ED questions former Kingfisher CEO and former UB CFO

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Friday, March 11, 2016

  • Rs.300 crore dues to be paid to employees
  • ED looks out at Rs.900 crore loan from IDBI

The Enforcement Directorate on Saturday questioned the former Kingfisher Chief Financial Officer A.Raghunathan and former United Breweries CFO Ravi Nedungadi for the second consecutive day in connection with the alleged money laundering case.

They were questioned from 11am to 7pm on Saturday nearly for eight hours. Sources said that they were questioned at length about the financial transactions of the companies and the loans that were taken from the IDBI bank as well as various other financial institutions. The ED’s case looks at the Rs.900 crore loan that King Fisher Airlines took from the IDBI bank despite having poor credit rating.

Meanwhile hundreds of unpaid employees of Kingfisher Airlines have written to the Prime Minister Narendra Modi seeking his intervention in the recovery of their dues that was estimated to be around Rs.300 crore. Kingfisher Airlines had started its operations in 2005 and two years later it acquired the then low-cost Air Deccan. It was grounded in October 2012 by its Chairman Vijay Mallya due to non-availability of funds. It lost flying permit in December 20112. According to the letter, there were nearly 7,000 direct as well as indirect employees who were affected by the closure of Kingfisher Airlines.

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