Kingfisher brand was only one of many collaterals against loans, clarifies Vijay Mallya

In a rare and candid four-hour interview on Raj Shamani’s Figuring Out podcast, Vijay Mallya, the embattled former head of Kingfisher Airlines, broke nearly a decade of public silence, asserting he is a “scapegoat” rather than a “fugitive.” Speaking from London, where he is contesting extradition to India, Mallya used the platform to defend his actions, push back against media narratives, and highlight what he described as a “relentless” trial by public opinion.

Mallya claimed he always intended to repay Kingfisher Airlines’ loans, citing a Finance Ministry statement that banks had recovered ₹14,100 crore from him—more than twice the ₹6,203 crore adjudicated by the Debt Recovery Tribunal. “If I had defrauded the banks, how could they have recovered so much?” he asked.

“I never borrowed one naya paisa,” Mallya said. “Kingfisher Airlines was the borrower. I was a guarantor. There’s a big difference.”

Refuting allegations that banks accepted only the Kingfisher brand as collateral, he insisted it was merely one component in a “basket of securities” that included shares in United Breweries and United Spirits, as well as property. He criticized the media for spotlighting the fall in Kingfisher’s share price while ignoring the broader asset base and the eventual recovery made by lenders.

Dismissing charges of siphoning funds to support his lifestyle or ventures like Formula One, Vijay Mallya said he invested ₹3,000 crore of personal funds into the airline and that his personal guarantee itself was a sign of good faith.

He blamed government policy for the airline’s collapse, pointing to two key constraints:

• ATF Taxation: He said aviation turbine fuel prices surged amid global crude spikes, while state governments imposed ad valorem sales tax, generating windfall revenues at the expense of airlines. His plea to have ATF classified as a “declared good” to attract lower central tax was denied.
• FDI Restrictions: Mallya claimed he had lined up an investment from Etihad Airways, but the government blocked it. Ironically, Etihad was allowed to invest in Jet Airways just six months after Kingfisher shut down.

He also recalled a meeting with then Finance Minister Pranab Mukherjee, who allegedly urged him to keep the airline afloat to preserve jobs and connectivity, assuring continued bank support.

Mallya defended his 2007 acquisition of Air Deccan as a strategic move to neutralize a disruptive competitor selling unsustainable ₹1 airfares, which he said distorted market pricing and eroded margins. He also highlighted Kingfisher’s role in opening up new domestic routes.

While apologizing for the airline’s failure, Mallya rejected claims of personal wrongdoing. He said his image—fueled by visuals of a lavish lifestyle—skewed public perception. He revealed that he made four settlement offers to banks, none of which were accepted.

Asked if he would consider returning to India, Mallya said he would “think about it seriously” if he were assured a fair trial.

Also Read: Vijay Mallya takes a dig at resolutions under IBC; points out high haircuts taken by banks