Latest news with #PranabMukherjee
Hans India
a day ago
- Business
- Hans India
Vijay Mallya Reveals New Details on Kingfisher Airlines Collapse and 2008 Financial Crisis Impact
Fugitive businessman Vijay Mallya, who is facing allegations of fraud and money laundering, has shared new information about why Kingfisher Airlines failed. He said that he spoke to the Finance Minister at the time, Pranab Mukherjee, with a plan to reduce the size of the airline in order to save it. According to Mallya, his request was refused. In a discussion with YouTuber Raj Shamani, Mallya talked again about the collapse of Kingfisher Airlines, saying that most of the airline's problems were caused by the global financial crisis in 2008. He explained that Kingfisher Airlines worked well up until 2008, but things changed badly when the financial crisis started. The economic slowdown had a big effect on India and hurt almost every part of the economy, he added. Mallya said the money stopped flowing, it dried up, and the value of the Indian rupee also went down. Kingfisher Airlines began operating in 2005 and got good reviews for its high-quality service. But as the world economy got worse, the company's money problems increased. Mallya said that because the economy was getting worse, he spoke to Pranab Mukherjee to get permission to reduce Kingfisher's operations. He told Mukherjee that he had a problem and that Kingfisher Airlines needed to reduce the number of airplanes and lay off some workers because he could no longer afford to run the airline with the poor economic situation.
NDTV
a day ago
- Business
- NDTV
Vijay Mallya On Kingfisher Airlines Downfall: "I Went to Shri Pranab Mukherjee"
Fugitive businessman Vijay Mallya, facing fraud and money laundering allegations, has revealed new details about Kingfisher Airlines' downfall. He said he approached then Finance Minister Pranab Mukherjee with a plan to downsize the airline to save it. According to Mr Mallya, his request was met with opposition. In a conversation with YouTuber Raj Shamani, Mr Mallya revisited the collapse of Kingfisher Airlines, attributing much of the airline's troubles to the 2008 global financial crisis. He said that Kingfisher Airlines operated smoothly until 2008, but the situation changed drastically with the onset of the global financial crisis. The economic downturn had a significant impact on India, affecting nearly every sector of the economy, he said. 'The money stopped. It got dry. The value of the Indian rupee also took a hit,' Mr Mallya said. Kingfisher Airlines was launched in 2005, and it earned praise for its premium service. However, financial difficulties escalated as the global economy faltered. Mr Mallya said that recognising the worsening economic climate, he reached out to Pranab Mukherjee to seek permission to shrink Kingfisher's operations. 'I went to Shri Pranab 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,' Mr Mallya said. Mr Mallya claims his appeal was rejected. 'I was told not to downsize. You continue, banks will support you. That is how it all started.' Mr Mallya added that despite these assurances, Kingfisher Airlines was ultimately compelled to halt all flights amid mounting financial troubles. During the podcast, the liquor baron also addressed allegations around his financial dealings, claiming he made four settlement offers to banks that were rejected despite his clear intent to repay. He criticised the lack of transparency from banks, stating he never received a formal statement of account despite 15 reminders, and that the total debt of Rs 14,131.6 crore was only revealed through a finance minister's statement in Parliament. Citing a Debt Recovery Tribunal certificate, Mr Mallya disputed media reports of Rs 9,000 crore debt, insisting the documented figure is Rs 6,203 crore. He also questioned being labelled a 'chor' despite having repaid more than what was owed and said he is prepared to stand trial — not for wrongdoing, but for alleged bad intentions.
