Fugitive businessman Vijay Mallya has reacted to the Indian government’s recovery of ₹14,131.6 crore from the sale of his assets, questioning the legal basis for the amount, which he claims is more than double his adjudged debt.
Recovery Details and Mallya’s Response
Mallya, who fled India in 2016 amidst allegations of financial misconduct related to Kingfisher Airlines, took to social media to challenge the recovery amount. Finance Minister Nirmala Sitharaman had announced in Parliament that public sector banks had recovered the ₹14,131.6 crore through the Enforcement Directorate (ED) and liquidation of Mallya’s assets. Mallya, however, stated that the Debt Recovery Tribunal had adjudged his debt at ₹6,203 crore, including ₹1,200 crore in interest. He demanded legal justification for the recovery that exceeds this amount.
Government’s Efforts to Recover Misappropriated Funds
The Indian government’s efforts to recover misappropriated funds, particularly from economic offenders, have been ongoing. Mallya’s assets were seized under the Prevention of Money Laundering Act (PMLA) as part of this drive. Sitharaman highlighted other notable recoveries, including the restoration of assets belonging to Nirav Modi, Mehul Choksi, and the National Spot Exchange Ltd (NSEL). In total, ₹22,280 crore in assets have been recovered, demonstrating the government’s commitment to tackling financial crime.
Ongoing Legal Pursuits
Mallya remains one of India’s most high-profile fugitives, with ongoing efforts by the government to extradite him from the UK. Despite the substantial recovery, Mallya has vowed to pursue legal relief, insisting that the amount recovered exceeds what was legally owed.
Impact of Black Money Act
Sitharaman also pointed to the success of the Black Money Act, 2015, which has led to an increase in voluntary disclosures of foreign assets. The government has raised over ₹17,520 crore in demands under the Act, with numerous prosecutions underway, reflecting the broader push to address economic offences.
