Jaitley's response came after his political detractors began to ask him to respond to Mallya's huge revelation.
Mallya, who faces charges of defrauding banks to the tune of Rs 9,000 crore, said he did not file any clemency plea in the Karnataka High Court where he was ready to settle all dues.
As the controversy over downgrading the Lookout Circular (LOC) from "detain" to "inform only" against Vijay Mallya erupted once again on Thursday, the Central Bureau of Investigation repeated its stand that there was no foul play.
Jaitley has vehemently denied the charge, saying he never gave Mallya any appointment.
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Gandhi urged Modi to order an independent probe into Mallya's alleged meeting with Jaitley before he left the country and said until the probe was completed Jaitley must step down. "The statement is factually false in as much as it does not reflect truth", Jaitley had said in a Facebook post.
Vijay Mallya during a lunch break at his extradition hearing in London on Wednesday said that he met the finance minister before leaving India and offered to make a settlement. I have clearly stated about this in each of my media interviews and TV discussions that I saw the two talking to each other.
Jaitley said Mallya "misused" the privilege of being a Rajya Sabha MP to catch him in corridors of Parliament on one occasion while he was walking out of the House to go to his room.
Back home, the Congress pounced upon Mallya's comment and demanded that the government explain how the embattled industrialist was allowed to leave India and demanded a thorough inquiry. "There is CCTV footage from that day and it should be reviewed", Punia, who was also present in the media briefing, told reporters.
Goyal said Mallya was a criminal, had no credibility as he was under the "glare of law" and his words could not be taken seriously.
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"There is a series of letters between the RBI (Reserve Bank of India) and the SBI (State Bank of India)".
"All norms, laws and regulations were passed to help the Kingfisher Airlines and specific instructions were given by the Congress-led UPA government to banks for restructuring loans for the company", Goyal said.
Earlier in January, Swamy had praised Manmohan Singh's tenure as the finance minister and denounced the practise of handing over the finance portfolio to lawyers.
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