Fugitive businessman Vijay Mallya, accused of defrauding banks of over ₹9,000 crore, has blamed former Finance Minister Pranab Mukherjee for resisting his plan to downsize Kingfisher Airlines during the 2008 financial crisis.
In a podcast interview with entrepreneur Raj Shamani, Mallya said his plea to reduce aircraft, lay off staff, and cut costs was dismissed.
“I went to Shri Pranab Mukherjee and said I have a problem. Kingfisher needs to downsize. But I was told not to — that banks would support me. That’s how it all started,” Mallya claimed.
Mallya cited the 2008 global meltdown as the turning point in Kingfisher’s downfall. “The financial crisis dried up money across sectors. The rupee’s value dropped. The impact was real, even in India,” he said.
Kingfisher Airlines, launched in 2005 and once known for luxury service, collapsed under mounting debt and economic strain. Despite Mallya’s claims of systemic failure, Indian authorities have pursued him for fraud and money laundering. He fled India in 2016 and currently resides in the UK, fighting extradition.
