Former IDBI GM conspired with Vijay Mallya over short-term loan to Kingfisher Airlines: CBI

A senior IDBI Bank official allegedly conspired with businessman Vijay Mallya for sanction and disbursement of loan to the latter’s Kingfisher Airlines, the Central Bureau of Investigation (CBI) said in its supplementary charge sheet filed in a Mumbai court. Vijay Mallya is an accused in the alleged ₹900-crore IDBI Bank-Kingfisher Airlines loan fraud case, which is being probed by the CBI. The Central agency had recently filed a supplementary charge sheet before a special CBI court, in Mumbai.

A senior IDBI Bank official allegedly conspired with businessman Vijay Mallya for sanction and disbursement of loan to the latter's Kingfisher Airlines, the Central Bureau of Investigation (CBI) said in its supplementary charge sheet filed in a Mumbai court.

Vijay Mallya is an accused in the alleged ₹900-crore IDBI Bank-Kingfisher Airlines loan fraud case, which is being probed by the CBI. The Central agency had recently filed a supplementary charge sheet before a special CBI court, in Mumbai.

As per the charge sheet, former IDBI Bank general manager Buddhadev Dasgupta abused his position, conspired with colleagues and Vijay Mallya in the matter of sanction and disbursement of short-term loan (STL) of ₹150 crore to Kingfisher Airlines in October 2009.

Along with 11 accused named in the earlier charge sheets, the CBI has added the name of Dasgupta in the supplementary charge sheet filed recently. As per the CBI, the STL was requested for six months to meet certain critical obligations to overseas vendors, including aircraft lessors and other service providers.

The said loan of ₹150 crore, as envisaged originally by Dasgupta (by proposal circulated among credit committee members) was to be adjusted/repaid from the aggregate loan of ₹750 crore originally sought by the airlines.

However, after circulation, there was change in the proposal to show as if the credit committee had treated this as a separate loan, which may (or may not) be adjusted/recovered from the aggregate loan, as per the CBI.

While the exposure of IDBI Bank was to be restricted to the aggregate amount of ₹750 crore, it rose to ₹900 crore in December 2009 due to this STL being kept as a separate loan largely at the behest of Dasgupta, the charge sheet said.