Vijay Mallya's BIG claim on Kingfisher crisis: 'Reached out to then FM Pranab Mukherjee, he rejected downsizing'
Chief of the defunct Kingfisher Airlines, Vijay Mallya, who is facing trial for alleged fraud and money laundering amounting to ₹ 9,000 crore, sat down for a candid conversation with podcaster Raj Shamani. Released on Thursday, the episode featured Mallya opening up about the downfall of Kingfisher Airlines, attributing its collapse largely to the 2008 global financial crisis.
Speaking about the period, Mallya said, 'So agreed then it worked in your favour till 2008. What happened then? Simple. You ever heard of Lehman Brothers? You ever heard of the global financial crisis, right? Did it not impact India? Of course, it did.'
He elaborated that the crisis had a widespread impact across all sectors, not just aviation, saying, 'Every sector was hit. The money stopped. It got dry. The value of the Indian rupee also took a hit.'
Read | Vijay Mallya on unpaid salaries of Kingfisher staff: 'There was money, banks objected'
Recounting his efforts to save Kingfisher, Mallya shared that he approached then-Finance Minister Pranab Mukherjee. 'I went to Shri Pranab Mukherjee... and said I have a problem. Kingfisher Airlines needs to downsize, cut the number of aircraft, and lay off employees, as I can't afford to operate under these depressed economic circumstances,' he said.
'I was told not to downsize. You continue, banks will support you. That is how it all started. King Fisher Airlines has been forced to suspend all of its flights. King Fisher Airlines has been struggling. At the time when you asked loan, the company was not doing that great,' Fugitive liquor baron said.
Vijay Mallya, speaking on the podcast, said it's 'fair' to call him a 'fugitive' for not returning to India after March 2016. However, he questioned why people are calling him a 'chor' (thief) and asked where the 'chori' (theft) is.
'Call me a fugitive for not going to India post-March (2016). I didn't run away, I flew out of India on a prescheduled visit. Fair enough, I did not return for reasons that I consider are valid, so if you want to call me a fugitive, go ahead, but where is the 'chor' coming from… where is the 'chori'?' he said.
The Indian government has not yet responded to Mallya's comments made in the podcast.
Vijay Mallya is accused of defrauding a consortium of Indian banks of over ₹ 9,000 crore (approximately $1.2 billion), primarily through loans granted to his now-defunct Kingfisher Airlines. In February this year, Mallya informed the Karnataka High Court that the ₹ 6,200 crore debt he owes to the banks has been recovered 'multiple times over,' and requested a detailed statement of accounts showing the amounts recovered from him, United Breweries Holdings Limited (UBHL, now in liquidation), and other certificate debtors.
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