Although Jaitley was quick to release a statement saying the meeting with Mallya was unscheduled and he advised him to meet the banks, the sensational claim raises a larger question that if a senior cabinet minister knew that Mallya was going to fly away to London, could the government have done more to keep him in the country?
In a statement issued on Facebook, the Finance Minister said that Mallya's statement is "factually false". "Nor I was ever offered to meet him".
The court in London said it will give its decision on December 10 on whether Mallya can be sent back to India.
"I am certainly a scapegoat, I feel like a scapegoat".
On being asked whether he met any other BJP leader before leaving for London, he said, "Over a period of time, I have met many colleagues in Parliament and expressed to them my desire to settle with the banks".
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Gandhi's press conference, his second in a fortnight with an earlier one on the Rafale deal, sought to corner both Jaitley and Prime Minister Narendra Modi. "I don't believe I owe you any further details".
Jaitley said that he has not met the 62-year-old former Kingfisher Airline boss since 2014 but added that Mallya had "misused" his privilege of being a Member of the Rajya Sabha on one occasion.
"There are documents that show how the Reserve Bank of India and the United Progressive Alliance under Sonia Gandhi and Manmohan Singh had given "sweet deals" to Kingfisher Airlines", Patra said, referring to the airline that was owned by the liquor baron.
"I have made a comprehensive settlement offer before the Karnataka High Court in India and hope the honourable judges will consider it favourably".
Mallya's lawyer told Westminster Magistrates Court in London, "IDBI bank officials were well aware of losses at Kingfisher". Before leaving I met the finance minister and offered to settle (the issue with the banks), Mallya said, without naming the minister. "I did not even receive the papers that he was holding in his hand".
In an earlier hearing, Mallya had said that he can not go back to India because of the condition of Indian jails, after which the London court asked Indian authorities to submit a step by step video of the of the Mumbai prison to clear the doubt on availability on natural light.
It is known news that Vijay Mallya, is wanted on charges of fraud and money laundering amounting to around Rs. 9,000 crore. He was arrested by the Scotland Yard on an extradition warrant in April this year.