When asked if he had any regrets, Mallya replied, “I regret one thing—that after all my hard work and value creation, the government and media made me a zero from a hero. That’s a fact of life I’ve had to live with.”
Published Jun 06, 2025 | 4:32 PM ⚊ Updated Jun 06, 2025 | 5:09 PM
Vijay Mallya. (Screengrab)
Synopsis: In a recent podcast, Vijay Mallya broke his nine-year silence, denying fraud and money laundering charges. He blamed political targeting, media sensationalism, and government inaction for Kingfisher Airlines’ collapse. Mallya maintained he was only a guarantor, not borrower, and that he offered loan settlements. He expressed willingness to return if assured a fair trial and dignified treatment.
Businessman Vijay Mallya recently ended his nine-year silence by participating in a podcast interview with Raj Shamani, where he addressed various aspects of his life and legal battles. The businessman spoke about the rise and fall of Kingfisher Airlines, loans, being called a “chor”, and how he has been treated as a “political football” between Congress and BJP.
“For the last nine years, I have been the subject of a vicious, relentless trial by media in India,” said Vijay Mallya. He expressed frustration over the negative narratives that have surrounded him. “I have become a lightning rod of public anger, being abused, called names,” he added. Mallya said the experience had been deeply damaging both professionally and personally.
Asked why he chose an online platform rather than traditional media, Vijay Mallya claimed, “Rather than try and take on this huge Indian media machine, I just prefer to keep quiet,” he explained. But with the rise of new media, he now sees a chance to share his side. Recalling a shift in the U.S., he said, “When President Trump was inaugurated, the White House press secretary said that for the very first time, a few seats were going to be reserved for people who represented new media or social media.”
“In India, public opinion is quickly formed and heavily influenced by sensationalism,” said Vijay Mallya. He recalled a moment from 2016 when a TV anchor shouted, “Vijay Mallya, I want to see you in jail clothes. I want to see you eat jail food,” while displaying an image of him in prison attire. “What for? I always wondered what for,” he said.
He expressed frustration that false accusations were made daily with no accountability. “One of the reasons I agreed to sit with you today is because the Ministry of Finance has finally acknowledged ₹14,100 crores recovered from me,” he noted, referencing the government’s official report and statement in Parliament. “The legacy media can’t argue with that anymore.”
Mallya explained that the Debt Recovery Tribunal ruled Kingfisher Airlines owed ₹4,999 crores, plus ₹1,203 crores in unapplied interest. “That totals ₹6,203 crores. I was a guarantor—not the borrower,” he emphasized. “So if I duped the banks, where does this all add up? The government has recovered ₹14,100 crores from me.”
He criticized earlier reporting. “There was absolutely no official recovery figure. So the media wrote whatever they wanted, and I had no way to contradict it,” he said. “Now that the government has confirmed it, I think it’s my turn to ask them what they have to say.”
When asked if he had any regrets, Mallya replied, “I regret one thing—that after all my hard work and value creation, the government and media made me a zero from a hero. That’s a fact of life I’ve had to live with.”
“The narrative against me has been built over time by the Indian legacy media and, to some extent, the government—including agencies like the CBI and ED,” Vijay Mallya said. “Much of it is either deliberately misleading or written out of ignorance.”
When asked if there’s a nexus of businessmen, politicians, and media working against him, he responded, “I don’t know who all are against me, but it’s clear this government is. I’ve made no bones about it—I’ve been made their poster boy.”
“I’m also a political football,” he added. “The BJP blames Congress, Congress hits back at BJP, and I’m stuck in the middle.”
“The biggest challenge of doing business in India is the government—extreme government,” Mallya said, adding, “No matter what state or central governments claim about ease of doing business, the reality is very different. There are constant hurdles—bureaucratic and political. While some have reduced over time, India still can’t be compared to Western economies in terms of ease of doing business.”
In 2005, Vijay Mallya launched Kingfisher Airlines with a clear vision: “We wanted to create the best flying experience India had ever seen.” The goal was to offer unmatched passenger comfort and safety, while also connecting parts of India that had never been linked by air travel. He positioned Kingfisher as a premium player in India’s growing aviation infrastructure.
