Director of defunct Kingfisher Airlines, along with CFO and IDBI officials, under scanner in alleged loan default of Rs 900 cr
On Saturday, the Crime Branch of India (CBI) raided five commercial and residential properties, along with the defunct Kingfisher Airlines, owned by Vijay Mallya over his involvement in a loan default to the tune of around R900 cr with IDBI bank.
The case surrounds the alleged involvement of A Raghunathan, chief finance officer of his company, and a few unnamed officials of IDBI bank, who issued the amount to the non-performing asset, despite knowledge of the precarious financial position of the company. The loan was sanctioned in violation of norms regarding credit limits.
Vijay Mallya. Pic/Shadab Khan
CBI raided three of Mallya’s properties in Mumbai and one each in Bengaluru and Goa. A CBI officer, on condition of anonymity, said, “A case has been registered against Vijay Mallya, director of Kingfisher Airlines, A Raghunathan, chief finance officer of the airlines, and other unknown officials of IDBI bank. Along with Mallya’s properties, CBI also raided the houses and offices of its CFO and the other unknown IDBI bank officials named in the FIR.”
Investigations have brought to light incriminating documents during the raid, which will be scrutinised. The debt-ridden airlines, which halted operations after October 2012, owes a Rs 7,500-cr loan to a consortium of banks with State bank of India leading the line with Rs 1,600 cr, followed by Punjab National bank (Rs 800 cr), Bank of India (R650 cr) and Bank of Baroda (Rs 550 cr).
A case has been registered under Sections 120 (B) (conspiracy) and 409 (criminal breach of trust by public servant, or by banker, merchant or agent) of the IPC along with sections 13 (2) and 13 (1) of the Prevention of Corruption Act 1988.