Vijay Mallya had no intention of paying back his loan that he took from IDBI Bank, even before his now defunct Kingfisher Airlines got involved in a Rs 900 crore loan default, according to a supplementary chargesheet filed by the CBI in his case.
Last week, in the newly filed chargesheet against Mallya and officials of Kingfisher and IDBI Bank, the CBI has sought to support its charges with an email sent allegedly by Mallya on 6 January 2012 to PA Murli, a senior official of United Spirits Limited (USL), as reported by Indian Express.
I have been receiving mails from IDBI regarding the KFA account becoming a Non-Performing Asset or NPA. They may do suddenly something. Take the 10 crore out of my account into USL tomorrow itself.Mallya Email
In a chargesheet from January, the CBI claimed that IDBI officials failed to seek legal opinion on keeping Kingfisher Airlines brand, an “intangible asset”, as collateral for loan.
The CBI has also alleged that Mallya was the one who came up with using his airline carrier as collateral for the loan, which he then suggested to his then UB Group CFO Ravi Nedungadi, in an email dated 10 September 2008. Mallya offered to the State Bank of India in 2009, the brand value of Kingfisher Airlines as security for a loan of Rs 3,365 crore.
The lending banks, including IDBI, were induced to believe that such a value is an outcome of the diligent exercise of an independent outside expert after rigorous investigation and valuation. The investigation reveals that such a favourable report was obtained by deliberately exaggerated financial indicators, which are different from the ones supplied to the banks.Supplementary Chargesheet
The agency alleged that Mallya offered to submit two brand valuation reports to the bank, done by two independent experts while asking for the loan, but submitted only one which was favourable to his company.
The CBI had earlier claimed that the report by Grant Thornton had clearly stated that it was for an “internal purpose” and “not an investment advice”.
Investigation has further revealed that accused Vijay Mallya was also well aware of the findings of the report of Brand Finance showing a lower value of Rs 1,911 crore and a power point presentation of the said report was made before him alone by the Brand Finance team at his residence at Niladri, Mumbai on 20.12.2008, wherein he expressed dissatisfaction and told them that the numbers provided… were very conservative.
The report was based on more “realistic projections”, the CBI alleged, and added it was “deliberately concealed”.
Mallya also didn’t deliberately declare the foreign assets, including his UNB-stake while submitting the Assets and Liabilities statements to SBI from 2010 to 2012, the CBI claimed. However, on the Supreme Court’s intervention, his concealed assets in VJM Resorts in South Africa valued at Rs 49.75 crore and 100 percent share holding in UNB-South Africa of Rs 746.25 crore came to light.
The CBI has said that in an affidavit filed before the SC, Mallya admitted that $40 million were “equally distributed to three separate trusts for the benefit of his three children” on 26 February and 29 February 2016.
Finding the liquor baron guilty of contempt, the SC has asked him to appear before it on 10 July.
(At The Quint, we question everything. Play an active role in shaping our journalism by becoming a member today.)