The ED had issued summons to Yogesh Agarwal, former chairman and managing director of IDBI Bank, and four other former or serving executives — BK Batra, OV Bundellu, R Bansal and SKV Srinivasan — who were key members of the credit committee.
The investigating agency is examining the documents and will soon call respective bankers for cross-questioning, said a source.
“The bank officials are alleged to have violated the banking norms while sanctioning the loan to the airline,” said an official
The bank officials were questioned about how the loan was given to Kingfisher, which had poor financials and negative net worth.
The ED recently filed a case against Vijay Mallya, Kingfisher Airlines and IDBI Bank executives under the anti-money laundering law.
The probe agency is investigating the diversion of a sizeable chunk of funds, which was used for foreign remittances towards lease rentals, purchase of aircraft parts etc.