‘Undue favour’ shown to Kingfisher, says CBI

In the first case where Mallya has been charge sheeted, the CBI has charged him and the 10 other accused under section 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 2015 investigating into allegations against unknown officers of IDBI for sanction and disbursement of a short term loans.

CBI sources said that the agency’s investigation was not limited to the diversion of the loaned money by KFA 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. The officer added that so far they have not found any direct kickbacks given to the bank staff.

According to sources, of the total Rs 900 crore loan to KFA, a short term loan of Rs 150 crore was given to the airlines in early October 2009 and KFA repayed Rs100 crore to through its group companies.

In the second tranche IDBI granted a Rs 750 crore loan to KFA. Sources said KFA gave back Rs 81 crore to Airport Authority of India, 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 KFA in London.

“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 firm has not be ascertained,” said a source.

On Monday, the CBI had arrested nine persons including former IDBI Bank chairman, Yogesh Agarwal, deputy managing director, OV Bundelu, executive director, SK Shrinivasan, general manager, RS Sridhar, deputy managing director, BK Batra. Four officials of the KFA including CFO A Raghunathan were also arrested. The CBI produced them before special Judge HS Mahajan and sought for them to be sent to judicial custody.

CBI claimed that the accused were well-connected and highly influential persons who could tamper with evidence and influence witnesses and may flee from the country to evade the process of law. The court sent the men to judicial custody till February 7. The nine accused filed for bail but the CBI sought time till Monday to file its say.

With inputs from Deeptiman Tiwary