Former Test player Brijesh Patel will replace Charu Sharma as CEO of the beleaguered Bangalore Royal Challengers in the Indian Premier League, while coach Venkatesh Prasad's job too is reportedly on the line.
Kingfisher Airlines said it would "vigorously challenge" the bank's decision.
Case is related to payment of user development and passenger service fee.
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".
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.
