Need CBI probe into loans to Kingfisher Airlines: Bank union official

Chennai, March 8: There should be a detailed CBI probe and follow-up action on the manner in which loans have been sanctioned to the Vijay Mallya-promoted Kingfisher Airlines Ltd, said a top official of a leading bank union. "If what Mallya says is valid, that is, he and Kingfisher Airlines are two separate legal entities and his liability is limited to his share of capital, then there is a need to have a CBI (Central Bureau of Investigation) into the manner in which the Rs.7,000 crore loan was sanctioned to the company," All India Bank Employees' Union (AIBEA) general secretary C.H.Venkatachalam told IANS. Responsibility has to be fixed for the sanctioning of the loan after seeing on what basis the huge amount was lent, he said, adding that after all, the banks are owned by the government and funded with the tax payers' monies. "More than 15 banks have lent money to him... he is deliberately defaulting the loan. It is a clear case of willful default and still for years, banks were reluctant to declare him as such," Venkatachalam said. Meanwhile AIBEA has issued a circular asking its members to send a telegram and email to union Finance Minister Arun Jaitley urging him for immediate action to recover the bank dues.