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[instrumental music playing]
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[man 1] Welcome aboard.
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I mean, there's so many firsts on board
this Kingfisher "Funliner" as I call her,
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stuff that's never seen before
in Indian skies -
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fabulous flight attendants,
they are all models,
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in-flight entertainment,
the widest seat in the sky.
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So, I think we have a winner on our hands.
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[music continues]
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[man 2] Vijay Mallya
was a kind of urban legend.
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There was no one else
who appeared to be living the dream
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the way Vijay Mallya was.
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Every time you pointed
to this wasteful personal expenditure,
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he would say, "I am the brand."
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[man 3] Everybody is with you
when you're on the top.
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When you start crashing,
everyone runs for their lives.
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That's what happened with Vijay.
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{\an8}[music continues]
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[inaudible]
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[reporter 1]
London's Westminster Magistrates Court
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is all set to hear the extradition case
against the former liquor baron.
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[man 4] We have presented
the evidence against Mr. Mallya
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on charges that he's been
an economic offender.
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Mr. Mallya, last question
about the witnesses, sir.
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Please, stop bothering me.
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The only difference
between a petty criminal and Vijay Mallya
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is he wears suits
and throws lavish parties.
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You're not going to get an answer.
The answer will be given to the judge.
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He needs to pay for what he did.
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Listen for yourself
and make up your own mind.
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-[reporter 2] We want your thoughts.
-No, no.
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-[reporter 3] So far, so good--
-It's not-- It's not my job to comment.
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[reporter 4]
Hiding your own personal assets,
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hiding your company's assets, sir.
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Laundering money
through your Formula One team.
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I bet he goes to bed every night saying,
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"Why didn't I pay the damn money?"
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I'm not going to comment.
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[camera shutter clicks]
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I will not allow you to make any sort
of judgements based on my comment.
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...a fugitive of the law, Mr. Mallya.
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No comment.
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They need a scapegoat,
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they need a political pawn,
they need a man to make an example of.
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-[overlapping voices]
-[Vijay] The allegations are baseless,
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and, uh, you will see
our submissions in court.
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[man 3] But that one airline
just did him in.
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If that hadn't gone wrong,
Vijay would be king today,
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everybody would be bowing down
and touching his feet, even now.
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[dramatic music crescendos]
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[theme music playing]
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[music fades out]
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[reporter] Liquor baron Vijay Mallya
lived up to his reputation
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as the "King of Good Times"
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with a birthday bash
that was celebrated with exuberance,
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extravagance and flare.
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We're all a part
of this wonderful celebration
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of Vijay's 50th rocking birthday bash.
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He is truly the King of Good Times.
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[chuckles] I can't think of anybody else
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who has the flamboyance
to throw a party like this.
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Well, I think anything
that Vijay Mallya does is always stylish.
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Fifty years is obviously a big birthday,
so the celebration matched it.
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{\an8}My father, he has always been
a flamboyant individual.
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[guests cheering]
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[Sid] I don't know where it came from
or what started it,
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but certainly, he's always had
that "King of Good Times" persona.
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I don't think you can get any bigger -
I mean, lights, the party, Lionel Richie.
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♪ Happy birthday to you ♪
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In 2005... everything was great,
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and I just saw this meteoric rise
and I would go around with my dad.
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The pride I had was immense.
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Everyone viewed him
as this man with the Midas touch.
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It's what he had worked hard for
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and he was getting the recognition
that he deserved.
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At that point,
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no one would have foreseen
what ended up happening, right?
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{\an8}Vijay's father, Vittal Mallya,
was the chairman of United Breweries...
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{\an8}this big empire of, uh, brewing.
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Vijay was the only child of his parents.
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He was spoilt as a kid
with all these expensive toys,
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like electric trains
and a battery-operated Ferrari.
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His father was a very wealthy man...
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a very astute and shrewd businessman.
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The brewing business was very difficult
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because alcohol was something
that was taboo.
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For a long time in India,
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the kind of moralism
and political pressure
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that surrounds the liquor industry
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has meant there's this impulse
to enforce prohibition.
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{\an8}Because of the way drinking
figured in colonial culture,
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{\an8}it received a lot of contempt
from the country more broadly.
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{\an8}In India, we have the legacy
of Mahatma Gandhi,
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{\an8}who was convinced that alcohol
was one of the world's great evils.
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[interviewer] Mr. Gandhi,
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do you intend to have complete prohibition
in the new Indian State?
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[Gandhi] Oh, yes.
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-[interviewer] Absolute prohibition?
-Absolute.
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The threat of prohibition has always meant
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that the industry's had to keep
a pretty low profile.
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[Sanghvi] Vittal Mallya
was this rather secretive millionaire,
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and it was almost as though he paid
to keep his name out of the papers.
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It's fascinating that it was his son
who turned all of that on its head.
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{\an8}[clock ticking]
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{\an8}By the time Vijay Mallya
was in his early 20s,
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{\an8}he was already like a famous hellion
who loved fast cars.
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{\an8}Vijay was hugely interested
in motor racing,
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{\an8}which was an activity considered
to be unsafe by his father.
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Well, his father didn't think
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it was conducive for him
to becoming a serious businessman.
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Then, finally, I think in '82, '83,
he won the Indian Grand Prix...
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so he was the national champion.
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But he, kind of, got side-tracked by--
Like, life happens.
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[Shaw] Vittal Mallya
had this massive heart attack
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and collapsed and died.
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Vijay was devastated...
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because I don't think anyone expected
his father to have such an untimely death.
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As a 28-year-old,
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it suddenly was a huge shift
from being a very carefree, young man,
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to suddenly holding
these huge responsibilities
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of now having to run this business empire
that his father had created.
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[instrumental music playing]
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He wanted to prove
to himself and the world
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that he could do justice
to his father's empire.
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He wanted to be perceived
as someone who made it even bigger.
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Vijay Mallya arrives on the scene
and takes over UB in 1983,
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just as the Indian economy
is about to transform.
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India was a country
with a lot of young people,
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there's a lot of aspiration,
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and he's in charge of this company
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as India turns into a consumer economy.
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[music continues]
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And Vijay Mallya recognized
that this was a sort of perfect storm
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of conditions in which to transform
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the way India saw alcohol
and saw drinking culture.
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[fizzing]
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When he inherited the business,
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among all the brands that were there,
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Kingfisher's the one
which excited him the most...
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and he had a vision for it.
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[bass guitar strumming]
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[Karnad] Vijay Mallya
was one of the first to recognize
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that the social air of a British pub
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was something
Bangalore was just waiting to host.
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[funky upbeat music playing]
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{\an8}In the mid-80s, Bangalore became,
sort of, this young, youthful city
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{\an8}where everything was happening...
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{\an8}because of this young sort of image
and the IT crowd.
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Macram...
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Get me one more.
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The first pub started in Bangalore
called "The Pub".
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Kingfisher saw this as a great,
sort of, market.
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{\an8}[music continues]
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[indistinct chatter]
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They started serving draft beer
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and Bangalore's one of the only places
which had this in the country,
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and that sort of went, boom.
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People wouldn't say, "Give me a beer."
It was, "Give me a Kingfisher."
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The Pub was relaxed, it was positive,
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it was affordable,
and it was safe for women.
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So, from the initial success
of this one pub,
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five years later,
Bangalore had forty pubs.
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[music continues]
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[Khosla] In the beginning,
there were political parties
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that, sort of, freaked out and said,
"This is not Indian culture."
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He didn't care.
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He just wanted it
to become bigger and bigger.
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And he made it huge.
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Vijay really did want public recognition,
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he did want to be known,
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he did want people to acknowledge that,
"Oh, Vijay Mallya. Who is he?"
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{\an8}I'm a friend of Vijay Mallya's.
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I've known him for 30, 40 years.
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-...for a minute. Hi.
-[Vijay] Hi.
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00:11:03,345 --> 00:11:05,185
-This is the BBC team.
-Hello.
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00:11:05,265 --> 00:11:07,705
I just told them
that you're known by various names,
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"the Prince of India," "the Maharaja,"
"the richest man in India"
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00:11:11,945 --> 00:11:15,225
and that you have one of the most,
frankly, flamboyant styles
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of any industrialist in this country.
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-Really?
-Yeah. This whole, uh...
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-A very, very glamorous lifestyle and--
-[BBC reporter] Is that-- Is that true?
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Not exactly.
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I don't know what yardstick
you would like to measure it by.
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Well, my first impression was really,
"What a flamboyant show-off."
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[De] Your cars, for instance.
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00:11:33,505 --> 00:11:37,065
Um... I drive a Mercedes, I have a BMW,
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I fool around with a Porsche
and a Maserati occasionally.
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And I liked that about him
so much because,
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in a society
where everybody is playing coy
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or playing themselves down
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and discretion was everything,
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and he came along and, uh,
kind of, shook up everybody.
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[reporter] Now, you've been compared
to Donald Trump,
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00:11:57,945 --> 00:11:59,465
so how do you feel about that?
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00:11:59,545 --> 00:12:03,745
Well, I don't know Mr. Trump personally.
I've read a lot about him.
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00:12:03,825 --> 00:12:06,105
-He obviously likes to live his life.
-[reporter] Yes.
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00:12:06,185 --> 00:12:07,865
-As I do.
-[reporter] As you do.
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00:12:07,945 --> 00:12:08,985
But, um...
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00:12:09,785 --> 00:12:11,585
I'm not yet anywhere near bankruptcy.
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00:12:11,665 --> 00:12:12,625
[reporter] Right.
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00:12:13,385 --> 00:12:16,745
Being one of the richest and, perhaps,
a very powerful man in India...
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00:12:16,825 --> 00:12:17,665
[Vijay] Mm-hmm.
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00:12:17,745 --> 00:12:19,985
-[reporter] ...do you have enemies?
-Many.
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00:12:20,065 --> 00:12:21,865
-[reporter] Many?
-Mm-hmm, plenty.
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00:12:22,665 --> 00:12:24,265
[indistinct chatter]
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00:12:24,345 --> 00:12:27,505
[man] Mallya had this golden goose
in his empire,
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00:12:27,585 --> 00:12:31,705
but it was also one that, politically,
was becoming increasingly unacceptable.
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00:12:31,785 --> 00:12:33,785
[inaudible]
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00:12:33,865 --> 00:12:37,985
{\an8}In some parts of India,
there were complete bans on alcohol sales.
