New Delhi - Liquor baron and former chief of the defunct Kingfisher Airlines had allegedly diverted a substantial chunk of Rs 4,000 crore in loans secured from public sector banks to tax havens, a matter that is now being investigated by the Central Bureau of Investigation (CBI).
While the CBI had opened investigations into Rs 900 crore secured as loans from the Industrial Development Bank of India, PTI reports that 10 additional banks, including UCO bank, Punjab National Bank, State Bank of India, Vijaya Bank, Bank of Baroda, Corporation Bank, Bank of India, United Bank of India, State Bank of Mysore and Indian Overseas Bank, were also now in the CBI's eye.
A consortium of 17 banks had an outstanding of over Rs 7,000 crore on loans to Kingfisher with State Bank of India having the highest exposure of Rs 1,600 crore.
Over the weekend, several news organisations reported that the CBI registered a case against Mallya and A Raghunathan, who served as the chief financial officer (CFO) of Kingfisher airlines, and other unknown officials of IDBI Bank, for allegedly violating banking norms.
"The CBI officials visited UB Group premises in Bengaluru, Goa and Mumbai in the course of an investigation regarding a loan facility availed by Kingfisher Airlines. The company cooperated with the officials and provided the necessary documents and will continue to offer cooperation," UB Group spokesperson Sumanto Bhattachrya told the Economic Times. Bengaluru-headquartered United Breweries Group is the parent company of Kingfisher Airlines.