Raj Shamani-Vijay Mallya Podcast: Facts behind Vijay Mallya scam

The beginning of Kingfisher Airline!

• Notwithstanding his accomplishments, Vijay Mallya is famed for the downfall of Kingfisher and the subsequent scandal. The event involving Kingfisher Airlines is well-known. It was the core of Vijay Mallya's plan to build India's first five-star world-class flight.
• Kingfisher Airlines quickly became a prestige brand airline since its establishment in 2005. In 2006, it was all thanks to freshly furnished planes, attractive airline staff, delicious cuisine, and, most importantly, in-flight enjoyment.
• In addition, Kingfisher provided complimentary alcohol consumption in the accommodations to first-class customers, despite domestic planes in India being prohibited from serving alcohol at the time. These factors established Kingfisher as the preferred airline for leisure travelers and other privileged travelers.

Air Deccan: A corporate takeover by Vijay Mallya

• Vijay Mallya was dissatisfied with the service provided by Kingfisher Airlines within Indian boundaries. So he plans to take the company internationally. However, under Indian regulations, airlines that have been in business for less than five years are not permitted to operate foreign lines. So Vijay Mallya chose to get around the rules by buying a preexisting airline.
• Initial bidding auction for Air Sahara in 2006, but Jet Airways won. He was eventually fortunate enough to take over Air Deccan. In 2008, Kingfisher was granted authorization to fly on overseas lines, with its maiden jet connecting Bangalore with London.
• By 2008, Kingfisher Airlines had 77 aircraft and was flying 412 domestic flights every day, carrying a total of 10.9 million travelers. Kingfisher Airlines then became the top market-leading player in India in 2009, with 22.9 percent.

The Beginning of Vijay Mallya Fraud!

Vijay Mallya continued to borrow funds via banks to operate his aircraft company. Vijay Mallya obtained 9000 Crs in debts from 17 banks, and despite SBI reporting him penniless, several banks proceeded to grant him credit. His firm also collected traveler transport tax, PF, and staff income tax. He did not report these figures to the PF or IT officials. The company was forced into bankruptcy after failing to pay wages to its employees. Kingfisher had to cease its services in 2012 due to a lack of funding to continue services. In addition, Vijay Mallya stopped repaying his debts.

Suspicious Attempts of Banks - Vijay Mallya Case

Bank's or senior personnel's methods and security procedures to give Mallya all these funds have also sparked debate. Vijay Mallyahad taken out a loan from the Bank of India centered on the security of desk supplies, airline ticket machines, and portable seats. Bank authorities were suspicious of the banks' willingness to make debt dependent on existing resources like equity. SBI provided credit based on Kingfisher Airlines' patents and assets. These were retained as security. In 2009, all patents were valued at approximately Rs. However, they are currently worth less than Rs 4000 Crs.

The Kingfisher Airline is landed

Given its enormous popularity, Kingfisher has consistently lost money since its inception. Because it failed to generate profit every single time. After 2010, the aircraft business struggled to acknowledge customers, which was an ample warning that its competitors continued to do so. For the initial period in 2011, the company publicly stated that it was experiencing liquidity problems.

Kingfisher Airlines was deemed a non-performing asset by SBI in 2012, making it a bad year for the company. It had even ceased paying its personnel, causing its pilots to seek more lucrative opportunities.

Ultimately, Kingfisher Airlines was suspended in 2012, accompanied by the termination of its permit in December of that year. At this point, the Kingfisher corporation had reached the end of its tenure.

What exactly has become faulty?

-Business Model Flaws

The lack of vision is the first factor behind Kingfisher Airlines' downfall. The group began with an inexpensive trip that eventually upgraded to a premium-level operation. Following that, they became poor carriers. Travelers grow bored on this flight as the business's intended clientele fluctuates. They do not emphasize lucrative lines is another flaw in their company approach.

-Unproductive governance

Vijay Mallya'sinvolvement in his aviation industry was another disaster for Kingfisher Airlines. There is no permanent CEO or MD at Kingfisher. Governance is a highly critical aspect of every organization's growth.

-Downturn of 2008

The bankruptcy of Kingfisher Airlines is caused by a combination of personal and business-related causes. Another cause of Kingfisher Airlines' default was the 2008 economic downturn, which contributed to the company's downfall.

-Air Deccan

As previously mentioned, Kingfisher Airlines purchased Air Deccan, a limited carrier. Accordingly, Vijay Mallya classified these businesses as distinct entities in the Petitioning.

-Excessive service expense

Another indirect trigger for Kingfisher Airlines' bankruptcy seems to be that the aviation sector has increased operating expenses compared to rival companies. As a result, flying firms need permits for another step: a partnership with Air Deccan, which has low-cost lines, expenditures on plane maintenance, and wages.

Vijay Mallya scam: The Government action against Vijay Mallya

1. Vijay Mallya is charged with fraud and money laundering in Rs. 9,000 Cr.
2. Vijay Mallya reportedly fled to the United Kingdom on March 2, 2016, after learning he was a wanted robber and was due to be jailed.
3. Vijay Mallya obtained a summons from the government for offenses included in the Money Laundering Prevention Act of 2002. As a result, foreign officers arrested Vijay Mallya on a global warrant. India urged that he be sanctioned for theft and money laundering, which began in December 2017. However, after considering extensive objections from Vijay Mallya's lawyers and the ED attorneys, special judge MS Azmi declared Mallya an FEO under Section 12 of the Act.
4. The ruling came as five claimants and a Vijay Malya family member requested court records from ED. These records were needed to have Vijay Mallya designated as a fugitive economic offender under the proposed law.

