“I’m No Thief”: Vijay Mallya Breaks Silence in Viral Podcast But How Much Does He Really Owe?

Vijay Mallya, a fugitive businessman and former promoter of Kingfisher Airlines, has been embroiled in a longstanding financial dispute with a consortium of Indian banks over unpaid loans. The controversy centers around loans extended to Kingfisher Airlines, which later defaulted, resulting in huge non-performingassets (NPAs) for the banks. Mallya left India for the UK in March 2016 amid mounting legal proceedings. Since then, the Indian government has pursued his extradition, with cases still pending in UK courts.

The core of the dispute revolves around the total debt owed, the extent of recovery by the banks, and Mallya’s claims that he has already settled his dues.

Mallya’s Podcast Claims

In a four-hour video podcast with entrepreneur Raj Shamani, released just days before June 10, 2025, Mallya made a series of claims regarding the debt controversy. The podcast has since gone viral, amassing over 20 million views in four days. Key highlights from Mallya’s statements include:

• Settlement Offers: Mallya claimed that between 2012 and 2015, he made four settlement offers, all of which were rejected by the banks. He cited a specific meeting with the then-chairperson of the State Bank of India (SBI) at the SBI training academy in Hyderabad, during which he proposed a settlement that was turned down as banks insisted on Rs. 14,000 crore. “It was always my intention to settle. Never did I say I didn’t want to pay,” he explained.
• Amount Recovered: He claimed that banks had already recovered approximately Rs. 14,000 crore against a principal loan amount of Rs. 6,200 crore. He referenced a December 2024 statement by Union Finance Minister Nirmala Sitharaman in the Lok Sabha, which corroborated the Rs. 14,000 crore recovery. Mallya also cited supporting documents from the Debt Recovery Tribunal (DRT) in Bengaluru.
• Nature of the Debt: According to Mallya, Kingfisher Airlines was the primary borrower, and he acted as guarantor, infusing Rs. 3,000 crore via United Breweries (UB) Holdings. He stated that the debt was spread across four entities: Kingfisher Airlines, United Breweries, himself, and another company.
• Fraud Allegations: He strongly denied charges of fraud, cheating, criminal conspiracy, and money laundering. “Where is the chor (thief) and where is the chori (theft)?” he asked, reiterating that he had not stolen any money. He also publicly apologized to Kingfisher Airlines employees and expressed a desire to “set the record straight” in a follow-up post on X (formerly Twitter).
• Collateral Used: Mallya claimed that the Rs. 14,000 crore recovery included proceeds from personal shares and assets used as collateral, such as the Kingfisher brand, real estate, stocks, and other properties.

He further mentioned filing a petition in the Karnataka High Court seeking a comprehensive account statement from the banks, including details on accrued interest, in order to clarify the actual outstanding amount.

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Government and Banks’ Response

The Indian government and banks have categorically disputed Mallya’s claims, offering a different account of the financial obligations:

• Total Liability: According to a June 9, 2025, report in The Times of India, Mallya’s total liability as of April stands at Rs. 17,781 crore. This includes:
• Initial NPA from Kingfisher Airlines: Rs. 6,848 crore (as of June 2013)
• Accrued interest and charges: Rs. 10,933 crore
• Recovery to Date: Banks have recovered Rs. 10,815 crore through legal and asset recovery processes, including the sale of high-profile properties like Kingfisher Villa in Goa. These recoveries were carried out under court-supervised processes, including those authorized by the Prevention of Money Laundering Act (PMLA).
• Outstanding Amount: The remaining amount due is Rs. 6,997 crore (Rs. 17,781 crore total liability minus Rs. 10,815 crore recovered).
• Government’s Stand: Officials argue that Mallya’s focus on the Rs. 6,200 crore principal ignores substantial accrued interest and penalties, which significantly increase the overall liability. Authorities have rejected his allegations of harassment and undue legal pressure, asserting that all recovery measures followed due legal procedures.
• Legal Developments: Indian banks led by SBI recently secured a legal victory in a UK court, which upheld a bankruptcy order against Mallya for a judgment debt estimated at £1.05 billion (approx. Rs. 11,000 crore), reinforcing the banks’ stance that significant debt remains unpaid.

An article from MSN echoed the government's position, stating that Mallya’s claims of overpayment do not hold up against official records.

Discrepancy in Claims: A Breakdown

The divergence in narratives arises from differing interpretations of key financial terms:

• Principal vs. Total Liability: Mallya’s argument hinges on the principal loan amount of Rs. 6,200 crore (or the DRT judgment debt of Rs. 6,203 crore). He contends that the Rs. 14,000 crore recovered covers this obligation multiple times over. However, banks include interest, penalties, and legal costs, arriving at a total liability of Rs. 17,781 crore.
• Recovery Calculations: Mallya’s figures possibly incorporate market valuations or collateralized assets, whereas banks may deduct legal fees and interest costs before calculating net recoveries.
• Legal Context: The legal battle continues across jurisdictions, with Mallya pursuing relief in Indian courts while banks enforce recovery orders internationally.

Key Financial Summary

This table explains the gap between Mallya’s narrative and the official position, with the banks claiming a remaining liability of nearly Rs. 7,000 crore

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Historical Context and Related Legal Issues

The controversy also draws from a broader history of questionable lending practices. During 2009-2012, Mallya met with then-Finance Minister Pranab Mukherjee, who reportedly advised against downsizing Kingfisher Airlines. A consortium of 17 banks proceeded to extend loans despite the airline’s weak credit profile. Subsequent investigations led to the arrest of former IDBI Bank chairman Yogesh Agarwal for alleged loan irregularities, further intensifying scrutiny on the lending process.

Conclusion

In his recent podcast, Vijay Mallya repeated that he intended to settle his debts and claimed banks have recovered Rs. 14,000 crore, far exceeding the Rs. 6,200 crore principal. However, the government and banks maintain that the total liability, including interest and penalties, is Rs. 17,781 crore, with only Rs. 10,815 crore recovered, leaving an unpaid balance of Rs. 6,997 crore.

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