The role of top bankers in under probe by the Central Bureau of Investigation (CBI) in relation to loans given to Vijay Mallya’s Kingfisher Airlines Ltd (KFAL), according to a media report. A consortium of 17 banks led by State Bank of India has filed a Rs 9000 crore case against the airline to recover money from Vijay Mallya.

The CBI has summoned few bankers for recording their statements relating to the case.
Vijay Mallya fled to London in March 2016 just a few days before banks appealed in Supreme Court against him for defaulting on loans.

Currently, London court is hearing the extradition case of Vijay Mallya. It is learnt that the London court has asked Indian authorities about the role of bankers, who seems to have violated guidelines while sanctioning loans to Kingfisher Airlines.

Mallya was arrested on an extradition warrant by Scotland Yard in April last year and has since been appearing for his extradition trial. Indian authorities want him to return to India to face charges of fraud, money laundering and default on bank loans worth Rs 9,000 crores.

The Indian government claims “dishonesty” on the part of Vijay Mallya based on the evidence presented before the court. It is alleged that he acquired loans through misrepresentation with no intention of repaying them.

On the other hand, Mallya’s defence team has tried to establish that the default by Kingfisher Airlines was the result of a business failure due to the global financial crisis and that he had no “fraudulent” intentions.

The government office has reportedly seen the role of bankers in giving loans despite weak financials of the company. The report states that the Central Vigilance Commission, CBI and the Reserve Bank of India (RBI), should look if there has been any violation of lending norms.

(With agency inputs)