Fugitive businessman Vijay Mallya has once again stirred controversy with his latest post on X (formerly Twitter), where he took a sharp jab at India’s Insolvency and Bankruptcy Code (IBC) processes. This time, his target was a 95% loan haircut deal involving his own father-in-law, C Sivasankaran.
In his post, Mallya remarked, “Last one best. Father-in-law acquires it after 95% haircut,” alluding to a business acquisition where banks reportedly wrote off 95% of the loan amount. Drawing a comparison to his own case, Mallya claimed that banks recovered over ₹14,000 crore from him—more than double his judgment debt of ₹6,203 crore.
“And in my case Banks recovered in excess of ₹14,000 crores against a judgement debt of ₹6,203 crores,” he wrote, sharing data highlighting massive loan haircuts in other cases.
The post has reignited debate around the effectiveness and fairness of India’s loan recovery system, especially the IBC. While some view Mallya’s comments as an attempt to seek public sympathy or validation, others believe his claims raise important questions about transparency and accountability in high-profile loan recovery cases.
Key Points:
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Vijay Mallya’s claim: Banks recovered more than ₹14,000 crore from him.
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Target of criticism: 95% haircut on a company acquired by his father-in-law.
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Debate rekindled: Are India’s bad loan resolutions under IBC truly fair?
Mallya’s legal troubles continue in the UK where he is fighting extradition to India on fraud and money laundering charges. Yet, his social media activity keeps him in the spotlight—sometimes with more drama than a corporate boardroom.
