The CBI has alleged that about Rs 260 crore out of a loan of Rs 900 crore was diverted by Kingfisher Air, while Rs 263 crore was used to pay salaries, tax deducted at source, income tax and loan installments. The CBI bank securities and fraud cell had in July 2015 registered a case of criminal misconduct and conspiracy against unknown IDBI officials showing undue favour to Kingfisher Airlines in the disbursement of loans amounting to Rs 900 crore.
BCCL
The chargesheet filed on Tuesday invokes sections 120B (criminal conspiracy), 420 (cheating) of IPC and section 13(1)(D) and 13(2) of the Prevention of Corruption Act which deals with abuse of official position as a public servant for pecuniary advantage and criminal misconduct. The maximum punishment attracted is seven years in prison.
It seeks to make out a case of "omissions and commissions" caused by the bank officials including ex-IDBI Bank chairman Yogesh Agarwal and eight others, including former CFO of Kingfisher Airlines A Raghunathan and three other Kingfisher employees. IDBI Bank is an Indian government-owned financial service company, formerly known as Industrial Development Bank of India, headquartered in Mumbai.
AFP
The premier agency had on Monday arrested the bank's former deputy managing directors O V Bundellu and B K Batra, two other former officials, S K V Srinivasan and R S Sridhar, apart from the airline's executives, Shailesh Borkar, A C Shah and Amit Nadkarni. The CBI produced Agarwal and others before special CBI court judge H S Mahajan on Tuesday and sought their judicial custody on the grounds that they are "influential people" and may "flee" the county as Mallya had "already fled the country". The court remanded the ex-IDBI Bank chairman and 8 others to judicial custody till February 7.
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All nine applied for bail. The special judge Mahajan after hearing a strong plea for interim bail from Amit Desai and Aabad Ponda, defence counsel who represented some of the accused, however posted their bail plea for hearing on January 30. CBI prosecutor Bharat Badami sought time to file replies to the bail plea by that date. Rajiv Chavan, Girish Kulkarni, Shreyans Mithare and other defence lawyers will now argue for bail next Monday. Pranav Badheka c0ounsel for four KFA ex-employees, Raghunathan, Nadkarni, Borkar and Shah, will also move a plea for home food for Shah, a strict Jain, which the court granted, subject to provisions of the Jail manual.
The CBI in its remand plea alleged that "applications for availaing short term loan of Rs 150 crore and Rs 200 crore and Rs 950 crore were submitted by Raghunathan, where he gave references of meetings between Vijay Mallya and CMD of IDBI Bank''. These loans were sought in October and November 2009.
BCCL
It said that these "facilities later became non-performing assets resulting in a wrongful loss of over Rs 900 crore to IDBI Bank.''
The loans were allegedly sanctioned despite "negative net worth and low credit rating of the borrower''.
The CBI brought its chargesheet in two large aluminium trunks to court. It had set up a special investigation team to probe the case in India and abroad. It sent letters rogatory¡ªfor legal assistance¡ª to authorities in British Virgin Islands and Singapore to find out details of amounts lying in KFA bank accounts in those tax havens and is awaiting information. The CBI sources said that "all those who had been instrumental in sanctioning the loans and facilitating its disbursement have been arrested''.