Vijay Mallya escaped to the UK in 2016 and has been fighting against any moves to extradite him. (AFP) Highlights Vijay Mallya today released his 2016 letter to PM Modi, Finance Minister Vijay Mallya says he had been made the "Poster Boy" of bank default Vijay Mallya owes Rs 9,000 crore to banks, escaped to the UK in 2016 Fugitive tycoon Vijay Mallya today released a two-year-old letter (scroll down to read) to Prime Minister Narendra Modi and said in a statement he was "making every effort" to settle his dues to banks but he had been made the "Poster Boy" of bank default and a lightning rod for public anger. "I wrote letters to both the Prime Minister and the Finance Minister on 15th April 2016 and am making these letters public to put things in the right perspective. No response was received from either of them," Mr Mallya said, justifying his first statement after a "long period of silence". "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. Some of the lending Banks have also labelled me a wilful defaulter". He said he was "tired of this relentless pursuit" by the government and its criminal agencies. The liquor baron flew to the UK in 2016 and has been fighting against moves to extradite him to India to face trial. The 62-year-old is wanted in India for defaulting on loans worth crores and also in a money-laundering case. He left India just when a group of banks launched efforts to recover unpaid loans from him. Since then, he has been living in a mansion near London and has been spotted in many events. Last year, he was arrested in London on an extradition warrant. "I respectfully say that I have made and continue to make every effort, in good faith to settle with the Public Sector Banks. If politically motivated extraneous factors interfere, there is nothing that I can do," he said. According to him, the CBI and Enforcement Directorate were "determined" to frame criminal charges against him. "The surprising fact is that the ED has objected in court to my Group's applications for sale of assets in order to allow me to repay creditors, including Public Sector banks," he said, commenting that it raised the "fundamental question of whether the Government wants me to repay the Public Sector Banks or not". Read Vijay Mallya's letter to PM Narendra Modi:<doc-sep>Liquor baron Vijay Mallya, who owes Rs 9,000 crore to a group of public sector banks, made public a letter he sent to the Prime Minister and Finance Minister in which he sought “patience and understanding of the severe predicaments that I am currently facing” and said he is offering to settle with the lenders. Here's the full text of the letter he wrote to PM Modi. Chairman - The U8 Group 15 April, 2016 Government of India New Delhi Respected Prime Minister: Since assuming office, you have launched several unprecedented Initiatives giving renewed hope to hundreds of miilions of Indians and enhanced the stature of our Nation amongst the Global community. I have witnessed various administrations over the past three decades since I was appointed Chairman of The U3 Group at the age of 28 following the untimely death of my father in 1983. I would like to congratulate you for the path breaking initiatives you have taken and to wish you all the best in leading our Nation to greater heights. Over the last three decades I have had the satisfaction of building the World's largest Spirits Company by volume (United Spirits Ltd) and India's largest Brewing Company (United Breweries Limited) which together have contributed Iakhs of crores in duties and taxes to State public exchequers and provided employment to hundreds of thousands of people with a manufacturing network of over 100 factories in India. In addition we have taken over sick industrial enterprises (Hindustan Polymers Ltd and Mangalore Chemicais and Fertilizers Ltd) and successfully rehabilitated them for the benefit of all stakeholders including Public Sector Banks who were lenders. Our Group's core businesses In Beer and Spirits have a flawless track record of dealings with all banks including Public Sector Banks and this can be independently verified. As a non-resident Indian since 1988, I also successfully developed a global business in alcoholic beverages, paints and hospitality. Most unfortunately, nothing I have stated above is either understood, appreciated or brought into the public domain by the media. I seek your patience and understanding ofthe severe predicaments that I am currently facing and appeal to your good sense ofjustice so that I am treated in a fair manner. I am pained to see that I have become the poster boy of all Bank defaults, accused of looting public money and fleeing the Nation. I have also become a political pawn about whom politicians across Party lines make reference to in public statements to either influence the electorate or set an example before several other industrialists whose Companies are facing financial stress. show cause why my passport should not be revoked. This has severely hampered my ability to raise funds to repay Banks as further explained below. I left India, as scheduled on March 2nd to attend to my commitments as an International businessman and this has been misconstrued as deliberate. In 2004 we launched Kingfisher Airlines and within a few years