In a widening of its money-laundering probe against the defunct Kingfisher Airlines Limited and others, the Enforcement Directorate (ED) will register a fresh case soon to probe irregularities linked to its alleged default on loans worth Rs 6,027 crore by a consortium of banks.
The loans were given to the firm by the bank consortium during 2005 to 2010 but the former allegedly began missing the repayment commitments since 2009, according to an ED source. Confirming this, an ED source said the agency’s second case against the firm would be based on the contents of the first information report (FIR) against it that the Central Bureau of Investigation (CBI) on Saturday said it had registered to probe the alleged default on the Rs 6,027 crore loans.
According to the source, the ED is waiting for a copy of the FIR from the CBI and once it reaches it, the action will be taken. Once the second case gets registered, the ED will begin recording statements of suspects and witnesses connected to the case and seek records from the banks, according to the source.
The CBI FIR was based upon the complaint of thw State Bank of India, which led the consortium.
The firm, and others associated with it who are under the scanner of the ED and the CBI, have so far denied all allegations against them.
So far, the ED’s probe against the firm was limited to its probe into alleged money-laundering charges related to alleged default on a loan worth Rs 900 crore by the IDBI bank, according to the source. The ED’s first case, related to the IDBI loan, was registered in January.
In its IDBI case probe, the ED had alleged that the loan was given in violation of established procedures.
