Kingfisher Airlines Loan: 3 including CFO and former IDBI Bank chairman denied bail; granted to six others

The court also observed that the three refused bail were involved in applying, processing, facilitating and sanctioning of the loan to Kingfisher Airlines.

By: Express News Service | Mumbai | Published: February 11, 2017 3:01:57 am
Vijay Mallya.  Express Vijay Mallya. Express

A SPECIAL court has refused bail to three, including Yogesh Agarwal, former chairman, IDBI Bank, and A Raghunathan, Chief Financial Officer of the defunct Kingfisher Airlines. The bail plea of B K Batra, the then deputy managing director of IDBI Bank, was also rejected by Special Judge H S Mahajan on Friday. Six others, including three officials of Kingfisher Airlines and three of IDBI Bank, were granted bail on a surety of Rs 50,000.

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The nine were arrested by the Central Bureau of Investigation last month and named in its chargesheet along with Vijay Mallya for allegedly having entered into a criminal conspiracy for the sanction and disbursement of a Rs 900-crore loan to Kingfisher Airlines by IDBI Bank. In its order, the court differentiated between the roles of each of the accused in determining bail. The court observed that while Agarwal, Raghunathan and Batra had been involved in the sanction of the loan since the beginning, the others were merely abiding by their instructions. The CBI, in opposing their bail pleas, had called Raghunathan and Agarwal as the “main players”, alleging that the loan was sought and sanctioned with the knowledge that certain conditions were not complied with by Kingfisher Airlines.

The court also observed that the three refused bail were involved in applying, processing, facilitating and sanctioning of the loan to Kingfisher Airlines.

Further, the court also raised the question that while IDBI Bank was not initially part of the consortium of banks to lend money to Kingfisher Airlines, what compelled the authorities to join it. The court also relied on witness statements, including that of an independent auditor, who confirmed the prima facie allegations of the CBI of a collusion between officials of IDBI Bank and Kingfisher Airlines to sanction the loan.

The court granted bail to three officials of Kingfisher Airlines including Shailesh Borkar, assistant vice president (finance), Amit Nadkarni, deputy general manager (finance) and Arvindkumar Shah, senior manager (accounts). Among the IDBI officials, O V Bundellu, deputy managing director, SKV Srinivasan, executive director, and R V Srinivasmurthy, the then general manager, were granted bail.

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