CBI questions Mallya in loan default case

December 10, 2015 10:27 pm | Updated September 06, 2016 09:42 am IST - New Delhi

The CBI on Thursday quizzed liquor baron Vijay Mallya as part of the ongoing probe into alleged wilful default of Rs.900-crore loan in conspiracy with unknown officials of IDBI bank.

“Mr. Mallya was summoned by the Banking Securities & Fraud Cell and questioned at the agency headquarters here,” said a CBI official.

In October, the CBI had registered a case of corruption and criminal conspiracy against Mr. Mallya, as director of the now-defunct Kingfisher Airlines, its chief financial officer A. Raghunathan and unknown bank officials.

“The bank sanctioned and disbursed the loan to the company in violation of rules,” said the official.

During the preliminary enquiry into the allegations, the agency found that the bank officials ignored an adverse internal audit report and sanctioned loan to the firm that had already defaulted on repayment of loans disbursed by a consortium of 17 banks.

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