ED had registered a criminal case in this deal last year under the provisions of the Prevention of Money Laundering Act (PMLA) and has attached assets to the tune of Rs 9,661 crore till now.
The agency’s probe also found that the considered brand valuation of the KFA, taken as a collateral by the bank for loan security in the said case, was not a sound decision.
“Investigation revealed that KFA brand was accepted as collateral security and the valuation for Kingfisher brand as accepted by the bank as Rs 3,400 crore without independent verification,” it said, adding the firm that did the brand valuation had submitted three different amounts of this estimate between 2008-12.
“Thus, it indicates how volatile is this (brand value) intangible fictitious asset and needs to be evaluated frequently, particularly in aviation sector which itself is very unpredictable and was going through a very rough phase and brand valuation was wholly based on projections provided by Ms KFA.
“Hence, it would not be prudent to accept brand value of 2008, while considering loan sanction in 2009,” it said.
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(Sourced from agencies, feature image courtesy:thehindu.com)
 is set to file its first charge sheet in the Vijay Mallya-IDBI bank alleged loan default money laundering case){kind=link}