Vijay Mallya, who is facing charges of fraud and money laundering, has shared new insights into the downfall of Kingfisher Airlines. In a recent conversation with YouTuber Raj Shamani, he stated that the 2008 global financial crisis severely impacted the Indian economy and played a major role in the airline’s collapse. According to Mallya, Kingfisher operated smoothly until the crisis, which led to a liquidity crunch and a weakening rupee.
Proposal to Downsize Was Allegedly Rejected
Mallya claimed that he approached then Finance Minister Pranab Mukherjee with a plan to reduce the airline’s operations in response to the worsening economic conditions. He intended to cut down the fleet size and lay off employees to manage costs. However, he said this proposal was not approved. “I was told not to downsize. You continue, banks will support you,” Mallya recalled.
Airline Eventually Shut Down
Despite the assurance of support, Kingfisher Airlines was forced to suspend operations as financial stress mounted. Mallya said he was unable to continue under the economic pressure, leading to the airline’s eventual closure.
Claims of Rejected Loan Settlements
Addressing the financial allegations, Mallya said he made four offers to settle dues with banks, all of which were rejected. He accused the banks of lacking transparency, saying he had not received an official statement of account even after sending 15 reminders. He stated that the total debt of ₹14,131.6 crore was only publicly disclosed by a finance minister in Parliament.
Disputes Debt Figures and Defends Himself
Mallya also contested media reports which claim he owes ₹9,000 crore. He referred to a Debt Recovery Tribunal certificate, which he says confirms the actual figure is ₹6,203 crore. Emphasising that he has already repaid more than what was due, Mallya questioned why he continues to be called a “chor.” He reiterated that he is willing to stand trial — not for any criminal act, but for what he called “alleged bad intentions.”