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00:12:42,745 --> 00:12:46,025
For instance, the state of Gujarat
in the north of the country,
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00:12:46,105 --> 00:12:49,985
where Prime Minister Narendra Modi would
eventually emerge as a political force,
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00:12:50,065 --> 00:12:51,705
you couldn't sell alcohol at all.
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00:12:52,905 --> 00:12:57,625
{\an8}[in Hindi] People have very much accepted
and appreciated prohibition
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00:12:57,705 --> 00:12:59,465
{\an8}and they want more of it.
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00:13:01,145 --> 00:13:02,785
[in English] And at the same time,
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00:13:03,305 --> 00:13:06,345
India's government dealt a real blow
to Mallya's empire
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00:13:07,025 --> 00:13:10,745
by banning advertisement
of alcohol on television
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00:13:10,825 --> 00:13:14,105
just at the time when Mallya
was really trying to expand his business.
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00:13:16,265 --> 00:13:18,785
[Vijay]
I am in the beverage-alcohol business -
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00:13:18,865 --> 00:13:20,425
advertising is banned.
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00:13:22,065 --> 00:13:27,705
{\an8}So, we created an aspirational lifestyle
branding image around Kingfisher.
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00:13:29,185 --> 00:13:31,185
Now, how do I communicate that?
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00:13:31,265 --> 00:13:34,465
I don't have advertising,
I don't have radio, no TV, no nothing.
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00:13:35,305 --> 00:13:37,265
So, you've got to think outside the box.
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[Crabtree] And so, he became a pioneer
in different kinds of advertising.
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00:13:46,785 --> 00:13:49,305
The most famous
was known as "surrogate advertising".
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00:13:49,385 --> 00:13:51,185
[upbeat music playing]
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00:13:51,265 --> 00:13:54,985
{\an8}[Crabtree] He had, basically,
the same adverts, but they were for soda.
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00:13:55,785 --> 00:13:58,705
{\an8}Kingfisher as a brand
was still very high-profile,
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00:13:58,785 --> 00:14:01,265
{\an8}even if you weren't meant
to advertise the beer.
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00:14:01,345 --> 00:14:04,185
[music continues]
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00:14:04,265 --> 00:14:08,585
{\an8}I was 13 in 1996, when the World Cup
was being hosted in India,
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00:14:09,145 --> 00:14:12,705
{\an8}and Kingfisher launched this campaign
with this jingle that goes...
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00:14:13,265 --> 00:14:17,145
[man] ♪ Ooh, la, la, la, la, ooh, la, oh ♪
234
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♪ Ooh la, la, la, la, ooh, la, oh ♪
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For anyone my age, uh,
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00:14:22,905 --> 00:14:25,025
this has more recall value,
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00:14:25,105 --> 00:14:27,705
[chuckles] than practically anything else
from the 1990s.
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♪ Ooh la, la, la, la, ooh, la, oh ♪
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00:14:31,145 --> 00:14:34,265
Vijay Mallya made this decision
that he wanted to sell
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00:14:34,345 --> 00:14:37,305
the culture of enjoying drinking
to Indians
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00:14:37,385 --> 00:14:39,425
in a way that never had been done before.
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00:14:40,265 --> 00:14:41,945
[reporter] Do you drink your own alcohol?
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-Yes, I do
-[reporter] You do?
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00:14:43,425 --> 00:14:45,225
-Of course, I do.
-[reporter] That's wonderful.
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00:14:45,305 --> 00:14:46,665
Vijay Mallya's special genius
246
00:14:46,745 --> 00:14:50,425
was that he was willing to make
his own life and his own lifestyle
247
00:14:50,505 --> 00:14:53,345
the centerpiece of UB's brand blitz.
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[Khosla] With his whole image, you know,
he became the "King of Good Times".
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They made the whole tagline,
"The King of Good Times, Kingfisher,"
250
00:15:03,905 --> 00:15:05,945
and he was then the "King of Good Times,"
251
00:15:06,025 --> 00:15:09,505
because he was just, you know,
the king of good times. [laughing]
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We, sort of, had some of the best times
that anybody will have ever had.
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00:15:14,465 --> 00:15:16,825
I mean, we really had a lot of fun.
254
00:15:18,705 --> 00:15:21,665
[De] He was obsessed
with that particular persona.
255
00:15:21,745 --> 00:15:25,425
It worked very well for him
because he understood image-building.
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[upbeat Indian music playing]
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00:15:27,785 --> 00:15:30,905
{\an8}And he lived his life king-sized, right?
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{\an8}He lived his life.
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[music continues]
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[Sid] Kingfisher then became
more than just a beer,
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it became a lifestyle,
it became a way of life,
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it became aspirational...
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[music continues]
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...because the youth saw this man
and aspired to be like that.
265
00:15:49,585 --> 00:15:52,705
You know, he was one
of the very first people in India
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that wasn't afraid to spend his money,
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that wasn't afraid to be flamboyant,
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who was unapologetic.
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[helicopter blades whirring]
270
00:16:05,185 --> 00:16:08,905
I was on a helicopter with Vijay in 2003.
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It was a short ride,
supposed to be 45 minutes or so.
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{\an8}My first time on a helicopter.
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At one point, I sort of realized
that we started kind of going down...
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and then, we kind of started
going into a circle.
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I couldn't believe it -
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my first helicopter ride
and here I was, going to die.
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-[beeping]
-[dramatic music intensifying]
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[Vijay] So, I'm happy to be here myself.
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Miracles do happen.
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Well, there's obviously
a message from above, you know?
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I mean, I have a second life.
282
00:16:56,305 --> 00:16:59,305
Uh, obviously, I'm doing something right
and God needs me.
283
00:17:01,425 --> 00:17:04,585
[Patel] He was always
referred to as "the liquor baron,"
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00:17:05,465 --> 00:17:08,345
which by itself is, like, derogatory.
285
00:17:08,425 --> 00:17:13,305
It's not like saying "the telecom baron"
or, you know, "the mango king."
286
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The alcohol industry
is looked down upon in India
287
00:17:19,585 --> 00:17:22,215
and Vijay was not very happy about it.
288
00:17:22,704 --> 00:17:25,794
{\an8}[in Hindi] Vijay Mallya,
known as "the liquor baron,"
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00:17:25,865 --> 00:17:27,505
{\an8}the uncrowned "King of Alcohol".
290
00:17:27,585 --> 00:17:29,695
Vijay Mallya, welcome to the studio.
291
00:17:30,345 --> 00:17:33,545
Article 47 of the Indian Constitution says
292
00:17:33,625 --> 00:17:37,545
that "the State shall endeavor
to promote prohibition."
293
00:17:37,625 --> 00:17:40,065
[in English] Endeavour.
Endeavour is not mandatory my friend.
294
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-It is mandatory.
-No, it is not.
295
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[in Hindi]
I'm not forcing anyone to drink.
296
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[Sanghvi in English]
He built a phenomenal empire.
297
00:17:50,105 --> 00:17:53,025
He was one of the world's
largest liquor producers.
298
00:17:54,185 --> 00:17:56,625
I mean, that should have been enough,
shouldn't it?
299
00:17:56,705 --> 00:17:59,545
{\an8}But he wanted to be recognized
all over the world
300
00:18:00,065 --> 00:18:01,545
{\an8}as something much more.
301
00:18:04,545 --> 00:18:08,345
I will not go down in history
as "King of Good Times,"
302
00:18:08,945 --> 00:18:10,785
I want to be a catalyst for change.
303
00:18:11,345 --> 00:18:13,465
There's a mission, a purpose -
we'll go for it.
304
00:18:13,945 --> 00:18:17,265
{\an8}Vijay developed into one of these blokes
305
00:18:17,865 --> 00:18:21,825
{\an8}who wants to be the biggest,
the shiniest, the brightest,
306
00:18:21,905 --> 00:18:23,585
{\an8}the man, the kid on the block.
307
00:18:23,665 --> 00:18:24,945
{\an8}He needed to be that.
308
00:18:26,345 --> 00:18:28,905
{\an8}Vijay Mallya has to be number one
309
00:18:29,425 --> 00:18:33,425
{\an8}and anything that needed to feed that
310
00:18:33,505 --> 00:18:34,825
{\an8}had to be done.
311
00:18:43,705 --> 00:18:45,825
[man] A friend of mine from Sausalito
called and said
312
00:18:45,905 --> 00:18:48,945
that there was a man named Vijay Mallya
who wanted to meet me.
313
00:18:50,985 --> 00:18:52,825
{\an8}And then Vijay called me and he said,
314
00:18:52,905 --> 00:18:56,065
{\an8}"Alex, my name is Vijay Mallya,
and I would like to meet you tonight."
315
00:18:58,705 --> 00:19:01,945
So, I flew up on Southwest Airlines,
drove over to Sausalito,
316
00:19:02,625 --> 00:19:05,145
and for the first time,
I met the "King of Good Times."
317
00:19:09,345 --> 00:19:11,825
{\an8}He was covered in jewelry,
he had diamond stud earrings...
318
00:19:13,785 --> 00:19:16,945
{\an8}he had gold necklaces,
he had rings on every finger nearly.
319
00:19:18,145 --> 00:19:19,665
He seemed to be larger than life.
320
00:19:19,745 --> 00:19:22,865
This guys like a James Bond figure.
You know, he survived a helicopter crash.
321
00:19:22,945 --> 00:19:25,065
And I was kinda surprised
I'd never heard of him before.
322
00:19:27,185 --> 00:19:30,665
You know, this was definitely a person
that was not going to be shy
323
00:19:30,745 --> 00:19:32,145
or retiring in any way.
324
00:19:33,585 --> 00:19:36,265
And then, uh, we sat down
and he showed me the video.
325
00:19:36,345 --> 00:19:39,785
[dramatic music playing]
326
00:19:39,865 --> 00:19:44,785
Welcome aboard Kingfisher -
a unique, exciting experience in flying.
327
00:19:45,225 --> 00:19:47,385
[man] Kingfisher Airlines have ordered
328
00:19:47,465 --> 00:19:51,385
a total of 12 brand new
A320 aircraft from Airbus.
329
00:19:52,345 --> 00:19:53,905
{\an8}This was a highly produced video
330
00:19:53,985 --> 00:19:56,185
{\an8}with a very big, dramatic soundtrack,
331
00:19:56,265 --> 00:19:58,705
{\an8}that, at first, I was wondering
if he was putting me on
332
00:19:58,785 --> 00:19:59,905
{\an8}and was this thing for real?
