CBI says Mallya inflated value of collateral properties: Sources

the Central Bureau of Investigation (CBI) that has been investigating Vijay Mallya over bank defaults has alleged that properties attached as collateral securities were inflated (over and above the actual market price), sources say. CNBC-TV18's Kritika Saxena, quoting sources, says that the properties were priced higher to get maximum loans by Mallya. The CBI will be examining verification reports that extended loans to Kingfisher Airlines, sources add. Some of the properties whose prices were inflated include Mallya's Santacruz property in Mumbai, Goa Villa and Bangalore properties. The CBI, which is in the midst of investigation, is yet to file the chargesheet without which no action can be taken. CBI, however, will call in Mallya for questioning, sources said.
In another case of default in payment of Rs 900 crore to the IDBI Bank, the Enforcement Directorate (ED) has decided to widen the scope of investigation. The ED, earlier, had called only the IDBI Bank officials for questioning. However, as per sources, all the 17 banks that have exposure to KFA have been asked to submit loan documents including loan spendings related to the airline.

The list includes names like State Bank of India and Punjab Bank.

The KFA officials have also been asked to submit their personal finances and income tax returns of last five years.

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