Twitter
Advertisement

Veling says Kingfisher owes it $20 million

Mauritius-based company Veling Ltd said Kingfisher Airlines Ltd (KAL) owes it $20 million.

Latest News
article-main
FacebookTwitterWhatsappLinkedin

Mauritius-based company Veling Ltd said Kingfisher Airlines Ltd (KAL) owes it $20 million.

Veling terminated aircraft lease deal with KAL when the later had breached the terms of both leases and defaulted in paying the lease rentals and maintenance reserves of the two ATR aircraft.

In a reply to dna's report, 'Did Kingfisher money disappear in Cayman & Mauritius?' dated February 17, 2015, Mauritius based airline leasing firm Veling (Mauritius) Ltd said the lease transactions between Veling (Mauritius) and KAL were arms length transactions in the ordinary course of business. Veling had re-possessed the aircraft with great difficulty after terminating the leases.

Veling Narain (Mauritius) Ltd has already secured judgments against KAL from courts in the United Kingdom in respective of the outstanding dues. "Thus it is clear that the insinuations of collusion between Veling (Mauritius) Ltd & KAL are obviously imaginary & without a grain of truth," the company said.

dna had reported that lease payments made to Veling Narain (Mauritius) Ltd and Veling Sacheedanand (Mauritius) Ltd by KAL were far in excess of the prevailing market rates for the aircraft. dna's report was based on findings as mentioned in an SBI notice dated August 19, 2014, submitted to Bombay High Court by KAL. The notice, filed against KAL and its directors, details transactional anomalies that point to diversion of funds by KAL.

The Central Bureau of Investigation (CBI)'s independent probe on KAL's offshore payments to companies based in Cayman Islands and Mauritius points to over-invoicing of lease rentals and the use of public deposits in Indian banks to pay for the same.

This newspaper like other newspapers and TV channels has in the past reported about the Ernst & Young audit report and the ensuing SBI notice which had used the consultant's expertise in preparation. dna also extensively interacted with members of the banking consortium.

The article's focus was on the ongoing probe by CBI on Kingfisher's offshore money trail and it's similarity with the findings mentioned in the SBI notice against KAL. It is now understood that Veling (Mauritius) Ltd also owed money by KAL and has got possession of its two planes.

Find your daily dose of news & explainers in your WhatsApp. Stay updated, Stay informed-  Follow DNA on WhatsApp.
Advertisement

Live tv

Advertisement
Advertisement