ED wants to quiz the ex-CFO of now defunct, Vijay Mallya’s Kingfisher Airlines

The Enforcement Directorate questioned former Chief Financial Officer (CFO) of defunct Kingfisher Airlines, A Raghunathan, in connection with its money laundering investigation in the alleged default of over Rs 900 crore loan from IDBI bank.

The ED summoned officials of IDBI bank and Kingfisher Airlines under the Prevention of Money Laundering Act (PMLA). They were asked to submit information about their personal finances and Income Tax Returns (ITRs) of last five years to the investigators.

"We had summoned Raghunathan and he appeared before us for questioning this morning. His questioning is important to throw light on various financial transactions, as many of them are in his personal domain," said an ED official.

In his earlier statement, Raghunathan blamed Vijay Mallya for the financial crisis that befell Kingfisher Airlines.

The ED recently registered a money laundering case against Mallya and others based on a CBI FIR registered last year. The agency is also investigating the overall financial structure of Kingfisher Airlines and if any possible kick backs were made.

The ED has pressed charges under various sections of the PMLA against Mallya and others named in the CBI complaint.

The CBI had booked Mallya, director of Kingfisher Airlines, the company, Raghunathan and unknown officials of IDBI Bank in its FIR alleging that the loan was sanctioned in violation of norms regarding credit limits.

The ED is looking into the "proceeds of crime" that would have been generated using the slush funds of the alleged loan fraud and it is also probing if some of this amount was sent abroad illegally, they said.