Inside the Vijay Mallya Scam

When a farmer doesn't pay his loan then his field is sold out. For this calendar, Vijay Mallya would select models personally. The model whose name was selected in this calendar, her career would increase like a rocket within a night. Deepika Padukone, Katrina Kaif - were launched in this calendar before a movie. People's kids would be Gilli-Danda but Vijay Mallya would use a battery-car. They would get whiskey at the same price which had more alcohol percentage. It would intoxicate more, but Congress leader P.L. Punia said that Arun Jaitley is lying and if this turns out to be false, then I'll leave Politics. And when he used to travel in his private jet, then hybrid dogs which cost in crores would travel along with him. From flamboyant Vijay Mallya turns into a respectable parliament member See - if a poor needs a loan of even 1 lakh, then bank asks for documents, security and many other things. And on not returning, people of recovery don't leave his life. Even if its Covid time and regarding all these things, there should be strictness because the money is the result of hard work of common people. But people get angry there, when the same bank issue crores of loan to a rich person without any security, only by his name. And that person uses his power, even after having money - doesn't return the money. Because he knows that from top to bottom, be it a government or government bank no one can do anything to him. And due to this, there is a trend in India in which powerful people steal crores of money earned by common people and calmly sit in UK. Now, further when I'll keep all the details then you'll say yourself that in the name of loan, what type of circus has been created in India. And all the big people are looking at the show blindly. Because they've their own cuts attached to it. Now, what Vijay Mallya did - I'm sure you might've heard about it but the details I'll give you in this video, you'll be shocked yourself that how does flamboyant Vijay Mallya makes a circus of law and flees to UK and everyone remains staring. Now there're lot of stories regarding Vijay Mallya but in this video the details that I'll give you is taken from the order of Supreme court, record of proceedings, court judgment and many books and news articles, which I'll keep as it is in front of you I've also given all their links in their description. Do verify it once. So to understand this entire incident, who were involved we need to go back a little. So before independence when it was the time of year 1915, at that time there were many small beer companies in India which made beer for British soldiers. Now, at the same time a man named Thomas enters. He unites all the small beer making companies and make a single company which was named - United Breweries group. And when all these things were happening then at the same time, there was a very talented businessman who studied from The Doon School named - Vittal mallya. He understands that this company will grow for sure, he had already invested money in this particular domain and he even saw its balance sheet. So, what he did was at every small interval of time, he started buying its shares. And that too at a time, when nobody else was buying. And he did that for many years, he becomes the major shareholder of this company Now, until the next 32 years this company keeps on running. Its shares are bought & in year 1947 - The Britishers were leaving India and while they were leaving, the command of this company is transferred to Vittal Mallya, aged 22. Because firstly, he was very smart, intelligent, literate and most importantly he had majority of the shares of this company so, firstly he is elected as the director of teh ccompany, UB group. And then next year, he is elected as a chairman of UB group. And under the leadership of Vittal Mallya this company leaves behind other companies in India and rapidly goes ahead. And within the next 4 years, in year 1951 - UB group acquires McDowell. Along with it it acquires other companies but McDowell was higlighted. Now, all these things were taking place along with which, in a few years Vittal Mallya marries Lalitha Ramaiah. And then further on 18th Dec, 1955 they've a son who is named as Vijay Mallya. In future, Vittal Mallya marries twice but he had only one son - Vijay Mallya. Now, Vijay Mallya was born in such a rich household so he didn't live like normal children. When in India, people's kid would play Gilli-Danda, then Vijay Mallya used battery cars which couldn't be even seen in India. When Vijay Mallya would enter St. Xavier's College then he had a car Standard Herald whose silencer was removed by him knowingly, so that when he enters school then it would make lot of noise and everyone would look at him. Now, along with it Vijay Mallya was also growing up and Vittal Mallya, his father his business was also increasing rapidly. Vittal Mallya applied different tricks like, the foreign liquor brands which were imported and then sold, Vittal