Vijay Mallya Owes ₹8,752 Crore To SBI-Led Consortium, Lenders Tell Bombay High Court

Vijay Mallya continues to face legal proceedings over unpaid bank dues, with a consortium led by State Bank of India informing the Bombay High Court that around ₹8,752 crore remains outstanding and recoverable from the businessman.

The lenders’ submission, cited in a report by The Economic Times, contradicts Mallya’s claim that banks have recovered the amounts owed to them. The matter comes up as Mallya seeks the termination of criminal proceedings against him.

Lenders cite ₹8,752 crore outstanding

Mallya, who founded Kingfisher Airlines and was formerly chairman of United Breweries Group, had approached the Bombay High Court in 2020, arguing that the financial dispute with the lending consortium had effectively been settled following the recovery of assets.

However, an affidavit filed by the lenders following the court’s directions stated that significant dues remain. According to the documents, a debt recovery officer had provisionally recovered ₹10,270 crore backed by a bond guarantee, while another ₹544.58 crore had been recovered before proceedings began before the Debt Recovery Tribunal.

The lenders said Mallya owed ₹8,135.63 crore as of January 2026. After legal costs and other charges, the outstanding amount rose to ₹8,751.86 crore by August 31, according to the affidavit.

Asset recovery and criminal proceedings

The Enforcement Directorate has said assets worth about ₹14,132 crore have been returned to SBI. However, the agency has maintained before the High Court that recovery of assets in civil proceedings does not extinguish criminal liability under the Prevention of Money Laundering Act.

Mallya, who was declared a fugitive economic offender in 2019, has argued that recovery of assets exceeding the adjudicated debt should lead to the closure of the criminal case.

The lenders have opposed his plea to dismiss the money laundering prosecution, arguing that his challenge to an earlier order dated December 31, 2019, lacks merit. They also said certain attached equity holdings remain undisposed of and have not been sold.

The proceedings involve separate civil recovery and criminal cases concerning allegations of bank fraud, criminal conspiracy and money laundering. The Bombay High Court is scheduled to hear the matter next on October 13.