On 2 March 2016, I was going to London for the FIA meeting in Geneva. I told the then Finance Minister Arun Jaitley that I am going. But I got stuck in London due to the cancellation of my passport. I am not a fugitive, this was not an escape plan. It is wrong to call me a thief. This is the statement of businessman Vijay Mallya, who is embroiled in a bank loan fraud case of Rs 6,200 crore. However, with interest and other charges, this amount is about Rs 9000 crore. Apart from this, a case of loan default of Rs 900 crore from IDBI Bank is also registered. After keeping distance from the media for nine years, Mallya recently broke his silence in YouTuber Raj Shamani’s podcast. In this four-hour conversation, he spoke openly about his life, business, the collapse of Kingfisher Airlines, pending salaries of employees, and legal battles. Question 1: How was Vijay Mallya’s childhood and early career? Answer: I was born in Kolkata, where my father Vitthal Mallya was the chairman of UB Group. Childhood was spent under strict discipline. Father said, “If you don’t work hard, there is no place for you in my business.” After doing B.Com from St. Xavier’s College, I became a trainee in UB Group at a salary of Rs 400 per month. At the age of 18, I was made the CEO of a small company. Question 2: How did Mallya make UB Group and Kingfisher successful? Answer: This did not happen overnight. In 1983, at the age of 27, I took over the UB Group after my father’s death. I made Kingfisher’s packaging more attractive, sponsored music and fashion events, which gave a lot of focus to the brand. Gradually, sales started increasing. This was not magic. We did the marketing right, and sales increased automatically. Today Kingfisher beer has a 52% market share. McDowell’s No. 1 whisky was also made the world’s No. 1 whisky brand. In 1988, he bought Berger Paints and expanded it to 25 countries and sold it at a profit. Question 3: What was the reason for the start and downfall of Kingfisher Airlines? Answer: I started Kingfisher Airlines in 2005 on my son Siddharth’s 18th birthday to provide a premium flying experience. By 2008, it became India’s largest airline. But the global financial crisis in 2008 spoiled everything. This also led to a shortage of money in India. The aviation sector suffered huge losses. I told the then Finance Minister Pranab Mukherjee that Kingfisher will have to be downsized, some planes and employees will have to be reduced because we cannot work in such difficult conditions. But Mukherjee said, no, connectivity and jobs are important. You will get support from banks, you run the airline. This is where the problems started. The biggest reason for Kingfisher’s failure was the government. In 2008, the price of crude oil increased from $60 per barrel to $140, due to which aviation fuel (ATF) became very expensive. State governments imposed heavy sales tax on it, which further increased the cost of airlines. We asked the government to give ATF the status of declared goods so that taxes could be reduced, but the government did not agree. The government did not allow foreign investment. We had finalised the investment in Kingfisher with the CEO of Etihad Airlines, but the government did not approve. After 6 months, the government allowed Jet Airways to get investment from Etihad, but not us. All these together created a perfect storm for Kingfisher. Global crisis, expensive fuel, and government policies sank the airline. If the circumstances were not against us, Kingfisher would have been as big as Indigo and Air India today. But in business sometimes there is victory, sometimes defeat. Question 4: What do you say about the pending salaries of the employees? Answer: I sincerely apologize to the employees who lost their jobs or did not get their salaries due to the closure of Kingfisher. I am very sad that this happened. I have no excuse, I take full responsibility. I had some money deposited in the Karnataka High Court, and I wanted to pay the salaries of the employees from it. But the banks opposed it, and the court did not allow it. I tried everything, but the money was frozen, I could not do anything. Question 5: Why was there a controversy over your 60th birthday party? Answer: Some employees were angry that I threw a lavish party when they were in trouble. Look, the airline was shut down in 2012, and my 60th birthday was in December 2015. In these three years, I could not do anything to pay the employees, because all the assets were frozen. Whatever money I would have infused to pay the employees, the banks would have taken it. My lawyers tried every way, but nothing could be done. Question 6: What did he say about the loan and recovery from banks? Answer: Mallya showed the certificate of Debt Recovery Tribunal (DRT), in which his loan was stated to be Rs 6,203 crore. This also includes 11.5% interest. He says, “This is the official loan amount. People talk about 9,000 crores, but I don’t know where this number came from. In 2019, PM Modi said that Rs 14,000 crore was recovered from Mallya. If the loan was 6,203 crores, then where did the figure of 9,000 crores come from? Those banks never gave me the statement of account. This is probably the first case in the world that the bank does not give an account to the loan taker. In 2024, the Finance Ministry report said that ED returned property worth Rs 14,131.66 crore from Mallya to the banks. Mallya asks, “Which property did he sell? I don’t know anything. My lawyers asked for the statement many times, wrote a letter to the Chairman of SBI, but there was no answer.” Question 7: What would you like to say on the allegations of CBI and ED? Answer: CBI accused of “misuse” of brand valuation and private jet. ED accused of money laundering of 3,547 crores. But 50% of the airline’s expenses were in foreign currency, calling it money laundering is nonsense. I also repaid the loan of 900 crores to IDBI. Question 8: Why did you leave India and what would you say on the “fugitive” tag? Answer: People call me a “fugitive”, but all this is wrong. I have been living in England since 1988 and I have permanent residency (ILR) there since 1992. According to the rules, I can stay in India only for 180 days, so I used to go out and come back again and again. I am not a fugitive, I have been a resident of UK for 32 years. I told Finance Minister Arun Jaitley that I am going to London. I went to the airport from Parliament. I had to go to Geneva for the FIA World Council meeting, which was scheduled months ago. I told Jaitley to arrange a settlement with the banks and I would return. But there was an uproar in the media. Jaitley first denied the meeting, then a Congress MP said, I saw them together. Then Jaitley accepted that yes, a small meeting took place. I talked with foreign partners about selling shares so that I could repay the bank loan. I wrote to the ED to give me time, I have already appeared before the CBI, I will also appear before you. But then my passport was cancelled. Due to the cancellation of passport, I got stuck in London. I did not commit any theft. I never took a personal loan, nor did I cheat anyone. The banks seized my property worth Rs 14,100 crore, still they call me a thief. On one hand they seize my property, on the other hand they call me a thief, how will this work? Question 9: What is your opinion on the challenges of business in India? Answer: I consider India’s bureaucracy to be a big obstacle to business. I had to deal with different policies of 29 states. Politicians used to ask for liquor, cash in elections. I only gave liquor, because my company was the biggest. I did not give bribes. Question 10: What are Mallya’s present life and future plans? Answer: I spend time with six dogs in London. I like dogs very much, I play with them a lot. I have some classic cars, which I enjoy repairing. I also have an office next to the property, where staff works. Here I keep an eye on my ongoing business. The core business is still related to liquor and brewery. I am fighting a legal battle. If I get a fair trial, I will consider returning to India. If I am destined to go to jail, I will face it. Question 11: How does Mallya see his legacy? Answer: I want people to remember me for my good deeds, not as a thief. Question 12: What are Mallya’s spiritual beliefs? Answer: I donated gold to Sabarimala and Tirupati temples. I believe in God. If this difficult time is his wish, then I accept it. Note: This question and answer is based on Raj Shamani’s podcast. Mallya’s claims have not been independently confirmed. Readers should form their own opinion after looking at all sides.
