ED tells court Mallya debt recovery does not end money laundering case

The Enforcement Directorate has told the Bombay High Court that the recovery of bank debts from fugitive businessman Vijay Mallya does not end the money laundering case against him. In an affidavit filed on September 8, 2026, the central agency argued that criminal proceedings under the Prevention of Money Laundering Act remain valid despite the restoration of assets to lenders. The ED's submission came in response to a 2020 petition filed by Mallya seeking closure of criminal cases against him. Mallya had argued that his dispute with the banks stood settled after the lenders recovered their outstanding debts. The agency, however, maintained that movable and immovable properties worth Rs 14,131.6 crore had been handed over to the State Bank of India-led consortium, but this did not cancel or lead to the dropping of money laundering charges. According to the ED, Mallya left India in March 2016 and failed to appear before the investigating authority despite repeated summons. A non-bailable warrant was subsequently issued against him, and he was declared a proclaimed offender in November 2016.