IDBI loan case: CBI raids Vijay Mallya’s defunct Kingfisher Airlines

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NEW DELHI: The Central Bureau of Investigation (CBI) is conducting raids on liquor baron Vijay Mallya and his now defunct company Kingfisher Airlines in its probe into IDBI bank’s Rs 950 crore loan, which was given to the company despite the airline’s negative credit ratings and net worth.

The agency’s raids are reportedly part of its banking NPA frauds probe, which was started last year and first reported by TOI.

The agency has registered an FIR in the loan fraud, which was declared non-performing asset, few days back. The agency has been probing loans provided by many public sector banks to several private companies.

CBI had alleged that “it was first exposure to the bank. There was no need for the bank to take the exposure outside the consortium when already other loans were getting stressed”.

Sources say that Vijay Mallya would be questioned soon in the case.

Earlier, during the preliminary enquiry, agency has already examined some Kingfisher and IDBI officials asking them to explain the reasons for extending the loan to the airline, ignoring its own internal report which had warned against such a move.

The debt-ridden airline stopped operations in October 2012.

CBI sources said the agency had registered a preliminary enquiry last year after the bank failed to provide convincing answers on reasons to extend the loan to the crisis-ridden airline.

The agency’s probe is part of the investigation into non-performing assets of various public sector banks.

 

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