Businessman Vijay Mallya, represented by his legal counsel, argued before the Karnataka High Court that creditor banks should cease charging further interest on amounts already recovered from him and UB Holdings. His representation cited recovery officer certificates indicating approximately Rs 10,000 crore has been recovered, with a statement from the finance minister suggesting the fully recovered amount stands at Rs 14,131 crore. This is juxtaposed against a Debt Recovery Tribunal certificate for Rs 6,200 crore plus interest, with Mallya contending that interest should not accrue after such recoveries.
The respondent creditor banks, including State Bank of India, Punjab National Bank, and Bank of Baroda, raised concerns about Mallya's fugitive status and questioned whether the High Court was the appropriate forum for his petition. The High Court had previously expressed reservations regarding the maintainability of the petition at its level, suggesting a company court might be more suitable for the matter.
Source: https://indianexpress.com/article/legal-news/banks-cant-charge-interest-recovered-amounts-vijay-mallya-karnataka-high-court-10346824/