Mallya releases letter to PM Modi, assures to pay salary of Kingfisher employees

Beleaguered business tycoon Vijay Mallya on Tuesday released his letter to Prime Minister Narendra Modi and said he was "making every effort" to settle his dues to banks.

In the letter, Mallya writes, " I have made and will continue to make every effort to settle the case with PSBS. Tired of this relentless pursuit of me by the Government and its criminal agencies.'

Vijay Mallya says, "I have been accused by politicians and the media alike of having stolen and run away with Rs 9,000 crores that was loaned to Kingfisher Airlines (KFA). Some of the lending Banks have also labelled me a wilful defaulter."

"All loans, at all times, were duly approved at the appropriate levels and by the appropriate departments of each Bank. Finally, all loans were restructured and consolidated under a Master Debt Recast agreement in December 2010 with permission from RBI."

The consortium of 17 Banks led by SBI made various loans to KFA of approx. 5,500 crores. Recoveries in excess of Rs.600 Cr made through the sale of pledged assets and a further Rs. 1,280 crores have been lying deposited with Karnataka HC since 2013.

"I would be very happy if the courts would permit utilisation of the substantial interest accruing on deposits of Rs 1,280 Crore made with the Karnataka High Court since 2013 for payment to eligible erstwhile KFA employees of their legitimate dues," writes Vijay Mallya.

Important to note that the Principal amount involved remains at approx Rs. 5,000 crores (less the recoveries made from the sale of properties and other recoveries made by the Recovery Officer, DRT) as against the various inaccurate amounts appearing in the media.

Mallya released the letter a week after employees of defunct Kingfisher Airlines wrote an open letter to Prime Minister Narendra Modi flagging unpaid salaries, almost six years after the airline went down under.

The Enforcement Directorate (ED) has filed a fresh case against Mallya, alleging he diverted 3,700 crores of loans towards his Formula 1 and IPL teams. Kingfisher Airlines shut shop in 2012 after a financial crisis and cash crunch. Aviation regulator suspended and then cancelled its licence.