Vijay Mallya, the former CEO of Kingfisher Airlines, who is on trial for alleged ₹9,000 crore in fraud and money laundering, had an open discussion with podcaster Raj Shamani for four hours. In the episode, which was released on Thursday, Mallya talked candidly about Kingfisher Airlines' collapse and mostly blamed it on the global financial crisis of 2008. Mallaya said that when Kingfisher was facing a financial crisis, he went to the then Finance Minister Pranab Mukherjee, and asked if he could downsize the company, but Mukherjee said that he should not downsize and the banks would support him.
In the podcast, Mallya is heard saying, “So agreed, then it worked in your favour till 2008. What happened then? Simple. Have you ever heard of Lehman Brothers? Have you ever heard of the global financial crisis, right? Did it not impact India? Of course, it did.”
He clarified that the crisis affected not just aviation but all industries. He said, “Every sector was hit. The money stopped. It got dry. The value of the Indian rupee also took a hit.”
Then speaking about his conversation with Pranab Mukherjee, he said, “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 further spoke about loans and 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 said that he always intended to pay back the loan. He cited a recent Finance Ministry announcement asserting that Rs 14,100 crore had been recovered from him, more than twice the Rs 6,203 crore Debt Recovery Tribunal ruling, and stated that his goal had always been to repay the debts taken out for Kingfisher Airlines. He asked, “If I had really defrauded the banks, how did the government recover so much money?”