900 cr IDBI loan issue: Fresh trouble for Mallya as CBI visits residence in suspected scam

 

 

The Central Bureau of Investigation (CBI) searched five places, including the residence and offices of liquor baron Vijay Mallya on Saturday in an alleged Rs 900-crore loan scam.

According to sources, IDBI Bank extended loans worth Rs 900 crore to the now defunct Kingfisher Airlines, despite the airline’s negative credit ratings. Mallya was the director of the airline which stopped operations in October 2012.
A case under various sections of the Indian Penal Code (IPC) and Prevention of Corruption (PC) Act was registered against Mallya and A Raghunathan, who served as chief financial officer (CFO) of the airline. The case also names unknown officials of IDBI Bank for alleged collusion.
“Searches were conducted at five places (three in Mumbai and one each in Bengaluru and Goa) in the offices and residences of the accused on Saturday. Several documents found during searches are being scrutinised,” a statement released by the CBI said.
The CBI, which has been probing the non-performing assets (NPA) of various public sector banks had commenced a preliminary enquiry against IDBI a year ago.
“Officials from the IDBI bank failed to give satisfactory replies on why the loan was sanctioned to the beleaguered company despite its own internal report warning against granting it. Officials from the airline were also questioned, “ a CBI official told The Indian Express. CBI is likely to question Mallya in the case and will also probe the angle of a quid-pro-quo for the loan.
“Loan was sanctioned despite the bank’s internal report warning against it. The airline also misrepresented facts regarding its net worth and credit rating following which the loan was sanctioned,” added the official.
“The CBI officials visited UB Group premises in Bengaluru, Goa and Mumbai in the course of an investigation regarding a loan facility availed by Kingfisher Airlines. The company co-operated with the officials..,” said the official spokesperson of the UB Group.