'Travesty of justice is simply staggering': Shankar Sharma backs Vijay Mallya after claim of Rs 14,131 cr bank recovery

Investor Shankar Sharma has come out in support of fugitive liquor baron Vijay Mallya, questioning the Indian justice system after Mallya claimed that banks recovered more than double the amount he owed. "The travesty of justice against you is simply staggering, Vijay. What rule of law and Article 14 equality before law, do we have here,” Sharma wrote in response to Mallya’s latest post on X.

Mallya claimed that Indian banks had recovered ₹14,131.8 crore against a judgment debt of ₹6,203 crore. “Finally, against aT judgment debt of Rs 6,203 crore, admitted recovery of Rs 14,131.8 crore, which will be evidence in my UK bankruptcy annulment application. Wonder what banks will say in an English Court,” Mallya said.

He also shared a graphic titled The Great Haircut Story, originally posted by the All India Bank Employees Association (AIBEA), highlighting the steep losses banks incurred while resolving other high-profile corporate bad loans. According to the chart, banks wrote off 64% of dues in 13 large accounts, recovering ₹1,61,820 crore out of a total ₹4,46,800 crore loaned out.

Major defaulters listed include DHFL (₹91,000 crore loan, settled for ₹37,000 crore), Essar (₹54,000 crore loan, settled for ₹42,000 crore), Bhushan Steels (₹57,000 crore loan, settled for ₹35,000 crore), and Videocon (₹46,000 crore loan, settled for ₹2,900 crore). Some recoveries were as low as 5%, with ABC Shipyard and Sivasankaran Industries settled for just a fraction of what was owed.

The resolution of these loans, as per the chart, was often in favour of major corporate buyers, including ArcelorMittal, Tata, JSW, Vedanta, and Reliance. The AIBEA chart closed with a message: “People’s money for people’s welfare – Not for private corporate loot” and a call to withdraw the Bank Privatisation Bill.

Mallya pointed to the Finance Ministry's annual report for 2024–25, which stated that properties worth ₹14,131.6 crore belonging to him had been restored to public sector banks by the Enforcement Directorate (ED). The report, which details action against fugitive economic offenders, noted that 44 extradition requests have been made globally for 36 individuals.

“In this regard, it is pertinent to mention that the UK Court has approved extradition of few high profile accused persons to India following effective representation of the Directorate in coordination with other LEAs and Indian mission abroad,” the report stated.

Mallya fled to the UK in March 2016 and is wanted in India for defaulting on loans amounting to ₹9,000 crore, taken by the now-defunct Kingfisher Airlines from multiple banks. In 2017, the Debt Recovery Tribunal’s Bengaluru bench had ordered a recovery of ₹6,203 crore with 11.5% annual interest from Mallya and his companies.