The Mallya Mails: Did Former PMO Show Special Interest in Keeping Kingfisher Flying?
The office of former prime minister Manmohan Singh may have taken a special interest to try and keep afloat Vijay Mallya's ailing Kingfisher Airlines against the run of play, documents accessed by CNN-News18 indicate.
File photo of liquor baron and founder of now defunct Kingfisher Airlines Vijay Mallya.
New Delhi: The office of former prime minister Manmohan Singh may have taken a special interest to try and keep afloat Vijay Mallya's ailing Kingfisher Airlines against the run of play, documents accessed by CNN-News18 indicate.
In the series of emails, Mallya thanked the former PM for sparing the time to talk to him and also acknowledged that former principal secretary in the PMO TKA Nair spoke to the ministries concerned – civil aviation and petroleum – to help the airliner.
“Thank you for sparing time to meet me on September 8th to explain the... difficulties being faced by Kingfisher Airlines. I had also informed your goodself that we had approached our consortium of Banks, led by State Bank of India to grant us additional financial support urgently. You had asked me to follow up with Mr TKA Nair, which I did and I am deeply appreciative of the fact that Mr Nair immediately spoke to the concerned people in the Ministries involved… (sic),” Mallya’s letter to Singh on October 4, 2011 said.
A source close to the former PMO responded to CNN-News18 queries saying the government always tries to bail out troubled companies. “No favour was given to Mallya. No funds were given, it was only preferential allotment,” the source said.
Former Union finance minister P Chidambaram whose name also figures in mail trail said he needed to go through the papers before commenting.
Another letter sent by Mallya to his top management showed the business tycoon was expecting an infusion of funds after his requests to the top government.
“I have instructed AKRN (chief financial officer Vijay Nedungadi) to arrange funds till we get releases that I have requested from the PM/FM (sic)," the letter said.
This was what Singh had said then: “Private sector airlines have to be managed efficiently if they do get into difficulties. We have to find ways and means to help them get out of their losses. But I have not applied my mind to Kingfisher’s problems. When I get back, I will talk to Mr Vayalar Ravi (then civil aviation minister) and we will explore ways and means in which the airlines can be helped.”
The fourth Mallya letter, again to his CFO Nedungadi in March 2013, said that things improved for the company after his meeting with the then finance minister P Chidambaram. The firm got a no-objection certificate from banks that allowed moving shares within his companies, and Mallya was able to arrange a meeting with the top brass of State Bank of India
The letter said: “There have been some positive developments following my meeting with FM and SGP… SBI Banglore have called USL (United Spirits Limited) and are now willing to issue NOC (no objection certificate) for the preferential allotment… SBI would have also got directions to meet with us. Please reach out to the (SBI) Chairman's office and Shyamal's office by email and phone and request a meeting on Monday, March 25 (sic).”
All this happened after Kingfisher was in serious financial trouble – with its budget airline closing down in 2010 and a consortium of banks restructuring a Rs 2000 crore loan in 2011.
Earlier in the day, Vijay Mallya – who now lives in UK after being officially declared an “absconder” by a Prevention of Money Laundering Act (PMLA) court – issued a series of tweets in his defence.
“Was interrogated by CBI and submitted documentary evidence. Not one Rupee was misused. On the contrary we invested over Rs 4500 Crs into KFA…. Before slamming me ask CBI and SEBI some tough questions on what proof or evidence they have to allege fraud… KFA collapsed with oil at $ 140/barrel and State sales tax on top Rupee devaluation No FDI Engine failures. Economic depression Need more? And KFA being the largest domestic Airline was the worst hit. Government bailed out Air India but did not bail out KFA. So much for "favours",” he tweeted.
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