Kingfisher-IDBI loan default case: Prosecution objects to accused’s bail plea

Special public prosecutor Bharat Badami for the CBI on Tuesday argued on the role played by the accused on changing the requirements to grant loan to companies. Badami alleged that the changes in the policy was made overnight and rules were relaxed to grant a loan of Rs750 crore to Kingfisher in November 2009.

The prosecution on Tuesday objected to the bail plea of the nine accused — including the former chairman of IDBI bank — arrested in connection with Kingfisher Airline-IDBI loan default case. It alleged that the accused would hamper evidence and influence the witnesses if let off on bail.

The CBI had initiated probe against Vijay Mallya, Kingfisher Airlines and IDBI bank officials in 2015 (HT file photo)

Special public prosecutor Bharat Badami for the CBI on Tuesday argued on the role played by the accused on changing the requirements to grant loan to companies. Badami alleged that the changes in the policy was made overnight and rules were relaxed to grant a loan of Rs750 crore to Kingfisher in November 2009. In total, the bank has given a loan of Rs950 crore to Kingfisher.

“On the night of November 23, 2009, the officers of the bank asked the company to fulfil some of the conditions and pledge shares of the company while the next day the conditions were removed. We are investigating on what had happened overnight,” said Badami.

He said that since the CBI is probing the case, if the accused are granted bail then they may tamper with the evidence.

The arguments of prosecution will continue on Wednesday. Meanwhile the court extended the judicial custody of all the nine accused till February 20.

The CBI had initiated probe against Vijay Mallya, Kingfisher Airlines and IDBI bank officials in 2015. On January 23, the CBI had arrested nine people, bank and Kingfisher Airlines officials, and filed a charge sheet against 11 accused the next day. Mallya was named as an absconder in it.