MUMBAI: Days after fugitive businessman Vijay Mallya claimed that banks had recovered more than twice the amount he actually owed through the sale of shares in group companies, the Finance Ministry clarified that the total dues of Rs 17,781 crore (as of April 10, 2025) also include provident fund and other statutory dues owed to Kingfisher employees. The airline ceased operations on October 20, 2012, after nine years of service.
It may be noted that when the case was filed in the debt recovery tribunal (DRT) in June 2013, the consolidated non-performing outstanding of the airline was pegged at Rs 6,848 crore, which included non-cumulative redeemable preference shares of group companies which were pledged with lenders for the loans it had taken.
Including the accrued interest and other charges of Rs 10,933 crore, according to the DRT, total liability due to creditors added up to Rs 17,781 crore as of April 10, 2025. Against this, banks have recovered Rs 10,815 crore, as against their principal dues of Rs 6,848 crore, leaving them with a gap of Rs 6,997 crore, which is yet to be recovered, according to finance minister sources. Mallya had claimed that he had paid Rs 14,000 crore to banks against loans of Rs 6,848 crore.
Finance minister Nirmala Sitharaman had said on Wednesday the dues also included the provident funds and other statutory dues of the airline.
Of this the airline had owed Rs 1,939 crore to SBI and with including interest and other charges it added up to Rs 3,269 crore taking the total to Rs 5,208 crore and the bank recovered Rs 3,174 crore. PNB had Rs 1,197 crore and other charges adding up to Rs 3,084 crore and it had recovered Rs 1,910 crore. IDBI Bank (Rs 939 crore, Rs 2,390 crore and Rs 1,375 crore, respectively); Bank of India (Rs 708 crore, Rs 1,759 crore and Rs 1,034 crore, respectively); and Bank of Baroda (Rs 605 crore, Rs 1,580 crore and Rs 994 crore, respectively), totaling Rs 6,848 core in principal NPAs, and Rs 10,933 crore in interest and other arrears totaling Rs 17,781 crore of which banks have recovered Rs 10,814 crore, leaving Rs 6,967 crore yet to be recovered.
Any loan comes with interest and till the amount is fully paid, there will be also be a penal interest and going by Mallya’s claim, it seems he is adding up only the principal and not the interest and penalties.
Banks have recovered the money by selling the properties, including the famous Kingfisher Villa in Goa, and shares which were pledged with them as collateral amounting to Rs 10,815 crore.
Thus, lenders still assert that Mallya still owed them nearly Rs Rs 6,967 crore, considering accrued interest and penal charges. Mallya, a fugitive since March 2016, faces ongoing legal battles for extradition and financial fraud charges.
Mallya, who is a 'declared eonomic fugitive', had a four-hour long podcast with influencer Raj Shamani earlier this week and claimed that he paid back more than double of what he had owed the lenders to the tune of Rs 14,000 crore.
Following his exit from the country, banks were allowed by courts under the Prevention of Money Laundering Act (PMLA) to liquidate properties attached by enforcement agencies. Sales included marquee assets like the Kingfisher Villa in Goa. These recoveries were conducted in accordance with board-approved policies of banks.
Loans extended to Kingfisher Airlines also came under legal scrutiny, with instances of alleged irregularities. Former IDBI Bank chairman Yogesh Agarwal was among those arrested in connection with the case.