Time of India
a day ago
- Business
- Time of India
Vijay Mallya claims Pranab Mukherjee told him to keep flying despite crisis in Kingfisher cabin
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Fugitive businessman Vijay Mallya has laid bare a dramatic accusation against former Finance Minister Pranab Mukherjee , claiming that his request to downsize Kingfisher Airlines during the 2008 global financial crisis was firmly denied, with Mukherjee assuring him that the banks would keep the airline a podcast interview with Raj Shamani, Mallya traced the roots of Kingfisher Airlines' fall, pointing fingers at decisions made at the highest corridors of power. '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,' Mallya recounted. 'I was told not to downsize. You continue, banks will support you. That is how it all started.'For Mallya, the 2008 global financial meltdown was the pivotal blow. '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 said. The crisis, he explained, was relentless, striking every sector, drying up capital, and dragging down the Indian rupee, deepening Kingfisher's financial Airlines had soared high since its 2005 launch, celebrated as a luxury carrier. But the refusal to allow the airline to shrink forced it to fly beyond its means, ultimately grounding all flights amid mounting the podcast, Mallya also confronted the controversy over his financial liabilities. He claimed to have made four settlement offers to the banks, all rejected despite his clear intent to repay. He slammed the banks for a veil of secrecy, claiming that he never received a formal statement of accounts despite sending 15 reminders. 'The total debt of Rs 14,131.6 crore was only revealed through a finance minister's statement in Parliament,' he revealed, questioning the transparency and accuracy of the debt his stance, Mallya cited a Debt Recovery Tribunal certificate to dispute media reports claiming a Rs 9,000 crore debt, insisting the official figure is Rs 6,200 crore. Challenging his vilification as a 'chor' (thief), he asserted that he has repaid more than owed. 'I am prepared to stand trial, not for wrongdoing, but for alleged bad intentions,' he his 'fugitive' label, Mallya admitted it was 'fair' to call him that for not returning to India after March 2016, but stressed he left on a pre-scheduled visit and did not 'run away.' 'If you want to call me a fugitive, go ahead, but where is the 'chor' coming from… where is the 'chori'?' he this year, Mallya informed the Karnataka High Court that the Rs 6,200 crore debt owed to Indian banks has been 'recovered multiple times over,' requesting a detailed account of sums recovered from him, United Breweries Holdings Limited (now in liquidation), and others linked to the 2016, Mallya has remained in the United Kingdom, locked in a legal battle against extradition to India on fraud and money laundering charges related to Kingfisher's massive bank loans.
India.com
a day ago
- Business
- India.com
Ex RCB owner Vijay Mallya makes SHOCKING claim on Kingfisher issue: ‘Reached out to then…,
Head of the defunct Kingfisher Airlines, Vijay Mallya, who is facing trial for alleged fraud and money laundering of Rs 9,000 crore first time opened up about all the controversies in a podcast with Raj Shamani. The full episode of around 4 hours was released on Thursday wherein Mallya spoke about various things including the downfall of Kingfisher Airlines. He attributed its collapse largely to the 2008 global financial crisis. While talking about Kingfisher Airlines he 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 said. He added that the crisis had impacted many sectors like aviation and said, 'Every sector was hit. The money stopped. It got dry. The value of the Indian rupee also took a hit.' He also mentioned his efforts to save Kingfisher and 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,' He added.
Hindustan Times
a day ago
- Business
- Hindustan Times
‘Call me a fugitive… but I am not a chor': Vijay Mallya addresses charges against him
Vijay Mallya, wanted in India on charges of fraud and money laundering involving over ₹9,000 crore, spoke about the cases against him in a four-hour podcast conversation with entrepreneur Raj Shamani. The former Kingfisher Airlines chief addressed his controversial exit from India, legal battles, the downfall of his airline and his problem on being called a 'chor'. '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'?' Mallya said on the podcast. Mallya, who has lived in the UK since 2016, also commented on whether staying abroad worsened his legal troubles. 'If I have assurance of a fair trial and a dignified existence in India, you may be right, but I don't,' he said. When asked directly if he would return to India under assurances of fairness, Mallya replied, 'If I am assured, absolutely, I will think about it seriously.' He also cited a UK High Court of Appeal ruling in another extradition case, stating that Indian detention conditions had been found to violate Article 3 of the European Convention on Human Rights. 'Therefore they can't be sent back,' Mallya said, implying that he had similar concerns. The Indian government has not yet responded to Mallya's comments made during the interview. Revisiting the downfall of Kingfisher Airlines, Mallya said the 2008 global financial crisis was a major trigger. '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 told Shamani, adding, 'Every sector was hit. The money stopped. It got dry. The value of the Indian rupee also took a hit.' According to Mallya, he approached then-finance minister Pranab Mukherjee with a restructuring plan. '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. However, he claimed he was advised against downsizing and was promised support from banks. '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,' Mallya recounted. Mallya's legal troubles continue to mount. On April 9 this year, he lost an appeal against a bankruptcy order issued by a London High Court in connection with a ₹11,101 crore debt to a consortium of Indian lenders, including the State Bank of India. In February, Mallya approached the Karnataka High Court, arguing through his legal counsel that banks have already recovered ₹14,000 crore - well above the ₹6,200 crore originally due. He requested the court to direct lenders to provide a detailed breakdown of the recovered amount. Acting on the plea, a bench led by Justice R Devadas issued notices to the concerned banks and debt recovery officers. Despite this, Indian authorities continue to pursue Mallya's extradition to face trial for financial crimes related to Kingfisher Airlines, which ceased operations in 2012.
