The probe into the Kingfisher loan case seems to be widening with the Serious Fraud Investigation Office (SFIO) now exploring how and why international audit firm Grant Thornton overvalued Vijay Mallya's company.
The firm had valued Kingfisher Airines at Rs 4100 crore in 2004 and it was on the basis of this valuation that 19 banks gave Vijay Mallya loans of Rs 9000 crore.
According to sources, the SFIO is probing how the company came to the valuation at a time when Kingfisher was incurring heavy losses.
Reacting to the development, Grant Thornton claimed that they did their job honestly and were wiling to provide all details to SFIO.
This comes even as there's more trouble mounting for former liquor baron Mallya.
Sources told CNN-IBN that the Economic Offences Wing has registered a case against Mallya for allegedly siphoning off funds. The EOW has constituted a special committee to look into the Mallya case.
The agency is slated to investigate the deals signed by Mallya as well as the money trail between the business tycoon and group companies.
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