Mallya, earlier in the day, had told reporters outside London's Westminster Magistrates' Court, ahead of appearing for hearing in his extradition case, that he did not flee the country with public funds instead he offered a settlement deal to the government.
But when reporters asked Mallya about the condition of the jail after the video of his cell was presented to him by the Indian authorities, Mallya labelled it as "pretty impressive". Why, the Congress president asked, didn't the finance minister inform the Central Bureau of Investigation or the Enforcement Directorate? Jaitley also issued a clarification over the matter in his Facebook post. "I met him in Parliament and told him I am going to London", claimed Mallya.
Rahul Gandhi called Mallya's claim "extremely serious allegations".
On 26 February: In a text message to Firstpost, the then SBI chairman, Arundhati Bhattacharya said the bank is taking further action in the context of Mallya hinting to leave the country.
Jaitley said Mallya "occasionally attended the House" and misused "that privilege on one occasion while I was walking out of the House to go to my room". In a statement, Jaitley said he had never given an appointment since 2014 to Mallya, who "misused" his privilege as a member of Rajya Sabha by trying to talk to him about an offer of settlement.
Rahul Gandhi, Mr Patra said, took a loan of Rs 1 crore from Vijay Mallya.
Jaitley's response came after his political detractors began to ask him to respond to Mallya's huge revelation.
Vijay Mallya has run away after looting money from banks and the government had this information. "I hope the honourable judges will consider it favourably; everybody gets paid off and I guess that's the primary objective", said Mallya, who is fighting extradition to India on charges of fraud and money laundering amounting to around Rs 9,000 crores.
Jaitley was quick to dismiss any official meeting with Mallya, but has confirmed this unofficial encounter at Parliament. I even did not receive any paper from him at that time. The remarks also come on the back of charges by the Opposition that the government lax attitude had allowed "defaulters" such as Mallya to flee the country.
The Indian government says Kingfisher took out a series of loans from Indian banks, in particular the state-owned IDBI, with the aim of palming off huge losses which Mallya knew the failing airline was going to sustain. There are CCTV cameras, we can all see that for proof.
Mallya, 62, is fighting numerous lawsuits in the United Kingdom and back home over fraud and money-laundering allegations as well as an extradition to India.