Mumbai: The Serious Fraud Investigation Office (SFIO) has summoned all former chairpersons and managing directors (CMDs) of the 14 public sector banks which disbursed loans to Vijay Mallya’s now defunct Kingfisher Airlines as a part of its ongoing probe into loan default, two sources familiar with the development have told The Sunday Express.
The SFIO, according to sources, has already examined at least three former CMDs and recorded their statements. They are being questioned to ascertain the rationale behind extending loans to Kingfisher Airlines even when the company performed poorly and on the due diligence done by the banks before lending.
“It is necessary for the agency to examine the officials who were at the helm of affairs at the banks during the time the loans were extended to the company. The agency needs to ascertain if there were lapses in due diligence by the lenders,” an official said.
A multi-disciplinary organisation, SFIO probes cases of financial frauds that are referred to it by the Ministry of Corporate Affairs.
28/08/16 Khushboo Narayan/Indian Express
To Read the News in full at Source, Click the Headline
The SFIO, according to sources, has already examined at least three former CMDs and recorded their statements. They are being questioned to ascertain the rationale behind extending loans to Kingfisher Airlines even when the company performed poorly and on the due diligence done by the banks before lending.
“It is necessary for the agency to examine the officials who were at the helm of affairs at the banks during the time the loans were extended to the company. The agency needs to ascertain if there were lapses in due diligence by the lenders,” an official said.
A multi-disciplinary organisation, SFIO probes cases of financial frauds that are referred to it by the Ministry of Corporate Affairs.
28/08/16 Khushboo Narayan/Indian Express
0 comments:
Post a Comment