New Delhi: Fugitive businessman Vijay Mallya has shed new light on the collapse of Kingfisher Airlines, claiming that his attempts to save the airline by scaling back operations were blocked by the government. In a candid conversation with YouTuber Raj Shamani, Mallya said he approached then Finance Minister Pranab Mukherjee in 2008, seeking permission to downsize the airline in the wake of the global financial crisis — a request that was turned down.
Mallya recounted that Kingfisher Airlines had been operating smoothly since its 2005 launch, earning accolades for its premium service and hospitality. However, things began to unravel during the 2008 global economic meltdown. “The money stopped. It got dry. The value of the Indian rupee also took a hit,” he said, citing macroeconomic pressures that disrupted business operations across sectors.
Realizing the worsening conditions, Mallya said he proposed cutting back the number of aircraft and laying off staff to survive the downturn. “I went to Shri Pranab Mukherjee…and said I have a problem. Kingfisher Airlines needs to downsize. I was told not to. ‘Continue, banks will support you,’ they said. That is how it all started.”
Despite the government’s verbal support, the promised financial backing failed to materialize. Mounting debt and operational challenges eventually grounded Kingfisher Airlines permanently.
Denies Fraud Allegations, Defends Settlements
Mallya, who is facing charges of financial fraud and money laundering, also pushed back against the narrative surrounding his debt obligations. He claimed to have made four settlement offers to banks, all of which were rejected. He criticised banks for a lack of transparency, noting that he never received an official account statement despite sending 15 reminders.
He further claimed that the figure of ₹14,131.6 crore — the total debt publicly stated — was disclosed not by the banks but in a finance minister’s statement in Parliament. According to a Debt Recovery Tribunal certificate, Mallya asserts the actual debt stood at ₹6,203 crore, disputing widely circulated media figures of ₹9,000 crore.
“I’m Not a Chor”
Lamenting the public perception of him as a “thief,” Mallya insisted he has repaid more than what was owed and said he is ready to stand trial — “not for wrongdoing, but for alleged bad intentions.”
This new interview, filled with admissions and accusations, offers a rare insight into Mallya’s version of events behind one of India’s most high-profile corporate collapses. While legal proceedings continue abroad, the businessman appears to be mounting a public defence — reshaping the narrative of his legacy one interview at a time. “Call me a fugitive for not going to India post-March (2016). I didn’t run away, I flew out of India on a prescheduled visit. Fair enough, I did not return for reasons that I consider are valid, so if you want to call me a fugitive, go ahead, but where is the ‘chor’ coming from… where is the ‘chori’?” Mallya said in the podcast.
On Return to India
When asked directly if he would return to India under assurances of fairness, Mallya replied, “If I am assured, absolutely, I will think about it seriously.” He also cited a UK High Court of Appeal ruling in another extradition case, stating that Indian detention conditions had been found to violate Article 3 of the European Convention on Human Rights. “Therefore they can’t be sent back,” Mallya
