Mumbai: The CBI has returned empty-handed from the State Bank of India, the country's largest lender, in a case involving a loan to Kingfisher Airlines.
The CBI's Bank Securities and Fraud wing, which is looking into a number of cases of bad debts amounting to Rs2 lakh crore, had put in a request with the SBI to allow it to examine documents related to a Rs6,000-crore loan to the airlines. That loan is now marked as 'bad debt'.
SBI was the lead banker in a consortium of 17 banks that granted Kingfisher Airlines the Rs6,000-crore loan, with Rs1,500 crore of it from the SBI kitty.
According to sources, SBI has claimed that the recovery process was on, and that the company could not repay the loan as its business had gone bust.
"The CBI recently asked the SBI to share documents related to the loan. The bank, however, said there is no fraud involved in the non-payment of loan and that it was simply a case of business failure," a source told dna.
14/05/14 Daily News & Analysis
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The CBI's Bank Securities and Fraud wing, which is looking into a number of cases of bad debts amounting to Rs2 lakh crore, had put in a request with the SBI to allow it to examine documents related to a Rs6,000-crore loan to the airlines. That loan is now marked as 'bad debt'.
SBI was the lead banker in a consortium of 17 banks that granted Kingfisher Airlines the Rs6,000-crore loan, with Rs1,500 crore of it from the SBI kitty.
According to sources, SBI has claimed that the recovery process was on, and that the company could not repay the loan as its business had gone bust.
"The CBI recently asked the SBI to share documents related to the loan. The bank, however, said there is no fraud involved in the non-payment of loan and that it was simply a case of business failure," a source told dna.
14/05/14 Daily News & Analysis