Mallya in year 1959 told that, the what you're making outside and importing in India - come in India and make this alcohol in India and supply it. This was IMFL - Indian Manufactured Foreign Liquor. In today's date, you'll see it written on bottles which is developed in this way. Now, few years later Vijay Mallya had completed his college and as soon as he graduates Vittal Mallya, slowly starts involving Vijay Mallya in his business. Because he had already decided that in future, his son would handle this entire business. For this, he even trained his son. In year 1970, Vittal Mallya sent Vijay Mallya to US when Vijay Mallya learnt Business Management and International Trade law from University of California with that Vittal Mallya, started Vijay Mallya's internship at American Hoechst group, which was a part of UB group operating from US. Now, after completing all this Vijay Mallya enters India again. Now, after coming back to India Vijay Mallya would observe operations of UB group on daily basis and all the management and things he learnt from outside he starts implementing it in the Indian group of UB group like, earlier in UB group there was no hierarchy all the managers would report Vittal Mallya directly. So, firstly Vijay Mallya made a corporate structure, like the positions of VP and AVP. After this, the top management would report M. Srinivas and Vijay Mallya and then they both would report Vittal Mallya. So, in this way he maintained hierarchy and the entire process became very smooth. 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So, use the link in the description to join The 1% Club's masterclass. And start the journey of your financial growth. So, coming back to the topic. Now, few years later in year 1977 - an incident occurs which is believed to be a very important event of UB group. Actually, new government was formed in India and in year 1977 they banned alcohol in India. UB group was entirely based on alcohol group, there were many other businesses but the main earning of UB group belonged here. And all the liquor industries in India started to collapse entirely, they were afraid. Owners of liquor companies started selling their assets but Vittal Mallya and Vijay Mallya did entirely opposite Vittal Mallya believed that the government in India can't ban alcohol for long time. In any country, alcohol can't be banned in this way. There might be a solution. So, what they do is all the owners of alcohol companies who sold their assets in a low price, they start buying from them. And after a few time, as Vittal Mallya thought of, exactly the same happened - alcohol was allowed again in India. And due to this particular incident, all the competitors of UB group collapsed. After this incident, they also tried to invest in different domains like food, pharma but the highest profit of UB group belong to alcohol. But after this incident Vijay Mallya or Vittal Mallya - both had their dream that the tag of liquor industry they wanted to remove that tag. That's why they also invested money in different domains and industry now, a year later - since earlier computers weren't there. So, Vijay Mallya was looking through the old documents of companies at the same time, he sees that UB group had acquired a company named The Castle breweries whose logo was like a Kingfisher bird. That logo was a bit different than current logo. So, this company - castle breweries - was closed by UB group but Vijay Mallya liked its logo a lot so, he modifies it and relaunches it. And the purpose to relaunch it was that - the Mohan Meakin Golden brand who was leaving behind UB group - they launched a beer against it. In the starting few months, Vittal Mallya was against it but after a lot of hustle Vijay Mallya convinces his father and in year 1978, he relaunches Kingfisher but even at this particular time, the Kingfisher beer or brand wasn't launched PAN India because even in selling outside the states, there're many compliance in liquor industry so, that wasn't followed. So, it ran in some states only. Due to its absence in PAN India, Kingfisher wasn't making that much profit. It was making a little but not much. Even After making this brand - after 3-4 years Vittal Mallya and Vijay Mallya slowly increase UB group in the liquor industry. Now, comes the year 1983 - Vijay Mallya was around 28 years and in the same year in the month of October, he went to New York regarding the work of company. And on the next day, 13th OCT, 1983 - in Mumbai a Cathe Pacific Airline was hosting a cocktail party which was also attended by Vijay Mallya's father Vittal Mallya and in this party he suffers heart attack and he loses his life. Vittal Mallya was around 58 years when he died. Now as soon as Vijay Mallya gets to know about it, he comes back to India. When normal household suffers such tragedy then people grieve the environment is different. But different things happen in business families there the discussion starts that - now who'll handle the business. Now after