CBI raids Vijay Mallya, Kingfisher’s offices

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The CBI on Saturday raided the offices of Vijay Mallya and his now grounded Kingfisher airlines in Delhi and Bengaluru in connection with an alleged fraud of Rs.900 crore advanced to him by IDBI bank which has been declared as Non-Performing Asset.

CBI sources said that the searches were carried out at the offices and residence of Vijay Mallya in Mumbai, Goa, Banglore. A case has been registered by the agency  against Mallya, Director of defunct Kingfisher Airlines.

The raids were made at five places, officials said.

The IDBI bank came under the scanner in 2014 for granting an alleged bad loan to Kingfisher Airlines despite knowing its precarious financial position and negative credit ratings.

The loan was sanctioned in violation of norms regarding credit limits. No immediate reaction was available from the company.

FIR into the alleged violations has been registered recently as part of its wide probe into criminal aspects of loans declared to be not performing assets by public sector banks.

The sources said there was no need for the bank to take the exposure outside the consortium. Mallya would soon be called for examination in connection with the case.

Mallya’s airline has been grounded since October 2012.

A string of Indian banks have an exposure of nearly Rs.7,000 crore in loans to the airline, with the State Bank of India leading with Rs.1,600 crore.

The Punjab National Bank, Bank of India and Bank of Baroda have loan exposure in the range of Rs.800 crore, Rs.650 crore and Rs.550 crore.

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