India’s Biggest Bank Fraud: Vijay Mallya part 2

India’s Biggest Bank Fraud: Vijay Mallya part 2

Some Indian politicians criticized this Western drinking culture, but Vijay didn’t care. He only wanted to prove that he had taken United Breweries to new heights.

And he did. The company became the largest liquor manufacturer in India. It was said that one out of every two beer bottles sold in India was Kingfisher.

Vijay Mallya was living a king’s life.

But problems soon began.In many parts of India, alcohol was banned, and Kingfisher sales started falling. Governments even destroyed thousands of seized bottles using road rollers.

Soon another problem appeared. Even in states where alcohol sales were allowed, the government banned advertising alcohol on TV and in newspapers.

To overcome this, Vijay used a clever marketing technique called surrogate advertising. Since alcohol couldn’t be advertised, he launched Kingfisher mineral water and soda and advertised them instead. Everyone knew the ads were indirectly promoting beer.

During the 1996 Cricket World Cup, Kingfisher used viral advertising and became a national brand known by almost everyone.

Later, the famous Kingfisher Calendar was launched, which featured photoshoots of models. Many Bollywood stars gained recognition through this calendar, including Deepika Padukone, Katrina Kaif, and Nargis Fakhri.

By this time, Vijay Mallya had everything—wealth, fame, and power. He even entered politics.

But there was one thing he disliked: being called the “Liquor Baron.”

He wanted respect in society.

So he created a bold plan.

In 2004, he bought 12 Airbus A320 aircraft worth $404 million and launched Kingfisher Airlines.

It was marketed as a luxury airline. Even the advertisements claimed they hired models as flight attendants.

The airline launch event was massive and attended by high-profile guests. The airline quickly gained international attention and became a lifestyle brand.

But the luxury came at a huge cost.

Vijay spent money like water on the airline—buying more aircraft and adding premium services. However, the market demand in India was mainly for low-cost travel, not luxury flights.

Within the first 18 months, the airline lost 347 crore rupees.

Still, Vijay kept investing.

He even bought another airline, Air Deccan, using bank loans to expand internationally.

Then came the Global Financial Crisis of 2008.

Fuel prices tripled, travel demand dropped, and many airlines around the world struggled.

Kingfisher Airlines, famous for its extravagant spending, was hit the hardest.

In 2011, a research report exposed the company’s financial situation. It revealed that Kingfisher’s expenses were far higher than its revenue and that most spending was done using bank loans.

Soon the truth came out.

The airline had borrowed around ₹9000 crore from 17 Indian banks. When the company collapsed in 2012, salaries of employees were unpaid for months.

Meanwhile, Vijay Mallya continued living a luxurious life.

When legal action started in India, he left the country in 2016 and moved to the United Kingdom.

Indian authorities cancelled his passport and requested his extradition. Courts ordered that he should be sent back to India, but legal battles are still ongoing.

Today, Vijay Mallya’s properties, luxury cars, and shares have been seized to recover bank money.

Once called the “King of Good Times,” Vijay Mallya is now remembered as the man behind one of India’s biggest financial scandals.