Vittal Mallya, among the top management of UB group many people felt that Vijay himself will become the chairman, but Mallya's family had majority of shares and among which, Vijay Mallya had 2/3rd shares of UB group which he had taken through Mallya Private Limited. So, there's lot of commotion - many strategies are applied but even after that Vijay Mallya becomes the chairman of UB group. Now, after becoming the chairman the problem was that since father wasn't there and 4 regional heads of UB group and top management wanted to be the chairman itself Vijay Mallya doubted that if I'll take advice from these people then they won't give him the right one. he handled it then the turnover was of 350 crores and around 40 crores of valuation. And the volume sales were of 3.8 million cases. In a case, there're 9 bottles of 750 ml. So, as soon as he becomes a chairman when Mallya looked at the balance sheet then he understood that the real profit of UB group was from alcohol. So, Vijay Mallya focused on Alcohol as well. There was one point it - the main sales of UB group was generated from Carew Phipson. It was a part of UB group, which made GIN. Its a seasonal drink it made very big profit but it couldn't make sales in other seasons due to which the profit of entire year was balanced out. So, Vijay Mallya focused other whiskey categories instead of GIN so that the profit increases. So, to deal with it firstly he focused on whiskeys which ran all the seasons and launched new brands like, Royal Reserve and Splendor and it was highly marketed. It was invested on for months but they both don't run successfully and fail. Now due to it, there's lot of commotion that Vijay Mallya will ruin UB group. by taking such decisions. H P Bhagat and M. Srinivasa Rao who had a very good tack record of generating revenue during the time of Vittal Mallya their name started coming forward that they should handle the company, in fact Mallya's family also started thinking that Vijay Mallya, should step back and they should come forward. But Mallya doesn't step back but he works on his new project. He enters into Kingfisher. From here, Mallya didn't make new brands - he started working on the older established brands Vijay Mallya made some changes on the production of Kingfisher beer like, the demand of beer in south was always persistent. But in north, beer was in demand only in summers due to which off season, the plants in north had to stop their production. And on the other hand, the demand of beer in south wasn't met. So, Vijay Mallya resumes all the production which stops off season and produces beer in north and distributes in south. Due to this, the distribution system in entire India was improved. They even suprassed their competitor. Secondly, beer was filled in bottles and for liquor company bottles were a huge investment. The beer bottles were bought by dealers and returned empty bottles. But in most cases, when these dealers would return the bottles, half of them were broken, in fact the number of bottles they took was more than the number of bottles returned. Now, when the dealers were pressured regarding this that you've to return the same number of bottles that you take then they found a new way that - the ones of were scrap dealers or the ones who made local bottles, they would buy cheap bottles from them and then return it. Which created even problem to it, so what happen is the company spent lot of money in making bottles and due to this, the large amount of profit was invested in it. So, Vijay Mallya identifies it and replaces it with cans. Along with it, the image of Kingfisher was like a light beer in which the alcohol was around 4%. Since people got whiskey in the same price which had more alcohol percentage which intoxicated more. So, people preferred that more. But Vijay Mallya introduced alcohol with 8% - string alcohol and after its arrival, the demand for beer increases even more. And it brings so much profit that by surpassing Mohan Meakin Golden brand, Kingfisher in year 1986 becomes India's largest selling brand. And one more thing happens in this year, Vijay Mallya was travelling in Air India so in this flight, there was an air hostess named - Sameera Tyabjee with whom he falls in love and then in future they get married. And after some time, on 7th MAY 1987, they have a son named - Sidhartha Mallya and in the same year he gets divorced as well. But Mallya doesn't stop here, for the coming 2 years he brings the beer - Kingfisher at the top in India. Kingfisher brand - instead of being a name and brand it was made a lifestyle in India, especially in youngsters and all these things were done by Vijay Mallya by small tricks. Actually in India, alcohol was banned from advertisement so to deal with it Vijay Mallya found a new way by surrogate ads. In this instead of Kingfisher beer, Kingfisher sods, Kingfisher water bottle all these were launched and instead of advertising for kingfisher beer, these advertisements were done. All over India event