Fresh trouble for Mallya, CBI registers another case on SBI's complaint
The Central Bureau of Investigation on Saturday registered a fresh case against liquor baron Vijay Mallya after a complaint by the State Bank Of India in connection with a loan default alleging irregularities in repayment of Rs 1,600 crore.
As per CBI sources, the case has been filed against Mallya and others after receiving a complaint from State Bank of India, which is leading a consortium of 17 banks that have given loans to Kingfisher Airlines.
The sources said it was alleged that Mallya had sought to recast his loan repayment in which information was suppressed by the businessman.
The agency has already filed a case of alleged loan default by the now-defunct Kingfisher Airlines to IDBI Bank.
The airline, owned by Mallya, had taken Rs 6,900 crore from a consortium of 17 lenders in early 2010 after a second debt restructuring for the airline.
SBI has an exposure of Rs 1,600 crore to the airline. Out of this, the bankers, which recalled the loan in February 2013, could recover only around Rs 1,100 crore after selling pledged shares of UB Group companies.
Other banks that have exposure to the airline include Punjab National Bank and IDBI Bank (Rs 800 crore each), Bank of India (Rs 650 crore), Bank of Baroda (Rs 550 crore), Central Bank of India (Rs 410 crore).
UCO Bank has to recover Rs 320 crore, Corporation Bank (Rs 310 crore), State Bank of Mysore (Rs 150 crore), Indian Overseas Bank (Rs 140 crore), Federal Bank (Rs 90 crore), Punjab and Sind Bank (Rs 60 crore) and Axis Bank (Rs 50 crore).
(With agency inputs)