The CBI filed a chargesheet against Vijay Mallya, Kingfisher Airlines and nine others, including senior officials of IDBI Bank, before a special court on Tuesday. Mallya has been named as an absconding accused in the case, with the CBI claiming that he was the beneficiary of ‘undue favour’ shown to Kingfisher Airlines in the sanction and disbursement of loans by IDBI Bank. According to sources, the CBI chargesheet has revealed that of the over Rs 900 crore of loan granted to Kingfisher Airlines, Rs 262 crore was diverted by the company for personal use.
In the first case, where Mallya has been chargesheeted, the CBI has charged him and the other 10 accused under Sections 120B (criminal conspiracy), 420 (cheating) and under Sections 13 (1) (d) and 13 (2) of the Prevention of Corruption Act. The Bank Securities and Fraud Cell of the CBI in Mumbai had registered an FIR in the case in 2015.
This was related to investigation into allegations against unknown officers of IDBI for sanction and disbursement of short-term loan of R150 crore on October 7, 2009, Rs 200 crore on November 4, 2009 and corporate loan of R750 crore of November 27, 2009. The CBI alleges that despite Kingfisher Airlines not satisfying the norms stipulated in the corporate loan policy of the bank, the loan was sanctioned by IDBI Bank officials. The CBI has claimed that weak financials, negative net worth and low credit rating of the company were also factors against a loan being sanctioned for Kingfisher.
CBI sources said their probe was not limited to the diversion of the loaned money by Kingfisher but the sanction of the loan itself. “The role of the bank officials is that by their acts of omission or commission, they have facilitated the sanction of the loan,” a CBI officer said, adding so far they have not found any direct kickbacks given to the bank officials. CBI officials also said letters of rogatory have been sent to countries, including US and Switzerland, to investigate into siphoning off of the loan amount by Mallya to his personal accounts.
Sources say IDBI Bank had granted over Rs 900 crore loan to Kingfisher Airlines. Out of the total amount, a short-term loan of Rs 150 crore was given to the airlines in early October 2009. Kingfisher Airlines repaid R100 crore to the bank through its group companies including Mangalore Chemicals and Fertilizers.
In second tranche, IDBI granted a Rs 750-crore loan to Kingfisher. Out of this Rs 200 crore was given as bridge loan and the rest Rs 550 crore for other purpose. Sources said out of the Rs 550-crore loan, Kingfisher Airlines gave Rs 81 crore to AAI, Rs 10 crore to oil companies, Rs 17 crore for catering, Rs 50 crore for income tax payments, Rs 55 crore to settle the documentary bill discounted by Bank of Baroda, Rs 86 crore to Axis Bank for local payments, Rs 21 crore as interest repayments for earlier loans and Rs 290 crore for foreign remittances. Another Rs 3.45 crore was paid into the bank account of Kingfisher Airlines in London.
“Out of the total loan amount of IDBI , at least Rs 422 crore has gone to offshore accounts but mainly for leasing companies account. But whether these are genuine leasing companies or not has not be ascertained,” said a source.
On Monday, the CBI had arrested nine people including former IDBI Bank chairman Yogesh Agarwal, deputy managing director OV Bundelu, executive director SK Shrinivasan, general manager RS Sridhar, deputy MD BK Batra. Four officials of Kingfisher Airlines including CFO A Raghunathan were also arrested.