Despite this, the airline began as a low-cost carrier—with enhancements. “We offered in-flight entertainment and meals. Everything else followed the low-cost model: fleet commonality, training, and systems,” Mallya said. He explained the logic behind these add-ons: “Indians love food and entertainment.” According to him, the airline was technically low-cost but elevated the experience where it mattered most to Indian passengers.
As market dynamics shifted, Kingfisher introduced a business class called Kingfisher First. “Certain passengers wouldn’t fly without a front cabin. Jet Airways had it, so we added it,” he said. Vijay Mallya pointed out that even IndiGo, India’s largest low-cost airline, is now adding business class. “So, it’s not such a dumb idea,” he added.
Mallya focused heavily on service quality. “We called them ‘guests,’ not passengers. We even cleaned their spectacles in business class,” he said. His obsession with detail extended to operations: “Every night before bed, I’d review SMS updates from airport managers across India to monitor on-time performance.”
In 2008, the global financial crisis hit hard. “Crude hit $140 a barrel, the rupee collapsed, and funding dried up,” Mallya recalled. He approached then-Finance Minister Pranab Mukherjee for approval to downsize, but was told not to. “He said no—jobs and connectivity were critical—and promised bank support. That’s how it began.”
Mallya also addressed criticism over his acquisition of Air Deccan. “We bought Deccan to consolidate the market and eliminate a disruptor. They were based in Bangalore, used the same Airbus planes, and had compatible training.” While many believed the move was just a shortcut to flying international routes, he called that “complete nonsense.” He emphasized that the logic was strategic: “Industry consolidation and equipment commonality made business sense.”
Rebranding Deccan as Kingfisher Red also drew criticism, but Mallya dismissed it. “What’s the difference between Diet Coke and Coke Zero? Rebranding isn’t rocket science,” he said. Though Kingfisher Red was low-cost, it still carried the brand’s promise of better service. “Even on low-cost flights, we offered catering and decency.”
Vijay Mallya blamed government policies for Kingfisher’s downfall. “Fuel was taxed heavily by states, even as prices soared. I begged the government to make ATF a ‘declared good,’ but they didn’t listen.” He also highlighted the ban on foreign investment. “I had a deal with Etihad. The government didn’t allow it. But six months after Kingfisher shut down, they let Etihad invest in Jet Airways.”
He believes that a mix of economic pressure and government inaction doomed the airline. “In 2008, we were India’s largest airline. If things hadn’t conspired against us, imagine where Kingfisher would be today.” Reflecting on the experience, he concluded, “Sometimes you win, sometimes you lose. But we changed Indian aviation in many ways—and that legacy still matters.”
When Kingfisher Airlines was in turmoil, Vijay Mallya approached then Finance Minister Pranab Mukherjee, who assured him that the banks would support the airline. Contrary to public perception, it wasn’t just one bank but a consortium of around 16 government banks. Kingfisher Airlines never initially borrowed from the State Bank of India; SBI was originally a lender to Air Deccan, and after the merger, became a lender to Kingfisher.
Mallya clarified that despite the airline’s weak financials, loans were granted after thorough appraisal by banks. He personally gave guarantees and also invested ₹3,000 crore of UB Group’s funds into Kingfisher, which he says is never acknowledged by critics.
Mallya defended the loan structure, explaining that the banks took a basket of securities as collateral, not just Kingfisher’s brand value—this included shares in other profitable UB Group companies like United Breweries and United Spirits. He questioned why the media only focused on the brand value aspect while ignoring the ₹14,000 crore banks later recovered from asset sales.
Mallya emphasized he never borrowed personally—the loans were taken by the airline, for which he was only a guarantor. Despite all his efforts, including trying to secure foreign investment, Kingfisher faced severe cash flow issues. Oil companies began demanding advance payments, and airport authorities and vendors stopped services due to non-payment. He admitted the situation deteriorated across the board, but he continued to push in the hope of a revival.
