Former PM Manmohan Singh helped Vijay Mallya, alleges BJP, citing letters

The BJP on Monday alleged that former Prime Minister Manmohan Singh helped liquor baron and wilful defaulter Vijay Mallya get huge loans to bail out Kingfisher Airlines.

Citing letters purportedly written by Mallya to Singh, BJP spokesperson Sambit Patra said: "A bailout package was given to Kingfisher Airlines on Manmohan Singh's insistence."

Addressing a press conference, BJP spokesperson Sambit Patra said, "The often-asked question has been why Mallya was given a loan of Rs 9,000 crore despite very poor rating of the company; their accounts not being in order."

He wondered, “Was the sinking ship Congress helping out Vijay Mallya’s sinking airlines?” He then went on to provide four letter exchanges, which he said proved that Vijay Mallya received preferential treatment from the PM and the Finance Minister.  

One of the letters sent by Vijay Mallya, then Chairman of the now-defunct Kingfisher Airlines, to the PM on November 22, 2011, requested Manmohan Singh’s “kind indulgence” in releasing funds to the airline so that their loans may not be classified as non-performing assets.  

"Not only that, only on the former Prime Minister's insistence the Income Tax Department went soft on Mallya and his accounts were also unfrozen," alleged Patra while reading out the letters claimed to be written by Mallya. 

Another letter addressed by Mallya to then Finance Minister P Chidambaram on March 21, 2013, requests a no-objection certificate from SBI.

“Sir, while SBI may be understandably upset about status of loans of Kingfisher Airlines, it is most unfortunate that they refuse to discuss a way forward. Their attitude to USL, a highly successful company is more unfortunate as it will deny FDI by Diageo. I seek your urgent and kind intervention in facilitating a meeting with SBI before all round value destruction takes place.”  

A day later, in an email exchange to his then CFO Ravi Nedungadi, Mallya notes that there has been “some positive developments” following his meeting with the FM and SBI Bangalore expressed its willingness to issue an NOC for preferential allotment.

Alleging that the Manmohan Singh and Chidambaram helped Vijay Mallya, Patra said, “The corrupt hands which were pulling the strings of the banks, the corrupt banks that saw to it that Vijay Mallya moves ahead getting the loans though he is not expected to get loans. The hands belong to the then Prime Minister and Finance Minister.”  

Mallya has been absconding since March last year, after a consortium of 17 banks moved a debt recovery suit against him.