"PMLA investigation indicates that the marketable value and quality of the collateral security offered by Ms KAL (KFA) and its promoters was not assessed. There is a complete lack of due diligence on the part of the bank coupled with the fact that undue haste was shown while disbursing the initial two tranches of loan amounting to Rs 350 crore. "It is apparent that the said loans were disbursed post meeting of Mallya with the then CMD (Yogesh Aggarwal) of the bank on a holiday. "As the next day was a holiday, it was pointed out to him ... and he could meet at a later day. "Mallya informed that Ms KAL (KFA) was in a severe crunch and needed funds urgently to keep flying," Aggarwal said in his statement.

Source: Times of India January 29, 2017 09:00 UTC