Fugitive businessman Vijay Mallya has once again taken aim at India's debt recovery framework, questioning the perceived disparities in how corporate debt resolutions are handled. His latest remarks come in response to media reports detailing Essel Group chairman Subhash Chandra's settlement of a massive debt.
Mallya Reacts to Chandra's Settlement
According to reports, Subhash Chandra settled debt claims worth an astounding ₹22,006.57 crore for a mere ₹6.5 crore under the Insolvency and Bankruptcy Code (IBC). Reacting to this, Mallya posted on X (formerly Twitter), stating, "If True many congratulations to my friend Subhash. Banks and Government have admitted having recovered Rs 14,100 crores from me against a Judgement debt of Rs 6203 crore. Many more borrowers have settled at a fraction. Indian Debt Resolution Justice I presume. No media questions."
Mallya's Ongoing 'Economic Offender' Status
This is not the first instance where the former Kingfisher Airlines promoter has voiced his frustration regarding asset recoveries. Mallya previously lashed out after Union Finance Minister Nirmala Sitharaman's statement in Parliament confirmed that public sector banks had recovered ₹14,131.60 crore from his seized assets. Mallya argued that this recovered sum was more than double the original judgment debt of ₹6,203 crore, questioning why he continues to be classified as an 'economic offender'.
He has also pointed out what he perceives as glaring discrepancies in official figures presented by the government and state-owned banks concerning his debt and recovery metrics. "How long will the GOI and PSU Banks hoodwink me and the public? Finance Minister says to Parliament that ₹14,100 crores recovered from me. Banks say Rs 10,000 crores recovered. What about the difference of ₹4,000 crores?" Mallya had previously posted, also noting that a Minister of State for Finance claimed he still owed ₹10,000 crore, while banks put his outstanding debt at ₹7,000 crore.
Demanding a thorough investigation into these calculations, Mallya has called for a retired judge to scrutinize the figures and ensure transparent financial accounting, especially given the absence of clear statements of account or credit for the recovered amounts.
Government's Stance on Fugitive Economic Offenders
The central government maintains a firm position on corporate defaults and fugitives. Union Minister of State for Finance Pankaj Chaudhary previously informed the Lok Sabha that 15 individuals have been declared Fugitive Economic Offenders (FEOs) under the Fugitive Economic Offenders Act, 2018. Official figures indicate that nine of these FEOs were involved in significant financial fraud against public sector banks, resulting in a combined principal financial loss of ₹26,645 crore, alongside accrued interest of ₹31,437 crore. While total recoveries across these FEO cases have reached ₹19,187 crore, high-profile individuals such as Vijay Mallya and Nirav Modi remain listed as key fugitives.