Kingfisher Airlines loan default case: Nine arrested sent to judicial custody till February 20

The CBI is investigating the Rs 900 crore loan default case having named 11 including Mallya as accused.

By: Express News Service | Mumbai | Published: February 8, 2017 5:39:57 am
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The NINE persons arrested by the CBI in the IDBI Bank and Kingfisher Airlines alleged loan default case were sent to further judicial custody till February 20. Special CBI court Judge H S Mahajan is currently hearing bail applications filed by the accused who have been in judicial custody since January 27.

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The CBI, while opposing the bail plea of nine accused including officials of IDBI Bank and Kingfisher Airlines, claimed that the now defunct company of Vijay Mallya was not entitled to ‘a single rupee’ loan. The CBI is investigating the Rs 900 crore loan default case having named 11 including Mallya as accused.

The CBI opposed their plea stating that if released, the men could threaten witnesses which include IDBI officials. CBI counsel Bharat Badami on Tuesday argued on the role of each of the accused claiming that they had in collusion caused losses to the exchequer due to the alleged loan default. The lawyers for the nine men had argued last week claiming that the loan was utilised to keep the airlines business afloat during the economic slowdown.

On the role of the CFO of Kingfisher Airlines, A Raghunathan, the CBI claimed that he had accompanied Mallya in meeting senior IDBI bank officials for sanctioning and disbursing of the loan despite knowing the weak financials of the company. “He was the main player for Kingfisher Airlines who is the signatory of the documents for the loan. The loan was sought with the knowledge that certain conditions were not being complied with,” Badami argued. On the three other arrested officials of Kingfisher Airlines, the CBI claimed that they had provided false information to IDBI Bank and ensured that the credit committee rating to the Airlines was ‘compromised’.

The CBI also opposed the bail plea of the five IDBI Bank officials, including former chairman, Yogesh Agarwal. The CBI claimed that the men had used their official position in giving a ‘hasty sanction’ to Kingfisher Airlines. On the claim of officials of Kingfisher Airlines that the loan was used to pay salaries, Badami said that the bank should have been informed about the change in the purpose of the loan. The court will continue to hear arguments on Wednesday.

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