333
00:19:59,985 --> 00:20:04,385
{\an8}Kingfisher doesn't hire flight attendants
like other airlines.
334
00:20:04,465 --> 00:20:06,905
{\an8}We choose only models.
335
00:20:08,665 --> 00:20:09,745
{\an8}[Wilcox] He had a vision
336
00:20:09,825 --> 00:20:12,265
{\an8}and it was one that was gonna
bring aviation to India
337
00:20:12,345 --> 00:20:14,065
{\an8}in a way that hadn't been done before.
338
00:20:14,145 --> 00:20:18,945
{\an8}[dramatic music continues]
339
00:20:19,025 --> 00:20:23,025
{\an8}I'll never forget, he told me that India
had a middle class, a rising middle class,
340
00:20:23,105 --> 00:20:25,145
{\an8}that was larger than the entire
US population.
341
00:20:28,465 --> 00:20:32,345
They were already his customers,
so it was a massive, massive opportunity.
342
00:20:35,705 --> 00:20:39,145
I told Vijay that I'd be happy
to help him start Kingfisher Airlines.
343
00:20:41,945 --> 00:20:43,905
{\an8}Vijay Mallya of the UB Group
344
00:20:43,985 --> 00:20:46,185
{\an8}has signed a huge deal
with the Airbus Industries
345
00:20:46,265 --> 00:20:49,585
{\an8}to buy about twelve planes
and with an option of eight new planes -
346
00:20:49,665 --> 00:20:52,465
{\an8}the deal anywhere
in the range of $240 million.
347
00:20:53,425 --> 00:20:56,225
[Wilcox] The low-cost carrier
was the model of the time.
348
00:20:56,305 --> 00:20:59,265
We weren't gonna serve meals,
we weren't gonna have a first class.
349
00:20:59,345 --> 00:21:02,825
It was going to be high-frequency,
low-cost, short-haul flying,
350
00:21:02,905 --> 00:21:06,625
and, uh, that's what he hired me to do
and what I thought I was signing up for.
351
00:21:06,705 --> 00:21:08,465
[inaudible]
352
00:21:08,545 --> 00:21:10,105
[Vijay] It's my son's 18th birthday.
353
00:21:10,185 --> 00:21:12,305
I mean, obviously,
it's an occasion to celebrate.
354
00:21:12,385 --> 00:21:15,065
It's the launch of my dream project,
Kingfisher Airlines,
355
00:21:15,145 --> 00:21:16,905
another reason to celebrate.
356
00:21:17,385 --> 00:21:19,825
My dad said,
"I want to launch it early May,
357
00:21:19,905 --> 00:21:23,305
my son's 18th birthday
is on the first Saturday of May."
358
00:21:23,745 --> 00:21:25,625
That's why it was launched on that day.
359
00:21:27,225 --> 00:21:31,945
{\an8}[camera shutters clicking]
360
00:21:32,865 --> 00:21:36,705
[Wilcox] When we launched the airline,
it was a very, very highly produced event.
361
00:21:41,185 --> 00:21:42,865
We had smoke, laser lights,
362
00:21:42,945 --> 00:21:45,265
and there was a cast
of thousands there, literally.
363
00:21:48,225 --> 00:21:51,065
The lights came on, everyone could see
the airplane at the same time.
364
00:21:51,145 --> 00:21:53,305
[crowd cheering]
365
00:21:53,385 --> 00:21:55,865
I came out, waved from the passenger door.
366
00:21:55,945 --> 00:21:57,905
Uh, that was my entire role,
to basically wave.
367
00:21:57,985 --> 00:22:02,545
[crowd continues cheering]
368
00:22:05,585 --> 00:22:08,745
[in Hindi] Advertising is banned,
and so you started Kingfisher Airlines--
369
00:22:08,825 --> 00:22:10,905
-[laughs]
-...to advertise in a surrogate way.
370
00:22:10,985 --> 00:22:13,385
Because "Kingfisher"
is the name of your beer, isn't it?
371
00:22:13,465 --> 00:22:14,985
{\an8}Are you telling me
372
00:22:15,065 --> 00:22:19,025
{\an8}that I spent 2,000 crores on an airline
just to advertise my beer brand?
373
00:22:19,105 --> 00:22:21,145
This way,
you could promote your brand, right?
374
00:22:21,225 --> 00:22:24,625
Because Kingfisher has brand recognition--
375
00:22:24,705 --> 00:22:26,985
-[in English] As a beer.
-No, as a lifestyle.
376
00:22:28,145 --> 00:22:31,345
[Sid] It wasn't launched
just to promote the beer.
377
00:22:31,425 --> 00:22:36,265
That would have been a pretty expensive
advertising hoarding, to get a plane.
378
00:22:36,345 --> 00:22:40,345
But, I think, it was just another means
of expanding this brand,
379
00:22:40,425 --> 00:22:42,665
this lifestyle, which was already there.
380
00:22:45,585 --> 00:22:47,385
[woman] It started with a bang.
381
00:22:47,465 --> 00:22:49,865
It looked like a very promising airline
382
00:22:49,945 --> 00:22:52,185
and it seemed like a fabulous opportunity
383
00:22:52,265 --> 00:22:54,625
because I would get to travel,
I would get to fly,
384
00:22:54,705 --> 00:22:56,545
I'd get to do the things
that I love to do.
385
00:22:58,585 --> 00:23:02,345
{\an8}I worked in Kingfisher Airlines.
I was their first inflight director.
386
00:23:02,905 --> 00:23:04,865
We had dieticians
who came in and advised us,
387
00:23:04,945 --> 00:23:09,825
we had people who came and taught us
how to exercise and be in shape,
388
00:23:09,905 --> 00:23:11,145
and to do yoga and things.
389
00:23:11,225 --> 00:23:13,585
So, it was a very,
very comprehensive training.
390
00:23:15,065 --> 00:23:18,465
[Wilcox] When we first started hiring,
there would be lines around the block.
391
00:23:19,025 --> 00:23:21,425
This is where the cool kids were
and where you wanted to be.
392
00:23:22,665 --> 00:23:23,945
{\an8}Vijay told me, he said,
393
00:23:24,025 --> 00:23:27,745
{\an8}"You know, you can choose any color
as long as it's red." [laughing]
394
00:23:28,225 --> 00:23:30,825
I remember, when we did that uniform,
Vijay first said,
395
00:23:30,905 --> 00:23:33,425
"Bring me some new designs
and come tomorrow morning."
396
00:23:33,505 --> 00:23:36,545
I said, "Vijay, it's six o'clock
in the evening, you know,
397
00:23:36,625 --> 00:23:38,145
give me a day at least.
398
00:23:38,225 --> 00:23:41,345
I need to work on the designs,
you know, I need to figure this out."
399
00:23:42,305 --> 00:23:45,065
[Patel] It was Mallya's dream project.
400
00:23:45,145 --> 00:23:49,025
He would approve the menus,
hire the air hostesses.
401
00:23:49,425 --> 00:23:52,545
He was involved in everything.
402
00:23:52,625 --> 00:23:53,985
It was his baby if you like -
403
00:23:54,065 --> 00:23:58,105
he incubated it, he nurtured it,
and then, finally, launched it.
404
00:23:58,185 --> 00:24:03,305
So, there was definitely a big,
big, big vested interest in him in it.
405
00:24:03,705 --> 00:24:06,905
I know how to address that consumer
better than anybody else does,
406
00:24:06,985 --> 00:24:08,665
that's why our products are number one.
407
00:24:08,745 --> 00:24:11,105
OK, so, you're saying
you're not a low-cost airline,
408
00:24:11,185 --> 00:24:14,705
but when you look at your planes,
for instance, it's a narrow-body aircraft,
409
00:24:14,785 --> 00:24:17,985
you don't have any business class seating,
you just have one class.
410
00:24:18,065 --> 00:24:21,305
These are all what I see as trademarks
of a low-cost airline.
411
00:24:21,385 --> 00:24:26,025
Well, no, this-- this is Kingfisher class.
You know, appreciate it right.
412
00:24:26,105 --> 00:24:27,785
OK, you call it "Kingfisher class"?
413
00:24:27,865 --> 00:24:31,625
Yeah, this is neither business,
nor is it economy, it's one class.
414
00:24:31,705 --> 00:24:35,025
[interviewer] But the airline is not--
wouldn't be the world's most expensive way
415
00:24:35,105 --> 00:24:37,505
to advertise beer in a surrogate manner?
416
00:24:37,905 --> 00:24:41,945
Well, I guess the beer has become
the airline surrogate now. [laughs]
417
00:24:47,145 --> 00:24:48,985
When we first started rolling it out
418
00:24:49,745 --> 00:24:53,905
all the details that Vijay obsessed upon,
you know, were now on public display.
419
00:24:56,785 --> 00:24:59,985
It's the entire combination
of everything brand spanking new...
420
00:25:00,865 --> 00:25:03,665
airport staff smiling at you
instead of scowling at you.
421
00:25:05,985 --> 00:25:07,985
The message was,
"everyone is welcome here."
422
00:25:08,065 --> 00:25:10,625
[Indian instrumental music playing]
423
00:25:12,945 --> 00:25:15,145
[Wilcox]
And so, here we were, fresh faced,
424
00:25:15,225 --> 00:25:17,665
flight attendants wearing short skirts
instead of saris.
425
00:25:18,385 --> 00:25:20,585
It was important to Vijay
that it perceived
426
00:25:20,665 --> 00:25:22,945
to be shiny and new and somewhat Western.
427
00:25:23,825 --> 00:25:25,745
He knew exactly what he was doing
and how to do it
428
00:25:25,825 --> 00:25:27,545
and I think he did it very well.
429
00:25:27,625 --> 00:25:30,545
[indistinct chatter]
430
00:25:30,625 --> 00:25:32,345
People were really impressed,
431
00:25:32,425 --> 00:25:35,865
and, you know, it became the best airline,
most talked-about airline.
432
00:25:35,945 --> 00:25:38,505
[music continues]
433
00:25:38,585 --> 00:25:40,785
[Khosla]
Well, it was brilliant when it launched.
434
00:25:40,865 --> 00:25:44,665
People just, sort of, saw aviation
in a completely new light -
435
00:25:44,745 --> 00:25:47,545
something that people
had never experienced in India before.
436
00:25:47,625 --> 00:25:51,945
If there's anything that you find
that I should do better,
437
00:25:52,025 --> 00:25:53,945
please don't hesitate to mail me.