Further speaking about actions taken by him to pay the loans, Mallya noted, “A willful defaulter is someone who has the money but refuses to pay. That was never my case. Between 2012 and 2015, I made four settlement offers to the banks, including in court, but they were all rejected.”
“I even flew to Hyderabad to personally meet the SBI Chairperson and offered a settlement—it was always my intention to repay. I never said I wouldn’t.”
“The banks wanted ₹14,100 crore and rejected my ₹5,000 crore offer, expecting to recover more through asset sales. In the end, they did recover ₹14,100 crore. And yes, there’s proof—official records in the Supreme Court of India, all public documents. Despite my efforts, nothing moved, and the situation just kept getting worse,” he added.
Regarding employee salaries, Mallya said he never willfully withheld pay. He claimed foreign employees were paid only because international ticket sales allowed it, whereas in India, ₹260 crore was frozen by the Karnataka High Court at the banks’ request, which prevented salaries from being disbursed. He denied taking a ₹33 crore salary himself, saying that’s media misinformation and not reflected in any official balance sheet.
On the tragic suicide of an employee’s wife, he acknowledged the incident but said investigations revealed it stemmed from personal issues, though the lack of salary might have contributed. He expressed sympathy for affected families and stated he wrote condolence letters privately.
Mallya defended his lifestyle, arguing that symbolic items like the Tipu Sultan sword or a few cars wouldn’t have changed the financial situation. He rejected the idea that he should have stepped away from his other businesses just because Kingfisher failed, highlighting the continued success of United Spirits and United Breweries. He expressed frustration that the media and public ignore his contributions to Indian industry and only focus on the Kingfisher collapse, turning it into a personal narrative of failure.
“I’m deeply sorry for what happened to the Kingfisher employees, especially those who didn’t get paid. I take full responsibility and offer no excuses,” he said.
“There was money lying with the Karnataka High Court. I applied specifically to use it to pay salaries, but the banks objected, and the court refused permission. Beyond that, there was nothing I could do.”
Responding to criticism about celebrating his 60th birthday while employees were suffering, he clarified: “The airline shut down in 2012. My 60th birthday was in 2015. In that time, all assets were frozen—by banks, tax departments, and courts. Any money infused would have been seized.”
He added, “I told my legal team to explore every way to pay employees. But all funds, even from United Breweries Holdings, were frozen. We requested the court to release money for salaries. The banks objected, and the court denied it. That’s a fact.”
“I’d be very sad if anyone thought I didn’t try. I did everything I could. I’m very sorry for the failure of Kingfisher Airlines and the damage it caused. I gave it my all—money, time, energy—but it didn’t work.”
“There was no Supreme Court hearing on March 3, 2016, that I was summoned to. That claim is false,” Vijay Mallya clarified. “On March 1, I was in Delhi, went to Parliament, and informed Finance Minister Arun Jaitley that I was flying to London for a pre-scheduled FIA meeting in Geneva. I even asked him to tell the banks to sit with me and settle.”
“Later, Mr. Jaitley denied meeting me, but a Congress MP confirmed seeing us. Then he changed his statement, saying it was a fleeting meeting. The media blew everything out of proportion.”
On allegations of fleeing with dozens of suitcases, Mallya said, “Whether it was 15 or 55, it’s all rubbish. I left on Jet Airways flight 9W122 like a normal passenger, not secretly.”
“The narrative of me running away is nonsense,” he added. “I’ve been a UK permanent resident since 1992. I always traveled back and forth, keeping my Indian passport because I was an MP. My intention was never to escape. But after I left, the government revoked my passport—how could I return without it?”
On being labeled a willful defaulter, he said: “That’s someone who can pay but doesn’t. I made four settlement offers from 2012 to 2015. The banks rejected them. All this is on Supreme Court record.”
“I was always willing to settle. I even wrote to the Enforcement Directorate asking for time. But instead, they froze all my assets and revoked my passport.”
Mallya explained: “I owed ₹6,203 crore—this is the real number, not the inflated ones you see in the media. Yet I’ve been painted as a criminal. Why? Because I’m a visible figure. If you want to make an example, you don’t pick someone unknown.”
