Vijay Mallya had no intention of repaying the loans taken by Kingfisher Airlines: ED investigation

Mallya had remitted money taken from Banks in the name of lease rental for aircraft

The Enforcement Directorate has concluded in its investigations that the fugitive businessman Vijay Mallya had no intention to repay the loans taken by his company Kingfisher Airlines (KAL). An investigation conducted by the ED into the finances of KAL revealed that unsecured debt was provided to the loss-making KAL through various dummy companies through a circuitous route which added to the non-viability of the company.

An amount of Rs 3,516 crore was reportedly channelised to KAL by United Breweries Holdings (UBHL) after which the restructured principal loan amount reached Rs 5,575.72 crore. Unsecured loans worth over crores were also arranged by UBHL from entities like Wave Group, SICCL (a Sahara Group Company). According to officials, a criminal conspiracy was devised to obtain and restructure loan for KAL and Mallya and the UBHL had no intention to repay the loans.

It was found on tracking the money trail of loans during the investigation that a major portion of loans given to KAL was remitted outside the country and has been falsely shown as expenses on account of operational expenses or lease rentals. The loans given by the SBI, Axis Bank and Punjab National Bank worth Rs 3,200 crore to KAL were remitted outside the country in the name of aircraft rental leasing and maintenance, spare parts etc. But the investigation reveals that there were huge variations in the payments, especially towards lease rentals even for the same kind of aircraft for the same period of time.

- Advertisement - - Article resumes -

Also due to the failure on the part of KAL to produce supporting documents for lease rentals despite repeated reminders of the ED, the agency has concluded that the bank loans obtained were embezzled abroad in the guise of lease rentals in a calculated and pre-planned manner.

Earlier ED had also alleged that Mallya had over-invoiced aircraft lease. The Airlines had taken a loan of ₹900 crore from IDBI bank for paying lease rentals, and the money was remitted to foreign countries. It is alleged that Mallya had deliberately selected companies that charged higher amounts compared to other companies.

Kingfisher Airlines had taken two aircraft from two Mauritius based companies, and directors of the companies were former Kingfisher employees. The lease paid to these companies were significantly higher than what is charged by other companies for the same aircraft, which shows that the lease rental payment route was being used to remit fund abroad illegally by Mallya.

The chargesheet filed by ED had said that KAL was the entity fully controlled by Vijay Mallya, which was used as a vehicle for money laundering.


Share This Post and Support:
We need your support to survive in the media industry. Please consider paying us for the content we produce:

To know more about these payments, please click here.


Most read articles recently

Dear Gujarat Samachar editor, how do you live with yourself?

Gujarati daily's insensitive headline over Pulwama attack has got readers upset

Pakistan funded Islamic terrorist blows up 300 kgs of IED, actor brings ‘Hindu right wing’ argument to shield Pakistan

Jaaved Jaaferi refuses to hold Pakistan accountable for the attack, instead equates Hindus with Jaish Terrorists.

Delhi’s education minister deletes tweet after being educated about electricity supply to Pakistan by Adani

Sisodia, without apologising or issuing a clarification, chose to quietly delete the tweet after being called out

NDTV suspends Deputy News Editor for celebrating Pulwama terror attack, may take further action

NDTV Deputy News Editor Nidhi Sethi suspended by the channel for her Facebook comment celebrating the Pulwama attack
Congress mouthpiece National Herald whitewashes Pulwama terrorist Adil Ahmed Dar

More stories about terrorist and his family than martyrs – what does it tell about the media?

The English language Indian media has focused more on ‘human stories’ about the terrorist than about the Pulwama martyrs.

JNU ‘student’ who was accused of stealing funds in Kathua case found spreading rumours about Kashmiri girls trapped in Uttarakhand

CRPF also issued a notice that certain 'miscreants' on social media are spreading rumours and hate on social media

Pulwama attack: Foreseeing strong and fast reaction from India, Pakistan relocates its terrorists nearer to Pak army camps

As per the report, Pakistan has not even vacated the winter posts along the LoC which it usually does.

Pulwama attack: Justice doesn’t give a tiny rat’s furry posterior about the sensibility of elites who go where the money takes them

Pulwama attack victims' mortal remains weren't even cold yet. The candles lit by the nation has not even been blown out by a sorrowful sigh of the nation, that the vultures started circling the remains
Rahul Gandhi

BJP government got soldiers killed for electoral gains: Gujarat Congress leader’s controversial remark

Congress leaders and supporters have been trying to float the theory that the Pulwama attack was an inside job

Congress supporting abusive troll claims Pulwama was an inside job by India

Sanjukta Basu is a very vocal Modi-hater and a bigot masquerading as a liberal feminist.

Latest articles

Connect with us

137,023FansLike
109,853FollowersFollow
22,959SubscribersSubscribe

Don't miss these