438
00:25:54,545 --> 00:25:56,745
Finally, you know,
our flights are on time,
439
00:25:56,825 --> 00:25:59,505
finally, the planes are clean,
finally, the service is great.
440
00:26:00,745 --> 00:26:04,025
The feedback from our customers
was tremendously, tremendously good.
441
00:26:04,745 --> 00:26:07,745
{\an8}I was skeptical about him
getting into the airlines business,
442
00:26:07,825 --> 00:26:09,305
{\an8}but he surprised me.
443
00:26:09,385 --> 00:26:11,825
Kingfisher Airlines
was a resounding success.
444
00:26:11,905 --> 00:26:15,945
[music continues]
445
00:26:16,025 --> 00:26:19,825
[Sid] Without a doubt, Kingfisher
revolutionized air travel in India.
446
00:26:20,585 --> 00:26:22,025
It changed the game.
447
00:26:22,105 --> 00:26:23,505
I think he was very proud,
448
00:26:23,585 --> 00:26:26,145
and quite rightly so,
because it was what he achieved.
449
00:26:27,665 --> 00:26:32,385
[Patel] His image shed some
of the old "liquor baron" label.
450
00:26:32,465 --> 00:26:34,945
He's not this guy who just makes booze.
451
00:26:35,025 --> 00:26:40,465
I think some of that,
kind of, got... washed away.
452
00:26:42,145 --> 00:26:44,665
Given the market share
that Kingfisher took
453
00:26:45,145 --> 00:26:48,545
within its, like, first year or something,
was astronomical,
454
00:26:48,625 --> 00:26:52,185
so it's only fair for you to think
of expansion and what could be next,
455
00:26:52,265 --> 00:26:55,105
what's the next opportunity,
when you've seen something do so well.
456
00:26:59,385 --> 00:27:02,425
[Wilcox] We went to Toulouse, France,
which is where they build the airbuses.
457
00:27:03,425 --> 00:27:06,905
We were there to firm up some training
arrangements for some of our pilots.
458
00:27:06,985 --> 00:27:09,705
We were walking around
with a couple of the airbus salespeople.
459
00:27:11,745 --> 00:27:13,945
They kept taking Vijay
into these other rooms
460
00:27:14,025 --> 00:27:16,625
and, basically, showing him their wares.
461
00:27:19,225 --> 00:27:21,665
And, um, it turned into a shopping spree.
462
00:27:23,265 --> 00:27:25,585
We had ordered A319s,
463
00:27:25,665 --> 00:27:27,585
we had ordered A321s,
464
00:27:27,665 --> 00:27:29,545
we had ordered A330s.
465
00:27:29,625 --> 00:27:31,105
By the time we left Toulouse,
466
00:27:31,585 --> 00:27:34,105
we had ordered
billions of dollars' worth of airplanes.
467
00:27:34,185 --> 00:27:35,585
[inaudible]
468
00:27:35,665 --> 00:27:39,905
One of the keys of low-cost carriers
is keeping things as simple as possible.
469
00:27:39,985 --> 00:27:43,705
When you add even a new row of seats
in a certain number of airplanes,
470
00:27:43,785 --> 00:27:45,225
you're adding a level of complexity.
471
00:27:45,305 --> 00:27:47,505
Every single time
you make a change like that,
472
00:27:47,585 --> 00:27:49,265
you're entering a different business
473
00:27:49,345 --> 00:27:52,185
and you are no longer focused
on providing low costs,
474
00:27:52,265 --> 00:27:54,305
which is, frankly, what the market wanted.
475
00:27:56,665 --> 00:28:00,545
We're going to raise $200 million
for Kingfisher Airlines,
476
00:28:00,625 --> 00:28:02,585
as I said, in one form or another,
477
00:28:02,665 --> 00:28:05,745
and this is primarily
to fund our aircraft acquisition.
478
00:28:14,465 --> 00:28:17,025
{\an8}In India, if you need to get
serious money,
479
00:28:17,105 --> 00:28:19,745
{\an8}you need to go
to the big public sector banks
480
00:28:19,825 --> 00:28:21,225
{\an8}and that's what Mallya did.
481
00:28:23,025 --> 00:28:24,705
{\an8}Many people don't realize,
482
00:28:24,785 --> 00:28:29,785
{\an8}in 1969, Indira Gandhi nationalized
India's biggest banks.
483
00:28:31,145 --> 00:28:33,305
[reporter]
Mrs. Gandhi's latest socialist measure
484
00:28:33,385 --> 00:28:37,145
meant that peasants and small farmers
could get loans more easily.
485
00:28:38,145 --> 00:28:41,625
The traditional big banks
are all owned by the government of India
486
00:28:41,705 --> 00:28:43,945
and, therefore, by the taxpayer.
487
00:28:44,025 --> 00:28:46,625
These banks are not particularly well run.
488
00:28:46,985 --> 00:28:50,625
[reporter] It has led to favoritism
and petty corruption among bank officials.
489
00:28:51,185 --> 00:28:54,705
Vijay Mallya charmed the pants
off these bankers.
490
00:28:55,465 --> 00:28:59,225
These were rather dowdy,
poorly paid public servants...
491
00:29:00,865 --> 00:29:02,945
and Mallya came across
492
00:29:03,025 --> 00:29:06,825
as being exactly what your image
of a billionaire tycoon would look like.
493
00:29:07,905 --> 00:29:11,345
And so, he wrapped the bankers
round his fingers.
494
00:29:13,825 --> 00:29:16,345
So, Vijay Mallya
expanded Kingfisher Airlines
495
00:29:16,425 --> 00:29:19,665
by borrowing more and more money
from state banks.
496
00:29:20,305 --> 00:29:22,425
He always wanted to add new features,
497
00:29:22,505 --> 00:29:24,745
he wanted to make this
a luxurious experience
498
00:29:24,825 --> 00:29:26,785
and he didn't care very much about costs.
499
00:29:29,065 --> 00:29:31,785
[reporter] Staying on the topic
of cheap airlines, late last night,
500
00:29:31,865 --> 00:29:35,425
Vijay Mallya has signed a huge deal
with Airbus Industries.
501
00:29:35,505 --> 00:29:38,225
{\an8}Vijay Mallya now joins us
on the phone line from London.
502
00:29:38,305 --> 00:29:39,705
{\an8}[Vijay] Well, first of all,
503
00:29:39,785 --> 00:29:42,705
{\an8}I'd like to say that there's nothing cheap
about Kingfisher
504
00:29:42,785 --> 00:29:47,545
{\an8}and my business model certainly
isn't to run a flying bus service.
505
00:29:47,625 --> 00:29:49,585
{\an8}It's time to fly the good times.
506
00:29:53,865 --> 00:29:57,425
Initially, he was going
to undercut the big boys,
507
00:29:57,505 --> 00:29:58,905
and then he decided
508
00:29:58,985 --> 00:30:02,105
that it had to be an extension
of his own personality.
509
00:30:02,185 --> 00:30:04,545
[instrumental music playing]
510
00:30:04,625 --> 00:30:08,545
[Sanghvi] And that's when he started doing
a first class and an economy.
511
00:30:08,625 --> 00:30:10,665
Welcome aboard Kingfisher Airlines.
512
00:30:11,105 --> 00:30:12,825
From the day we've started flying,
513
00:30:12,905 --> 00:30:15,905
I've tried to create
the finest experience for you
514
00:30:15,985 --> 00:30:18,345
and bring back the element of style.
515
00:30:18,425 --> 00:30:20,425
First class is not something
I was familiar with,
516
00:30:20,505 --> 00:30:23,065
certainly not something
that any low-cost carrier will have.
517
00:30:23,985 --> 00:30:27,105
{\an8}One of the beauties of low-cost carriers
is that everyone is the same.
518
00:30:27,185 --> 00:30:28,665
{\an8}When you put in a first class,
519
00:30:28,745 --> 00:30:30,665
{\an8}you're also actually
putting in a second class.
520
00:30:31,625 --> 00:30:34,625
It creates a whole other dynamic
of people wanting upgrades,
521
00:30:34,705 --> 00:30:37,385
and which slows things down
at the airports.
522
00:30:38,265 --> 00:30:41,665
This required even more flight attendants.
Now we had six flight attendants on board.
523
00:30:41,745 --> 00:30:44,185
Our flight attendant costs went up by 20%.
524
00:30:45,625 --> 00:30:49,665
It was a lot of extravagant services
that were done on board the aircraft.
525
00:30:52,305 --> 00:30:53,905
{\an8}It was way more
526
00:30:53,985 --> 00:30:57,185
{\an8}than what any other luxury carrier
at that time was doing.
527
00:30:59,545 --> 00:31:02,265
{\an8}I remember the first time
I went on his plane.
528
00:31:02,945 --> 00:31:04,985
Lobster thermidor for lunch...
529
00:31:06,105 --> 00:31:07,065
never heard of it.
530
00:31:07,145 --> 00:31:08,545
He bought the best.
531
00:31:09,385 --> 00:31:12,065
At that point,
I realized that the vision I'd been sold,
532
00:31:12,145 --> 00:31:14,465
which was to create
a low-cost domestic carrier,
533
00:31:14,545 --> 00:31:16,745
um, had been completely forgone.
534
00:31:18,465 --> 00:31:22,105
It was very, very clear to me
that, you know, this was not a place
535
00:31:22,185 --> 00:31:25,865
that I had the relevant experience
or that I could help make succeed.
536
00:31:27,465 --> 00:31:29,585
Yeah, it was a very difficult
decision to make.
537
00:31:30,105 --> 00:31:31,385
Ultimately, we parted ways
538
00:31:31,465 --> 00:31:34,345
because our vision
for the long-term business was different
539
00:31:34,425 --> 00:31:38,385
and I didn't think I was in a position
to help him realize his vision any longer.
540
00:31:42,105 --> 00:31:44,545
When you're an entrepreneur,
you have to be a little crazy,
541
00:31:44,625 --> 00:31:46,345
and you have to be a little optimistic.
542
00:31:46,425 --> 00:31:48,345
That's true
if you're starting anything new.
543
00:31:48,425 --> 00:31:50,785
Vijay, perhaps,
was just more optimistic than most.
544
00:31:54,905 --> 00:31:56,905
[man]
What's the future for Kingfisher Airways?
545
00:31:56,985 --> 00:32:01,345
In the first 18 months, up to September,
you've lost 347 crores,
546
00:32:01,425 --> 00:32:05,065
you've already announced to PTI you've got
18 new aircrafts joining your fleet.
