CBI raids Mallya's office and residence for alleged Rs 900 crore loan default case

New low in Vijay Mallyas career CBI raids over misuse of bank fundsImage: CC-SA 2.0 (Dana Smillie/World Economic Forum)
news Sunday, October 11, 2015 - 13:11

He was the flamboyant industrialist who never shied away from flaunting his riches. But Vijay Mallya's downfall was sudden and swift. Shutting down Kingfisher airlines, losing the liquor business and now a new chapter with CBI raids over an alleged loan default of Rs 900 crore.

The Central Bureau of Investigation on Saturday searched the office and residence of the liquor baron for an alleged loan default of a Rs 900 crore. 

"A case of corruption and criminal conspiracy has been registered against Mr. Mallya, director of the now-defunct Kingfisher Airlines, its chief financial officer A. Raghunathan and unknown bank officials. In this connection, searches were carried out at five places in Mumbai, Bangalore and Goa," a CBI official told The Hindu.

Search operations were conducted at Mallya’s office and residence at UB City in Bengaluru till late in the evening and reports indicate that several documents that had been found during the searches and were being scrutinized.

The CBI had commenced a preliminary enquiry against IDBI bank a year ago, and alleged that a loan was sanctioned and disbursed to the now-defunct company in violation of rules.

"Officials from the IDBI bank failed to give satisfactory replies on why the loan was sanctioned to the beleaguered company despite its own internal report warning against granting it. Officials from the airline were also questioned," a CBI official told The Indian Express

The CBI has booked cases under Section 120-B (Criminal conspiracy) read with Section 409 of the IPC (Criminal breach of trust by a public servant) and Section 13 (1)(d) of Prevention of Corruption Act, 1988.

The apex investigation agency is also likely to question Mallya in the case and will also probe the angle of a quid-pro-quo for the loan, the Indian Express report adds.