CBI registers fresh case against Mallya

The Central Bureau of Investigation has registered a fresh case against Vijay Mallya, Kingfisher Airlines, United Breweries Holding Limited and others for allegedly causing a loss of Rs. 6,027 crore to a consortium of banks led by State Bank of India.

The consortium, which had earlier refused to accept Mr. Mallya’s offer for part payment of the dues, has now lodged a complaint with the CBI to initiate criminal action against him. They had initiated debt recovery proceedings against him in the court and also approached the Supreme Court.

According to the complaint, Kingfisher Airlines availed of credit facilities between 2005 and 2010. However, it allegedly failed to keep up with the repayment of loans 2009 onward. Thereafter, the banks recalled the credit facilities and invoked the personal guarantees of Mr. Mallya and United Breweries Holding Limited.

“The banks had not kept the accounts with the consortium banks regular, owing to which the loans were finally declared NPA,” said a CBI official.

The banks, led by SBI, have alleged that there was a conspiracy by the group company, its promoter and others to cheat them.