New Delhi: Based on the findings of a forensic audit conducted by the
SBI on Kingfisher Airline's default on Rs7,000 crore loan, the finance
ministry says that the company has diverted parts of the loan. The audit
report conducted by external agency, Ernst&Young, has observed that
chances of the airlines having siphoned off the loans for purposes
other than the sanctioned use are 'highly positive'.
According the finance ministry a Rs336 crore loan sanctioned by Union Bank of India (UBI) was withdrawn and deposited in another account with a private bank by Kingfisher. This is not allowed. The audit report has been submitted to the finance ministry two days back. Kingfisher Airlines tops the list of bad debts in the banking sector, which has swelled up to Rs two lakh crore in the last five years.
This particular loan from UBI is not the part of the Rs7,000 crore loan given by the SBI-led consortium to the airline. Part of the Rs7000-cr has also been diverted. A finance ministry official said, "In a similar fashion, the loans and advances taken from the banks in the SBI consortium has also been diverted, according to the findings of the report. The ministry is closely examining the report and we have already asked SBI to act fast on the NPA issue."
Read news in full 14/08/14 Ashutosh Kumar/Daily News & Analysis
According the finance ministry a Rs336 crore loan sanctioned by Union Bank of India (UBI) was withdrawn and deposited in another account with a private bank by Kingfisher. This is not allowed. The audit report has been submitted to the finance ministry two days back. Kingfisher Airlines tops the list of bad debts in the banking sector, which has swelled up to Rs two lakh crore in the last five years.
This particular loan from UBI is not the part of the Rs7,000 crore loan given by the SBI-led consortium to the airline. Part of the Rs7000-cr has also been diverted. A finance ministry official said, "In a similar fashion, the loans and advances taken from the banks in the SBI consortium has also been diverted, according to the findings of the report. The ministry is closely examining the report and we have already asked SBI to act fast on the NPA issue."
Read news in full 14/08/14 Ashutosh Kumar/Daily News & Analysis
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