Ex-Billionaire Spars With Indian Media Amid Outcry Over Debt Due

Vijay Mallya, the former Indian billionaire and founder of the failed Kingfisher Airlines Ltd., denied fleeing the country and lashed back at what he called a media “witch-hunt” over $1.4 billion of debt he owes creditors.

The tycoon who presided over a beer and liquor empire a few years ago in the South Asian country is in the spotlight amid efforts by the government and regulators to pare stressed assets in the financial system from a 14-year high and recover dues. A group of 17 banks approached the Supreme Court earlier this month to bar Mallya from leaving the country, but were told on Wednesday in court that he had already left India on March 2.

“I didn’t flee from India and neither am I an absconder,” Mallya, 60, wrote on his Twitter Inc. account. “Once a media witch hunt starts, it escalates into a raging fire where truth and facts are burnt to ashes.”

No Media Trial

Prime Minister Narendra Modi’s government came under fire in parliament on Thursday for failing to prevent his departure, while Finance Minister Arun Jaitley told lawmakers that lenders are taking every possible action to get their money back. As a member of the parliament’s upper house himself, Mallya said in his Twitter comments that he will “comply with the law of the land” but won’t stand a media trial.

The Times of India, which has the largest circulation among English language dailies in the country, reported Friday that Mallya flew in a first class cabin to London, packing seven heavy bags. Rubbishing reports that he fled to avoid cases against him, he said “I am an international businessman, I travel to and from India frequently.”

Jaitley told lawmakers on Thursday that Mallya owed 90.9 billion rupees ($1.4 billion), including all interests compounded as of Nov. 30. Kingfisher Airlines, once India’s No. 2 carrier that redefined premium air travel, defaulted on the loans guaranteed by Mallya and United Breweries Holdings Ltd., according to SBICAP Trustee Co.

Mallya has maintained that Kingfisher Airlines was an “unfortunate commercial failure” caused by macro economic factors and government policies.

In a statement dated March 6, Mallya said he has been making efforts to reach a “one-time Settlement Settlement Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Read this Term” with banks.

To contact the reporter on this story: Anurag Kotoky in New Delhi at akotoky@bloomberg.net. To contact the editors responsible for this story: Anand Krishnamoorthy at anandk@bloomberg.net, Sam Nagarajan, Arijit Ghosh

By: Anurag Kotoky

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