Mallya loan default: Former IDBI chairman, 7 others arrested

Bengaluru, January 23

The Central Bureau of Investigation arrested a former IDBI chairman in connection with a case related to loans extended to embattled businessman Vijay Mallya, sources said on Friday.

Four executives of Kingfisher Airlines and three former executives of  the bank were also arrested, the sources said.

The development comes within hours of the agency’s visit to UB Group’s offices in Bengaluru.

"A team of CBI officials from Delhi visited the UB group offices in Bengaluru," a senior CBI official said, but refused to provide any details.

UB Group’s spokesperson confirmed the visit.

"A CBI team visited the UB Group offices in Bangalore  (Bengaluru) today and we are fully cooperating with them," the spokesperson said.

The CBI officials' visit to UB Group offices comes days after the Bengaluru Debt Recovery Tribunal on January 19 ordered the SBI-led consortium of banks to start the process of recovering Rs 6,203 crore at an annual interest rate of 11.5 per cent from the embattled tycoon and his companies in the Kingfisher Airlines case.

Once dubbed the ‘King of Good Times’, Mallya, a Parliamentarian, left the country on March 2, leaving behind some 17 banks to struggle to bring get back unpaid loans pending since his airlines, Kingfisher Airlines, folded up in 2012. 

He is currently in the United Kingdon.

Among the several cases against him one for fraudulently having a loan of Rs 900 crore extended his company by the IDBI bank.

A court issued a non-bailable warrant against the businessmen for the bank fraud on April 18. 

The Supreme Court recently told banks to begin recovering Rs 6,203 crore from him. Mallya has been declared a proclaimed offender. — Agencies