Vijay Mallya Still Evading Indian Law, Asset Recovery Does Not Absolve Him Of Money Laundering Charges: ED To Bombay HC

Mumbai, September 11, 2026: The Enforcement Directorate (ED) has told the Bombay High Court that recovery of crores of rupees by banks does not bring an end to the criminal proceedings and money laundering case against fugitive businessman Vijay Mallya.

In an affidavit filed before the High Court, the agency rejected Mallya’s contention that the proceedings should be closed as the lending banks have recovered substantial amounts through restoration of his assets.

The affidavit, filed by ED Deputy Director Amitabh Mishra, was in response to a plea filed by Mallya against the State Bank of India (SBI) and others.

Asset Recovery Separate From Criminal Liability

The ED said recovery of commercial dues is separate from criminal liability arising from the alleged offences. It stressed that restoration of properties to banks under the Prevention of Money Laundering Act (PMLA) does not decide whether the scheduled offence or money laundering offence was committed.

“The restoration of assets under Section 8(8) of the PMLA is a statutory mechanism for restitution to a claimant having a legitimate interest in the property,” the affidavit, filed through Advocate Ashish Mehta, said.

It added that the prosecution “is therefore not rendered infructuous” merely because the claimant banks subsequently recovered substantial amounts from the restored assets.

The agency said properties worth around Rs 14,131.60 crore, valued as of August 2021, were restored to an SBI-led consortium of banks following orders of the Special PMLA Court. However, it maintained that the restoration was a separate statutory process and did not wipe out the criminal case concerning alleged loan diversion and financial fraud linked to Kingfisher Airlines Ltd.

ED Flags Mallya’s Fugitive Status

The ED also highlighted Mallya’s status as a proclaimed offender and a fugitive economic offender. It said Mallya left India on March 2, 2016, and has continued to remain away despite multiple non-bailable warrants issued against him.

Also Watch:

According to the agency, Mallya has shown no willingness to return to India and face the pending criminal proceedings.

The ED urged the High Court to take these facts on record and reject the contention that recovery of the banks’ dues had made the criminal proceedings against Mallya redundant.

To get details on exclusive and budget-friendly property deals in Mumbai & surrounding regions, do visit: https://budgetproperties.in/