grew to become the largest domestic Airline operating more than 480 daily flights and providing first time connectivity to small towns not ever served even by Indian Airlines. Kingfisher Airlines, therefore, was an important public utility service which directly employed 8500 people and provided indirect employment to a further 4000 people. Kingfisher Airlines was truly a World Class airline and the recipient of numerous National and International awards. Unfortunately, the macro economic environment and then Government policies conspired against us and Kingfisher Airlines was forced to shut down operations in October 2012. Due to the unrest in Egypt and then Libya, prices of crude oil moved up sharply from around $ 60 per barrel to a peak of S 145 per barrel averaging S 120 per barrel. The aviation industry was amongst the worst hit globally. In India, State Governments levied a high rate (between 20% and 30%) of ad valorem sales tax on Aviation turbine fuel (ATF) whose prices were directly based on international crude oil prices. I made several attempts to request the Union Government to give "declared goods" status to ATF so that the sales tax rate would be 4 %. l pleaded with State Governments to protect their assumed revenue by charging a flat rate of tax on ATF rather than a high ad valorem rate which was yielding windfall gains as a result of the unprecedented high prices of crude oil and therefore ATF. The additional (incremental) sales tax paid by Kingfisher Airlines over years was approximately Rs 4000 crores which was a windfall gain to the States which added to the operating losses. The vaiue of the Indian currency depreciated by 20 % from USD 1.00 = INR 44 to USD 1.00: INR 52 thereby significantly increasing aircraft lease costs which were all paid to overseas lessors in US Dollars again adding to the operating losses. Airport charges were increased in Mumbai and New Delhi adding to the woes of the already stressed Aviation industry. Finally and most unexpectedly the V 2500 aircraft engines fitted to our ﬂeet of Airbus aircraft developed technical problems resulting in the grounding of almost half our ﬂeet. We have sued the Engine manufacturer, International Aero Engines in the City Civil Court, Bengaluru seeking compensation of approximately Rs 2000 crores. Due to the collapse in Global financial markets in 2008, raising capital from overseas investors became impossible despite our best efforts. Despite several pleadings to the Union Government to permit Foreign Direct Investment in the Aviation industry so as to attract investment from strategic Airline investors, this was not forthcoming. While the Indian Aviation industry was facing its worst ever financial crisis, the National carrier Indian Airlines started a price war to try and attract passengers and show attractive load factors and market share. Indian Airlines made huge losses in the process but relied on Union Government funding, in effect, using public funds to compete with private enterprise. The Union Government sanctioned a Rs 30,000 crore bail out package for Indian Airlines (Air India). To tide over the financial difficulties faced by Kingfisher Airlines, The U3 Group directly invested a huge sum of over Rs 4000 crores into the Airline between 2005 and 2013. The lead Banker to Kingfisher Airlines, State Bank of India wrote to the Reserve Bank of India on 31St January 2012 explaining the difficulties faced by Kingfisher Airlines and further stating that the promoters (The U3 Group) had infused funds into the Airline as external fund raising efforts had failed due to Global economic downturn. A copy of this letter is attached for your reference as Annexure 1. Copies of various appeals made by me to the then Prime Minister, Financ Minister and Civil Aviation Minister are attached for your reference as Annexure 2. As you will see, I made every possible effort to save Kingfisher Airlines including investing more than Rs 4000 crores which, sadly has been lost. This was a genuine business failure caused by circumstances beyond control. The total borrowings (Principal amount) of Kingfisher Airlines including from Public Sector Banks was Rs 5100 crores. These commercial loans were sanctioned after detailed assessment by all Banks of the Company's financial position. Compound interest has been calculated but has not been applied as per Court filings made by the Banks. The Public Sector Banks are vigorously pursuing me personally for recovery due to my purported personal guarantee and the purported guarantee given by United Breweries (Holdings) Ltd given towards the Kingfisher Airline borrowings. The media, various political personalities and Government agencies are accusing me personally of having "stolen" or "diverted" funds which is wholly incorrect. I have good reason to believe that the Government agencies - CBI/SFlO/ED are now dealing with me in a highly prejudicial manner despite full cooperation. It has been further stated that I have personally brought the private sector into disrepute which only confirms that l have become the poster boy of all loan defaults in India without having borrowed a single rupee myself. This public outcry with no factual basis seems to be influencing the Banks themselves notwithstanding the substantial settlement offer that I have made as explained below.