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A Mauritius-based company of the Wadia Group, Leila Lands, took $300 million in loans from German lender Deutsche Bank during the financial years 2021 and 2022, said a report by the Economic Times (ET).
The company generated $190 million worth of fixed deposits during the same time frame, which were used to secure funds for Go First from Deutsche Bank, the report said.
Leila Lands acquired the loan by placing a charge on the account of Associated Biscuits International Ltd (ABIL), the London-based company which owns 44.76 per cent stake in the listed Britannia Industries.
Leila Lands said that although money had been raised from Deutsche Bank, it was unrelated to the group's ownership of Britannia Industries. "Leila Lands has made sizeable equity investments in Go First throughout the years as promoters," a spokesperson for the company told ET.
The spokesperson further said that the company offered security to Deutsche Bank in the form of a $191 million fixed deposit from its own accrued retained cash earnings.
Deutsche Bank gave Leila Lands a $300 million loan for corporate reasons and investments, said the spokesperson, adding that ABIL offered a lien on its inflows but had no link with the Britannia stake.
Meanwhile, Go First admitted to obtaining the loan but claimed to be unaware of the fixed deposits. Go First said that it was unrelated to Britannia Industries.
