Did liquor baron, Vijay Mallya route Rs 400 crore abroad? A probe has found that out of the Rs 900 crore loan obtained from the IDBI Bank Ltd, Mallya had allegedly routed Rs 400 crore abroad.
The probe learnt that he allegedly routed the monty abroad as payments for aircraft renting leasing apart from other operational expenses. The bank had granted a short term loan of Rs 150 crore to Kingfisher Airlines in October 2009. Rs 750 was granted in the second tranche of which Rs 200 crore was in the form of a bridge loan.
Indian agencies say that Kingfisher owes Rs 9,000 crore to 17 lenders including SBI, Punjab National Bank among other banks. The cases against Mallya who is facing extradition proceedings in London are being probed by multiple agencies including the CBI and the Enforcement Directorate.
Mallya is alleged to have colluded with the IDBI Bank officials to secure the loan without giving any valuable collateral. The allegation is that the money was used for other purposes other than what it was given for.
Rs 53 crore of the loan amount to Mallya's Force India Formula One Team Ltd while about Rs 70 crore was diverted to two UB Group firms, the probe agencies have alleged. It was also found that the airline had allegedly diverted money by paying higher rentals for aircrafts leased from foreign firms run by former employees of UB Group.
Probe agencies are also looking into the discrepancies in the valuation of the Kingfisher airlines, which was kept as a collateral with the IDBI Bank for the loan. The bank had not taken an expert opinion on whether they could enforce the brand which was valued at around Rs 3,400 crore.