The Central Bureau of Investigation on Monday arrested former IDBI Bank chairman Yogesh Aggarwal and seven others in connection with a money-laundering case against beleaguered businessman Vijay Mallya, PTI reported. Former chief financial officer of the now defunct Kingfisher Airlines, A Raghunathan, was also arrested in the case, which relates to the carrier’s default on a Rs 900-crore loan from IDBI Bank.
Investigators alleged that Aggarwal approved loans for Kingfisher Airlines and also instructed IDBI Bank officials to expedite the ratings process for the carrier. The loan was sanctioned even though it was in violation of credit limit norms.
Six senior officials – three each from Kingfisher Airlines and the bank – were the also taken in. After making the arrests, the agency raided 11 locations, including Mallya’s New Delhi home, three floors of the United Breweries towers in Bengaluru and Raghunathan’s home. A spokesperson for United Breweries confirmed that a team from the CBI had visited the group’s offices, Mint reported.
The CBI is also planning to declare Mallya, who fled to the United Kingdom on March 2 last year, a “proclaimed offender”, The Times of India reported. The declaration will allow the agency to attach his properties under sections of the Prevention of Money Laundering Act.
The arrests and raids come just four days after the Debt Recovery Tribunal allowed a plea by a State Bank of India-led consortium to initiate the process of recovering more than Rs 9,000 crore in unpaid dues from Mallya. The CBI has also initiated the process to have him extradited from the United Kingdom.