CBI questions Vijay Mallya in alleged loan default case

  • HT Correspondents, Hindustan Times, New Delhi/Bengaluru
  • Updated: Dec 10, 2015 23:16 IST
Vijay Mallya was questioned by the CBI for alleged involvement in the loan default case. (PTI File Photo)

The Central Bureau of Investigation (CBI) on Thursday examined UB Group chairman Vijay Mallya in connection with its probe into alleged loan default of Rs 900 crore taken from IDBI Bank for the now defunct Kingfisher Airlines (KFA).

Mallya, who was KFA’s director at the time the alleged default happened, was questioned for several hours by sleuths of the agency’s Banking Securities Fraud Cell at the CBI headquarter, sources said.

Mallya was asked how his firm got the loan sanctioned by IDBI despite its negative credit ratings and financial troubles, a source in the CBI said, without divulging the content of Mallya’s version in view of the probe’s sensitivities. The agency needs more clarifications on certain key issues related to the case, he added.

The UB Group spokesperson did not respond to repeated emails and calls from HT.

In October, the investigative agency had filed an FIR against Mallya, former KFA chief financial officer A Raghunathan and other officials of Mumbai-based IDBI Bank for causing a loss of Rs 900 crore to the public sector bank. According to the FIR, IDBI officials allegedly “colluded with promoters or directors and CFO of the said airlines and sanctioned credit limits of around Rs 900 crore in violation of banking norms, thereby causing a loss to the said bank by such a fraudulent act.”

“It was the 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,” another CBI source said.

The FIR was registered under sections pertaining to criminal conspiracy, criminal breach of trust by a public servant or a banker, and criminal misconduct by a public servant. The agency is likely to examine other people, including a few senior IDBI officials and other KFA executives.

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