SFIO widens Vijay Mallya probe..top bankers under scanner
NEW DELHI : Widening its probe into the financial irregularities at erstwhile Kingfisher Airlines, SFIO has started examining former chiefs of various banks, including public sector lenders, for having extended fresh loans allegedly without full due-diligence amid ballooning losses at the Vijay Mallya-owned carrier.
The white-collar crimes probe agency is also looking at allegations of loans being extended on the basis of “inflated” valuation of brands and some other assets as also suspected fund diversions from the airline, whose founder and main promoter Vijay Mallya is already under scanner of multiple agencies, including the CBI and the Enforcement Directorate.
Sources said SFIO has widened investigations into the affairs of Kingfisher Airlines and is now focussing on the lenders as well as their top management personnel for the suspected lapses in the due diligence process before extending loans to the carrier. The agency has examined some former heads of public sector banks which had extended loans to the airline at a time when the carrier’s losses were on the rise, they added.
When contacted, former heads of some public sector banks, on condition of anonymity, accepted having been approached by the agency but maintained it was more about seeking information about the loan disbursal and other technicalities.
They maintained that there were no lapses at the top management level and diverted the official queries to the respective banks. According to the sources, SFIO, which comes under the Corporate Affairs Ministry, has issued summons to former top officials of more than ten banks.(Zee News)