547
00:32:05,145 --> 00:32:09,265
Are you confident that Kingfisher
won't go belly-up?
548
00:32:09,345 --> 00:32:11,505
Kingfisher Airlines
will never go belly-up.
549
00:32:11,585 --> 00:32:13,705
I am extremely confident
550
00:32:13,785 --> 00:32:18,225
that it's going to be one of the most
successful, uh, ventures of the UB Group.
551
00:32:20,985 --> 00:32:22,665
{\an8}King of Good Times, Vijay Mallya,
552
00:32:22,745 --> 00:32:25,825
{\an8}is all set to take Deccan
into Kingfisher's folds.
553
00:32:25,905 --> 00:32:28,065
{\an8}Arachin Banerjee brings you more.
554
00:32:28,145 --> 00:32:30,385
{\an8}[Banerjee] The two airlines
are going to merge -
555
00:32:30,465 --> 00:32:32,665
{\an8}Kingfisher into Deccan aviation.
556
00:32:33,145 --> 00:32:37,385
So, Vijay Mallya bought
another airline company called Air Deccan,
557
00:32:38,065 --> 00:32:41,145
at what many people thought
was a vastly inflated price,
558
00:32:41,225 --> 00:32:44,465
so that he could get hold
of their international slots.
559
00:32:45,745 --> 00:32:47,585
He wanted an international carrier
560
00:32:47,665 --> 00:32:50,385
where he was flying to Singapore
and London and New York.
561
00:32:51,345 --> 00:32:53,065
He wanted to join the big leagues.
562
00:32:53,785 --> 00:32:55,985
[people applauding]
563
00:32:56,065 --> 00:32:59,385
[reporter] India's biggest airline,
after merging with Air Deccan,
564
00:32:59,465 --> 00:33:03,465
has started daily non-stop flights
between London and Bangalore.
565
00:33:03,545 --> 00:33:06,985
Guests can expect high-end pampering
at 30,000 feet.
566
00:33:08,505 --> 00:33:11,505
[Vijay] Bangalore to London service
is the first by an Indian carrier.
567
00:33:12,065 --> 00:33:14,345
I think we have a vastly superior product,
568
00:33:15,025 --> 00:33:17,225
um, at a great price,
569
00:33:17,905 --> 00:33:19,385
and we know our market.
570
00:33:20,625 --> 00:33:23,585
[Khosla] It had become the best airline,
there was no doubt about it.
571
00:33:25,305 --> 00:33:27,265
{\an8}He became the biggest airline
in the country.
572
00:33:27,345 --> 00:33:28,905
{\an8}I think, bigger than Air India.
573
00:33:31,425 --> 00:33:33,825
[Shaw]
I think he overpaid for that airline.
574
00:33:34,985 --> 00:33:36,785
He needed to borrow more and more
575
00:33:36,865 --> 00:33:40,145
just to keep
that whole airline's business afloat.
576
00:33:41,265 --> 00:33:43,305
I think that's when his problems started.
577
00:33:44,025 --> 00:33:46,025
The "King of Good Times", Vijay Mallya,
578
00:33:46,105 --> 00:33:49,105
bagged another plum deal
as he bought a Formula One team.
579
00:33:49,185 --> 00:33:52,665
[reporter] The Formula One team
acquisition came in at the right time.
580
00:33:52,745 --> 00:33:56,305
It's turning out to be
a well-thought-out business strategy.
581
00:33:57,665 --> 00:34:01,465
[Khosla] He brought Indian sporting
to an international level.
582
00:34:01,545 --> 00:34:04,825
I mean, who in India
had ever even thought of owning,
583
00:34:04,905 --> 00:34:06,865
you know, a Formula One team?
584
00:34:10,465 --> 00:34:12,545
We got a Formula One team,
585
00:34:12,625 --> 00:34:14,775
we've bought a cricket team,
586
00:34:14,865 --> 00:34:17,465
and these are his own
personal hobbies and interests
587
00:34:17,545 --> 00:34:19,065
which became huge businesses.
588
00:34:21,545 --> 00:34:23,385
[Khosla] But then, it all went wrong.
589
00:34:23,945 --> 00:34:28,625
[ominous music playing]
590
00:34:28,705 --> 00:34:30,505
[reporter] Official word of a US recession
591
00:34:30,585 --> 00:34:32,585
and a dismal start to the week
on Wall Street
592
00:34:32,665 --> 00:34:34,665
are prompting a worldwide sell-off.
593
00:34:35,425 --> 00:34:39,185
{\an8}Global economic downturn
has hit the aviation sector very hard,
594
00:34:39,264 --> 00:34:42,824
{\an8}prompting companies
and individuals to forgo air travel,
595
00:34:42,905 --> 00:34:45,185
{\an8}worsening the existing slump.
596
00:34:45,665 --> 00:34:47,505
{\an8}How tight are you on cash
597
00:34:47,585 --> 00:34:50,185
{\an8}given that you have cash in business
which is liquor?
598
00:34:50,505 --> 00:34:52,425
{\an8}Uh, we will raise capital...
599
00:34:53,225 --> 00:34:55,185
{\an8}uh, to the extent that is required.
600
00:34:55,264 --> 00:34:58,154
{\an8}I think the focus fully is on profit.
601
00:34:58,225 --> 00:35:00,465
{\an8}We are working very, very hard
602
00:35:00,545 --> 00:35:03,145
{\an8}to make sure
that we are actually profitable.
603
00:35:06,465 --> 00:35:09,105
{\an8}On a trip to India in 2009,
604
00:35:09,185 --> 00:35:12,265
{\an8}I had the chance
to fly Kingfisher Airlines a few times,
605
00:35:12,345 --> 00:35:14,065
{\an8}and I felt that this airline
606
00:35:14,145 --> 00:35:18,105
{\an8}seemed to have a really high
customer service.
607
00:35:18,185 --> 00:35:22,545
It was charging prices that were similar
to competitors in the marketplace.
608
00:35:22,625 --> 00:35:25,225
There were empty seats on the aircraft,
609
00:35:25,705 --> 00:35:28,385
so how could they survive
at such a cost structure?
610
00:35:29,465 --> 00:35:31,985
And that's what piqued
my interest in the airline.
611
00:35:33,545 --> 00:35:34,945
And when I came back to Canada,
612
00:35:35,025 --> 00:35:38,465
I just wanted to go through the financial
statements and see what was going on.
613
00:35:42,625 --> 00:35:45,465
I slid through the financial statements
of the airline and I said,
614
00:35:45,545 --> 00:35:47,665
"Well, this airline
is not in a good situation."
615
00:35:49,425 --> 00:35:51,025
The business was not generating
616
00:35:51,105 --> 00:35:53,865
as much cash it needed to survive
on a day-to-day basis.
617
00:35:54,705 --> 00:35:57,465
Their costs were higher
than their revenue.
618
00:35:58,345 --> 00:36:01,545
There seemed to be no hope
for the airline to come out of it,
619
00:36:01,625 --> 00:36:04,945
and that's why they had to keep on
going back to the banks to fund more cash.
620
00:36:07,345 --> 00:36:12,345
[Crabtree] And so, in October 2009,
Mallya got a loan from IDBI Bank,
621
00:36:12,425 --> 00:36:14,145
which was a public sector bank.
622
00:36:14,905 --> 00:36:17,305
This loan was for about $200 million.
623
00:36:18,145 --> 00:36:19,385
Kingfisher gave the bank
624
00:36:19,465 --> 00:36:23,425
financial projections about how much money
they were going to be making in revenue
625
00:36:23,505 --> 00:36:25,425
and how profitable they were going to be.
626
00:36:26,905 --> 00:36:30,505
I am really surprised that the lender,
which is IDBI,
627
00:36:30,585 --> 00:36:35,625
actually depended only on projections
that were provided by the company
628
00:36:35,705 --> 00:36:37,785
and did not look at the audited numbers
629
00:36:37,865 --> 00:36:39,665
that were being disclosed
in the marketplace.
630
00:36:42,945 --> 00:36:44,385
The second thing was that
631
00:36:44,465 --> 00:36:48,345
Mr. Mallya used the brand value
of Kingfisher Airlines
632
00:36:48,425 --> 00:36:51,025
in order to get additional loans
from the bank.
633
00:36:52,065 --> 00:36:55,225
Now, that is very irresponsible banking
in my view.
634
00:36:57,865 --> 00:37:02,105
[Crabtree] How do you put a valuation
on the brand, on the logo?
635
00:37:03,185 --> 00:37:05,585
It's an intangible asset,
and so, typically,
636
00:37:05,665 --> 00:37:08,345
these are not accepted
as part of loan agreements,
637
00:37:08,425 --> 00:37:10,025
but in this occasion, it was.
638
00:37:11,425 --> 00:37:15,465
[Monga] How can bankers in IDBI
ignore all these red flags?
639
00:37:17,345 --> 00:37:19,065
There may be political pressure,
640
00:37:19,145 --> 00:37:21,905
there may be incompetence
on the part of the bankers,
641
00:37:21,985 --> 00:37:24,185
there may be corruption in the system.
642
00:37:24,265 --> 00:37:26,985
All three are possible,
all three are likely.
643
00:37:28,985 --> 00:37:33,385
[Vijay] My strategy is,
if I have to leverage, I go for leverage.
644
00:37:35,225 --> 00:37:39,145
Banks are going to lend me more money
because the banks know the fundamentals
645
00:37:39,225 --> 00:37:41,825
having done their due diligence
on my businesses.
646
00:37:41,905 --> 00:37:45,265
But then, my track record is flawless.
I pay back my debt.
647
00:37:47,705 --> 00:37:52,065
He knew, I think, at the back of his mind
that this debt mountain was growing...
648
00:37:53,425 --> 00:37:55,225
and he also probably knew,
649
00:37:55,305 --> 00:37:58,065
there was no way of recovering from it.
650
00:37:58,145 --> 00:38:01,385
I assume he realized
that things were going wrong
651
00:38:01,465 --> 00:38:05,105
even when he put up this public front
and said, "things are fine".
652
00:38:08,185 --> 00:38:09,985
[reporter] Now, Veritas has reported.
653
00:38:10,065 --> 00:38:13,465
The report claimed, in fact,
that Kingfisher Airlines and UB Holdings
654
00:38:13,545 --> 00:38:15,505
were on the verge of bankruptcy.
655
00:38:20,305 --> 00:38:22,145
[Monga] So, our reports were published.
