CBI files fresh FIR against Mallya

The CBI registered a fresh case against liquor baron Vijay Mallya in the multi-crore loan default case.

The CBI has filed an FIR under sections of criminal conspiracy and cheating for not honouring his commitment to repay a Rs 6,027 crore loan Mallya-owned Kingfisher Airlines took during 2005-10 from a consortium of banks. The complaint was filed by the State Bank of India on behalf of the consortium.

This case is the second filed by the CBI after registering an FIR on the default of loan given by the IDBI Bank. The Enforcement Directorate is also probing Mallya, who left India on March 2 and is now residing in the United Kingdom, on charges of money laundering.

Besides Mallya, Kingfisher Airlines and United Breweries Holdings Limited (UBHL) have been named as accused in the FIR. The State Bank of India and others had advanced various credit facilities to Kingfisher Airlines during 2005 and 2010,  but Kingfisher Airlines failed to honour the commitments in 2009-10.

According to the FIR, Kingfisher Airlines did not keep its account with the consortium banks and it became a Non-Performing asset (NPA), the FIR said. The consortium then recalled credit facilities and also invoked corporate guarantee of UBHL and personal guarantee of Mallya.