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Vijay Mallya alleges that his request to then Finance Minister Pranab Mukherjee to downsize Kingfisher Airlines’ operations was turned down.
Fugitive businessman Vijay Mallya, who faces fraud and money laundering charges, has disclosed fresh insights into the collapse of Kingfisher Airlines. Mallya claimed he had presented a proposal to then Finance Minister Pranab Mukherjee to downsize the airline as a means to rescue it. However, he said the plan was met with resistance.
In a conversation with YouTuber Raj Shamani, Mr. Vijay Mallya reflected on the downfall of Kingfisher Airlines, largely attributing its collapse to the 2008 global financial crisis. He stated that the airline had been running smoothly until the crisis hit, but the economic downturn brought major challenges. According to Mallya, the financial turmoil had a widespread impact on India, disrupting nearly every sector of the economy.
The money dried up, and the value of the Indian rupee declined,” Mr. Mallya stated.
Kingfisher Airlines, launched in 2005, initially received acclaim for its premium services. However, financial troubles mounted as the global economic situation deteriorated. Acknowledging the worsening conditions, Mr. Mallya said he approached Pranab Mukherjee to request approval to scale down Kingfisher’s operations.
“I approached Shri Pranab Mukherjee and explained my predicament. I told him that Kingfisher Airlines was facing severe economic challenges, and to survive, we would need to reduce the fleet size and let go of some employees, as continuing operations at the current scale was no longer financially viable,” said Mr. Mallya.
Mr. Mallya stated that his appeal was turned down, saying, “I was advised not to scale down. I was assured that the banks would continue to support us. That’s how everything began.”
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He went on to say that despite these assurances, Kingfisher Airlines was eventually forced to suspend all operations due to escalating financial difficulties.
During the podcast, the liquor baron responded to allegations regarding his financial affairs, asserting that he had made four settlement offers to the banks, all of which were rejected despite his genuine intention to repay the dues.
He criticised the banks for their lack of transparency, claiming he never received a formal statement of account despite sending 15 reminders. He further stated that the total outstanding debt of Rs 14,131.6 crore came to his knowledge only through a statement made by the finance minister in Parliament.
Citing a Debt Recovery Tribunal certificate, Mr. Mallya contested media claims of a ₹9,000 crore debt, asserting that the official figure is ₹6,203 crore. He also challenged being branded a “chor,” arguing that he has repaid more than the amount due. Mr. Mallya stated he is willing to face trial — not for any misconduct, but over alleged bad intentions.
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