A senior IDBI Bank official allegedly conspired with businessman Vijay Mallya for sanction and disbursement of loan to the latter's Kingfisher Airlines, the Central Bureau of Investigation said in its supplementary chargesheet filed in a Mumbai court. Mallya is an accused in the alleged Rs 900-crore IDBI Bank-Kingfisher Airlines loan fraud case, which is being probed by the CBI. The Central agency had recently filed a supplementary chargesheet before a special CBI court.
Bank claims it wasn't quizzed by CBI, only financial information was sought.
The Central Bureau of Investigation has started a preliminary enquiry looking into the Rs 950 crore (Rs 9.5 billion) alleged bad loan given by IDBI Bank to Kingfisher Airlines ignoring the company's negative credit ratings and net worth.
The CBI has shared its findings with the Enforcement Directorate.
The CBI has launched an initial probe over the loan against both companies, a spokeswoman for the agency said on Saturday.
The agency is also investigating the overall financial structure of Kingfisher Airlines.
SFIO is looking into the role of Grant Thornton LLP which had valued the brand.
At the beginning of this year, his stake in the airline stood at 30.14%.
The investigating agency is examining the documents.
The agency is looking at alleged "diversion of funds and financial reporting frauds".
SBI-led consortium of 17 banks had a total exposure of about Rs 6,500 cr to Kingfisher Airlines.
Mallya, once known as the "King of Good Times" for his flamboyant lifestyle, has until Friday to appear before an IDBI committee to explain why he should not be declared a "wilful defaulter".
Analysts say strengthening bank's capital will boost earnings, bank needs chief with long stint to run show
The charge sheet has now paved way for the CBI to approach authorities in the UK for deportation of Mallya.
Fugitive businessman Vijay Mallya has said that he will pursue relief for the Enforcement Directorate and banks taking more than two times the debt he owed. His remarks came following a statement by Finance Minister Nirmala Sitharaman in Parliament about recovery of over Rs 14,130 crore from his attached assets.
State-run IDBI Bank is one of Kingfisher's more than a dozen creditor banks.
While Raghunathan is a named accused in the CBI's case registered in October last year, Nedungadi had resigned recently from the post of CFO of the UB group.
Sources said Mallya has also been asked to furnish documents related to his personal finances
SBI is likely to register more FIRs to bring into the ambit of probe the additional Rs 3,100 crore loans from 10 other nationalised banks on which the company has allegedly defaulted.
United Bank of India has already declared Kingfisher a wilful defaulter while State Bank of India, Punjab National Bank and IDBI have initiated such a move.
As a multi-disciplinary organisation, SFIO probes cases of financial frauds that are referred to it by Corporate Affairs Ministry
The special court on Monday rejected Kingfisher's plea challenging ED's claim that Rs 430 crore (Rs 4.3 billion) was siphoned off and used to acquire properties abroad.
SBI has the highest exposure of Rs 1,600 crore to the beleaguered Kingfisher Airlines.
ED is probing Mallya and KFA under anti-money laundering laws in connection with a Rs 900 crore (Rs 9 billion) loan default of IDBI bank
Agency sources said that besides Mallya, his companies Kingfisher Airlines and United Breweries Holdings Limited have been named as accused in the FIR.
Officials of 17 banks which gave loan to Kingfisher Airlines and UB Group are also under the agency's scanner
Armed with court order, a consortium of lenders led by SBI can now sell certain real estate properties and securities belonging to fugitive Vijay Mallya to recover loans turned bad with failure of Kingfisher Airlines. A consortium of 11 banks that gave Mallya loans, led by State Bank of India (SBI), had approached a special Prevention of Money Laundering Act (PMLA) court seeking restoration of his properties seized by the Enforcement Directorate. The special PMLA court in Mumbai on Tuesday allowed the restoration of properties worth Rs 5,646.54 crore to banks.
Price has been fixed at Rs 85.3cr
United Bank's exposure to Kingfisher Airlines was around Rs 350 crore (Rs 3.50 billion)
Banks have been struggling hard to recover dues from grounded Kingfisher Air.
The debt-laden Kingfisher Airlines stopped operations in October 2012.
When contacted whether Letters Rogatory have been sent, CBI sources said "it is in the process".
The 12,350 sq mt Villa was once used by Mallya to host lavish parties in his 'good times'.
The ED has pressed charges under various sections of the Prevention of Money Laundering Act against Mallya and others named in the CBI complaint
Rating agencies on Wednesday warned against more exposure to debt-ridden Kingfisher Airlines, saying more debt may hit banks' credit profiles and add to the burden of provisions.
The Enforcement Directorate had asked for financial details from both public and private sector banks and a part of these details were submitted last week
Liquor baron Vijay Mallya, facing probe in a loan default case of IDBI bank, apparently managed to leave the country in spite of a look-out notice against him by CBI.
SBI leads a 17-member consortium of lenders that is trying to recover dues running into over Rs 7,500 crore (Rs 75 billion) in principal alone from Kingfisher Airlines.
'Civil matters like loan recovery are being connected with criminal allegations, without any basis.'
The CBI recently approached the special court in Mumbai for issuance of LoR to conduct a probe to ascertain utilisation of funds received in the US-based bank accounts of Mallya and now defunct Kingfisher Airlines.
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