Ahead of the Budget session beginning tomorrow, BJP sought to corner Congress, alleging the "corrupt hands" which helped Mallya secure bank loans belonged to the then Prime Minister Manmohan Singh and Finance Minister P Chidambaram.
Singh and Chidambaram rejected the charge, while Congress targeted the Modi government over allowing the liquor baron to flee to foreign shores.
BJP spokesman Sambit Patra quoted from purported letters written by Mallya to Singh seeking his intervention to bail out his struggling Kingfisher Airlines following which it got loans.
"The hands which pulled the strings to ensure that Mallya received loans are visible now. It belonged to Chidambaram and Singh. Did the hands of 10, Janpath also pull the string? Sonia and Rahul Gandhi should come out in public to say at whose behest the loans were sanctioned to Kingfisher Airline," he told a press conference.
More From This Section
"It was after one such letter Mallya had written to Singh on November 14, 2011 that the Prime Minister told the media that 'we have to find ways to get Kingfisher out of trouble'," Patra claimed.
"I think what I have done was done with full satisfaction of mind that we were not doing anything which was against law of the land," Singh said, rubbishing the charges at a press conference jointly addressed by him and Chidambaram at Congress headquarters.
Singh said all prime ministers and other ministers received representations from the industry.
"In normal course, we pass on these to appropriate authorities. It was a normal, routine transaction and therefore the letter that is being talked about is nothing but an ordinary piece of letter which any government in my position would have dealt with," Singh said.
"No Minister can deal with each one of these representations. They are marked down to departments and officers concerned, who will then take appropriate follow-up action," he said, adding there was "absolutely nothing wrong" if somebody sought some policy changes or wanted forbearance to be shown.
Dragging the top Congress leadership into the row, Patra
alleged that Pulok Chatterjee, the then Principal Secretary to the Prime Minister, would "snatch" files from Singh to take them to 10 Janpath, Sonia Gandhi's residence.
In one of the letters, Mallya said he was very "relieved" and "pleased", apparently referring to developments in the interim, according to Patra.
A top PMO official had spoken to ministries concerned following his letter to Singh and Mallya had mentioned it, he alleged.
Patra cited another letter the liquor baron, who has been declared a proclaimed offender in the case by a court, allegedly wrote to Chidambaram in March 2013, seeking his intervention to get a No Objection Certificate from the SBI, which headed the consortium of banks which had given unrecovered loans to the airliner and its subsidiaries as his liquor company was in talks with Diageo for a deal.
"Was Vijay Mallya tipped off to run away from India by a high ranking official inside the Modi government?" he asked.
Surjewala also claimed BJP supported and voted for Mallya to get him elected to Rajya Sabha in June 2010. He also wanted to know if it was true that the businessman was once the working president of Subramanian Swamy's Janata Party. Swamy is now in BJP and locked in a legal battle with top Congress leadership including Sonia and Rahul Gandhi in the National Herald case.
Surjewala said, "Instead of levelling senseless allegations, BJP needs to come forward and answer questions."
Chidambaram said the loans that are under investigation were given in 2009, when he was not the Finance Minister.
"The letter does not concern Kingfisher, it concerns United Spirits limited, which was and is a thriving, flourishing profitable company. The letter does not talk about any loan, the letter talks about an NOC for a preferential allotment of shares. That is capital, equity, not loans," he said.
He said for all the talk of bringing back black money within 100 days of coming to power, the Modi government had allowed "a single defaulter with a default of over Rs 9000 crore to run away under the watch of the government.