Banks fail to evaluate assets-value of KingFisher Airlines
Banks fail to evaluate assets-value of KingFisher Airlines
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Paul Rex, from London banking expert called by Mallya support team, made the statement in result to a question by the prosecutions' Mark Summers, who was questioning Paul Rex about the assets investigate done by IDBI Bank, SBI and other bank houses.The Indian government, direct Britain's agency Crown Prosecution Service (CPS), has been competitive in the court that liquor baron had misled banks back home with regard to his company's net worth while seeking loan totalling around Rs 2,000 crore.In reports submitted to the court prior to the trial, Paul Rex had compiled a list of "failures and irregularities" on the part of the banks in evaluating the assets-value of Kingfisher Airlines.

Paul Rex, from London banking expert, said that there were "glaring gaps" in the credit analysis process.On further questioning, Paul Rex disclosed more information about the shortcomings of the banks in the loan approving procedure.Paul Rex said IDBI Bank, for instance, trust on information that was "largely poor" and merely "reproduced" Info given by the Kingfisher to other banks in the association which provided the loans.Paul Rex further said that this was all done with the approval of senior management.On Monday, the court will hear from Margaret Sweeney on payments made to the Force India Formula One team following the unwellness of Kingfisher Airlines.The court will also hear from Martin Lau, Professor of South Asian Law at the School of Oriental and African Studies (SOAS) in London.

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