A special Central Bureau of Investigation court directed last week that 21 accounts held by liquor baron Vijay Mallya and his associates in the United Kingdom and Switzerland be attached, in connection with the IDBI loan default case, reported PTI on Tuesday. The court also allowed the CBI to issue a Letters Rogatory to the UK for assistance in the investigation.
A Letter Rogatory are documents requesting a foreign court to secure evidence from a person under the court’s jurisdiction.
The investigating agency believes that IDBI officials committed many mistakes while sanctioning and disbursing loans of Rs 1,300 crore to Mallya’s Kingfisher Airlines. According to the charge sheet, about Rs 260 crore was diverted by the KFA, while Rs 263 crore was used to pay salaries, income tax and loan installments. Mallya also diverted a part of the loan to meet his personal expenses, CBI said.
The CBI said the IDBI officials whom it had arrested were all instrumental in sanctioning the loans to Kingfisher Airlines. It said that IDBI showed “undue favour” to KFA while sanctioning a loan worth Rs 150 crore in October 2009, another loan worth Rs 250 crore in November 2009, and a third corporate loan of Rs 750 crore the same month.