Recovering ₹15,000 crore from Vijay Mallya won’t end his money laundering case: ED to court

Recovering the bank dues from fugitive businessman Vijay Mallya – that amount to ₹15,000 crore – will not conclude his pending money-laundering case or criminal proceedings, the Enforcement Directorate (ED) has informed the Bombay High Court. Mallya has often put up posts on social media, claiming that the agency has recovered over ₹14,000 from him, and yet continued to label him a fugitive.

In its reply, filed through advocate Ashish Mehta, the ED stated that recovery of bank dues by the SBI-led consortium is separate from criminal proceedings related to alleged scheduled offences and money laundering under the Prevention of Money Laundering Act (PMLA).

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Mallya has sought closure of the long-pending case before the High Court, arguing that his civil liabilities have been settled. His lawyers claimed that the consortium recovered around ₹15,000 crore against an original claim of about ₹6,203 crore, including interest.

The ED rejected the argument that this recovery makes the criminal proceedings redundant. While the amount recovered may affect the calculation of outstanding civil dues, it does not determine whether the alleged scheduled offences or money laundering have been established, the agency said.

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The ED also noted Mallya’s continued absence from India and failure to submit to the jurisdiction of the competent criminal court. "His continued absence and conduct, therefore, remain relevant to the overall factual background of the present proceedings," the agency added.

The agency stated that assets worth approximately ₹14,131.60 crore had been restored or handed over to the SBI-led consortium through orders passed during the restoration process by a special PMLA court in Mumbai.

According to the ED, restoration of assets under Section 8(8) of the PMLA is a statutory mechanism for restitution and does not determine whether a scheduled offence or money laundering has occurred. Therefore, subsequent recovery or restoration of assets cannot extinguish or render pending PMLA proceedings infructuous.

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Mallya has been in the UK since leaving India in 2016 and was declared a fugitive economic offender in 2019. His broader legal battle also includes a challenge to the constitutional validity of the Fugitive Economic Offenders Act and proceedings declaring him a fugitive economic offender.

The High Court recently gave Mallya a final opportunity to clarify whether he intends to return to India and submit to its jurisdiction. The matter is expected to be considered further after the court examines the ED’s stand and the status of proceedings against him.