Thursday, March 03, 2016

CBI blasts banks for delaying action against Kingfisher Airlines for its loan defaults

Mumbai: The Central Bureau of Investigation on Wednesday blasted banks for not filing complaints against Kingfisher Airline for its huge defaults for years, as the delay gave the Vijay Mallya company time to “divert funds and destroy evidence”.

”The message to the public is that the rich and powerful are able to avoid consequences of cheating and fraud, while the ordinary citizens are promptly booked. This undermines faith of people in rule of law, which has dangerous consequences in a democracy,” CBI Director Anil Sinha told a bankers' conference here.

The galaxy of bank chiefs present declined to comment on specific cases or sought to deny “deliberate” inaction on their part.

Kingfisher Airlines defaulted on loans adding up to Rs 7,000 crore from January 2012, Sinha said. The loans were taken between 2004 and 2012. The CBI filed its case in July 2015.

“Despite our repeated requests, the banks did not file a complaint with the CBI. We had to register the case on our own,” Sinha said.

He said it was regrettable that only “one among the 17 lenders” who were owed money had declared Kingfisher Airlines as a “willful defaulter”.
02/03/16 Telegraph

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