were conducted in the name of Kingfisher and then the boards of KingFisher were put up in the event. So, that the next day when news comes in the headlines and even the photographs then Kingfisher should be seen in it. Kingfisher awards were also started. Everywhere Kingfisher word was used. He even named his house as KingFisher Villa. In year 1988, he even started Kingfisher Derby although sports isn't linked anywhere near to Kingfisher beer but since they had to push the name of Kingfisher forward, these things were done. And the biggest benefit was grasped by Kingfisher brand when, Mallya launched Kingfisher swimsuit Calendar. Which was shot by Atul Kasbekar, due to this in every home - everywhere Kingfisher was among the talks. For this calendar, Vijay Mallya himself selected models and Kingfisher Calendar grew so big that the model which was associated with this calendar her career would boom overnight like a rocket. Deepika Padukone, Katrina Kaif - they were launched in these calendars before a movie. And in future they also launched Formula 1 in which Kingfisher was heavily promoted. Vijay Mallya said that even though it requires money but in long term this will give benefit as such that rest of the competitors will not have any solution to it. And all these things were done in such a way that as soon as Kingfisher name was mentioned, people imagine beer in mind. And all these were done by Mallya and at the same time acquiring multiple companies Mallya had made the entire business global. Kingfisher was available in more than 50 countries. UB group whose valuation was 40 crores at the time of his joining Within a few year the valuation reached 6000 crores and people who were thinking that Mallya couldn't run the company, he did entirely opposite. He pushed Kingfisher brand at the top. And everywhere only it was being talked about & in between, in year 1993 Mallya married again but he had only one son Siddharth Mallya. Now, the entire liquor industry has huge profit but to run it, there're many challenges. To run the entire industry the support of government is very important. Without the government this industry won't run. Like, a company wants to send alcohol out of the state then they've to give tax separately and all the rules are watched over by the state government. What would be the price of a liquor bottle is decided by the state government. Who'll get the license of liquor even this is in the hands of government, so government support is very necessary if you want to run this business then. And if the government isn't in support, leave the business even a small shop couldn't be run by a person. So, to deal with all these things Mallya himself wanted to enter in Politics. so that he doesn't face any problem in future. And in year 2002 Mallya talked regarding to to his links And he even remains successful. He is elected a member of Independent Rajya Sabha from his home state - Karnataka and in this - Janta Dal and Congress supports him. So when this thing happens on this day Vijaya Mallya turns from being flamboyant to a respected Parliament member and from here, his political connection becomes strong. Now comes the date 15th November 2004 and in this day, calls Nedungadi, his company's CFO whom he trusted the most and says that - next year he'll start KingFoosher airlines. Now, CFO gives a negative response after hearing it but he knew that if Mallya has said then he'll do this next year for sure. And on the same day, arranges a call to a bank through CFO. The talk goes on for quite long time but bank refuses to give loan and Vijay Mallya comments on it that I'll start airlines without any loan now, next day - the head of Air Bus India - Kiran Rao, the phone call is set with him. Actually, Airbus so it manufactures the commercial Air Plane in the whole world. So, it has branches in every country, so Air Bus India was managed by Kiran Rao. So, Vijay Mallya tells Kiran Rao that he needs 10 Airbus A320 & 3 A319 he needs these much airlines. And after talking this, Vijay Mallya directly conducts a board meeting he announces there that next year - on 7th May 2005 his son Siddharth would turn 18 years & on his 18th birthday, he wants to gift him an airline whose name would be KingFisher airline. Now, board meeting was not happy with it. In fact, in the meeting Kalyan Ganguly, MD of UB - says that starting all these again would bring profit. Actually, earlier Mallya had made a company for UB Air's but nothing much could happen in it so, later it was run for corporate chartered planes. But Mallya answers that I've made up my mind. This time start the preparation And it shouldn't be delayed, exact on 7th May, 2005 we'll launch it on Siddharth's birthday and Vijay Mallya himself invest Rs 400 crore on Kingfisher airlines and starts the preparation. Now Siddharth's birthday nears but even after focusing on it entirely, it gets delayed by 2 days Kingfisher airlines is launched on 9th May 2005 instead of 7th May. 2 days after Siddharth Mallya's