CBI quizzes top Kingfisher, UB officials for the 2nd day

A consortium of banks led by State Bank of India wants to liquidate Mallya's assets to recover the loans. 

The Central Bureau of Investigation questioned two top former officials of the Kingfisher Airlines and UB Group for the second day on Wednesday in connection with the loan default case against the now defunct airlines promoted by Vijay Mallya.

A Raghunathan, chief financial officer of the erstwhile Kingfisher Airlines, and Ravi Nedungadi, former CFO of the UB Group, were summoned to the CBI's Mumbai office again and questioned about alleged diversion of funds, official sources said.

While Raghunathan is a named accused in the CBI's case registered in October last year, Nedungadi had resigned recently from the post of CFO of the UB group.

The duo were also called on Tuesday and the marathon questioning lasted till midnight, sources said.

CBI had registered a case against the then UB Group Chairman Vijay Mallya, Kingfisher Airlines, Raghunathan, and unknown officials of IDBI Bank alleging that a Rs 900 crore (Rs 9 billion) loan was sanctioned by the IDBI to the airliner in violation

of norms regarding credit limits. The case was registered on the basis of a complaint received from the IDBI bank.

CBI had alleged that Kingfisher Airlines had diverted a substantial chunk of the loans secured from public sector banks to tax havens for purposes not specified in loan applications.

The 10 public sector banks whose loans have come under the scrutiny of CBI, besides IDBI, are UCO bank, Punjab National Bank, State Bank of India, Vijaya Bank, Bank of Baroda, Corporation Bank, Bank of India, United Bank of India, State Bank of Mysore and Indian Overseas Bank.

The total default in repayment of loans by Kingfisher Airlines, which stopped its operations in October 2012, is over Rs 9,000 crore (Rs 90 billion).

Meanwhile, CBI is planning to send Letters Rogatory to some countries where the money so diverted by the company was invested.

A consortium of banks led by State Bank of India wants to liquidate Mallya's assets to recover the loans.