BUSINESS

CBI May Expand IDBI-Kingfisher Inquiry To Include Former Finance Ministry Officials: Report

It's reportedly cracking down on people who allegedly facilitated “easy loans” for Vijay Mallya.

26/01/2017 10:46 AM IST | Updated 26/01/2017 11:52 AM IST
Babu Babu / Reuters

The Central Bureau of Investigation (CBI) may extend its inquiry in connection with the Vijay Mallya loan default case to include certain former senior officials of the finance ministry and bureaucrats, Economic Times reported.

The move follows the arrest of former IDBI chairman Yogesh Aggarwal and three ex-officials of IDBI Bank earlier this week. CBI named Mallya, Kingfisher Airlines and nine others in the charge sheet related to the 2015 loan default case.

According to the ET report, CBI is reviewing "thousands of e-mails" and information that offer 'credible indication' towards alleged involvement by IDBI's top management and former former finance ministry officials who may have facilitated "easy loans" for Mallya.

In a separate crackdown, on Wednesday, Sebi barred Mallya and six former officials of United Spirits Ltd (USL) from securities markets in a case related to illegal fund diversions while probe is on into the role of auditors and change of control at the company.

Mallya as well as former senior USL official Ashok Capoor have also been restrained from holding directorship in any listed company.

Sebi is also examining the settlement agreement between Mallya and Diageo as well as the role of auditors in the non- detection of diversion of funds from USL. UK-based Diageo is the majority stakeholder in USL.

In a 32-page order, Sebi Whole Time Member S Raman said the alleged prima facie violations observed in the case are serious and have larger implications on the safety and integrity of the securities market.

"Investors might have based their investment decisions on the [allegedly] manipulated books of accounts prepared and presented by these persons," he said.

With PTI inputs.

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