CBI believes that the accused may tamper with evidence or flee the country; Vijay Mallya, chief of Kingfisher Airlines, has been named as an accused absconder in the case
Mumbai: The Central Bureau of Investigation (CBI) has asked for judicial custody of all 11 accused in the Kingfisher Airlines (KFA) case, which includes nine bankers.
According to the remand copy reviewed by Mint, the investigative agency is looking for judicial custody of the accused as it believes that they might tamper evidence or flee the country. Vijay Mallya, chief of KFA, has been named as accused absconder in the case.
The CBI believes that the matter relates to three disbursements to the tune of Rs750 crore, Rs200 crore and Rs150 crore that have taken place in the Kingfisher case, despite the poor credit rating and financial health of the company.
CBI believes loans disbursed to KFA were sent abroad to pay pending aircraft loans and also to settle some part of debt to Bank of Baroda.
On Monday evening, the agency arrested a former chairman of IDBI Bank Ltd, three other bank officials and four Kingfisher Airlines executives in an alleged money laundering case involving Vijay Mallya.
Besides former IDBI Bank chairman Yogesh Aggarwal, the arrested bank officials are B.K. Batra, S.K.V. Srinivasan, and R.S. Sridhar, all former employees of the bank. The arrested Kingfisher Airlines executives are former chief financial officer A. Raghunathan, Shailesh Porkar, Amit Nadkarni and A.C. Shah.
The CBI has been investigating a case against Mallya and his group companies over allegations of money laundering since early last year and has even secured a non-bailable warrant against the absconding businessman in a case related to money laundering and willful default of loans, Mint reported on 22 November.
The raids come days after Mallya and his associated firms received a jolt after a debt recovery tribunal (DRT) in Bengaluru ruled in favour of public sector lender State Bank of India-led consortium to recover Rs6,203.35 crore from the former Rajya Sabha member of Parliament.