birthday. Now, as soon as Kingfisher is launched, everywhere its luxury experience was being talked about - news, T.V., page 3 it was talked about everywhere, earlier where in the airplanes only magazines were kept, in Kingfisher screens were placed. They used to get headphones after sitting. Good quality food, well trained air hostess who were themselves selected by Mallya. In fact, many people used to buy tickets just to see those well trained air hostess. Within a year, Kingfisher gets a very good opening. Everywhere kingfisher is talked about, many awards are given its being talked about on Page 3. But the amount of money Mallya had invested, the profit was yet to be reached. But yes the brand was established. Now, after watching all these things, Vijay Mallya thinks of buying more planes for which, he approached IDBI but there were some issue with the UB group regarding some regularities. Due to this IDBI refuses to give loan but Vijay Mallya still invests and orders more planes. Now after this, Vijay Mallya wanted to start international flight but among the Civil aviation guidelines, there was a clause according to which airlines should atleast run domestic flights for 5 years. Only after that, it'll get the international license. So at the time, apart from JET airways there was only one airline which had completed 5 years which was Air Deccan, run by G R Gopinath. This Air Deccan Airline had clutched the nerve of Indian Airline, it gave domestic flight at very cheap price. In fact, in some routes they had kept the price of Rs 500 for a ticket. They didn't have any relation with luxury their main aim was to transport people from one place to another in less price. Where airplanes had 2 toilets, but even they they had reduced it to 1 and had placed two more seats. So, in this way they used to operate - means opposite of the style of Kingfisher and the game of cheap price played by Air Deccan troubled Kingfisher and other airlines So Vijay Mallya thought that if we buy this airline, then two things will be accomplished. Firstly, we'll get international license and secondly, the competition will end. And Mallya was so desperate that in Feb 2007, without checking any balance sheet he blatantly acquired it. And after acquiring it, he introduced some changes which didn't favor them in future. Firstly, they acquired it. And they changed its name instantly to Kingfisher Red. Secondly, Air Deccan whose name was changed to Kingfisher Red its main USP was that it transports people from one place to another at a low price. whose tickets were cheap. But this USP was changed. After making it Kingfisher Red, its facilities were increased Vijay Mallya believed that, we're Kingfisher. Even if we're giving cheap tickets, we'll not compromise with facilities. So, in a way Kingfisher bought a good running profitable flight in a high price and transformed it into same - Kingfisher flight. And then some time later, they increased its price as well & when the price increased, people moved to other airlines which offered even less money than this. Actually, Vijay Mallya was very far from the concept that in India people want to go from one place to another cheaply. Whether you increase or decrease the facilities, in comparison to other airlines the running cost of Kingfisher was very high. Not little bit, but very high. The reason behind it was that they used to give many facilities as in comparison to other airlines. When they opened the airlines then they started poaching the employees at other airlines. 75% salary hike was given so the employees left the job elsewhere and move to Kingfisher. So, Kingfisher was making name for itself but due to the expenses it couldn't ever stay in profit. Now, comes the year 2008 and from here the problems of Kingfisher starts to occur. What Mallya thought about Kingfisher was, to expand it and making profit, that doesn't work. Now after this Mallya turns towards bank. And reaches to take loan from the bank. Now the bank, makes a consortium to pass loan. In Consortium loan, all the banks together give the loan and one bank would be the point of contact. So, in this case SBI makes a consortium of 17 banks and passes loan. And SBI was the main point of contact. Now, few days later Mallya takes the loan again - this time from IDBI bank and the amount was Rs 900 crore which earlier it had denied. On Sunday, where the banks are closed - banks are opened that day and loan is processed and within 2 days, he gets the loan. The loan amount that I'm telling you might seem different at different places. Somewhere it would be Penalty is added, interest is added so, this number might seem changed. Now he had received the money and flights were also bought. So, Kingfisher in 2008 starts its first international flight from Bangalore to London and in the same year, the team if IPL was being formed. So, in 446 crores at the same time Mallya also buys the team of IPL. So, in one hand loans were taken and on the other hand, teams were being