IDBI officials failed to alert on Kingfisher Airlines loan: CBI

New Delhi: The Central Bureau of Investigation (CBI) has unearthed lapses on the part of the IDBI bankBSE 0.59 % officials who were instrumental in the sanctioning of Rs 950 crore to Vijay Mallya's now defunct Kingfisher Airlines.

According to CBI, the executive committee of IDBI bank set up to screen the loan application of Mallya gave a favorable report despite company ratings as BB which is considered to be 'risky'. CBI sources said the committee did not raise red flag at the time the loan was being processed. As per bank norms, the minimum eligibility required is BBB that stands for Better Business Bureau for any financial institution to even consider a request for a loan from the company, said CBI. CBI sleuths also said the executive committee in its loan approval cited the "brand value" and "reputation of borrower". "There was no due diligence exercised by the members of the committee," said a top CBI official.
26/10/15 Rahul Tripathi/Economic Times

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Kingfisher Airlines allegedly diverted portion of loans to tax havens

New Delhi: : Kingfisher Airlines had allegedly diverted a substantial chunk of Rs 4,000 crore in loans secured from public sector banks to tax havens which has now come under the scanner of the CBI that has expanded its probe in the matter.

The material recovered during searches yesterday indicated that the airlines, which stopped flights in October 2012, has allegedly diverted part of loans taken from 11 nationalised banks, with total exposure of Rs 4,000 crore, to tax haven countries for different purposes not specified in loan applications, sources claimed.

They claimed that the agency will be expanding the ambit of the probe from Rs 900 crore loan from IDBI bank to loans received from 10 other public sectors banks as well which have total additional exposure of Rs 3,100 crore to the company.
11/10/15 PTI/Economic Times

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Loan fraud probe: CBI raids Vijay Mallya's defunct Kingfisher Airlines

New Delhi:  The Central Bureau of Investigation (CBI) is conducting raids on liquor baron Vijay Mallya and his now defunct company Kingfisher Airlines in its probe into IDBI bank's Rs 950 crore loan, which was given to the company despite the airline's negative credit ratings and net worth.
The agency's raids are reportedly part of its banking NPA frauds probe, which was started last year and first reported by TOI.
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.
10/10/15 Neeraj Chauhan/Times of India

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