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Vijay Mallya case: Ex-PM Manmohan Singh 'helped' Kingfisher airlines get bank loans, alleges BJP

The Bharatiya Janata Party today accused former prime minister Manmohan Singh led UPA government of helping beleaguered liquor baron Vijay Mallya in availing him bank loans for his now-grounded Kingfisher Airlines and cited letters that
India TV Politics Desk New Delhi January 30, 2017 16:41 IST
India TV Politics Desk

The Bharatiya Janata Party today accused former Prime Minister Manmohan Singh led UPA government of helping beleaguered liquor baron Vijay Mallya in availing him bank loans for his now-grounded Kingfisher Airlines and cited letters that have been reported in the media.

"The first loan to Vijay Mallya was granted in 2004, then again in 2008. Despite his companies declared Non-Performing Assets (NPAs), a restructuring of his loan was done in 2010," BJP's Sambit Patra said in a press conference.

""From where did Vijay Mallya procure such funds? Was sinking ship (Congress) helping sinking airline (Kingfisher)," Patra asked.

A leading News channel today made explosive revelations alleging that Vijay Mallya sought favours from top ministers of UPA regime to expedite loan disbursals.

Mallya wrote to the then Finance Minister P. Chidambaram and then Prime Minister Manmohan Singh seeking to expedite loans from a consortium of banks and requesting fuel supply credit for 60 days.

The letters allegedly requested that loans to Mr Mallya's defunct Kingfisher Airlines from a consortium of banks be speeded up.

The letter to Chidambaram is dated March 21, 2013 and the one to Manmohan Singh is dated October 4, 2011, according to the report. 

The report also mentions that Vijay Mallya wanted to meet with the State Bank of India bosses but they declined his request, following which, he pressurised Chidambaram to arrange for a meeting.

Mallya moved to Britain in March last year in the middle of efforts by a group of banks to recover nearly 9,000 crores in unpaid loans to Kingfisher airlines.