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CBI arrests former IDBI chairman in Vijay Mallya loan default case

CBI arrested on Monday a former chairman and three other ex-officials of IDBI Bank along with four former executives of Kingfisher airlines in connection with the Vijay Mallya loan default case.

india Updated: Jan 24, 2017 01:43 IST
Rajesh Ahuja
Rajesh Ahuja
Hindustan Times, New Delhi
Vijay Mallya Loan Default Case,Vijay Mallya,IDBI Bank chairman
In this file photo, industrialist Vijay Mallya is seen outside Parliament in New Delhi.(AFP)

The CBI on Monday arrested former chairman and three ex-executives of IDBI Bank and four executives of Kingfisher Airlines in the loan default case involving liquor barron Vijay Mallya.

Those arrested included former chairman of the IDBI Bank Yogesh Aggarwal and former CFO of now defunct Kingfisher Airlines A Raghunathan, agency sources told Hindustan Times.

The arrests came after the agency sleuths conducted searches at 11 places including Vijay Mallya’s residence in New Delhi, three floors of UB towers in Bengaluru, residence of Aggarwal and Raghunathan.

The CBI has registered a case against Mallya and others alleging that the IDBI Bank extended loans worth Rs 900 crore to the Kingfisher Airlines and at that point in time the airline had negative credit ratings. Mallya was the director of the airline. The airline stopped operations in October 2012.

The CBI had registered the case under various sections of the Indian Penal Code (IPC) and Prevention of Corruption (PC) Act.

Following the CBI case, the Enforcement Directorate also launched probe under the Prevention of Money Laundering Act in the matter.

After the multi-agency probe launched against Vijay Mallya in various loan-default cases, the liquor barron left India for London. The government has approached the British authorities asking them to send back Mallya to India to face the law here. The request of the Indian authorities is being scrutinised by the British authorities.

Also read | Mallya to appeal against tribunal’s recovery order: Kingfisher official

First Published: Jan 23, 2017 22:24 IST