Former IDBI Chief Yogesh Agarwal Gets Bail In Kingfisher Airlines Loan Case
Yogesh Agarwal had been arrested on January 23 along with 8 other KFA and IDBI Bank officials.
The Bombay High Court on Friday granted bail to IDBI Bank Ltd.’s former Chairman Yogesh Agarwal and former Deputy Managing Director BK Batra in a case involving a Rs 1,100-crore loan to Vijay Mallya’s now-defunct Kingfisher Airlines Ltd.(KFA).
Agarwal and Batra will have to furnish a bond of Rs 1 lakh each.
The duo were arrested on January 23 along with seven other former Kingfisher Airlines and IDBI Bank officials including former chief financial officer of the airline, A Raghunathan.
A special Central Bureau of Investigation (CBI) court on February 11 granted bail to six of the nine accused but extended the judicial custody of Agarwal, Batra and Raghunathan.
IDBI Bank issued loans to KFA despite being fully aware of weak financials, negative networth and a low credit rating, and bank officials issued these loans for undue favours against the norms stipulated by the bank’s corporate loan policy, the CBI said in its remand application.
The nine officials were arrested under provisions of the stringent Prevention of Corruption Act and are also accused of criminal conspiracy and cheating. They face up to seven years in prison, if found guilty.
