Saturday, February 04, 2017

Vijay Mallya used IDBI loan for KFA to fly private jet: Chargesheet

Mumbai: India's federal investigator has charged embattled billionaire Vijay Mallya with using IDBI Bank loans to fly his private jet and pay off other lenders, highlighting the misuse of borrowed money by the liquor baron's mothballed Kingfisher Airlines that was once billed among the finest to fly South Asian skies.
“Vijay Mallya and other accused KFA (Kingfisher Airlines) officials diverted significant portion of the loan for purposes other than those for which the loans were sanctioned,” the Central Bureau of Investigation (CBI) has said in its chargesheet on the Rs 950-crore loans the carrier had raised between 2009 and 2010 from IDBI Bank. Nine, including five IDBI Bank executives, are in judicial custody until February 7.
Mallya, who remains chairman of India’s biggest beer maker United Breweries and was once compared with Richard Branson for his demonstrated love for glamour and glitz, expanded into the airline business more than a decade ago when a rapidly expanding economy made India the nerve-center of global aviation.
04/02/17 Saloni Shukla/Economic Times