CBI arrests 4 in Vijay Mallya's IDBI loan default case

Agencies said that the loan granted by the IDBi bank had been under their scanner.

New Delhi, Jan 23: The Central Bureau of Investigation on Monday arrested former chairman, three former executives of the Industrial Development Bank of India and four executives of the Kingfisher Airlines in connection with a loan default case.

IDBI bank's former chairman, Yogesh Agarwal, and former CFO of the Kingfisher Airlines, A Raghunathan, were among those who were arrested. A case was registered against Vijay Mallya and others alleging that the bank had extended loans worth Rs 900 crore to the airlines at a point when the airline had negative credit ratings.

Earlier a 12 member team inspected documents at the offices of the UB Group. The CBI said that documents pertaining to the Rs 900 crore loan taken from the bank was under the scanner.

The bank had furnished loan to the now defunct airlines despite knowing that it was making loss. The CBI while examining the airlines' documents found that money had been coming into the company despite it stating that it was under loss.

OneIndia News