Kingfisher Airlines loan default case: Court extends judicial custody of all nine accused

MUMBAI: The CBI special court in Mumbai on Tuesday extended the judicial custody of all the nine accused in the Kingfisher Airlines loan default case till February 20.

The Central Bureau of Investigation had arrested five former IDBI Bank officials and four Kingfisher Airlines officials on January 23 on charges of collusion in sanctioning over Rs 1,000 crore of loans to the now moth-balled carrier run by liquor baron Vijay Mallya.

The CBI counsel alleged that the loans were given without accepting shares or any tangible asset as collateral in contravention to what was decided by the bank earlier.


The agency also alleged that former IDBI MD BK Batra has 58 bank accounts to his name. It also claimed that former IDBI CMD Yogesh Agarwal flouted norms to sanction Rs 750 crore of loans to the airline.

CBI’s counsel said the agency has enough evidence to prove fund diversion by accused Kingfisher officials.

The agency had in July 2015 filed an FIR against Vijay Mallya -- who has fled the country for the UK early in 2016 -- stating that some officials of IDBI Bank had showed undue favour to the airline in doling out a Rs 900-crore loan.