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In his first detailed interview since fleeing India in 2016, fugitive businessman Vijay Mallya has defended himself over allegations of financial fraud and willful default. But his claims have drawn sharp criticism from the All India Bank Employees' Association (AIBEA). Speaking to TNM on its new show In Public Interest, AIBEA general secretary CH Venkatachalam accused Mallya of trying to "build a narrative" to clear his image and said that he was not innocent.
Vijay Mallya, the former owner of Kingfisher Airlines, in a four-hour-long podcast with YouTuber Raj Shamani, published on Thursday, June 5, reiterated that he never intended to defraud Indian banks, and maintained that he had always been willing to repay the loans. This was his first time speaking publicly, since he fled India in 2016.
“I never had any intention of defaulting. I have always said I am willing to settle with the banks, but they never came forward for a reasonable negotiation,” Mallya had said.
Responding to Mallya’s remarks, CH Venkatachalam, general secretary of All India Bank Employees' Association (AIBEA) told TNM that it appeared to be an attempt to rebuild his public image. “The first impression I got is that he is trying to cover up, maybe to build a narrative here in India that he is good, not a thief, and pretending to be innocent," he said.
According to reports, Mallya had borrowed over Rs 9,000 crore from a consortium of Indian banks to fund Kingfisher Airlines and other ventures. When Kingfisher Airlines shut down in 2012 due to mounting losses and financial mismanagement, Mallya defaulted on the loans. He was accused of financial fraud, money laundering, and willful default. He left India in 2016 and has been living in the United Kingdom since, fighting extradition legally.
"Call me a fugitive for not returning to India post-March [2016]. I did not run away, I flew out of India on a pre scheduled visit. Fair enough, I did not return for reasons that I consider valid. If you want to call me a fugitive, go ahead, but where is the chor (thief) coming from ... where is the chori (theft)?" Mallya asked.
Mallya also claimed that Indian banks have recovered more than the amount he borrowed. “The banks have recovered far in excess of the principal amount I borrowed. Yet I am being painted as a wilful defaulter,” he argued. He pointed out that the Debt Recovery Tribunal (DRT) had certified his dues at Rs 6,203.35 crore, which includes 11.5% interest.
He further cited a report published by the Union Ministry of Finance, which stated that the government had recovered Rs 14,000 crore from him. Mallya said he has requested an official statement on the total recovery figure.
While elaborating on the alleged crime that Vijay Mallya committed, AIBEA general secretary Venkatachalam said, “He took loans from different banks and tried to manipulate or misuse as per some reports. Also he tried foreign exchanges under the money laundering case.”
Venkatachalam asked, “What he has said now should have been said during the trial. Why did he keep quiet all these years? Why did he run away?”
When asked about the banks that granted Mallya corporate loans despite knowing that the Kingfisher brand was an intangible asset, he said, "Banks are very important for the country’s growth. We should give more loans, but how we give and how we recover is the key."
The podcast has gone viral since its release, drawing over 20 million views on YouTube within just four days. On June 10, Mallya said, "To say that I am humbled and overwhelmed is well short of what I truly feel."
The Mallya case has remained a politically charged issue, especially since the Narendra Modi government assumed office in 2014 on an anti-corruption platform. The government faced strong criticism for failing to prevent Mallya’s departure in 2016.