Adrian Sutil was on course to score the team's first points when running fourth with only 10 minutes of the two-hour race to run around the streets of Monte Carlo on Sunday.
But the young German was rear-ended by reigning world champion Kimi Raikkonen, who lost control of his Ferrari on a damp part of the circuit emerging out of the tunnel.
Calm before the storm: Sutil of Force India passes the Casino during the second practice sessionn Monte Carlo.
Sutil was later seen in floods of tears inside the team garage, and although Raikkonen apologised, the shunt has potentially cost Force India around £5million in points bonuses.
"I was close to tears too - so were many of us actually because we were obviously shattered," said Mallya.
"I've had a lot of SMS (text) messages and phone calls from supporters in India, all of whom were highly emotional.
"We were so looking forward to a spectacular result, which was not to be.
"Kimi just rear-ended him. It wasn't as if it was an overtaking manoeuvre.
"Something drastic must have happened, because you wouldn't expect a world
champion to run into somebody.
"It was sad for us, that moment was a very emotional moment.
"But such things happen in racing, that's what I've been telling everyone.
"F1 wouldn't be F1 if it wasn't as unpredictable as it is, but we'll get over it, and take away a lot of positives."
One of those is Mallya believes Sutil has proved he is worthy of his race seat following a poor start to the season.
"Adrian has a lot of ability and talent, and we're glad and proud to have him in our team," added Mallya.
"Some people started questioning my decision to keep him when he didn't finish a few races at the start of the season, but I think he has more than redeemed himself."
Mallya is hoping the tide of good fortune will soon turn the way of his team, as he said: "We don't want to base our earning points on exceptional circumstances.
"The team has to be good and competitive, and that's what we're driving for.
"Everyone's doing their best to make that happen. I just hope that some of these efforts get rewarded soon."
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