bought in many hundreds of crores so, from here all the things continue for a long time. After that, global recession begins. And the rates of oil increases and the purchasing power of passengers are also reduced. Because it also had difficulty in its jobs. So, during such time not only kingfisher but the rest of the airlines faced huge loss. But rest of the flights which were moving with very conservative approach at that time Mallay does the opposite. At the same time, in June 2009 Mallya buys more planes - A330 model then in October, 2010 A380s model was bought. People felt that, which business model is there - where rest of the airlines are not able to do anything but he's buying planes back to back. Now, after this comes the date June 2010. And at this time, with the support of BJP and Janta Dal Mallya becomes an MP of Rajya Sabha. Now, he was continuously being elected as MP and every party was supporting me, but he was an MP just for name's sake. He never did anything. In the entire time, he didn't participate in any debate on the floor. In his tenure, he had given some questions. Rest, he didn't ask any question by himself. In return he did raise some questions related to Karnataka but people even doubt this as well. That the questions aren't his but he might have told his manager and send it from time to time. Even in the Parliament, an MP has special mention in his hand in which - important issues are raised in the entire tenure, he didn't use it even once. No Private Member Bill, he didn't do naything. But even after that all the parties were supporting him to be an MP. Now why did they do this - is unknown. Now, when he comes back again as an MP, then few days later - he took a loan from SBI again and SBI made a consortium and passed him a loan of Rs 1600 crore and as soon as he got the loan, he starts buying again. He buys Boeing 777 if you calculate the entire loan, adding all the small banks. He had taken lot of loans at that time the number came out to be more than 7000 crore. Somewhere you might even find 8000 somewhere you might even find 9000 but on an average he had taken a loan of mroe than 7000. Now, if the bank is giving loans, then everyone thought that bank is giving loan with a thought. They might have kept a security like they ask a common man if they've to give him money. But this turns out to be false, I'll tell you about it as well - that why? At this particular time, costing of Kingfisher had increased a huge deal. There wasn't any profit. Global recession had arrived. The prices of oil had increased. So slowly its vendor couldn't be paid the money and due to this, many oil companies like HP and Bharat Petroleum had banned Kingfisher from giving oil because, it couldn't clear the past bills, rest Indian Oil said that - we're not banning Kingfisher but we need payment in advance, only then we'll give the oil. So, it wasn't just the problem of oil companies, Bangalore and Hyderabad airports as well started taking the landing charges in advance because they used to land their planes and didn't give the money & that was getting due. So, these airports made a separate rule for Kingfisher that we need landing charges in advance. And along with this - the installments of loan had been stopped as well they had made it default as well. The catering people hadn't got their bills paid entirely. Now due to all this passengers started complaining hat facilities aren't proper. And all the different vendors, whose bill was due - they were given fake cheques. Means they used to give cheque and the cheque would bounce, so these vendors knocked the door of court regarding the bouncing of cheque and filed a case on kingfisher. GMR Hyderabad international airport even punished the CFO of Kingfisher because, its cheque of 50 lakhs had bounced. Now, Kingfisher was being trapped from all sides. The salary of staff was also stopped and it was over few months, staffs were beginning to strike and if we talk about profit and loss then in 2009 alone, airline suffered a loss of Rs 400 crore. And this wasn't the 1st year of its loss from 2005 until this Kingfisher airline was run it didn't make profit even for once. Even after that, it took loans from banks, bought planes every year and didn't reduce their expenditure and they injected many crores of rupees in PR they tried to increase the valuation of company and all these things, angered people because the way Vijay Mallya was handling it he had stopped the salary of staffs, the installments of loan wasn't being paid but when birthdays used to arrive then he used to party for 3 days in which Henry K, Spanish singers - Calendar model auditions all these things were being conducted. Be it Calendar or sports event - requires crores of rupees in launching. So, these were going on rapidly and Mallya had also fixed his own salary. He used to take a salary of Rs 33 crore from Kingfisher. And he used to give that in time. Even after all these things happened, his style of living didn't lack anything.

