CBI lashes out at banks for delay in declaring Vijay Mallya as defaulter

Says banks failed to file complaints despite pleading in the case; there was undue delay in declaring it as fraud as well

The Central Bureau of Investigation (CBI) today lashed out at banks for delay in filing complaints and declaring Kingfisher Airlines and its promoter Vijay Mallya as a defaulter.

The case involving Kingfisher Airlines pertains to loans given between 2004 and 2012 estimated at Rs 7,000 crore.

The agency had to register complaint suo moto in 2015, CBI director Anil Sinha said today at IBA-CBI seminar on fighting financial frauds.

He said banks failed to file complaints despite pleading in the case. There was also undue delay in declaring it as fraud.

State Bank of India, Punjab National Bank have already declared it as a wilful defaulter.

This gave opportunity for borrower (Kingfisher) to allegedly divert funds, CBI director said.

SBI chairman Arundhati Bhattacharya declined to comment.