ED summons 5 IDBI Bank officials, top KFA executives in loan case

Zee Media Bureau

New Delhi: The Enforcement Directorate (ED) has summoned top officials and executives of both IDBI Bank and Kingfisher Airlines in connection to Rs 950-crore loan that was sanctioned to the airline in 2009.

It was earlier reported that Chief Managing Director (CMD) of IDBI Bank, Yogesh Aggarwal had come under scanner of the Central Bureau of Investigation and ED on charges of allegedly issuing loan of Rs 350 crore to liquor baron Vijay Mallya.

However, further reports suggest that four more officials of the bank have been summoned by the ED in connection to the loan.

The other four officials have been reported as BK Batra, OV Bundellu, R Bansal and SKV Srinivasan.

According to an FIR filed in the case by the CBI, "the IDBI Bank had shown undue favours to Kingfisher Airlines Ltd (KFA)... in disbursement of Rs 150 crore on October 7, 2009, Rs 200 crore on November 4, 2009 and Rs 750 crore on November 27, 2009 despite weak financials, negative net worth and low credit rating of the borrower company and despite the fact that KFA being a new client and did not satisfy the norms stipulated in corporate loan policy of the bank."

The ED has also summoned A Raghunathan, the chief financial officer (CFO) of the airline, and a few executives in connection with the loan.