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Mallya Urges Karnataka High Court To Stop Interest on Funds Banks Say They Have Recovered

The court set a November 10 deadline for objections and scheduled a fresh hearing for November 12.

Overview

  • Vijay Mallya petitioned under Article 226 for a detailed, adjusted statement of accounts and for interest to stop accruing on sums banks have already appropriated.
  • Mallya’s counsel cited a DRT recovery certificate of Rs 6,203 crore at 11.5% interest and pointed to reported recoveries ranging from Rs 7,181 crore to about Rs 10,040 crore.
  • Lawyers for the creditor banks argued the petition is not maintainable because Mallya has been declared a fugitive and said recoveries are provisional under PMLA obligations and bond undertakings.
  • Justice Lalitha Kanneganti directed the official liquidator to file objections by November 10 after the liquidator’s counsel said no information had been furnished and indicated a detailed counter would follow.
  • The Indian Express reported the petition also seeks statements on assets held by creditors and an interim stay on further recovery and asset sales.