BENGALURU: Officials of the Central Bureau Of Investigation (CBI) raided the offices and residences of liquor baron Vijay Mallya in Bengaluru, Mumbai and Goa in connection with the IDBI Bank sanctioning a credit limit of Rs 900 crore to the now-defunct airline company, in violation of banking norms.
The CBI had registered a case against Mr Mallya, the then Director of the airlines, A. Raghunathan, Chief Financial Officer of the company, and other unknown officials of IDBI Bank. It is alleged that IDBI officials colluded with the promoters, directors and CFO of the airlines and sanctioned credit limits of Rs 900 crore in violation of banking norms, causing a loss to the bank by the fraudulent act.
The CBI officials raided three places in Mumbai and one each in Bengaluru and Goa on Saturday.“Searches are being conducted in the offices and residences of the accused. Several incriminating documents found during searches are being scrutinised,” a CBI press release said. It is said that the investigators would question Mr Mallya in connection with the case soon. The CBI raids come after its probe into public sector banks sanctioning credit limits to companies declared as non-performing assets. A consortium of 17 banks had an outstanding of over Rs 7,000 crore to the debt-ridden airlines company, which stopped operation in October 2012.
The CBI has registered a case under Section 120B (being a party to a criminal conspiracy) read with 409 (criminal breach of trust by public servant, or by banker, merchant or agent) of the IPC and various other sections of the Prevention of Corruption Act.
