Vijay Mallya's Kingfisher Airlines was once a symbol of India's booming economy and the excesses of its flamboyant billionaire businessman. However, the airline's spectacular fall from grace and eventual bankruptcy in 2013 has become a cautionary tale about the perils of over-leveraged expansion and mismanagement.
Raghunathan, also known as Raghu, was the Chief Financial Officer (CFO) of Kingfisher Airlines from its inception in 2005 until 2011. As the CFO, Raghu was responsible for managing the financial aspects of the company, including its budget, financial reporting, and fundraising efforts.
However, Raghu has been widely criticized for his role in the airline's financial demise. The company had amassed a debt of over $1 billion by 2011, and despite Raghu's efforts to secure additional funding, the company was unable to stay afloat. In 2012, Kingfisher Airlines was grounded due to its inability to pay its employees and creditors, and it eventually declared bankruptcy in 2013.
Raghu has faced legal repercussions for his role in the company's financial mismanagement. In 2016, he was arrested in London on charges of money laundering and extradition to India. He was released on bail but has been fighting extradition ever since.
The collapse of Kingfisher Airlines serves as a cautionary tale about the dangers of over-leveraged expansion and the importance of financial prudence and transparency. Raghu's role as CFO at the time of the company's financial troubles has led to scrutiny of his actions and accountability for the company's downfall.
Kingfisher official Raghunathan gets 18
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. Raghunathan's counsel said that several warrants were issued by different courts and he was unable to appear before this court. The matter relates to cheques issued by Kingfisher Airlines Ltd to GMR Hyderabad International Airport Ltd GHIAL , which operates Rajiv Gandhi International Airport, towards charges for using the facilities at the airport for Kingfisher Airlines flights. The ED had recently registered a money laundering case against Mallya and others based on a CBI FIR registered last year. In any event, such information will be kept in our database until we get explicit consent from you to remove all the stored cookies. On the request of complainant, call on September 22," the Magistrate had said. The ED had issued summons to over half a dozen officials of the IDBI bank and "We had summoned Raghunathan and he appeared before us for questioning this morning," said an ED official.
Loan default case: ED quizzes Kingfisher Airlines' ex
Officials had earlier indicated that the agency would question some important functionaries of the bank and the airlines before they decide on issuing summons to the main player and liquor baron Mallya in the case. Mumbai, Mar 12 : Former CFO of long-grounded carrier Kingfisher Airlines, A Raghunathan, appeared before the Enforcement Directorate ED here for the second day today for questioning in connection with the money laundering probe in the alleged default of over Rs 900 crore loan from IDBI bank. During arguments on Thursday, GHIAL counsel G Ashok Reddy submitted that it was after five months Raghunathan had finally appeared before this court. The matter relates to cheques issued by Kingfisher Airlines Ltd to GMR Hyderabad International Airport Ltd GHIAL , which operates Rajiv Gandhi International Airport, towards charges for using the facilities at the airport for Kingfisher Airlines flights. The ED recently registered a money laundering case against Mallya and others based on a CBI FIR registered last year.
Enforcement Directorate Quizzes Former Top Official Of Kingfisher Airlines In Loan Default Case
The CBI has sought time till next week to file a reply. It will take years to bring him back to India. Advertising Cookies These cookies collect information about your activities on our sites as well as other sites to provide you targeted advertising. For example, these cookies track what content are most frequently visited, your viewing history and from what locations our visitors come from. My services seconded to Kingfisher Airlines Limited. The ED has pressed charges under various sections of the PMLA against Mallya and others named in the CBI complaint. For this the complainant wants the case to be posted to September 22 as Raghunathan is to appear in some other courts in the same court complex premises on that date.
Former Kingfisher Airlines CFO A Raghunathan gets 18
However, if you select this setting you may be unable to access certain parts of the sites. A cookie is a small text file that can be stored on and accessed from your device when you visit one of our sites, to the extent you agree. Rakul Preet was questioned by the ED on September 2, 2021. The cases are in different stages of trial. During arguments on Thursday, GHIAL counsel G Ashok Reddy submitted that it was after five months that Raghunathan had finally appeared before this court. I was always an employee of United Spirits and retired in July 2013.
Loan default case: ED quizzes Kingfisher Airlines’ ex
Ashok Reddy, citing certain court rulings, submitted that this court can pass sentence against the company and also against Vijay Mallya. The ED has pressed charges under various sections of the PMLA against Mallya and others named in the CBI complaint. The agency is also investigating the overall financial structure of Kingfisher Airlines and if any possible kick backs were made. Such cookies and other technologies helps us to identify you and your interests, to remember your preferences and to track use of zeenews. Functionality Cookies These cookies let us operate the sites in accordance with the choices you make. Third Special Court Magistrate M Krishna Rao also imposed Rs 20,000 fine in each case on Raghunathan after the latter appeared before the court.
Kingfisher Airlines CFO Raghunathan questioned; blames Mallya for company's failure
The Attorney General had yesterday informed the Supreme Court that Mallya has left the country a week ago. ALSO READ: He further informed that Vijay Mallya is absconding and is out of the country, and sought a court direction to proceed with sentence order against Raghunathan. Raghunathan interacts with media after coming out of ED office on March 11, 2016 in Mumbai, India. What else is making news: The court had observed that Raghunathan along with IDBI Bank former chairman Yogesh Agarwal and deputy general manager BK Batra, had influenced the decision-making process and were part of key activities related to the loan granted to Kingfisher Airlines by the bank. Raghunathan to 18-month imprisonment in connection with two cheque bounce cases filed against him and businessman Vijay Mallya by GMR Hyderabad International Airport Ltd. Without these essential cookies we may not be able to provide certain services or features and our site will not perform as smoothly for you as we would like. Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage.
Loan default case: ED questions Kingfisher Airlines' ex
Former Kingfisher Airlines CFO Raghunathan gets 18
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. We use the following types of cookies: Persistent Cookies We use persistent cookies to improve your experience of using the sites. The magistrate told Raghunathan that he has been found guilty under relevant sections of Negotiable Instruments Act. Enforcement Directorate ED officials questioned former CFO of Kingfisher Airlines A. However, as the warrants against the Company and Mallya had returned unserved, the court directed the complainant GHIAL to file their present correct address and posted the matter to October 18. Former chief financial officer CFO of the grounded carrier Kingfisher Airlines, A Raghunathan, was on Thursday sentenced to 18-month imprisonment by a court in Hyderabad in connection with two cheque bounce cases filed against him and businessman Vijay Mallya by GMR Hyderabad International Airport. However, this will not prevent the sites from placing further cookies on your device unless and until you adjust your Internet browser setting as described above.