Rahul demands Jaitley's resignation over Mallya's claim, probe into matter

The fugitive liquor baron claimed that he had met the Finance Minister before leaving India in 2016 and made an offer of settlement

Hours after fugitive businessman Vijay Mallya said he met Finance Minister Arun Jaitley before leaving the country, Congress President Rahul Gandhi on Wednesday demanded Jaitley's resignation.

Prime Minister Narendra Modi should order an "independent probe" into the matter, he said.

"Given Vijay Mallya's extremely serious allegations in London, the PM should immediately order an independent probe into the matter. Jaitley should step down as Finance Minister while this probe is underway," said Gandhi in Twitter.

The fugitive liquor baron, wanted in India for his alleged role in a multi-crore bank loan fraud case, claimed that he had met the Finance Minister before leaving India in 2016 and made an offer of settlement.

"I had a scheduled meeting in Geneva. I met the Finance Minister before I left...repeated my offer to settle with the banks. That is the truth," he told reporters outside a Westminster court where he is contesting an extradition case filed by Indian authorities.

However, Jaitley rejected Mallya's claim as factually false.

"My attention has been drawn to a statement made to the media by Vijay Mallya on having met me with an offer of settlement. The statement is factually false inasmuch as it does not reflect truth," he said in a Facebook post.