 "Big lenders submit loan documents related to Kingfisher Airlines to ED")
The Enforcement Directorate (ED) has received credit documents from first five big lender in connection with Rs 9,000 crore loans extended to Kingfisher Airlines.
These five big lenders are State Bank of India ,IDBI Bank, Punjab National Bank, Bank of India and Bank of Baroda.
Sources in ED said, today is the last day for submission of the documents by all the banks. The investigators are anticipating other banks to provide details by evening. Banks have been instructed by the enforcement sleuths to submit all required details right from valuation, due-diligence, and transactions.
“We started examining the documents and will soon call respective bank officials for verification of the files submitted by them,” a senior ED official told Business Standard.
The amount due by the troubled airline to the consortium of banks led by SBI, is about Rs 6,963 crore. This is excluding interest rate, which will be levied at 15.5% per annum.
SBI, the major lender to Mallya's airline, till now has managed to recover only Rs 155 crore out of the Rs 1,623 crore due from it. While Rs 950 crore was due from IDBI and Rs 800 crore from PNB. Kingfisher owes Rs 650 crore and Rs 550 crore of BoI and BoB respectively.
United Bank of India was the first lender to declare Kingfisher and Mallya a ‘wilful defaulter’ in May 2014. The same year, the SBI too issued a notice Kingfisher, Mallya and United Breweries Holdings (UBH) as ‘wilful defaulters’. Though, Mallya has challenged the decision of United Bank and the SBI in various courts. PNB followed the same path and declared Mallya and Kingfisher a wilful defaulter.
