Kingfisher Has Not Been Able to Clarify the Remitting of Rs 423 Crore of Loan Abroad: ED

Kingfisher Airlines (which is headed by the very popular Indian face Mr. Vijay Mallya) has remitted a whopping amount of Rs 423 crore out of the Rs 864 crore loans from IDBI bank. The company was not able to justify the diversion of funds as stated by the Enforcement Directorate, when they were questioned about the same.

The probe conducted by Enforcement Directorate revealed that Kingfisher Airlines had remitted this huge amount outside India from the loan amount of Rs 864 crore that was sanctioned by IDBI Bank. It further stated that the firm had remitted a huge amount on pretexts like lease rentals for aircraft; however, no supporting documents have been submitted yet to justify these claims.

One of the sources from the Enforcement Directorate stated that this may have been a planned attempt by the firm to remit portions of amounts abroad as the loan that they obtained from the bank itself was not clear. The ED also stated that it had registered a money laundering case against Mallya, Kingfisher Airlines and also the bank officials who granted the loan.

It stated that the loan was sanctioned by the firm against the collateral security of the brand Kingfisher, the corporate guarantee for the group firm and also the personal guarantee of the liquor baron Mr. Vijay Mallya. The sum of Rs 806 crore remains unpaid, as per the ED. Mallya, however, has denied all the allegations made by the ED on him and his company.

The source stated that they feel that this is a planned act by the firm to avoid repaying the loan and there are chances that the banks that sanctioned this loan amount may land up not receiving the amount. The probe revealed so many things that make the ED believe that there is a serious and deliberate motive for not paying back the loan amount.

The loan of such a huge amount was sanctioned allegedly without properly verifying the quality and value of the security independently, stated the source of ED. The probe also revealed that the firm has been a defaulter on the loan repayment from the beginning.

Mallya’s loan default of over Rs 9k crore made major headlines after the liquor baron moved to the United Kingdom earlier this year.

Source: could-not-justify-remitting- rs-423- cr-of- loan-abroad- ed/story-

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