Markets & Macro · Daily brief
A consortium of Indian lenders led by the State Bank of India (SBI) has informed the Bombay High Court that fugitive businessman Vijay Mallya still legally owes ₹8,751.86 crore (~₹8,752 crore) as of August 31, 2026—directly refuting Mallya’s claim that banks have already recovered more than his total debt.
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The disclosure was filed via an affidavit opposing Mallya’s petition to quash ongoing money-laundering and Fugitive Economic Offenders Act (FEOA) proceedings on the grounds that his civil liabilities from the defunct Kingfisher Airlines default had been fully settled.
In its submission to the High Court, the SBI-led consortium broke down the exact ledger of realizations versus mounting statutory interest:
Both the SBI-led consortium and the Enforcement Directorate (ED) emphasized before the court that conditional recoveries backed by bank bonds do not constitute final settlement. Furthermore, under Indian jurisprudence, subsequent recovery of defaulted public funds does not absolve a borrower of criminal prosecution for fraud and money laundering.
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