Kingfisher Airlines' Rs 4,000-crore valuation under SFIO scanner

Mar 17, 2016, 08:25 IST | Agencies

New Delhi: Under fire from multiple agencies, Vijay Mallya's Kingfisher Airlines (KFA) now faces a probe by the Serious Fraud Investigation Office (SFIO) into its allegedly 'inflated' brand valuation of over Rs 4,000 crore.

Vijay Mallya
Vijay Mallya. File pic

The government's white-collar fraud detection agency is probing whether such a high valuation was arrived at fraudulently to get more funds from banks and siphon off the additional money for purposes other than proposed investment in the airline.

Burdened under huge losses and liabilities, including to the lenders, the airline finally had to be grounded in late 2012. While lenders have stepped up their efforts to recover dues totalling over R9,000 crore, founder and main promoter Mallya left the country on March 2.

Casino in Goa?
Meanwhile, in the Goa Assembly, Chief Minister Laxmikant Parsekar said UB Infrastructure, a company linked to Mallya's business empire, applied for a casino licence in Goa, He said 'only plain application' was received from the firm.

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