IDBI Bank and Kingfisher Airlines (KFA) have come under the Central Bureau of Investigation scanner for sanction of a loan of Rs. 950 crore to the beleaguered airline.
“The CBI has instituted a preliminary inquiry to ascertain how the bank sanctioned the loan when KFA had a negative net-worth and negative credit rating,” said CBI spokesperson Kanchan Prasad.
“There was no need for the bank to take the exposure outside the consortium when already other banks loans were getting stressed,” she added.
The agency would seek all the documents from the bank on the basis of which the loan amount was sanctioned to KFA. “A preliminary enquiry can be converted into a regular case if we come across prima facie evidence of any irregularity,” said another CBI official.
