Sunday, October 08, 2017

Kingfisher struck deals with board directors: SFIO report

Mumbai: A probe by the Serious Fraud Investigation Office (SFIO) into the affairs of the now-defunct Kingfisher Airlines Ltd (KFAL) has found alleged conflict of interest of at least three independent directors on the board of the airline promoted by liquor baron Vijay Mallya.
In its report, the SFIO, the government agency which probes financial frauds, has alleged that certain private companies of three independent board directors of KFAL — G N Bajpai, former chief of Securities and Exchange Board of India; Diwan Arun Nanda, founder of rediff.com; and, Subhash Raghunath Gupte who has been on the board of several listed firms — had a “commercial relationship “ with the airline.
The report said Intuit Consulting Private Ltd, a firm in which Bajpai had interests, “was appointed on a retainer basis to provide management consultancy on competency building, good governance and economy by the UB Group/KFAL”.
In the case of Nanda, Rediffusion Dentsu Young & Rubicam Private Limited, Wunderman India Private Limited and Everest Brand Solutions Private Limited — these were firms where Nanda had interests — were handed advertising contracts with KFAL and the UB Group.
Read | Jet meant for airline was diverted for use by Mallya and his political friends: SFIO report
The SFIO report said UB Air P Limited, a UB Group company, acquired a 26 per cent stake in United Helicharters Private Limited where Gupte had interests. United Helicharters “used to charter the helicopters of UB Air regularly” and “used to hire the hangar of UB Air P Limited in Juhu Airport”.
08/10/17 Khushboo Narayan/Indian Express
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