“One SBI official told a friend, ‘If I settle with Vijay, the CBI will be on my back the next day.’ So nobody wanted to touch it. In India today, business failure equals fraud.”
“I’ve always been honest,” he concluded. “I didn’t steal money. I didn’t launder it. I’ve never committed a crime. I only tried to settle my debts—and got vilified for it.”
Speaking about obtaining the IPL franchise Royal Challengers Bengaluru in 2008, he said, “I had recently acquired Shaw Wallace, including the Royal Challenge whiskey brand, and was looking for innovative ways to market it, especially to younger audiences. At the time, I was on the BCCI committee as a representative of the Karnataka State Cricket Association and was impressed by Lalit Modi’s pitch for the IPL. When the league was finally approved, Lalit called and asked if I’d be bidding. I saw it as a perfect opportunity—cricket being like a religion in India—to promote Royal Challenge.”
“I initially wanted two teams: one for Kingfisher and one for Royal Challenge, but BCCI only allowed one, and bid for three franchises, narrowly lost Mumbai, but ended up as the highest bidder for Bangalore. Naturally, I named the team Royal Challengers Bangalore, aligning it with the whiskey brand.”
Once again disputing the media narrative, Mallya said, “Despite media portraying it as a vanity project, it was purely a strategic, brand-driven decision—and yes, it worked. Royal Challenge whiskey sales soared after that.”
When asked why Indian agencies have filed cases of misrepresentation and money laundering against him, he responded, “The CBI and ED are known to concoct and fabricate evidence. They have to prove it. You are innocent until proven guilty, not the other way around.”
Addressing the ₹423 crore the CBI says was siphoned off from Kingfisher Airlines loans, he explained, “In aviation, over 50 percent of costs are in foreign currency—leasing planes, buying spares, maintenance. That money had to go out of India. Just because money left India doesn’t mean it was siphoned.”
When asked about the ED’s claim that ₹3,547 crores were laundered, Mallya said, “What is laundering? Did I steal it? Did I fund my lifestyle with it? If there’s no iota of evidence that I used even one rupee to acquire overseas properties, what exactly is the charge?”
He argued that there’s no justification for fraud charges: “The UK court didn’t find me guilty. Their job was to determine if there’s a prima facie case to be tried. Now it’s up to the CBI to prove their claims in court.”
He laid out the central allegations: “They say I misrepresented Kingfisher’s financials, colluded with IDBI Bank management, and misused the ₹900 crore loan. But there’s no proof of collusion. I met the chairman twice—with other directors present. Is it conceivable I made backdoor deals with them? Absolutely not.”
Regarding the use of funds for Formula 1 or cricket sponsorships, Mallya said, “The Formula 1 team sent back £10 million to Kingfisher Airlines. Royal Challengers Bangalore sponsorship was marketing. The CBI calls it misuse, but that’s up to a judge to decide.”
He concluded, “Kingfisher’s financials were weak, yes. But the IDBI board approved the loan. If it was so wrong, they would’ve rejected it. Allegations exist, but so does a robust defense.”
Asked if he would have done anything differently, Mallya notes, “Yes, maybe I would have done one thing differently,” Mallya said. “I listened to Finance Minister Pranab Mukherjee when I shouldn’t have.”
“I told him I needed to downsize the airline due to tough times, but he insisted I shouldn’t and assured me the banks would support me. Looking back, I should have gone ahead and downsized. If I had, the financial burden would have been much lower—and Kingfisher might still be flying today.”
On being called a fugitive and fraud, Mallya said, “If I’m assured of a fair trial and a dignified existence in India, I’ll seriously think about returning. But I don’t have that assurance.” He cited other extradition cases where UK courts ruled that “Indian detention conditions violate Article 3 of the European Convention on Human Rights.”
He continued, “I didn’t run away. I left India on a pre-scheduled visit. I didn’t return for reasons I consider valid. Call me a fugitive if you want—but where’s the ‘chor’ coming from?”
(Edited by Sumavarsha)