656
00:38:22,625 --> 00:38:25,505
"A Pie In The Sky" seemed very apt to me
657
00:38:25,585 --> 00:38:28,385
because it was so far out there
658
00:38:28,465 --> 00:38:30,905
that it seemed
it was not going to survive,
659
00:38:30,985 --> 00:38:32,585
and it was just flying on hope.
660
00:38:33,985 --> 00:38:35,465
{\an8}I'm rather surprised actually
661
00:38:35,545 --> 00:38:40,025
{\an8}that the so-called Veritas report
is being so extensively quoted.
662
00:38:40,545 --> 00:38:42,825
Frankly, I've never heard Veritas.
663
00:38:42,905 --> 00:38:44,625
Mr. Mallya was dismissive of it
664
00:38:44,705 --> 00:38:48,425
and he did, uh, make a couple
of statements in the public media,
665
00:38:48,505 --> 00:38:50,785
disparaging our work as well as our firm.
666
00:38:51,225 --> 00:38:54,825
It's a shame
that there's been so much attention
667
00:38:54,905 --> 00:38:56,745
paid to the Veritas report,
668
00:38:56,825 --> 00:39:00,585
which contains
a lot of glaring factual inaccuracies.
669
00:39:04,185 --> 00:39:08,425
We highlighted issues
that Indian people needed to be aware of.
670
00:39:09,545 --> 00:39:12,505
Our report was the tipping point
671
00:39:12,585 --> 00:39:16,465
in terms of changing the discussion
surrounding Kingfisher Airlines.
672
00:39:17,105 --> 00:39:21,745
After our report was published,
scrutiny really heightened on the company.
673
00:39:23,385 --> 00:39:28,625
If you borrow 5,000 rupees
and you default, as a farmer, you're dead.
674
00:39:29,225 --> 00:39:33,145
If you borrow 5,000 crores,
then you can get away with it.
675
00:39:33,225 --> 00:39:36,345
That's the problem.
That's the problem we need to address.
676
00:39:37,825 --> 00:39:40,225
[reporter] Vijay Mallya,
Chairman of Kingfisher Airlines,
677
00:39:40,305 --> 00:39:42,825
today said
that with the price of crude oil rising,
678
00:39:42,905 --> 00:39:45,585
flying is definitely
going to get costlier.
679
00:39:47,945 --> 00:39:52,065
[Patel] By 2011,
money became a huge problem.
680
00:39:53,225 --> 00:39:56,425
Fuel went from $48 to $130.
681
00:39:58,265 --> 00:40:03,625
I remember the day when Indian Oil,
the fuel company, called our CFO and said,
682
00:40:03,705 --> 00:40:06,625
"We are not going to extend
the credit line anymore,
683
00:40:06,705 --> 00:40:09,545
and you have to pay cash to buy fuel."
684
00:40:11,065 --> 00:40:13,345
That was probably
the worst day for the airline,
685
00:40:13,425 --> 00:40:14,905
that we have come to this stage,
686
00:40:14,985 --> 00:40:18,345
it's such a great airline and, you know,
we have come to cash-and-carry.
687
00:40:22,025 --> 00:40:24,545
[Shukla] When things got bad,
they got really ugly.
688
00:40:25,985 --> 00:40:28,625
So, he had not paid catering
over a period of time...
689
00:40:29,865 --> 00:40:32,465
so there wasn't enough food
on board the aircraft,
690
00:40:33,185 --> 00:40:34,945
So, we started giving our own food.
691
00:40:37,225 --> 00:40:39,345
We'd take out our crew meals
and eat, serve.
692
00:40:39,425 --> 00:40:41,385
Then when we'd land
at a particular airport,
693
00:40:41,465 --> 00:40:43,465
we tried to find food at the airport.
694
00:40:43,545 --> 00:40:48,105
Nobody said, "Look, this is a really bad
situation which is going out of control
695
00:40:48,185 --> 00:40:50,505
and maybe we need to correct it."
696
00:40:50,985 --> 00:40:53,705
Uh... that did not happen.
697
00:40:57,425 --> 00:41:01,905
I was trying to tell him to cut his losses
and get out of the airlines business,
698
00:41:01,985 --> 00:41:05,145
but he kept telling me, he said,
"No, no, I can rescue this airline.
699
00:41:06,465 --> 00:41:10,385
I can turn it around.
I can definitely make it work again."
700
00:41:15,385 --> 00:41:19,225
{\an8}He literally bet everything he had
on trying to rescue that airline.
701
00:41:23,745 --> 00:41:24,985
[Sid] It was a dark time.
702
00:41:25,065 --> 00:41:26,545
[Vijay] The industry needs...
703
00:41:26,945 --> 00:41:30,145
Whatever you put your heart and soul into,
704
00:41:30,225 --> 00:41:33,065
there's going to be an element
of personal pride.
705
00:41:33,625 --> 00:41:36,545
I think he genuinely
wanted to save the airline.
706
00:41:37,625 --> 00:41:42,305
[Vijay] To write the epitaph
of Kingfisher Airlines is not fair.
707
00:41:42,865 --> 00:41:45,865
A lot has been said about the banks.
708
00:41:46,745 --> 00:41:49,665
We are in compliance
with their payment terms.
709
00:41:50,305 --> 00:41:52,345
This is a huge growing market,
710
00:41:53,065 --> 00:41:54,985
and so, the future is bright.
711
00:41:59,945 --> 00:42:03,385
[Shukla] It progressed to a point
where he stopped paying us our salaries.
712
00:42:04,625 --> 00:42:06,705
Employees wrote letters to Mallya
and said,
713
00:42:06,785 --> 00:42:09,825
"We need our payments, we need our money.
Why aren't you paying us?"
714
00:42:09,905 --> 00:42:12,825
He assured us that things would get better
and he would pay us.
715
00:42:16,145 --> 00:42:20,625
He kept telling us he's going to banks,
he's doing, um, a lot of things,
716
00:42:20,705 --> 00:42:21,905
but the money never came.
717
00:42:21,985 --> 00:42:25,185
[employees chanting]
718
00:42:25,265 --> 00:42:26,905
[Khosla] A lot of people were not paid.
719
00:42:26,985 --> 00:42:30,265
We did a lot of work for the airline,
supplied uniforms, we weren't paid.
720
00:42:30,345 --> 00:42:33,265
-[man] You asked him to pay your arrears?
-Of course, of course.
721
00:42:33,345 --> 00:42:37,305
I spoke to him about it and, you know,
he said, "I'm trying, I'm trying."
722
00:42:37,385 --> 00:42:41,425
He was trying to do a million things,
but he was seeing his airline sinking.
723
00:42:41,505 --> 00:42:44,665
[employees continue chanting]
724
00:42:44,745 --> 00:42:47,625
I was owed a lot of money and it hurt.
725
00:42:47,705 --> 00:42:50,225
It did, it really, seriously hurt.
726
00:42:50,305 --> 00:42:51,825
But what do you do?
727
00:42:52,945 --> 00:42:55,025
You can say,
"I'll never talk to you again."
728
00:42:55,105 --> 00:42:57,185
Are you achieving anything by that?
729
00:42:57,265 --> 00:42:58,225
Nothing.
730
00:42:59,785 --> 00:43:03,025
[man] He's not paying his employees,
and nobody is raising a voice.
731
00:43:03,105 --> 00:43:04,825
{\an8}If this happens in this country,
732
00:43:04,905 --> 00:43:08,785
{\an8}then, uh, how-- what type of example
is it going to set?
733
00:43:12,065 --> 00:43:14,305
{\an8}We protested and we demanded his arrest.
734
00:43:15,065 --> 00:43:18,785
I had to manage and organize protests
and manage media.
735
00:43:19,505 --> 00:43:21,505
We were leading from the front.
736
00:43:25,505 --> 00:43:28,185
Vijay Mallya sent us numerous mails
and he said,
737
00:43:28,265 --> 00:43:30,545
"Please don't talk to media.
Give me ten days.
738
00:43:30,625 --> 00:43:32,465
I swear in the name of God,
739
00:43:32,545 --> 00:43:35,865
stand by me,
you will be suitably rewarded,"
740
00:43:35,945 --> 00:43:36,985
and all that.
741
00:43:37,065 --> 00:43:40,105
"I am trying to revive this airline,
742
00:43:40,185 --> 00:43:42,385
and within ten days,
I will clear all your dues."
743
00:43:43,105 --> 00:43:46,185
[Deveshwar speaking in Hindi]
744
00:43:46,545 --> 00:43:47,425
[boy] Mm.
745
00:43:47,505 --> 00:43:49,945
[Deveshwar in English]
Mm, very good. Very good.
746
00:43:50,025 --> 00:43:52,585
That was the time
when my wife became pregnant,
747
00:43:53,265 --> 00:43:55,185
our-- our savings were gone,
748
00:43:55,865 --> 00:43:57,905
I slipped into depression,
749
00:43:58,385 --> 00:44:01,465
so it was like a nightmare for us.
750
00:44:03,745 --> 00:44:06,905
All his promises were empty,
empty promises.
751
00:44:08,345 --> 00:44:11,065
For him, $100 is a peanut.
752
00:44:11,145 --> 00:44:13,185
But for us, it was our life.
753
00:44:17,185 --> 00:44:22,065
{\an8}I don't know how he could possibly
be this callous.
754
00:44:22,145 --> 00:44:23,745
{\an8}It's the only word I can find.
755
00:44:25,305 --> 00:44:28,625
[Wilcox] Employees not getting paid
for a period of time is illegal in the US
756
00:44:28,705 --> 00:44:30,865
and you go to jail
if you don't pay your employees.
757
00:44:31,585 --> 00:44:35,065
It was shocking news, frankly.
It was practically unimaginable to me.
758
00:44:39,145 --> 00:44:40,225
I think...
759
00:44:40,585 --> 00:44:43,705
that was a... bad move.
760
00:44:45,145 --> 00:44:47,585
[somber music playing]
761
00:44:49,305 --> 00:44:51,905
[reporter 1] The wife of an employee
of the troubled airline
762
00:44:51,985 --> 00:44:54,025
committed suicide on Thursday.
763
00:44:54,105 --> 00:44:56,425
{\an8}The suicide note found
in her southwest Delhi home
764
00:44:56,505 --> 00:44:59,585
{\an8}said that her husband had not been paid
for the last six months.
765
00:45:01,665 --> 00:45:04,785
[reporter 2]
This is a symptom of the financial crisis
766
00:45:04,865 --> 00:45:08,425
that the airlines are also seeing
and amongst its employees also.
