Out of the total amount, sources said, IDBI granted a short term loan of Rs 150 crore to the airlines in October 2009. In the second tranche, they said, the bank loaned Rs 750 crore to Kingfisher, of which Rs 200 crore was in the form of a bridge loan and the rest for other purposes. Investigating agencies such as the CBI and the Enforcement Directorate are currently probing the IDBI loan default by the airlines. According to sources, the investigation has revealed that Mallya allegedly colluded with IDBI Bank officials to secure loans without giving any valuable collateral. The probe found that IDBI approved the Rs 900-crore loan to Kingfisher Airlines despite its weak financials, low credit rating and negative net worth.

Source: Indian Express June 13, 2017 21:59 UTC