Finance minister Nirmala Sitharaman's recent statement in parliament about the recovery of loans from fugitive businessman Vijay Mallya has been contested.
Public sector banks (PSBs) have recovered Rs 14,131.6 crore through the sale of assets connected to Mallya, Sitharaman told the lok sabha on Tuesday.In a post on X (previously Twitter) on Wednesday, Mallya refuted the claim, stating that banks have collected Rs 14,131.6 crore against a Rs 6,203 crore judgement debt. He questioned the legal justification for banks and the Enforcement Directorate (ED) to recover more than twice the amount that was owed.Even though I have more than doubled the amount of the judgement debt, I am still considered a 'economic offender.' I am entitled to remedy until the ED and banks can provide a legitimate explanation," Mallya said.
Following accusations of financial irregularities and unpaid loans pertaining to his now-defunct Kingfisher Airlines, Mallya departed india in 2016 and was designated a fugitive under the Fugitive Economic Offenders Act.
Vijay Mallya's Reaction To FM's Allegation
"KFA (Kingfisher Airlines) was found to owe Rs 6203 crores, including Rs 1200 crores in interest, by the Debt Recovery Tribunal. The FM declared in parliament that I am still an economic criminal even though banks had recovered Rs 14,131.60 crores from me through the ED against the judgement amount of Rs 6203 crores. I am entitled to relief, which I shall seek unless the ED and banks can legitimately explain how they have absorbed more than twice the amount," Mallya stated.The Claim Made by nirmala sitharaman Against Vijay Mallya
nirmala sitharaman informed the lok sabha tuesday evening during the discussion of Supplementary Demands for Grants - First Batch for 2024-2025 that the government enforcement agency has successfully restored properties valued at around Rs 22,280 crore, excluding only the most significant cases.
According to the minister, the whole attached property of fugitive billionaire Vijay Mallya, valued at Rs 14,131.6 crores, has been returned to public sector banks.
Another fugitive, Nirav Modi, has had Rs 1,052.58 crores returned to public and private sector banks.The banks received Rs 17.47 crores in the National Spot Exchange Ltd (NSEL) scam, along with Rs 20.15 crores from SRS Group, Rs 19.40 crores from Rose Valley Group, Rs 185.13 crores from surya Pharmaceuticals Ltd, Rs 226 crores from Nowhera Sheikh and Others (Heera Group), and Rs 12.73 crores from Naidu Amrutesh reddy and Others.According to her, Mehul Choksi and other properties valued at Rs 2,565.90 crores have been restored.
The Finance minister stated that her government has not abandoned anyone who has committed economic violations, citing the quantity of properties that have been attached and ultimately turned over to the banks."It is critical to acknowledge that we are pursuing those who have committed economic violations; we have not abandoned them. During the lok sabha reply, she stated, "We will make sure that the money that needs to go to the banks is returned."
The Union minister remained upbeat about economic expansion, claiming that the weak GDP growth numbers for the second quarter were a "temporary blip."
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