New Delhi: The CBI on Monday arrested a former chairman and three other ex-officials of IDBI Bank along with four former executives of Kingfisher Airlines in connection with the loan default case against liquor baron Vijay Mallya.
Those arrested include Yogesh Aggarwal, former chairman of IDBI Bank, A Raghunathan, former CFO of now-defunct Kingfisher Airlines, CBI sources said.
They said three more former executives of the airlines and three more former officials of IDBI Bank were also taken into custody.
The arrests were followed by searches at 11 places including Mr Mallya’s residence here, three floors of UB towers in Bengaluru, and residences of Mr Aggarwal and Mr Raghunathan, among others.
The UB Group issued a statement in Bengaluru confirming the visit of CBI team.
“A CBI team visited the UB Group offices in Bangalore today and we are fully cooperation with them,” a UB group spokesperson said.
The CBI officials’ visit to UB Group offices comes days after the Bengaluru Debt Recovery Tribunal ordered a consortium of banks, led by India’s largest lender SBI, to start the process of recovering Rs 6,203 crore at an annual interest rate of 11.5 per cent from the embattled tycoon and his companies in the Kingfisher Airlines case.
Mr Mallya, who left the country on March 2 last year and is now in the UK, has been declared a proclaimed offender by a special People’s Money Laundering Act court in Mumbai on a plea by the Enforcement Directorate in connection with its money laundering probe against him in the alleged bank loan default case.
The agency has registered two cases against Mr Mallya who had left the country after changes were made in the CBI lookout circular against him enabling his exit.
Last year, it had registered a case against him after receiving a complaint from State Bank of India.
The sources said it was alleged that Mr Mallya had sought a recast of his loan repayment in which certain information was “suppressed” by the beleaguered businessman.
Earlier, the CBI had filed a case of alleged default in loan repayment by the Kingfisher Airlines to IDBI Bank.
The airline had taken Rs 6,900 crore from the consortium of lenders in early 2010 after its loans had been restructured for a second time.