Leila Lands, a Mauritius-based Wadia Group company took loans worth $300 million from Deutsche Bank in FY 2021-22, the same period the company created fixed deposits worth 190 million which were used to secure funds for Go First from Deutsche Bank, reports Economic Times.
Leila Lands took the loan by creating a charge on the account of the London-based parent of Britannia Industries, as per filings by Leila Lands and Associated Biscuits International Ltd, that owns 44.76% stake in Britannia Industries.
Leila Lands confirmed that it raised money from Deutsche Bank but denied having any connections with the group’s shareholding in Britannia Industries.
Speaking to the daily, a Leila Lands spokesperson said, “They had made significant equity investments in Go Firsts as promoters over a period of time. The company provided security to Deutsche Bank by way of fixed deposit of $191 million out of its own accumulated retained cash earnings. A loan of $300 million has been provided by Deutsche Bank to Leila Lands for use in corporate purposes and investments.”
Meanwhile, Go First acknowledged the loan to the daily, but said that it had no knowledge of the fixed deposits. Go First said that it has no connection with Britannia Industries.