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ED summons five IDBI Bank officials, Kingfisher Airlines executives

The probe agency will question bank officials with regards to their roles in sanctioning the loan to the airline

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Shrimi Choudhary Mumbai
Last Updated : Mar 11 2016 | 1:56 PM IST
Five serving and former executives of IDBI Bank and a few executives of Kingfisher Airlines have been summoned by the Enforcement Directorate in connection with a Rs 950-crore loan the bank sanctioned to the airline in 2009.

Confirming the summons, an Enforcement Directorate official told Business Standard: “All of them have been given two days to depose at our Mumbai office,” he said.

Sources said summons had been sent to Yogesh Agarwal, former chairman and managing director of IDBI Bank, and four other executives — BK Batra, OV Bundellu, R Bansal and SKV Srinivasan — who were key members of the credit committee.

Apart from them, A Raghunathan, former chief financial officer of Kingfisher Airlines, and a few other airline executives have also been summoned.

The investigating agency will question the bank executives on their role in sanctioning the loan to the defunct airline. Sources said Raghunathan’s role would also be examined with respect to a slew of meetings between Vijay Mallya and bank executives on the basis of which he asked the bank to sanction the loan in 2009.

The Enforcement Directorate recently filed a case against Mallya, Kingfisher Airlines and IDBI Bank executives under the anti-money laundering law. It will also invesigate the diversion of a sizable chunk of funds, which was used for foreign remittances towards lease rentals, purchase of aircraft parts etc.

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First Published: Mar 11 2016 | 12:37 AM IST

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