I'm in forced exile but no plans to return: Mallya

Says he is ready to settle the bank debt, which he found 'inflated'

Vijay Mallya, embattled chairman of the UB group, in his first media interview since he left the country in March, denied transferring funds meant for the defunct Kingfisher Airlines for purchasing properties overseas and for other personal interests.

Mallya, still a member of the Rajya Sabha, said he was ready to settle the bank debt, which he found "inflated".

"I am absolutely not guilty of any of these preposterous charges of diverting funds out of Kingfisher Airlines or buying properties," Mallya said in a four-hour interview to Financial Times in Mayfair, central London.

He chose to break his silence a day after the Ministry of External Affairs wrote to the UK for his extradition in cases related to money laundering. He is accused of investing half of a Rs 950-crore loan from IDBI Bank in properties abroad. Last week, the ministry revoked his passport, following a non-bailable warrant being issued against him.

"By taking my passport or arresting me, they are not getting any money," Mallya said, adding, he had no plans to "leave the UK and was forced to live in exile".

"Right now, things are flying at me fast and furious. My passport has been revoked and I don't know what the government will do next," he said.

Mallya left India in March after banks upped the pressure to recover their dues. The billionaire owes 17 banks about Rs 9,400 crore, including principal and accumulated interest, and has offered to pay Rs 6,000 crore in instalments.

He argued the loan was given to a limited liability company, even as he extended his personal guarantee for the money borrowed.

In the interview, Mallya said his offer was "way, way in excess of the World Bank average for settlement of bad debts".

"It is grossly unjust to apply compound interest and artificially inflate this figure," he said.

Though the banks have turned down his offer, they said they were willing to consider if Mallya came up with a reasonable one.

Asked if he was ready to increase his offer, Mallya skirted the issue saying: "The banks also need to consider the fact that there are other creditors who also need to be paid off and satisfied. I can't be possibly seen as giving preference to banks just because of the extraordinary pressure being put on me by various government agencies."

"As professional bankers, they would like to settle and move on. But because of my image as portrayed they are reluctant to be seen as giving me any discount," he said. "It will attract huge media criticism and inquiries by vigilance agencies in India," he added.

Kingfisher Airlines ceased operation in 2012 after it failed to meet costs and defaulted on loans. On the question whether he was willing to sell stakes in other businesses to raise money to reach the settlement amount, Mallya said: "I have already expressed my willingness to settle with banks. A settlement offer was proposed to the Supreme Court, which obviously means it was a very serious offer. Now the court has directed the debt recovery tribunal to dispose of the main matter in two months. But notwithstanding the legal process, my offer for settlement stands."

Mallya chose to not criticise the Prime Minister Narendra Modi-led National Democratic Alliance government, which in the court had called him a "fugitive from justice". When asked whether Modi or his "faceless bureaucrats" were behind the suspension of his passport, Mallya said: "All I can say that the manner in which my passport was first suspended and then revoked is unprecedented and was done with an extraordinary haste."

Mallya could lose his Rajya Sabha membership when Parliament ethics committee meets on Monday. But this did not prevent him from saying: "People think I am flamboyant, actually I am quite simple. I worked hard all my life and I want to try and settle with these banks and live my life in peace."