CBI questions Vijay Mallya in alleged loan default case

Official sources said Mallya was called to agency headquarters in connection with the case where the team of Banking Securities Fraud Cell carried out his detailed questioning.

By: Express News Service | New Delhi | Published:December 11, 2015 2:22 am
Vijay Mallya Vijay Mallya

The Central Bureau of Investigation (CBI) on Thursday questioned UB Group chairman Vijay Mallya in connection with its probe into alleged loan default of Rs 900 crore taken from IDBI Bank. Official sources said Mallya was called to agency headquarters in connection with the case where the team of Banking Securities Fraud Cell carried out his detailed questioning.

CBI has registered a case against Mallya, director of the defunct Kingfisher Airlines; the company; A Raghunathan, CFO of the carrier and unknown officials of IDBI Bank. It is alleged that the loan was sanctioned in violation of norms. CBI sources said an FIR into the alleged violations was registered recently as part of its probe into criminal aspects of loans declared to be non-performing assets by public sector banks.

The sources said there was no need for the bank to take the exposure outside the consortium. “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,” a senior CBI official, probing the matter, had earlier said. The bank will have to explain reasons for extending the loan to the airlines, ignoring its own internal report which has warned against such a move. The airline stopped operations in October 2012. CBI sources said the agency has registered 27 inquiries and cases with regards to “bad loans” given by banks to various corporates in 2013. According to a PTI report, the company said it will not comment on the matter.

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