Jaitley denies Mallya met him before leaving India

Appearing before London court Vijay Mallya on Wednesday said he had met Finance Minister Arun Jaitley to settle matters before leaving India

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After Mallya stirred a controversy by claiming that he had met Jaitley a day before leaving for London, the finance minister denied the fugitive's version and said he was accosted in the corridor in Parliament.

"On 1 March 2016, when I was in Central Hall of Parliament House, I witnessed the finance minister and Vijay Mallya talking".

"This is a clear-cut case of collusion".

On the Rafale deal issue, Nirmala Sitharaman while speaking to a news agency on Wednesday said that deal for procurement of 126 Rafale jets under UPA fell through as HAL did not have required capability to produce them.

The CBI said Thursday the change in a 2015 Look Out Circular against liquor baron Vijay Mallya from "detain" to merely informing about his movements was an "error" in judgement because he was cooperating in the probe and there was no warrant against him.

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"On 3 March, we heard from the media that he (Mallya) fled the country on 2 March. My conscience is clear and (I) put nearly Rs15,000 crore worth of assets on the table of the Karnataka High Court", he said.

"I have said before that I am a political football".

Union Petroleum Minister Dharmendra Pradhan accused Mallya of taking undue advantage of Jaitley's presence in Parliament.

In a statement issued on Facebook, the Finance Minister said that Mallya's statement is "factually false".

Attacking Rahul Gandhi at a press meet, Bharatiya Janata Party (BJP) national spokesperson Sambit Patra, showing a purported confessional statement of a hawala trader, alleged that the Congress chief had links with a shell company.

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"There is a series of letters between the RBI (Reserve Bank of India) and the SBI (State Bank of India)".

It also seeks to prove there are no "bars to extradition" and that the tycoon is assured a fair trial in India over his now-defunct Kingfisher Airlines' alleged default of over Rs 9,000 crores in loans from a consortium of Indian banks.

Allegations flew thick and fast on Thursday between the Congress and the BJP over the Vijay Mallya affair - Rahul Gandhi accused Finance Minister Arun Jaitley of lying to hide the "free passage" he allegedly gave to the defaulter aviation tycoon to flee to London, while the ruling party counter-claimed the Gandhi family tried to salvage the sinking Kingfisher Airlines with a "sweet deal". "This can be done only by the one who controls CBI", Gandhi added.

He took to Twitter and wrote, "The denial by Arun Jaitley whether he met Vijay Mallya just before he left is completely true".

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