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Vijay Mallya hints to repay the debts

Kingfisher Airlines chairman Vijay Mallya on Tuesday claimed that he was in talks with lenders to clear Kingfisher Airlines’ dues, burdened with a whopping Rs.8,700 crore loan.

Policy Pulse
Publish Date: Nov 25 2015 1:53PM | Updated Date: Nov 25 2015 2:02PM

Vijay Mallya  hints to repay the debts

 Kingfisher Airlines chairman Vijay Mallya on Tuesday claimed that he was in talks with lenders to clear Kingfisher Airlines’ dues, burdened  with a whopping Rs.8,700 crore loan.


"I am focusing on Kingfisher affairs with banks. That is what my current focus is," Mallya said  on the margins of the 16th annual general meeting (AGM) of United Spirits Ltd (USL) at his posh UB City.

A consortium of 17 banks, led by State Bank of India recently declared the business tycoon-cum-Rajya Sabha independent member a "wilful defaulter" after his grounded airline failed to repay loans raised since he launched the high-flying carrier in 2008.

Asked how he would settle the outstanding debts and mobilise funds to clear other dues, which also run into crores of rupees, Mallya reposted: "Why should I answer your questions?"

The debt-ridden airline was grounded on October 1, 2012 and had to cancel all 50 flights after its employees went on strike, leaving thousands of passengers stranded. It lost operator's license on October 20, 2012.

The CBI on October 10, 2015 searched Mallya's bungalows  and Kingfisher's offices in Bengaluru, Mumbai and Goa in a case related to non-payment of Rs.900 crore loans from IDBI Bank.