Loan Fraud: CBI Raids Vijay Mallya’s Offices

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New Delhi: The Central Bureau of Investigation on Saturday conducted a series of raids on liquor baron Vijay Mallya and his now defunct company Kingfisher Airlines in its probe into the IDBI bank’s Rs.950 crore loan, which was granted to the company despite its negative credit ranking and net worth.

The agency has registered an FIR in the loan fraud, which was declared non-performing asset, few days back. The agency has been probing loans provided by many public sector banks to several private companies.

CBI had alleged that “it was first exposure to the bank. There was no need for the bank to take the exposure outside the consortium when already other loans were getting stressed”. Sources say that Vijay Mallya would be questioned soon in the case.

Earlier, during the preliminary enquiry, agency has already examined some Kingfisher and IDBI officials asking them to explain the reasons for extending the loan to the airline, ignoring its own internal report which had warned against such a move.

The debt-ridden airline stopped operations in October 2012.

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