ED smells ‘political pressure’ in IDBI’s 950 crore loan to Mallya

Even though Vijay Mallya's Kingfisher Airlines carried a negative credit rating, it still managed to get a loan of Rs 950-crore from IDBI Bank in October-November 2009, and that too within 20 days of applying.

People investigating the Mallya fiasco believe that there certainly was some "pressure from the top," otherwise the loan would not have been passed, adding that this matter will be looked into. Investigators from Enforcement Directorate (ED) who have been questioning IDBI's ex-chief Yogesh Agarwal say that they "have reasons to believe there was political intervention for Mallya".

Mallya, who has been asked to appear before ED on 2nd April, will be questioned about the political favours that he received when it came to his loan applications. IDBI's Mallya loan files will also be examined closely to see if any margin notes were made about this political intervention.

"IDBI Bank has sanctioned loans to Kingfisher Airlines following due process and prevailing guidelines. It may be mentioned that IDBI has fully cooperated with Central Bureau of Investigation and provided all clarification sought for in the matter," said the response of an IDBI Bank spokesperson.

Image source