<doc-sep>Mallya wrote a letter to Prime Minister Narendra Modi which he made public on Twitter on Tuesday. Fugitive liquor baron Vijay Mallya who broke his ‘two years of silence’ over the controversy surrounding him in the over Rs 9,000-crore Kingfisher Airline loan default case, said the reason he decided to do so was because he wanted to pay up his loan to the banks. Mallya wrote a letter to Prime Minister Narendra Modi which he made public on Twitter on Tuesday. He denied charges of fraud and money laundering. The debt-laden airline was grounded in 2012. Vijay Mallya moved to the United Kingdom in March last year. In an exclusive interview with CNBC-TV18, Mallya said he chose to make a public statement now as he and his firm, United Breweries Holdings Ltd (UBHL) had filed an application before the Karnataka High Court on 22 June, 2018. In his application he had sought permission to sell assets worth nearly Rs 13,900 crore and repay creditors, he told the TV channel. “We have requested the courts' permission to allow us to sell these assets under judicial supervision and repay creditors ... if the criminal agencies such as ED (Enforcement Directorate) or CBI (Central Bureau of Investigation) object to my proposal, and object to the sale of assets, it will clearly demonstrate that there is an agenda against me, “the Poster Boy” beyond recovery of dues to public sector banks," he said. Mallya also said that he had made and continued to make every effort, in good faith to settle with the public sector banks. But he said there is ‘nothing’ he could do if ‘ politically motivated’ extraneous factors interfered on the case. In the letter to the prime minister, Mallya requested ‘patience and understanding of the severe predicaments that I am currently facing’. He offered to settle with the lenders. Mallya released a media statement from the UK, in which he said that he wrote letters to the prime minister and finance minister on 15 April 2016 but received no response from them. Hence, he said, he was making these letters public to put things in the right perspective.<doc-sep>
New Delhi: Fugitive liquor baron Vijay Mallya, who is wanted in India for defaulting on massive loans, broke his silence on Tuesday to explain the allegations and said there's nothing he could do to settle the dues "if politically motivated extraneous factors interfere" with his efforts. In a five-page statement released on Twitter just two weeks before the final hearing in his extradition case, said he became the "Poster Boy" of bank default and a lightning rod of public anger but was not a wilful defaulter. Tired of "relentless pursuit" of him by "the government and its criminal agencies", Mallya said he had even written letters to both the Prime Minister and the Finance Minister on April 15, 2016 to explain his side of the story. He released the letters to the public on Tuesday. "No response was received from either of them," he said, seeking to state 'factual position' in response to the controversy surrounding him. Mallya, who also made public the letters he had written to the PM and the Finance Minister, said he has been accused by politicians and the media alike of having stolen and run away with Rs 9,000 crore that was loaned to Kingfisher Airlines (KFA). "Some of the lending banks have also labelled me a wilful defaulter," he added. He claimed that he made two settlement offers to the banks when proceedings were filed by them in the Supreme Court on March 29, 2016 and April 6, 2016 but both the offers were rejected by the banks. "I respectfully submit that my conduct does not amount to 'wilful default'," Mallya said. A letter I wrote to the Prime Minister in 2016 ... 1/6 pic.twitter.com/EjPZtgR5b0— Vijay Mallya (@TheVijayMallya) June 26, 2018 Currently, undergoing an extradition trial in a UK court over fraud and money laundering charges by Indian authorities, the liquor baron said the Central Bureau of Investigation (CBI) and Enforcement Directorate (ED) have filed charge sheets against him "with various untenable and blatantly false allegations acting at the behest of the government and lending banks". "The ED have also attached assets belonging to me, my group companies and companies owned and/or controlled by my family under the Prevention of Money Laundering Act (PMLA) currently valued at approximately Rs 13,900 crore," he added. Citing reports of ED objecting to public sector banks' claim to the proceeds arising from the sale of his assets, Mallya said, "...this is a clear example of politically motivated abuse of power with no legal basis whatsoever and behoves the fundamental question of whether the government wants me to repay the public sector banks or not". Lamenting that all his "efforts are either ignored or misunderstood", he said, "I am tired of this relentless pursuit of me by the government and its criminal agencies". Insisting that he had made and "continue to make every effort, in good faith to settle with the public sector banks," Mallya said, "If politically motivated extraneous factors interfere, there is nothing that I can do". In summary, Mallya, who fled to the UK in March 2016, added, "I have become the 'Poster Boy' of Bank default and a lightning rod of public anger".