Raj Shamani Vijay Mallya Podcast

Vijay Mallya made an appearance on Raj Shamani's "Figuring Out" podcast in a candid 4-hour session after almost 9 years of silence. It was a media event, not just a conversation. Let's explore the main outcomes of that trending hot podcast that has taken the internet by storm.

Raj Shamani Podcast With Vijay Mallya- Main Highlights 

The key highlights of Raj Shamani-Vijay Mallya's podcasts are mentioned below:

• First Interview Since 2016: Mallya's first public appearance after having fled India amidst financial and legal controversies, and his side of the story was presented on Raj Shamani's podcast.
  
  
• Conditional Apology: “I apologise to everyone for the failure of Kingfisher Airlines," he apologized to the Kingfisher employees for the pain they suffered and said that he did not pay the salaries, not because he wanted to, but because the law and the government did not permit him to.  
  
  
• I Am a Fugitive Not a Thief: "If I'm a fugitive because I didn't return, fine. But don't call me a chor. Where is the theft?" said Mallya.
  
  
• Loans and Recovery: Vijay Mallya claimed that the banks have already recovered Rs. 14,100+ Cr, whereas the DRT was for only Rs. 6,203 Cr. He now asks the courts to make it public for the sake of transparency. 
  
  As per DRT, total due- Rs. 6,203 Cr.

• Assets recovered- Rs. 14,131.6 Cr (Finance Ministry, ED).
• Alleged diversion- Rs. 3,547 Cr to F1, IPL, private assets.
• UK bankruptcy order- Dismissed Mallya's appeal in April 2025.
  
  He said, "I request the banks and courts to publicly declare how much has been recovered. Then judge me."

• Fair Trial Demand: The "Wheeler-dealer of India" maintained that he is ready to return to India, provided he gets a guarantee for a fair trial and humane treatment, since he has heard criticism about Indian jail conditions by UK courts.
  
  
• Business in India: Mallya spoke of the "Ease of Doing Business in India" as a myth since he is of the view that it is skewed by politics, bureaucracy, and selfish systems.
   
• Watch That Made Headlines: The wristwatch worth Rs. 40 lac, limited edition, was spotted on the wrist of Mallya, stirring the crowd to be the rage on social media platforms. Adding a touch of glamour and drama to the moment.
  
  
• Life in London: Mallya admitted to missing India and his family, especially his 98-year-old mother. But there sits, calm and surgeon-prone, with legal works" ongoing abroad and at home. 
  
  

Vijay Mallya Clarifications

• Mallya said he had approached the then finance minister Pranab Mukherjee (2009-12) and expressed his inability to run the airlines, which was not running “great” at that time. Mukherjee allegedly told him he could carry on “as is and that was that.
  
  
• In response to Shamani’s question on the chain of events that led to the collapse of the airlines, Mallya alleged that a group of 15, 16 banks of the government that had lent to Kingfisher, which was the largest loan amongst those 15, 16 banks, was also part of this consortium of lenders. "Kingfisher Airlines never borrowed any money from SBI. Just to set the record straight," he said.
  
  
• On the loans received, Mallya once again invoked the FM Mukherjee, telling the interviewer that “the consortium of 17 banks believed in the vision, they did their appraisals.”
  
  
• To that extent, I am grateful he said and further added he “infused” Rs 3,000 crore from his UB Holdings Limited in cash.
  
  
• “You talk about money siphoning, using Kingfisher money for my lifestyle, for Formula 1, but nobody talks about the money I infused in cash to keep it afloat,” he said during the podcast with Shamani.
  
  
• "I gave my personal guarantee, UB Group also did. Please never forget, I gave my personal guarantee. Koyi chor kabhi apna personal guarantee deta hai kya? (Does any thief ever give a personal guarantee.
  
  

What Makes This Podcast Special?

• It was neither a court nor a press conference. That Gen Z-friendly platform allowed the highest-profile defaulter in India to share some raw opinions sitting in pure luxe ambiance, sipping tea, by unapologetically embracing the fame.
  
  
• Raj Shamani did not interrogate. He facilitated. His approach was rather more confessional than confrontational.

What is the standpoint of Vijay Mallya?

According to Vijay Mallya's assertions, the bankruptcy of Kingfisher Airlines was caused by demographic factors and government policy at the time. In terms of his image being brought up in all NPA proceedings, he claims he is the victim of a publicity effort. Fewer people are aware that Vijay Mallya has offered banks Rs. Four thousand Crs in exchange for the resolution of all his affairs. However, according to news sources, creditors have approved repayments of Rs.4900 Crs.

The Final Word on the Vijay Mallya Scam

The Vijay Mallya-Raj Shamani podcast show reignited a debate on justice, media trials, and banking recoveries in public discourse. Whether people believe Mallya or not, this is what we call a cultural moment. People used to feel sorry for Mallya because they believed his bankruptcy was due to his current financial circumstances and rotten timing. However, a closer examination of the situation reveals that this corporate titan engaged in disproportionate money laundering.

Years have passed, and the Indian government is still attempting to arrest Mallya as he remains free. The postponement would only result in unfairness and additional humiliation; as a result, stern steps must be taken to make perpetrators rethink twice about perpetrating similar offences in the future.

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