Two initial tranches of loan worth Rs 350 crore were hastily disbursed by IDBI bank to Kingfisher Airlines after a "holiday" meeting between liquor baron Vijay Mallya and the then bank CMD as both organisations "criminally conspired" to clear the entire deal despite weak financials of the airline, the ED has said
Vijay Mallya
New Delhi: Two initial tranches of loan worth Rs 350 crore were hastily disbursed by IDBI bank to Kingfisher Airlines after a "holiday" meeting between liquor baron Vijay Mallya and the then bank CMD as both organisations "criminally conspired" to clear the entire deal despite weak financials of the airline, the ED has said. The total loan sanctioned and disbursed by IDBI was Rs 860.92 crore.
ADVERTISEMENT
The agency, probing the case for money laundering charges, has said its investigation found that the processes deployed to structure and re-structure the loan by the bank to the now-defunct airline was planned to be defrauded and that Mallya and Kingfisher Airlines (KFA) had "no intent" to repay it.
Subscribe today by clicking the link and stay updated with the latest news!" Click here!
