'I was told not to...': Vijay Mallya slams Pranab Mukherjee over Kingfisher crisis

London: Fugitive businessman Vijay Mallya has made a serious allegation against former Union Finance Minister Pranab Mukherjee, claiming the government had resisted his plan to scale down Kingfisher Airlines during its financial downturn.

In a recent podcast conversation with entrepreneur Raj Shamani, Mallya opened up about the downfall of Kingfisher Airlines and squarely blamed the 2008 global financial crisis for triggering its collapse.

“So agreed then it worked in your favour till 2008. What happened then? Simple. You ever heard of Lehman Brothers? You ever heard of the global financial crisis, right? Did it not impact India? Of course, it did,” Mallya said, pointing to the broader macroeconomic headwinds that hit the aviation and banking sectors.

He further added, “Every sector was hit. The money stopped. It got dry. The value of the Indian rupee also took a hit.”

Kingfisher Airlines, which launched in 2005 with premium offerings and ambitious expansion plans, quickly ran into trouble amid the global economic slowdown. Mallya said he approached late president Pranab Mukherjee during his tenure as finance minister with a proposal to scale back operations and reduce costs.

“I went to Shri Pranab Mukherjee... and said I have a problem. Kingfisher Airlines needs to downsize, cut the number of aircraft, and lay off employees, as I can’t afford to operate under these depressed economic circumstances,” he recalled.

However, according to Mallya, his request was dismissed. “I was told not to downsize. If you continue, banks will support you. That is how it all started. Kingfisher Airlines has been forced to suspend all of its flights. Kingfisher Airlines has been struggling. At the time when you asked loan, the company was not doing that great,” he said.

Mallya also pushed back against being branded a “chor” (thief), saying the label was unfair. “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’?” he said.

Mallya, who left India in 2016, continues to reside in the UK and is currently fighting extradition proceedings in British courts.