Vijay Mallya, an elusive millionaire who is suspected of defaulting on bank loans, has made a lavish display of repentance. Mallya, who travels in the UK, expressed regret for the demise of his Kingfisher Airlines during a four-hour podcast appearance. Taking ownership of the airline’s demise, Mallya said, “I apologise to everyone for the failure of Kingfisher Airlines.“
He did, however, also claim that he is not a Chor. “You may call me elusive, but I didn’t run away,” Mallya stated in response to accusations of financial misconduct. On a scheduled visit, I took a plane. Okay, so I didn’t come back for reasons I think are legitimate, so feel free to label me a fugitive.
He also stated in the podcast that he would be open to going back to India in specific situations. “If I have a fair assurance of a fair trail and dignified existence in India, I will think about it seriously.” Mallya said that the money he owed banks had been retrieved from him at various times.
Harsh Goenka, an industrialist, has defended Mallya. Goenka posted on X in response to Mallya’s remarks in the podcast: “Yes, Vijay Mallya enjoyed a good life. Yes, it defaulted. His outstanding debt of over Rs 9,000 crore has apparently been paid off, unlike most others. Larger defaulters, meanwhile, get away with having far greater haircuts from banks. The banks should make it apparent if there are any outstanding dues. If not, what keeps him as a political target? Justice must be impartial, not biased.
Mallya responded, “Thank you Harsh,” on X. “Banks have recovered Rs 14,100 crores from me against a DRT judgement debt of Rs 6,203 crores, according to written confirmation from the Union Finance Ministry. Why is the discrimination so obvious?
Mallya owes about Rs 9,000 crore to Indian banks. Since 2016, he has been living in the UK after fleeing India. Finance Minister Nirmala Sitharaman told the Lok Sabha in December of last year that the Enforcement Directorate (ED) had returned assets totaling Rs 14,000 crore to several banks as a result of the sale of Mallya’s holdings.
Mallya may feel that he is not a thief and that he is a victim rather than a criminal, but the accusations against him are undoubtedly much more complex than just repaying an unpaid debt. Mallya has been charged by investigating authorities with many counts of fraud, money laundering, and criminal conspiracy. In the Kingfisher Airlines case, bank employees were also taken into custody. The primary cases against Mallya are listed below:
Rs 6,900 crore loan default: Mallya and Kingfisher Airlines were charged by the Central Bureau of Investigation (CBI) in 2016 for allegedly failing to repay debts totaling Rs 6,900 crore from a group of 17 public sector banks. According to the Indian Penal Code (IPC), the allegations include criminal conspiracy and cheating.
Rs 6,900 crore loan default:
Mallya and Kingfisher Airlines were charged by the Central Bureau of Investigation (CBI) in 2016 for allegedly failing to repay debts totaling Rs 6,900 crore from a group of 17 public sector banks. According to the Indian Penal Code (IPC), the allegations include criminal conspiracy and cheating.
IDBI Bank loan of Rs 900 crore:
In 2017, Mallya and others were charged by the CBI in a case involving IDBI Bank loan default of Rs 900 crore. Corruption, deception, and criminal conspiracy are among the accusations. According to the agency, public monies were lost as a result of the loan being approved without following the correct processes.
Indian Overseas Bank loan of Rs 180 crore:
In 2024, a special CBI court issued a non-bailable warrant against Mallya in relation to an Indian Overseas Bank loan default case worth Rs 180 crore. According to the CBI, Mallya purposefully defaulted on the loan, causing the bank to suffer an erroneous loss.
Enforcement Directorate (ED) case involving money laundering:
Mallya has been charged by the ED in accordance with the Prevention of Money Laundering Act (PMLA). According to the agency, Kingfisher Airlines misappropriated at least Rs 3,547 crore of the bank loan. Examples of purported diversion include payments for a corporate plane that Mallya uses solely, excessive invoices for aircraft lease charges, and transfers to the Force India Formula One team and the Royal Challengers Bangalore IPL team.
Evasion of service taxes
Rs 100 crore service tax default: Despite collecting this amount from passengers, Kingfisher Airlines failed to pay over Rs 100 crore in service tax, which prompted complaints from the service tax department in 2012 and 2015. In this case, a Mumbai court issued non-bailable warrants against Mallya and others.
Fraud and business mismanagement
The case of the Serious Fraud Investigation Office (SFIO): The SFIO sent notifications to 17 businesses in July 2016 for using bank loans to fund the now-defunct Kingfisher Airlines. Financial problems and corporate misgovernance were discovered during the examination.
The claim that Mallya had recovered debt “multiple times over”
Mallya launched a challenge against the debt recovery proceedings against him in the Karnataka high court in February of this year. Mallya requested in his petition that the banks of accounts provide a statement of the sums he owes to United Breweries Holdings Limited and other certificate debtors. It was argued that the money owed had already been retrieved, and Mallya was still the target of further recovery actions.
In parallel, a debt recovery process was initiated, wherein Kingfisher, the principal debtor, and UBHL, the guarantor, were forced to pay Rs 6200 crore. Additionally, that order became final,” Mallya’s lawyer stated.
But as of right now, the recovery officer claims that Rs 10,200 crore has been recovered, despite the fact that Rs 6200 crore was collected several times between 2017 and that I have an admitted statement. However, according to the official liquidator, banks have recovered their funds. Finally, the Finance Minister announced in Parliament that 14,000 crore had been recovered,” he continued.