767
00:45:08,505 --> 00:45:11,505
{\an8}We have seen that they have been
protesting over the past few days,
768
00:45:11,585 --> 00:45:14,945
{\an8}and now, one among them
has faced a personal tragedy -
769
00:45:15,025 --> 00:45:18,065
{\an8}his wife, in fact,
killed herself this afternoon.
770
00:45:22,025 --> 00:45:25,905
[Deveshwar] One of our colleague's wives
committed suicide and in her suicide note,
771
00:45:25,985 --> 00:45:28,585
she clearly wrote,
"I am committing suicide
772
00:45:28,665 --> 00:45:30,865
{\an8}because Vijay Mallya
has not paid my husband
773
00:45:30,945 --> 00:45:32,625
{\an8}for the last six months."
774
00:45:32,705 --> 00:45:34,145
{\an8}We thought, at that time,
775
00:45:34,225 --> 00:45:36,825
{\an8}"He will pacify us,
he will pay our salary."
776
00:45:36,905 --> 00:45:40,225
{\an8}He's still, uh--
he's, uh, a stone-hearted person,
777
00:45:40,305 --> 00:45:41,105
{\an8}nothing,
778
00:45:41,185 --> 00:45:42,905
{\an8}there was no change in his attitude.
779
00:45:46,865 --> 00:45:49,105
[Shukla] And around the same time,
what we learnt
780
00:45:49,185 --> 00:45:51,985
was that all the employees
of all the countries were paid,
781
00:45:52,065 --> 00:45:54,825
it was only the employees of India
that were not paid,
782
00:45:54,905 --> 00:45:58,425
which made you realize
that it wasn't lack of funds,
783
00:45:58,505 --> 00:46:00,385
it was lack of repercussions.
784
00:46:01,985 --> 00:46:06,745
He thought that this was one of the things
which he could get away with not doing.
785
00:46:08,665 --> 00:46:11,985
At that point of time,
when he said he didn't have any money,
786
00:46:12,065 --> 00:46:13,705
he's running his cricket team
787
00:46:14,585 --> 00:46:16,745
and his Formula One racing team.
788
00:46:19,305 --> 00:46:22,305
To rub your wealth in people's faces,
789
00:46:22,385 --> 00:46:25,185
I think that showed
the character of the man
790
00:46:25,265 --> 00:46:27,185
and that revealed
the character of the man.
791
00:46:32,745 --> 00:46:35,225
[Sanghvi] Perhaps the company
didn't have money, but Vijay did.
792
00:46:35,305 --> 00:46:37,625
Sell a house for God's sake. Do something.
793
00:46:37,705 --> 00:46:40,545
Announce that you're going to pay this
out of your own pocket.
794
00:46:40,625 --> 00:46:42,705
It's the most obvious thing to do.
795
00:46:42,785 --> 00:46:45,945
Even for PR reasons, damnit, do it!
He didn't do that.
796
00:46:46,905 --> 00:46:50,785
By that point, he was trying
to keep various plates spinning,
797
00:46:50,865 --> 00:46:54,025
but a number of his various businesses
were in financial trouble.
798
00:46:55,225 --> 00:46:57,545
He had a yacht
where his staff were not being paid,
799
00:46:57,625 --> 00:47:00,705
he had a Formula One team
which was losing stacks of money,
800
00:47:00,785 --> 00:47:02,945
uh, just in the same way the airline was.
801
00:47:05,025 --> 00:47:06,705
[Shaw] Vijay was in denial.
802
00:47:06,785 --> 00:47:09,225
You know, he kept thinking
that he could build this business,
803
00:47:09,305 --> 00:47:13,825
he kept thinking that things will change,
and things will turn around.
804
00:47:13,905 --> 00:47:18,065
Uh, but, eventually, you know,
he had to call it quits.
805
00:47:20,505 --> 00:47:22,585
[man] All good things must come to an end.
806
00:47:22,665 --> 00:47:25,025
That's the lesson
the "King of Good Times," Vijay Mallya,
807
00:47:25,105 --> 00:47:27,905
and his company Kingfisher Airlines
are learning the hard way.
808
00:47:27,985 --> 00:47:30,865
A mountain load of debt
and insufficient revenues
809
00:47:30,945 --> 00:47:33,345
have brought the carrier
down on its knees.
810
00:47:34,025 --> 00:47:36,945
[Patel] Finally, the company's money
did run out.
811
00:47:38,305 --> 00:47:40,065
The airline just closed...
812
00:47:42,745 --> 00:47:43,985
that's what happened.
813
00:48:01,825 --> 00:48:04,385
[De] It was a very grand party
814
00:48:04,465 --> 00:48:07,305
and he did spend
huge amounts of money on it.
815
00:48:07,385 --> 00:48:10,825
[chuckles] Vijay wouldn't be Vijay
if he had backed off.
816
00:48:10,905 --> 00:48:14,825
It was his 60th and he wanted
to have a terrific time and he did.
817
00:48:16,785 --> 00:48:19,385
[Khosla]
He had a great 50th with Lionel Richie
818
00:48:19,465 --> 00:48:21,265
and blah, blah, blah in the same place.
819
00:48:22,785 --> 00:48:25,505
Now, it was time for 60
and Enrique was coming.
820
00:48:26,145 --> 00:48:29,625
So, it wasn't just a quiet sort of dinner
saying, "I'm 60 years old."
821
00:48:29,705 --> 00:48:31,865
It was, you know, Enrique.
822
00:48:35,105 --> 00:48:37,025
We attended the party,
823
00:48:37,105 --> 00:48:40,705
and a lot of our friends
advised us not to go,
824
00:48:40,785 --> 00:48:43,225
and they said,
"It'll be seen in a very bad light."
825
00:48:43,305 --> 00:48:46,745
[cheering and whistling]
826
00:48:46,825 --> 00:48:49,745
In his mind, he said, "I'm 60 years old,
827
00:48:49,825 --> 00:48:51,945
I've done nothing wrong,
828
00:48:52,025 --> 00:48:53,465
I've earned this money,
829
00:48:53,545 --> 00:48:56,425
and I should be able
to celebrate my birthday like I want."
830
00:48:56,505 --> 00:49:01,145
I do personally agree that
we probably could have done without it,
831
00:49:01,225 --> 00:49:02,785
from an optical point of view.
832
00:49:02,865 --> 00:49:05,905
[cheering continues]
833
00:49:05,985 --> 00:49:08,665
[Pinto] He had to celebrate it,
and if he had to celebrate it,
834
00:49:08,745 --> 00:49:10,985
it had to be the biggest party
in the world.
835
00:49:11,625 --> 00:49:13,545
And Enrique Iglesias arrived,
836
00:49:13,625 --> 00:49:17,585
and it never occurred to him
that people would hold it against him.
837
00:49:19,625 --> 00:49:21,465
I don't know how many crores or rupees
838
00:49:21,545 --> 00:49:24,145
he's spent on a massive
birthday party celebration.
839
00:49:25,825 --> 00:49:26,825
This is theft!
840
00:49:27,625 --> 00:49:28,625
This is loot!
841
00:49:30,465 --> 00:49:32,505
[shouting]
Can you answer, as of November 2015,
842
00:49:32,585 --> 00:49:36,225
there are 900-odd KFA employees
yet to receive their payroll?
843
00:49:38,105 --> 00:49:41,385
When we saw this birthday thing,
we realized that he's...
844
00:49:42,145 --> 00:49:44,745
he's actually enjoying our misery.
845
00:49:44,825 --> 00:49:49,065
It felt like he was...
he was glorifying our misery
846
00:49:49,145 --> 00:49:52,025
by showing us the disparity
between himself and us.
847
00:49:53,825 --> 00:49:55,945
And that, sort of, just broke all of us.
848
00:49:57,825 --> 00:50:01,105
[Deveshwar] While we were starving,
he was celebrating his birthday.
849
00:50:01,505 --> 00:50:04,305
Mallya didn't show any consideration
towards anyone.
850
00:50:05,385 --> 00:50:06,785
For me, he's not a celebrity.
851
00:50:06,865 --> 00:50:09,985
For me, he's like a thief,
he's like any other criminal.
852
00:50:10,065 --> 00:50:13,545
That was not a very, sort of,
smart decision to have had that party
853
00:50:13,625 --> 00:50:15,985
because that was really
rubbing salt into the wounds.
854
00:50:17,705 --> 00:50:19,545
The shit really hit the ceiling
after that.
855
00:50:20,425 --> 00:50:22,665
We have breaking news
that is coming in the bulletin -
856
00:50:22,745 --> 00:50:27,105
the CBI has questioned
UB Group Chairman Vijay Mallya
857
00:50:27,185 --> 00:50:30,625
in the Kingfisher Airlines'
loan default case.
858
00:50:30,705 --> 00:50:32,865
There is evidence of criminal conspiracy
859
00:50:32,945 --> 00:50:37,985
in this particular transaction
between Mallya and the IDBI Bank.
860
00:50:39,265 --> 00:50:44,305
In October 2009,
Mallya got a loan from IDBI Bank
861
00:50:44,385 --> 00:50:46,625
and it became particularly controversial
862
00:50:46,705 --> 00:50:50,785
because there was evidence
of different types of wrongdoing.
863
00:50:52,225 --> 00:50:53,985
Mallya is thought to have known that,
864
00:50:54,065 --> 00:50:56,225
by that point,
the airline was losing money.
865
00:50:57,145 --> 00:51:01,105
Prosecutors allege that he disguised
the true state of the finances
866
00:51:01,185 --> 00:51:02,865
in order to secure this loan.
867
00:51:03,985 --> 00:51:08,225
{\an8}The loan is the example that has been used
by the government of India,
868
00:51:08,305 --> 00:51:12,625
{\an8}that there was some kind of
fraudulent activity
869
00:51:12,705 --> 00:51:16,825
{\an8}and some kind of relationship
between the borrower,
870
00:51:16,905 --> 00:51:20,945
which is Kingfisher Airlines,
and the lender, which is IDBI,
871
00:51:21,025 --> 00:51:24,345
which resulted in fraud being committed.
872
00:51:25,025 --> 00:51:30,025
[Crabtree] According to some allegations,
after having got the loans for Kingfisher,
873
00:51:30,105 --> 00:51:34,145
he took some of this money and used it
to pay bills in other parts of his empire,
874
00:51:34,225 --> 00:51:36,265
particularly the Formula One team.