Mallya likes theme parties a lot at this time. So he used to do theme parties time to time. Call famous people all around. And when he used to travel in his private jet, the hybrid dogs, that cost millions, travel with them. He was a fan of Mercedes car. If a model has been there for a while, then he would buy the same model again. At this time, he went to UK, so he said that there should be a

Mercedes before he reaches there. So one of his top officials, said that I will talk to Vijay Mallya, there are already 18-20 cars there, there's no space for parking. So its not right to buy, we can avoid it and there

are a lot of problems in buying it the same day. So Vijay Mallya gets so angry, that he says

now I want 2 Mercedes of same model. And just leaves one of the Mercedes there. He had a habit of going to millions of auctions and buy things. He already purchased Tipu Sultan's sword,

Gandhiji's statue and many other things for millions. And when his loan matter was going on, and CBI's enquiry starts. So CBI said in its charge sheet,

that he was not able to pay loan here, and at the same time, Mallya

bought a property of 35 million euro. And not just that, Mallya made a firm names Gizmo Holdings. Through which he was also going to do

a payment of 8 million euro in France. And when couple of these news came. So people's anger started to rise exponentially. Because he was making shell companies, taking loans in India, and shifting money outside. And all of this news was coming day by day. Cheque bounce, loan repayment,

making shell companies outside. All of these things were going on. In December 2011, another thing gets added in this. Union Minister comes in Parliament

and says that Vijay Mallya's Kingfisher, has not been paying taxes for two years. Kingfisher has not paid taxes worth more than 150 crores. And this was the time where banks got

to know that what he's doing is not right. Because he was getting squished from every side. And seeing this, banks declared him a non performing asset. In fact, some banks even said that he's a wilful defaulter. That means he is doing is intentionally. Now all these things were going on about him. Salaries, cheque bounce, tax. If there was any other person, they

would be under a lot of problems. But he faces nothing. Even that's a bit far fetched. In fact, SBI bank, Vijay Mallya and

RBI, all three of them have a meeting, in which they make a master debt recast agreement. MDRA. So this agreement was signed on 21st of December, 2010. So banks and all sign this. And basically in this, banks were finishing

their loans by taking Kingfisher's shares. Now there were questions raised on this too. The share value in market was around 38 to 39. But banks bought the shares at the rate of 64 rupees. Now when pressure increased on them,

banks said that market is down right now, so rate has come a little low, but if

you see Kingfisher's overall standard, then its average turns out to be 64. So for 64 rupees, we converted our loan. But all of these irresponsible things happening,

were only happening in government bank. Even private banks gave loan but they were safe after all. Like ICICI, HDFC also gave loans, but they had his other company, United Spirits, shares as pledge. Which they sold and recovered their money. Things came to a point that people got afraid. That the bank where we've kept our money, it might close. Now you see, when a farmer pays a loan, then his land gets sold. And when a rich doesn't pay loan, then banks get sold. And all of this that was going on, the blame

was coming to the goverment for everything. In fact, even when I tell you about UK later. It would come there, even when the case goes to UK. There some letters of Manmohan

Singh and P. Chidambaran were revealed. And when they were revealed, opposition blamed that P.

Chidambaran and Manmohan Singh helped Vijay Mallya. See the bank that was giving loan, it was giving loan on the brand value of Kingfisher. And brand value is not what just any manager would guess. They have a proper process through which they calculate. So the government banks calculated in

which its brand value came to 160 crore. But there's an audit firm called GrantThornton. Which has been hired by Adani now. Many government initiatives like Clean Ganga, NitiAyog. They have worked with them. So it did the auditing of Kingfisher brand. And they found out its audit value as 4100 crore. So not just, it was the difference of day and night. Where is 160 and where's 4100 crore. So this firm also had questions raised. But until then it was too late. Banks were giving loan on the evaluation that it did. And when the loan defaulted and they started to sell the brand. In which the main brand was fly Kingfisher, flying models, fly the good times, fun liners. Kingfisher. No one came to buy these brands. So to say, not even a single rupee came back. And after seeing all this, in February 2012,

all of Kingfisher's account are froze. After that on 20th of October, 2012,

Directorate General of Civil Aviation, DGCA suspended the flying license of Kingfisher airlines. Domestic and international, all of

