DEPUTY DIRECTOR Vs. RAJENDRAKUMAR JAIN

JUDGEMENT

(1.) This appeal is filed by the appellant/Directorate of Enforcement under Sec. 42 of the Prevention of Money Laundering Act, 2002 (for short, 'PMLA, 2002') to set aside the judgment dtd. 6/8/2019 passed by the Appellate Tribunal, New Delhi, under the PML Act, 2002, in MP-PMLA 4917/MUM/2018(U.A), MP-PMLA-4918/MUM/2018 (Stay) and FPA-PMLA-2532/MUM/2018.

(2.) The brief facts of the case are that, the CBI - BS and FC has registered the FIR No. RC BSM 2015 E 0006 dtd. 29/7/2015 against Sri Vijay Mallya, M/s. Kingfisher Airlines Ltd., and unknown officers of IDBI and others for showing undue favour to M/s. Kingfisher Airlines Ltd. (for sake of brevity, "M/s. KAL") in the matter of sanction and disbursement of short-term loans (STL) to the tune of Rs.150.00 Crores, Rs.200.00 Crores and Rs.750.00Crores, respectively, despite weak financials, negative net worth and low credit rating of the borrower Company and despite the fact that the Company, viz., M/s. KAL, being a new client, did not satisfy the norms stipulated in the corporate loan policy of the bank.

(3.) The officials of the IDBI Bank Ltd., M/s. KAL and its officials conspired among themselves and got sanctioned and disbursed term loans aggregating to Rs.750.00 Crores to M/s. KAL without conducting due diligence and M/s. KAL had diverted the funds, thereby putting the IDBI Bank to a wrongful loss of Rs.750.00 Crores.