BUSINESS

BJP Accuses Manmohan Singh Of Helping Vijay Mallya Get Loans For Kingfisher Airlines During UPA Rule

"Was the sinking ship helping out the sinking airline?"

30/01/2017 2:06 PM IST | Updated 30/01/2017 3:56 PM IST
HuffPost Staff

The Bharatiya Janata Party (BJP) on Monday alleged that former prime minister Manmohan Singh had helped the financially ailing Kingfisher Airlines procure loans when he was in office during the United Progressive Alliance (UPA) rule in India.

According to India Today, BJP spokesman Sambit Patra alleged:

"The first loan to Vijay Mallya was granted in 2004, then again in 2008. Despite his companies declared Non-Performing Assets, a restructuring of his loan was done in 2010... The Finance Minister forced the SBI group, which was not willing to give a no-objection certificate for the issue of fresh share to raise funds, to not only issue the NoC, but to meet the UBL officials..."

Patra alleged that it was because the Congress party, which led the UPA coalition, knew that they were a "sinking ship" that they had helped Vijay Mallya, the chairman of Kingfisher Airlines.

On 28 January, News18 had published a series of emails, which allegedly showed the former PM taking an interest in Kingfisher Airlines. In the emails, Mallya has "thanked" Singh as well as the former finance minister P. Chidambaram several times for their "positive support".

But Mallya tweeted that there were no favours involved. He also accused the UPA government of bailing out Air India, instead of Kingfisher Airlines.

Defending Mallya, Biocon Chairperson Kiran Mazumdar-Shaw said that there was nothing wrong in what he did in seeking help from the former prime minister and finance minister.

(With inputs from agencies)

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