CBI charge sheet against Mallya likely in a month, bank officials may be included

NEW DELHI: Many senior financial institution officials who had dealt with loans given to liquor baron Vijay Mallya's Kingfisher Airlines is also named as accused in a CBI price sheet which is perhaps filed within a month, sources mentioned.

This can be first price sheet in the case pertaining to loans of over Rs 6,000 crore given to Kingfisher by means of a consortium of 17 banks led by means of State Bank of India (SBI) which alone had an exposure of Rs 1,600 crore.

The agency has already filed a price sheet in opposition to Mallya final year in reference to a separate case related to Rs 900 crore pending loan given by means of IDBI financial institution wherein senior officials of the financial institution have been allegedly concerned.

The CBI had registered two cases in opposition to Mallya related to the IDBI loans in 2015 and consortium loan in 2016.

Refusing to offer names of the officials, the sources mentioned the first section of probe into loans given by means of a consortium of banks is almost whole and the price sheet is also filed within a month while maintaining the investigation open.

Both serving and retired senior officials of the banks together with the State Bank of India who had handled Kingfisher Airlines loans is also named as accused in the price sheet because the agency has accumulated sufficient proof in opposition to them on misuse of professional place, they mentioned.

The top brass of erstwhile Kingfisher airways together with Mallya, its CFO A Raghunathan and other former senior executives can be named as accused in the case, they mentioned.

They mentioned the agency is also looking into the role of finance ministry officials who could have influenced the verdict of the bankers however their role continues to be be evaluated.

During the probe, the agency has accumulated sufficient proof to show that Mallya allegedly diverted the loan finances from the purpose for which they got, they mentioned.

The agency in its FIR has alleged that SBI and its consortium banks had complicated quite a lot of credit amenities to Kingfisher Airlines Limited all the way through the period between 2005 and 2010, they mentioned.

During 2009-10, the corporate failed to meet its repayment commitments to the financial institution from which it had availed the credit amenities and Kingfisher Airlines didn't keep its account with the consortium banks common which become NPA, the FIR states.

The consortium banks, therefore, recalled the credit amenities and also invoked corporate guarantee of UBHL and private guarantee of Mallya, it alleged.

Mallya deliberately didn't pay off the amount, outstanding dues payable by means of Kingfisher Airlines to consortium of banks, the sources mentioned.

It is said that there used to be a conspiracy among crew companies promoter and unknown others to cheat the lenders, they mentioned.

SBI has an exposure of Rs 1,600 crore to the airline. Out of this, the bankers, which recalled the loan in February 2013, may get well simplest round Rs 1,100 crore after promoting pledged shares of UB Group companies.

Other banks that experience exposure to the airline include Punjab National Bank and IDBI Bank (Rs 800 crore each), Bank of India (Rs 650 crore), Bank of Baroda (Rs 550 crore), Central Bank of India (Rs 410 crore).