In Public Interest: Vijay Mallya ran away, took the system for granted: AIBEA | Banks | Loans

After 9 long years, Vijay Mallya broke his silence. In a four-hour-long podcast with Raj Shamani, the fugitive liquor baron shared his version of events surrounding the financial scandal that led to one of India’s biggest corporate controversies. Speaking publicly for the first time since he fled India in 2016, Mallya claimed he never intended to defraud banks and maintained that he was always willing to repay the loans. However, Mallya’s assertions come at a time when many unanswered questions remain about the collapse of Kingfisher Airlines and the massive loans taken from a consortium of Indian banks. Mallya said the banks have recovered more than what he owes them. According to Finance Minister Nirmala Sitharaman, the banks have so far recovered ₹14,000 crore. The Vijay Mallya case had far-reaching consequences. It triggered a national debate on crony capitalism and exposed glaring loopholes in the banking system that allowed high-profile defaulters to escape scrutiny for years. For public sector banks, the Kingfisher default was a major blow, adding to their already swelling non-performing assets (NPAs) and shaking public confidence in financial institutions. The corporate world too was rattled — Mallya’s flamboyant lifestyle and political connections came under the scanner, and the case became emblematic of how wealth and power could be used to exploit systemic weaknesses. Politically, the case became a flashpoint. The Modi government, which came to power in 2014 on an anti-corruption plank, faced criticism for not doing enough to prevent Mallya’s escape in 2016. It also sparked a broader discussion on India’s legal framework for extradition and the enforcement of accountability among the elite. And perhaps most tragically, hundreds of former Kingfisher Airlines employees were left in the lurch. Salaries went unpaid for months, and many staffers struggled to find new employment after the airline’s collapse in 2012. For them, the financial and emotional toll has not been fully acknowledged or compensated. In this week’s In Public Interest, TNM’s Senior News Editor Shabbir Ahmed caught up with C H Venkatachalam, General Secretary of the All India Bank Employees Association, who was at the forefront of the protests against Mallya.