Vijay Mallya Continues To Evade Indian Law, Asset Recovery Doesn’t End Money Laundering Case: ED

Former liquor baron Vijay Mallya continues to evade the legal process in India, and the recovery of bank dues does not absolve him of money laundering charges, the Enforcement Directorate (ED) has told the Bombay High Court. The agency filed its affidavit on September 8 opposing Mallya’s 2020 plea seeking closure of the criminal proceedings.

Mallya had argued that his dispute with banks was settled after lenders recovered money from his assets. The ED, however, said movable and immovable properties worth Rs 14,131.60 crore were handed over to the SBI led consortium, but the recovery does not end proceedings under the Prevention of Money Laundering Act (PMLA).

The agency said asset restoration under the PMLA is a statutory mechanism allowing legitimate claimants to recover losses. It does not determine whether the alleged offences or money laundering occurred and therefore cannot extinguish the criminal prosecution.

The ED also highlighted Mallya’s continued absence from India. He left the country in March 2016 and allegedly failed to appear before investigators despite repeated summons. A non bailable warrant was issued against him, and he was declared a proclaimed offender in November 2016. The agency said he has neither returned to India nor submitted himself to the jurisdiction of the competent criminal court.

The issue gained fresh attention during a Bombay High Court hearing on August 12, when Justice Milind Jadhav asked the ED and the SBI led consortium to verify Mallya’s claim that his liabilities had been cleared through recovery from his attached assets. His lawyer said banks had recovered around Rs 15,000 crore, against an original liability of about Rs 6,203 crore including interest.

Mallya has continued to challenge the government’s portrayal of him as a fugitive. In posts on September 10, he questioned why he was still described as a fraudster after more than Rs 14,000 crore had been recovered from his assets. He also claimed he is legally prevented from leaving the UK and accused the government of treating him unfairly.

Mallya is accused of misappropriating at least Rs 3,500 crore from around Rs 9,000 crore in loans granted to the now defunct Kingfisher Airlines. The ED attached his properties in 2016, while a special court in 2019 allowed lenders to use attached movable assets, including United Breweries Holdings shares, for debt recovery.