Kingfisher Airlines owes over Rs.7,000 crore to 17 lenders
A consortium of 17-state-owned financial lenders led by India’s largest lender State Bank of India was formed to recover the money from the Kingfisher Airlines. The company’s whose properties in Mumbai, Panaji and Bengaluru were raided by the Central Bureau of Investigation (CBI) on Saturday, had borrowed around Rs.7,000 crore from these lenders.
Debt-ridden Kingfisher Airlines had been grounded on October 1, 2012 and lost its operator’s licence on October 20, 2012. The CBI raided houses and offices of Vijay Mallya and Kingfisher in a case of alleged fraud in a Rs.900 crore loan from the IDBI bank , Rs.400 debt from United Bank of India (UBI), Rs.1,623 crore from State Bank of India and Rs.308 crore from Bank of India. The airlines’ owners also owes Indian Overseas Bank a sum of Rs.108 crore, Punjab National Bank Rs.290 crore and Central Bank of India Rs.350 crore.