2 UB Group companies settled dues just before Kingfisher Airlines sought fresh loan from IDBI: CBI,
MUMBAI: Just a month before the now-defunct Kingfisher Airlines approached IDBI Bank for a corporate loan of Rs 950 crore in October 2009, two UB Group companies had settled their outstanding dues and obtained no dues certificates from the bank. UB Group was a promoter of the defunct KFA.
The information about the no dues certificate was mentioned in the chargesheet filed by the CBI on Tuesday in a special court here.
According to the chargesheet, the UB Group had dealings with IDBI Bank in the past.
“Its (UB group) associate concerns WIE Engineering and United Breweries Limited (UBHL) had defaulted against the credit facilities from IDBI in the past,” the chargesheet said.
“However, just before the KFA approached IDBI for a corporate loan of Rs 950 crore, both these group companies settled the matters by way of one time settlement (OTS), pursuant to which UBL was issued a no dues certificate,” it said.
“The bank issued no dues certificate to the borrower in October 2009 prior to the sanction of fresh loans of Rs 150 crore, Rs 200 crore and Rs 750 crore,” it added.
The CBI, which is investigating the IDBI loan default case involving beleaguered businessman Vijay Mallya, has said that he himself stood as a personal guarantor for availing loans totalling up to Rs 1,300 crore.
The investigation also revealed that the conspiracy to cheat IDBI was allegedly hatched among Mallya, former CFO of the Kingfisher Airlines A Raghunathan, former chairman of IDBI Yogesh Aggarwal, IDBI executive B K Batra and others in 2009.
Thereafter, Mallya met Aggarwal and Batra for seeking loans from IDBI, the chargesheet said.
“In order to facilitate sanction of loans, the past defaults in the account of UB Engineering (another group company) and WIE Engineering were settled and no dues certificates were issued,” it said.
It added that in October 2009, Mallya directed Raghunathan via a mail to immediately fill the application for seeking corporate loan of Rs 950 crore from IDBI.