SERIOuS FRAuD INVESTIGATION INTO MALLYA GETS STALLED

CONTINuED FROM P1 Rs 900 crore. A year later, it had become Rs 5,600 crore. The net losses of the company widened from Rs 188 crore in 2007-08 to Rs 1,600 crore in 2008-09. At the end of 2009-10, Kingfisher Airlines had a debt of over Rs 7,000 crore. Even when it was clear that it was bleeding, loans were extended to it without any probing questions. This did not happen without the knowledge of the top three or four officials of each PSU bank, and yet they have not been held accountable. The SFIO’s investigation was started as the government was facing a lot of questions from the public and the media. However, you can yourself see the status of the inquiry now,” an official source familiar with the development said.

While Mallya continues to enjoy a luxurious life in United Kingdom, despite a non-bailable warrant against him after he was declared a wilful defaulter, none of the top bank officials has been arrested or seriously probed for helping Mallya.

Officials said that of all the banks, the State Bank of India had the highest exposure to Kingfisher at Rs 1,600 crore, followed by the IDBI, which had an exposure of Rs 900 crore. The other public sector banks which exposed themselves to Kingfisher Airlines included UCO Bank, Punjab National Bank, Vijaya Bank, Bank of Baroda, Corporation Bank, Bank of India, United Bank of India, State Bank of Mysore and Indian Overseas Bank.

As per SBI rules, any loan worth more than Rs 500 crore is to be “vetted” by a high powered committee comprising the bank chairman, managing directors and directors. O. P. Bhatt served as the chairman of SBI from June 2006 till his retirement in March 2011.

Former Central Bureau of Investigation (SBI) director, Anil Sinha, in March last year, while speaking at a conference, had stated that there was something “seriously wrong” in the way the banks had acted with Kingfisher. “The CBI has recently registered a case of cheating and fraud against Kingfisher and its erstwhile management, involving allegations of defrauding banks to the tune of nearly Rs 7,000 crore. This case was registered in July 2015, but the loans/advances were taken during 2004 to 2012. However, despite our repeated requests, the banks did not file a complaint with the CBI. We had to register the case on our own initiative,” Sinha had stated.