Investigators Raid Kingfisher Air Premises

The Indian Central Bureau of Investigation (CBI) searched drinks baron Vijay Mallya's home and offices on Saturday, in connection with a probe into a loan granted by mid-sized state lender IDBI to his now defunct Kingfisher Airlines.

Saturday's raids are the latest in a string of investigations around Mallya, heir to United Beverages, which makes Kingfisher beer. His business empire previously included India's largest spirits company United Spirits, but he has since sold most of his shares.

Local media reported the CBI was questioning circumstances around the IDBI loan, worth around INR9 billion rupees (USD$139 million) and granted by the bank despite the airline's negative credit ratings and well reported financial trouble. Newspapers said the bank's decision violated credit limit norms.

A spokesman for Kingfisher confirmed CBI officials had visited UB Group premises in Bangalore, Goa and Mumbai in connection with the loan investigation.

"The company co-operated with the officials and provided the necessary documents and will continue to offer co-operation," the spokesman said. He did not comment further.

The CBI's raids are part of a broader effort to investigate bad loans at public sector banks.

Mallya's debt-ridden Kingfisher Airlines stopped operations in 2012, but remains involved in multiple investigations.

Last month, India's financial fraud investigating agency sought information from United Spirits in connection with a probe into Kingfisher Airlines over alleged diversion of funds, CNBC TV18 reported.

The agency was looking into alleged financial irregularities from 2005, when Mallya's UB Group controlled both United Spirits and the airline.