CBI quizzes Vijay Mallya in KFA loan default case

Syed Ali Ahmed

Tribune News Service

New Delhi, December 10

The CBI today questioned Vijay Mallya, director of Mumbai-based defunct Kingfisher Airlines, for several hours in connection with the alleged loan defaults of Rs 900 crore taken from IDBI Bank.

In October, the CBI had registered a case against Mallya, Kingfisher Airlines, and A Raghunathan, the chief financial officer (CFO) of the airline, besides officials of the IDBI Bank for the alleged loan default loan. The CBI had raided the home and offices of Mallya in Mumbai, Goa, Bangalore and other places.

The CBI has questioned Mallya after scrutinising the documents recovered during raids conducted in October. It is alleged that the loan was sanctioned in violation of the rules on credit limits.

Sources said IDBI Bank extended loans worth Rs 900 crore to the now defunct Kingfisher Airlines, despite the airline’s negative credit ratings. Mallya was the director of the airline which stopped operations in October, 2012.

A case under the IPC and the Prevention of Corruption Act was registered against Mallya and A Raghunathan.