Former IDBI CMD under scanner for Rs 350 crore loan to Vijay Mallya

Zee Media Bureau

New Delhi: In new series of events, former IDBI Bank Chief Managing Director (CMD) Yogesh Aggarwal has come under scanner of the Central Bureau of Investigation and the Enforcement Directorate (ED) on charges of allegedly issuing loan of Rs 350 crore to liquor baron Vijay Mallya even ahead of the loan amount getting officially sanctioned by the bank as per a report published in Times of India.

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."

However, while talking to ToI, Aggarwal refuted the allegations saying that the disbursed money were in anticipation of the loan being sanctioned by the executive committee (EC) of the bank at its next meeting and there was nothing foul in it as alleged.