875
00:51:37,305 --> 00:51:38,505
Technically, uh,
876
00:51:38,585 --> 00:51:42,145
that is counted as the diversion of funds
or money laundering.
877
00:51:43,625 --> 00:51:47,665
[in Hindi] Look at the types of people
that have taken money from the banks.
878
00:51:47,745 --> 00:51:50,585
Now that I have started
to tighten the screw,
879
00:51:50,665 --> 00:51:52,865
they are starting to sweat.
880
00:51:54,305 --> 00:51:57,785
[in English] When Modi came to power
on an anti-corruption platform,
881
00:51:57,865 --> 00:51:59,505
it also became clear
882
00:51:59,585 --> 00:52:03,505
that there was going to be a much greater
spotlight placed on Mallya
883
00:52:03,585 --> 00:52:04,985
and his fellow tycoons,
884
00:52:05,065 --> 00:52:07,585
and Mallya was the most high profile
of all of them.
885
00:52:07,665 --> 00:52:09,665
Today, when the controversial liquor baron
886
00:52:09,745 --> 00:52:13,345
is meant to be facing a serious challenge
in the Supreme Court...
887
00:52:13,785 --> 00:52:17,025
[reporter] The legal noose around
Vijay Mallya seems to be tightening.
888
00:52:17,505 --> 00:52:21,265
Prosecutors alleged that the normal rules
that you would apply
889
00:52:21,345 --> 00:52:24,265
when you were trying
to get money from banks,
890
00:52:24,345 --> 00:52:25,985
didn't seem to apply to him
891
00:52:26,065 --> 00:52:28,505
and it was that
that eventually caught up with him.
892
00:52:35,665 --> 00:52:37,705
[reporter 1]
Troubled liquor baron Vijay Mallya
893
00:52:37,785 --> 00:52:41,105
has left India
on the second of this month.
894
00:52:41,425 --> 00:52:43,705
[reporter 2]
How was he allowed to leave the country?
895
00:52:43,785 --> 00:52:47,665
{\an8}Vijay Mallya, who owes 9,000 crores,
is gone.
896
00:52:48,065 --> 00:52:50,585
{\an8}The court had not taken away his passport
897
00:52:50,665 --> 00:52:54,185
{\an8}and said, "you cannot leave the country,"
so he left the country.
898
00:52:54,265 --> 00:52:56,865
That he didn't plan to come back
is another story.
899
00:52:57,585 --> 00:53:01,625
{\an8}He's been raided, he's been questioned,
and now, he is sitting in London.
900
00:53:05,025 --> 00:53:07,305
[reporter 1]
London's Westminster Magistrates Court
901
00:53:07,385 --> 00:53:10,545
is all set to hear the extradition case
against the former liquor baron
902
00:53:10,625 --> 00:53:14,305
with the Crown Prosecution Service
fighting the case on behalf of India.
903
00:53:14,385 --> 00:53:16,345
[reporter 2]
Vijay, how do you feel about today?
904
00:53:16,425 --> 00:53:18,545
-[reporter 3] Mr. Mallya--
-[overlapping voices]
905
00:53:19,545 --> 00:53:26,065
I want to repay the public sector banks
and other creditors -
906
00:53:26,145 --> 00:53:28,745
employees very much included.
907
00:53:30,065 --> 00:53:33,825
I want to disprove the narrative
that I stole money.
908
00:53:33,905 --> 00:53:36,425
[camera shutters clicking]
909
00:53:36,505 --> 00:53:38,465
And in just a few moment's time,
910
00:53:38,545 --> 00:53:41,665
this huge question
is about to be answered.
911
00:53:45,785 --> 00:53:49,625
[newsroom music playing]
912
00:53:50,825 --> 00:53:52,745
Good evening, ladies and gentlemen.
913
00:53:52,825 --> 00:53:55,905
Conspiracy, cheating,
and money laundering -
914
00:53:56,585 --> 00:53:59,825
the UK court
has held up these three charges
915
00:53:59,905 --> 00:54:03,385
against willful defaulter Vijay Mallya.
916
00:54:03,465 --> 00:54:06,705
It's one of the biggest
diplomatic victories
917
00:54:06,785 --> 00:54:09,345
in the political history of India.
918
00:54:10,985 --> 00:54:13,665
[Sid] They are saying
he didn't pay his employees,
919
00:54:13,745 --> 00:54:16,225
he looted the banks,
920
00:54:16,305 --> 00:54:18,945
he fled from the authorities,
921
00:54:19,025 --> 00:54:20,985
he money-laundered,
922
00:54:21,065 --> 00:54:23,465
he syphoned funds...
923
00:54:23,545 --> 00:54:25,505
[reporter 1]
When you say "small," how small?
924
00:54:25,585 --> 00:54:29,305
[Sid] It's political
and they need a scapegoat.
925
00:54:29,385 --> 00:54:32,425
They need a political pawn,
they need a man to make an example of.
926
00:54:32,745 --> 00:54:35,225
[reporter 2] Do you have a message
for the Indian government?
927
00:54:35,305 --> 00:54:37,225
I don't think it would be very appropriate
928
00:54:37,305 --> 00:54:40,705
for me to pass messages
to the Indian government via the media.
929
00:54:41,465 --> 00:54:42,545
[overlapping voices]
930
00:54:42,625 --> 00:54:45,865
[Crabtree] Kingfisher, in the end,
is said to have owed about $2 billion,
931
00:54:45,945 --> 00:54:51,025
but Indian tycoons in general
owe about a $150 billion in bad loans.
932
00:54:51,105 --> 00:54:53,425
So, there are many
business figures in India
933
00:54:53,505 --> 00:54:55,745
who borrowed more and didn't repay
934
00:54:55,825 --> 00:54:58,625
to a level that's much larger
than Vijay Mallya.
935
00:54:59,505 --> 00:55:00,825
The problem that he faced
936
00:55:00,905 --> 00:55:03,385
is he was much better known
than any of them,
937
00:55:03,465 --> 00:55:06,145
and so when India was casting around
938
00:55:06,225 --> 00:55:08,425
to find somebody
to blame for this problem,
939
00:55:08,505 --> 00:55:10,745
Mallya was public enemy number one.
940
00:55:10,825 --> 00:55:14,865
[cars honking]
941
00:55:15,705 --> 00:55:19,785
[Pinto] It could have happened
to much worse guys, and it hasn't.
942
00:55:20,945 --> 00:55:24,465
I could throw names at you. Why bother?
You know them already.
943
00:55:25,025 --> 00:55:28,585
[chuckling] Of people who owe
the State Bank of India money
944
00:55:28,665 --> 00:55:29,665
all over the place.
945
00:55:31,985 --> 00:55:32,985
It's systemic.
946
00:55:34,385 --> 00:55:36,785
To say that Vijay Mallya
should not pay the price
947
00:55:36,865 --> 00:55:39,785
because there are bigger cheats
and robbers than him,
948
00:55:39,865 --> 00:55:42,745
to me, is the most ridiculous statement
I've ever heard,
949
00:55:42,825 --> 00:55:44,865
because if we go by that logic,
950
00:55:44,945 --> 00:55:46,465
a pick-pocket or somebody
951
00:55:46,545 --> 00:55:49,505
who's a small-time criminal
should never go to jail.
952
00:55:49,945 --> 00:55:53,865
Just because somebody is worse than you,
doesn't absolve you of your crimes.
953
00:56:08,265 --> 00:56:11,425
The issue of bad loans
in the public sector banks in India
954
00:56:11,505 --> 00:56:14,345
needs to be resolved,
it needs to be resolved quickly,
955
00:56:14,425 --> 00:56:16,985
otherwise the Indian banking system
will collapse.
956
00:56:19,305 --> 00:56:23,705
Eight hundred million people in India
who need food support.
957
00:56:24,345 --> 00:56:26,865
That tells you
that India faces enormous challenges.
958
00:56:28,105 --> 00:56:31,145
And all this capital
that is being frittered away
959
00:56:32,025 --> 00:56:33,625
belongs to the people of India
960
00:56:33,705 --> 00:56:36,545
and it is a fiduciary obligation
of these bankers
961
00:56:36,625 --> 00:56:39,185
to not let that money rot,
962
00:56:39,265 --> 00:56:43,105
which it has done
over the last 25, 30 years.
963
00:56:43,545 --> 00:56:45,985
It's been a free-flowing tap
for corrupt people.
964
00:56:48,025 --> 00:56:50,025
[Pinto] He did take money, damnit.
965
00:56:50,105 --> 00:56:52,945
He does owe the bank 9,000 crores.
966
00:56:53,025 --> 00:56:54,385
It's a lot of money.
967
00:56:54,465 --> 00:56:57,265
You can't say it's a witch hunt
and it's undeserved -
968
00:56:57,345 --> 00:56:58,905
it's very much deserved.
969
00:56:59,385 --> 00:57:01,345
He's a crook in that sense of the word.
970
00:57:01,425 --> 00:57:03,625
He's not really a crook,
he's just an idiot.
971
00:57:06,025 --> 00:57:09,905
[Karnad] India's largely
a socially conservative place.
972
00:57:10,945 --> 00:57:14,825
He gave us this image
of wild extravagance.
973
00:57:14,905 --> 00:57:16,825
His image has ended up...
974
00:57:17,625 --> 00:57:18,785
uh, being too toxic.
975
00:57:20,865 --> 00:57:22,545
[Sid] Everyone wants scandal,
976
00:57:22,625 --> 00:57:26,145
everyone wants a bit of spice,
everyone wants a bit of controversy.
977
00:57:27,545 --> 00:57:31,305
You know, he was in a sexy business,
making alcohol.
978
00:57:31,985 --> 00:57:35,505
It's not like he was, you know,
making steel somewhere or something,
979
00:57:35,585 --> 00:57:38,545
it's a lifestyle brand,
therefore, it's much easier to target him.
980
00:57:41,065 --> 00:57:44,305
Vijay is a bit of a kid,
I think he'll always remain that -
981
00:57:44,385 --> 00:57:46,905
a kid with his toys, a kid with his ego,
982
00:57:46,985 --> 00:57:50,865
a kid with his preoccupation
with himself, his image -
983
00:57:50,945 --> 00:57:51,905
which...
984
00:57:52,945 --> 00:57:56,825
inhibits him from taking
the right decisions at the right time.
985
00:57:56,905 --> 00:57:59,625
So, it's the kid in him
that gets him into a lot of trouble.
986
00:58:03,225 --> 00:58:08,305
[theme music playing]