Kingfisher's operation are shut completely. All of the employees come on the streets. That reached there by getting hikes. And even after all this, Vijay Mallya is comfortably

seen in Rajya Sabha, birthday parties, IPL. So these big blunders are done intentionally or are they

done by mistake, an enquiry of CBI starts to find out. So first of all CBI did that was the most fearing. CBI sent the immigration department a

lookout notice on 16th of October, 2015. In which, if Vijay Mallya comes to go outside

the country at the immigration counter, then he should be stopped and sent him back. And inform the CBI. At any cost, he should not go outside the country. But there's another problem here too. Somehow, on 24th of November, 2015, some

words in the notice that CBI sent, were changed. Now it was, if Vijay Mallya is seen then just stop him and ask

where he is going and inform the CBI about the location he's going. Don't have to stop him for going out of India. Subramanian Swamy even tweeted this thing. That Mallya first reaches Delhi to change this lookout notice. And meets a powerful person and gets these changes done. So that he can freely move. Now after this, all the banks get together on 1st of March, 2016. And reach attorney general debt recovery, DRT. And say that immediately seize his passport. He will flee. Supreme Court understands the urgency of this whole matter. And fixes a time for its hearing on

the next day, 3rd of March 2016. That this will be done. Now when all of this was going on 1st of March. So Vijay Mallya reaches parliament on 1st of March. And next day, on 2nd of March, from Delhi airport, gets on the Jet Airways flight number 9W-122 from terminal

3 with 55 suitcases and a female friend flees for London. And this time he uses a commerical flight instead of a private jet. And starts living in the Baker

street besides the Madame Tussauds. And after reaching Vijay Mallya says that he came here

after talking to the then Finance Minister, Arun Jaitley. Now questions rise on Arun Jaitley, so he

says he did meet me on the 2nd in parliament. But he was an MP so he did say

something but I did not pay attention. We did not have such discussion, I just

ignored him and told him to meet the bankers. But Congress leadre P.L.Punia said that Arun Jaitley is lying. You can see the Rajya Sabha's central hall footage. On 1st of March 2016, they talked for more

than 10 minutes and if its proved wrong. Then I will quit politics. Now all these things were going on. But Supreme Court does what it can. Supreme Court's bench reached out Mallya's companies. Reached out to UK's Indian high commissioner. And even reached him on his Rajya Sabha's email id. But there were of no use. Now see, after Vijay Mallya's flee to the

UK, all hands were tied for the banks. In fact, even the government official's hands tied as well. But some things were still in control from here. See there was a treaty signed between

India and UK on 22nd of September, 1992. Extradition treaty. In which if one country's person does a crime, so they will hand them out to one another. And based on that, Ministry of External Affair, General VK Singh sent an extradition request on Februray 2017. And acting on that, the British high commissioner,

on 18th of April, 2017, arrests him in UK and takes him to Westminster magistrate court. But Mallya's lawyer gets him out on conditional bail. India tries again. After that Vijay Mallya used multiple remedies according to the

UK extradition act 2003, through which he gets saved again. And Indian banks now fight case even in UK along with India. Banks say that Mallya is a wilful defaulter. That means he did all this intentionally. So see, the current situattion is that, Vijay Mallya offers

to remove interest, penalty, this amount to repay the loans. So he keeps trying to negotiate. Even tweets, there are also news here and

there that he will be brought back to India. But then at the last moment, his lawyers save him again. Right now, there's no confirmation on when he's coming back. But the government has guaranteed that they will bring him back. And the people's money, will be given by selling

his property and somehow negotiating with him. At the last I would again like to say that to control your money. Join the 1% club's masterclass. And start the journey of your financial growth. Thank You!