Despite the consortium of 17 banks Kingfisher Airlines borrowed from expressing concern that Vijay Mallya could leave the country for good and CBI taking precautions, it came to light that Vijay Mallya has already left the country on 2nd March. Earlier Vijay Mallya had said that he wants to stay close to his son in England which sent a wave of concern among the lenders. The question is how Mr. Mallya managed to leave the country despite CBI’s look-out notice to all exit points of the country.
The total amount of loan for Kingfisher Airlines is nearly 7,000 crore INR. CBI has urged the consortium to declare the loans fraud. IDBI has already declared the loans disbursed by it as fraudulent. A CBI official commented, “We can not arm twist a bank in terming a loan default as fraud. We can only advice them which we have done. It is up to banks now to give us complaints based on which we can act.”
CBI has already lodged a case against Mr. Mallya, Kingfisher Airlines CFO A. Raghunathan and some officials of IDBI Bank. It is alleged that Kingfisher Airlines’ 900 crore INR loan from IDBI was in violation of the credit limit norms of the bank and some officials of the bank are involved in it.