Rs 8,752 Crore Still Outstanding
A consortium of banks led by State Bank of India has told the Bombay High Court that around Rs 8,751.86 crore remains recoverable from businessman Vijay Mallya as of August 31, 2026.
The disclosure comes despite the lenders having recovered more than Rs 10,270 crore through the debt recovery process. The latest figure has become a key point in the ongoing legal battle over Mallya’s outstanding liabilities and criminal proceedings.
Banks Say Recoveries Do Not End The Outstanding Debt
The lenders have told the court that the recovery figure cannot be viewed separately from the amount that continues to remain due under the recovery certificate.
According to the consortium, subsequent accruals have increased the amount that remains legally recoverable. The outstanding amount was Rs 8,135.63 crore in January 2026, excluding legal and other expenses, before rising to Rs 8,751.86 crore by the end of August.
The banks have also informed the court that certain shares attached in the case have not yet been sold.
Mallya Had Claimed Banks Recovered More Than The Dues
Mallya has previously argued that the banks had already recovered more than the amount originally owed.
In 2020, he approached the Bombay High Court seeking to challenge proceedings connected with the seizure and utilisation of his assets. His argument was that subsequent recoveries had effectively settled his civil liabilities and that the proceedings should therefore be brought to an end.
The lenders have opposed this position and maintained that substantial amounts remain recoverable.
More Than Rs 10,000 Crore Already Recovered
The debt recovery officer has reportedly recovered Rs 10,270 crore under a bond undertaking provided by the consortium.
Another Rs 544.58 crore was recovered before the filing of proceedings before the Debt Recovery Tribunal.
The lenders’ latest position therefore highlights the difference between assets and proceeds already recovered and the amount that remains outstanding under the recovery certificate.
ED Says Civil Recovery Does Not End Money Laundering Case
The Enforcement Directorate has also maintained that recovery of assets by banks does not automatically bring criminal proceedings under the Prevention of Money Laundering Act to an end.
The agency has said that assets worth around Rs 14,132 crore have been restored to the SBI-led consortium, but such restoration addresses the interests of legitimate claimants and does not by itself determine whether alleged money laundering offences have occurred.
This means the debt recovery dispute and the criminal proceedings continue on separate tracks.
Bombay High Court To Hear Matter On October 13
The latest affidavit was filed after the Bombay High Court asked SBI to respond to Mallya’s plea.
The court is scheduled to hear the matter next on October 13. The proceedings will examine the competing positions of Mallya, the lender consortium and investigating agencies regarding the recovery of assets and continuation of the criminal case.
Summary
An SBI-led consortium has told the Bombay High Court that Rs 8,751.86 crore remains recoverable from Vijay Mallya as of August 31, despite recoveries exceeding Rs 10,270 crore. The lenders say subsequent accruals have increased the outstanding amount. The Enforcement Directorate has separately maintained that asset recovery does not automatically end pending money laundering proceedings.
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