Vijay Mallya Still Evading Indian Law, Asset Recovery Does Not Absolve Him Of Money Laundering Charges: ED To Bombay HC

Mumbai, September 11, 2026 - Former liquor baron Vijay Mallya remains in active evasion of India's legal system, and the recovery of debts by banks does not absolve him of money laundering charges, according to the Enforcement Directorate (ED) which submitted an affidavit to the Bombay High Court on September 8. The central agency filed its response to a petition filed by Mallya in 2020 seeking the closure of the criminal cases against him.

He had argued that the debts to banks were settled after the assets were recovered. However, the ED clarified that the assets, totaling Rs 14,131.6 crore, handed over to the SBI-led consortium do not lead to the dropping of the money laundering charges against Mallya. Mallya left India in March 2016 and has not appeared before the investigating authority despite multiple summons, resulting in a non-bailable warrant being issued against him.

In 2016, he was declared a proclaimed offender. The ED maintains that Mallya is evading the legal process and has not returned to India or submitted to the jurisdiction of a criminal court. The ED further stated that the criminal prosecution started under the Prevention of Money Laundering Act (PMLA) is not rendered void because banks have recovered significant amounts from the assets restored to them.

Mallya is accused of money laundering and misappropriating at least Rs 3,500 crore out of Rs 9,000 crore in bank loans given to his defunct Kingfisher Airlines.