penalties have caused the dues to balloon to nearly Rs 17,800 crore, according to banking sources, the report added.

While the Ministry of Finance's FY25 annual report does note that assets worth Rs 14,131.6 crore have been attached and restored to banks in connection with the case, bank executives caution that the actual realised value of these recoveries is significantly lower - around Rs 10,800 crore.

A breakdown of these recoveries include:

- Kingfisher House, Goa - Rs 172 crore (2017)

- Kingfisher House, Mumbai - Rs 52.5 crore (2021)

- Shared in United Breweries and other assets

Banking executives, speaking on condition of anonymity, maintain that approximately Rs 6,900 crore is still owed and that Mallya's portrayal of the Rs 14,100 crore figure as "overpayment" is misleading. The Rs 14,100 crore reflects attached assets, not cash recovered or realised value, the report added.

Mallya, continues to insist that he was always willing to settle the dues in good faith. “Between 2012 and 2015, I made four different settlement offers to the banks... But the banks refused. I believe they were under political pressure to take a hard stance rather than work out a practical solution,” he said. “I gave my personal guarantee… Koyi chor kabhi apna personal guarantee deta hai kya?” Mallya added.

In February 2025, Mallya filed a petition in the Karnataka High Court seeking a full accounting of recoveries and an interim stay on further recovery actions. The court has issued notices to 10 banks, including SBI and Punjab National Bank.

Meanwhile, Mallya's legal battle in the UK continues to go against him. In April 2025 the UK High Court upheld a bankruptcy order tied to his debt owed to the SBI-led banking consortium. Mallya had argued that sufficient recovery had already been made, but the UK court dismissed his appeal, the report added.