A FORMER whisky tycoon, who has been accused of amassing debts of nearly £1 billion, has defended his lavish lifestyle in face of ongoing investigations from creditors.

Vijay Mallya, former owner of Scottish whisky distiller, Whyte and Mackay, was at one time the head of some of India's biggest alcoholic beverage companies.

However the businessman now lives in what he calls "forced exile" in London, after the collapse of his airline carrier, Kingfisher Airlines, in 2012 and accused of failing to repay £900m in debts.

Indian authorities have cancelled his passport amid enquiries, yet he denies he absconded from his home country in light of the allegations.

Criticism of Mr Mallya spiked in December last year, when he held a lavish two-day 60th birthday party at his Kingfisher Villa in Goa, and had pop star Enrique Iglesias flown in to perform.

Yet he remains defiant in face of public protest, saying he was a "small fry" but "the big fish that people want to catch".

In an interview with the Financial Times — which took place in the Dorchester Hotel in London — he said: "One of the businesses I was involved in failed, sadly.

"There were other businesses that still exist, which are hugely successful. Should I, therefore, be a hypocrite? Because one of these businesses failed, should I live my life differently? It is what it is. I am not a hypocrite."

He added: "People are saying we shouldn't have this lifestyle, I shouldn't have my birthday party. But what did I spend on my birthday party? My birthday party and what was spent on it wouldn't even move the needle."

A household name in India, his flagship companies included United Spirits and United Breweries, which produce one of the country's best-selling beers, Kingfisher Premium.

In his heyday, he became known as the 'Richard Branson of India', after establishing Kingfisher Airlines, at one time the biggest domestic carrier in the country.

He was a regular on the Bollywood and celebrity circuit, was often pictured with the models of his Kingfisher swimsuit calendar and is the owner of Formula One team, Force India.

He led United Spirits to buy Whyte And Mackay for £600 million in 2007, but was forced to sell for antitrust reasons seven years later for £430m following a move by rival British drinks giant Diageo to buy a controlling stake in the Indian spirits maker.

In 2009 Kingfisher Airlines began to decline, and after a 2010 debt restructuring with Mallya personally guaranteeing loans, the carrier folded in 2012.

Mr Mallya filed a Bombay High Court lawsuit in 2013 claiming the personal guarantees were extracted under duress, and is currently battling the banks as to how far they extend.

In March, he was blocked from receiving $75m (£53m) severance pay from Diageo after a consortium of banks and creditors approached the Supreme Court over unpaid debts.

He is also currently the subject of an arrest warrant in connection with the case, with criminal investigators seeking to interrogate him over what happened to a £90m loan from the state-owned IDBI Bank, which had been extended to Kingfisher Airlines.

He has denied any wrongdoing when asked if he diverted money from his companies for personal use.

He also maintains that his playboy image was a construct to market his Kingfisher brand designed to circumvent India's ban on advertising alcohol.

Instead he says he lives a "simple life" in London, where he works every day and spends time with his four dogs.

"All this was brought into play in creating a brand identity and brand personality of Kingfisher. It all got lumped on me.

"Maybe I should have never gone down this route at all, in hindsight. I am sometimes a victim of my own image, But I can't do very much about it, can I?"