Vijay Mallya-promoted Kingfisher Airlines loan default case: The Central Bureau of Investigation (CBI) on Monday arrested the former chairman of the IDBI Bank Yogesh Aggarwal along with many other former officials of the bank. Aggarwal along with his then colleagues were arrested by the CBI as all these officials were holding important positions at IDBI when the bank approved a loan of Rs 900 crore to Kingfisher Airlines. CBI has been very aggressive lately over the entire loan default fiasco to get to the roots of the issue. Here are 5 major developments so far:
How it started:
It all started with a complaint of IDBI bank that the probe on loan default against Kingfisher was launched by the CBI. IDBI complained to CBI about willful default on part of the airline.
Kingfisher Airlines officials involvement:
Three former executives of the airlines, CFO of the now-defunct airlines, A Raghunathan was arrested by CBI. Other names that included in the list were identified as the assistant vice-president Shailesh Borkar, the senior manager (accounts) AC Shah and then deputy general manager (finance) Amit Nadkarni.
How IDBI Bank came into radar:
A detailed investigation by the CBI found that IDBI officials allegedly agreed to grant over Rs 900 crore to the airline at low interest rates in March 2009 at a time when the company’s financial status was supposedly in dire straits and the airline had declared losses running up to Rs 1,600 crore.
As per CBI investigation, the company at that time had a ‘BB’ rating which meant it was ‘risky’ for the bank to approve a loan with such huge amount. Kingfisher should have had a ‘BBB’ rating to qualify for the loan.
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IDBI top honchos grilled:
Apart from the former chairman of the bank, CBI has also arrested other officials that include former IDBI deputy MD OV Bundelu, former IDBI executive director SK Srinivasan and former IDBI general manager RS Sridhar. As per The Indian Express sources, searches were also conducted by the CBI at residences of some other IDBI bank officials in Mumbai including BK Batra, deputy managing director of IDBI Bank. Later, Batra, who was first questioned by the agency officials, was also taken into custody.
CBI investigation details:
Commenting upon the aforementioned arrests, CBI spokesperson RK Gaur told The Indian Express, “The arrests have followed searches at 11 places including Mallya’s residence on Sardar Patel Marg in Delhi and three floors of UB towers in Bengaluru.” He added, “Other places searched by the agency included premises linked to Aggarwal in Gurgaon and those linked to Raghunathan in Gurgaon and Mumbai”.