The Central Bureau of Investigation (CBI) on Tuesday filed its chargesheet against Vijay Mallya, now defunct Kingfisher Airlines Ltd., former IDBI Bank chairman Yogesh Agarwal and eight others in a loan default case. Later a special CBI court sent all accused to judicial custody till February 7.
In its remand application seeking the nine accused to be sent to judicial custody, the CBI said the investigation was undertaken on the basis of complaints that officers of IDBI Bank showed “undue favour” to Kingfisher Airlines in the sanction on Rs 1100 crore in loans.
Besides Yogesh Agarwal, the CBI has arrested four other officials of IDBI Bank and four of Kingfisher Airlines, including chief financial officer A Raghunathan - on account of causing a “wrongful loss” to the bank of over Rs 900 crore.
The arrests were made under Section 13(1)D and Section 13(2) of the Prevention of Corruption Act and sections 420 and 120B of the Indian Penal Code.
On Tuesday, the nine accused moved bail applications which will be heard by the CBI court on January 30. An effort to seek interim bail for some of the accused did not succeed.
Also Read: IDBI Bank's Kingfisher Cup Of Woes Spilleth Over
The investigative agency said in its chargesheet that IDBI Bank had granted the loan to Kingfisher Airlines Ltd. despite being fully aware of the airline's financials.
..despite weak financials, negative net worth, and low credit of the borrower company and despite the fact that M/s Kingfisher Airlines Ltd. being a new client did not satisfy the norms stipulated in Corporate Loan Policy of the bank. It is further alleged that a significant portion of the disbursed facility were diverted by M/s Kingfisher Ltd. to service their existing debt with other bank/lenders and were also diverted to settle the documentary bills discounted by Bank of Baroda. Significant amounts were also remitted out of India on the pretext of payment of lease rental and purchase of aircraft parts etc, while an amount of Rs 3.45 crore was paid into the bank account of M/s Kingfisher Airlines Ltd. in London.CBI Remand Application
“All the accused persons are well-connected and highly influential and there are reasons to believe that they may tamper with the evidence and influence the witnesses for which further investigation is being conducted and may flee from the country to evade the process of law,” the CBI said in its application.
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