3 hrs ago
ED Says Mallya Debt Recovery Does Not End Charges
The Enforcement Directorate says Vijay Mallya’s legal cases should continue.
Mallya argued that the cases should end because banks recovered money using his assets.
The ED disagreed.
It said returning assets to banks and deciding whether a crime happened are separate matters.
About Rs 14,131.6 crore in assets was handed to an SBI-led group of banks.
The case involves alleged loan diversion, money laundering, and financial fraud connected to Kingfisher Airlines.
The ED says Mallya left India in March 2016 and has not returned to face the courts.
The Bombay High Court is considering his petition.
The Enforcement Directorate told the Bombay High Court that recovering banks’ dues does not end Vijay Mallya’s criminal or money laundering proceedings.
Mallya’s 2020 petition sought closure of criminal cases after banks recovered substantial amounts, according to the ED’s affidavit.
Properties worth about Rs 14,131.6 crore were restored to an SBI-led bank consortium under the Prevention of Money Laundering Act.
The ED said asset restoration is a restitution mechanism and does not determine whether loan diversion or money laundering occurred.
The agency said Mallya left India in March 2016, was declared a proclaimed offender in November 2016, and has not returned to face the proceedings.
- Who
- The Enforcement Directorate, Vijay Mallya, the Bombay High Court, and an SBI-led consortium of banks are involved.
- What
- The ED opposed Mallya’s request to close criminal and money laundering proceedings after banks recovered assets.
- Where
- The matter is before the Bombay High Court in Mumbai.
- When
- The ED filed its affidavit on September 8, 2026, and the matter was reported on September 11, 2026; the ED said Mallya left India in March 2016.
- Why
- The ED says asset restoration under the Prevention of Money Laundering Act is separate from criminal liability for alleged loan diversion, misappropriation, financial fraud, and money laundering.
Enforcement Directorate’s Position
Vijay Mallya’s Position
Effect of debt recovery
Enforcement Directorate’s Position
The ED says recovering bank dues through restored assets is separate from criminal liability and does not cancel the money laundering charges.
Vijay Mallya’s Position
Mallya argues that the criminal cases should be closed because his dispute with the banks was settled after substantial debt recovery.
Asset restoration
Enforcement Directorate’s Position
The ED describes restoration under the PMLA as a statutory mechanism for legitimate claimants and says it does not establish whether the alleged offences occurred.
Vijay Mallya’s Position
Mallya relies on the recovery of his assets by the lending banks as a reason the proceedings should no longer continue.
Participation in proceedings
Enforcement Directorate’s Position
The ED says Mallya has remained outside India, has not submitted himself to the competent criminal court, and has not shown willingness to return.
Vijay Mallya’s Position
The articles report Mallya’s position on case closure but do not provide a separate response from him regarding the ED’s account of his absence.
Key facts
- ED position
- Recovery of banks’ dues does not make the criminal prosecution redundant or infructuous.
- Restored assets
- Movable and immovable properties worth about Rs 14,131.6 crore were handed to an SBI-led consortium.
- Legal framework
- The asset restoration occurred under Section 8(8) of the Prevention of Money Laundering Act.
- Mallya’s petition
- Mallya filed a petition in 2020 seeking closure of criminal cases after debt recovery.
- Alleged financial conduct
- He is accused of money laundering and misappropriating at least Rs 3,500 crore from Rs 9,000 crore in loans to Kingfisher Airlines.
- Legal status
- The ED said Mallya was declared a proclaimed offender in November 2016 and has not returned to India.
- Earlier asset action
- The ED provisionally attached Mallya’s properties in 2016, and a special court permitted lender banks to use attached movable properties for debt recovery in 2019.
Quotes
Enforcement Directorate
India’s central agency investigating alleged money laundering under the PMLA
“The criminal prosecution launched pursuant to the investigation under the PMLA is not rendered infructuous merely because the claimant banks have subsequently recovered substantial amounts from the assets restored to them.”
rediff.com
“Applicant (Mallya) continues to evade the process of law and has not returned to India or submitted himself to the jurisdiction of the competent criminal court.”
rediff.com
Sources
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