Agency initiates preliminary enquiry against
THE KING of Good Times was nosediving to abyss, yet banks were boarding the
They ignored the negative credit rating and negative net worth of the company to give away thousands of crores of rupees to an airline which was clearly in worst of times. Among these banks was the
Continued from Page 1
After busting a bribery scam involving
The CBI will seek answers from IDBI officials for extending the loan to the airlines while ignoring the bank's internal report which warned against it.
CBI sources said the bank had failed to provide convincing answers to a questionnaire sent to IDBI to ascertain the reasons for extending the loan to the crisis- ridden company. CBI officers probing the matter are scrutinising internal documents of IDBI, which provided the loan, despite an earlier report in 2009 that rejected Kingfisher's demand for a `
The debt- laden airline stopped operations in
The CBI had sought some documents and information from IDBI, but is not satisfied with the bank's response.
Sources said this was a bank fraud case and the issue of quid pro quo cannot be ruled out since
" We need to find out what changed so that IDBI went against its own report and gave the loan. The corruption angle cannot be ruled out," said a CBI officer.
IDBI's loan of `
Several parliamentarians had complained and even written to former prime minister
CBI sources said the agency has registered 27 inquiries and cases regarding bad loans given by public sector banks to various corporates, the latest being two cases registered against
And now, with the
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