CBI to probe if netas pushed Mallya loans
NEW DELHI: The Central Bureau of Investigation (CBI) will probe if some public sector banks were pressured into lending and restructuring loans extended to the now defunct Kingfisher Airlines.
On a day when Vijay Mallya did not respond to an email from Enforcement Directorate asking him to appear before it on March 18 even as his close associate Ravi Nedungadi evaded answering questions fielded by the media, CBI sources said the role of “political pressure” would be the focus of their probe into cases involving the liquor baron.
The sources said the agency was seeking to find out the “real driver” of the decision of IDBI Bank to extend a loan of Rs 900 crore to KFA when the airline had sub-par credit rating and auditors flagged concerns about its poor financial health, including failure to deposit with the tax department Rs 111 crore that it had deducted while making payments.
The CBI’s interest in the “political angle” also stems from the fact that the bankers chose to take the brand as collateral, despite their historical reluctance to use intangible assets as security. The banks cited the Grant Thornton’s valuation of Rs 3,400 crore for KFA brand. This despite the lack of clarity in the Companies Act over whether brands could be treated as assets.
Vehicles of the defunct Kingfisher Airlines, auctioned by creditors in December 2015, being moved out of Mumbai. SBI Caps Trustee Company will auction another nine vehicles and office equipment on April 6.
Similarly in 2012, while restructuring the loans to the grounded carrier, banks decided to convert the loans into equity. They also reduced the interest rate and agreed to provide more funding despite KFA’s sliding stock price.
The UPA was in power when lenders, including IDBI Bank, approved the loan even as there was reluctance among the banks to lend.
Sources said that at CBI’s behest, the Serious Frauds Investigation Office (SFIO) is also looking at the remittances of Mallya’s companies.
A parallel probe by ED was also intensifying, with a notice being sent to the beleaguered businessman to appear before them on March 18. However, Mallya was yet to respond to the email sent by the agency, even as his close aide and former UB group chief financial officer Ravi Nedungadi remained evasive during questioning by ED in Mumbai on Saturday.
Sources in the ED said Nedungadi has not given any information about Mallya’s investments, properties that he owns abroad and is only sticking to facts which are already in the public domain.
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They said Nedungadi was trying to “frustrate” ED’s attempts to get details about Mallya’s financial transactions. The agency has again called him for interrogation on Monday which is expected to be a busy day for the ED since they also have an appointment with former Maharashtra PWD minister Chaggan Bhujbal who has been called for questioning in a money laundering case.
Investigative agencies say Raghunathan and Nedungadi are crucial links in the case as they were close to Mallya.
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Source:Timesofindia
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