Vijay Mallya had no intention of paying back loans to banks: ED

Updated: Feb 09, 2019, 14:15 IST | Agencies

Probe reveals he did not push profit-generating UBHL and other group companies to strengthen KAL by infusing capital

Vijay Mallya had no intention of paying back loans to banks: ED
Vijay Mallya. Pic/AFP

Absconding liquor baron Vijay Mallya had no intention of paying back loans of over Rs 5,500 crore to a consortium of banks even though creditors agreed to restructure debt for his Kingfisher Airlines Ltd (KAL) offering a lifeline to the now defunct airline.

Investigations into the financial mess at KAL undertaken by the ED have revealed that Mallya's intentions of not paying the banks post restructuring emerged as he did not push profit-generating United Breweries Holdings Ltd (UBHL) and other group companies to strengthen KAL by infusing capital.

Instead, Rs 3,516 crore was channelised through dummy companies through a circuitous route as unsecured loan to KAL by UBHL. This further eroded the net worth of KAL as restructured principal loan amount itself stood at Rs 5,575.72 crore.

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