The Central Bureau of Investigation (CBI) has closed a case of disproportionate assets against former IDBI Deputy Managing Director BK Batra. Batra was being investigated for allegedly amassing Rs 1.69 crore of assets disproportionate to his known source of income during his tenure at the bank from 2008 to 2016. The CBI had initiated the probe after finding credit entries of Rs 60 lakh in Batra’s bank account, which were suspected to be “accommodation entries” routed through shell companies.
However, during the investigation, it was found that Batra had sold his flat to a Gurugram resident and received an advance of Rs 60 lakh for its sale. This amount was a significant chunk of the disproportionate assets calculation. When removed, the alleged questionable assets would be less than 10 percent of the total legal income, below the threshold fixed by the Supreme Court for a probe. As a result, the CBI decided to file a closure report in the matter, which was recently accepted by a special court.
Batra is still under investigation in a Rs 950 crore loan fraud case against Kingfisher Airlines, which was owned by fugitive liquor baron Vijay Mallya. The CBI has alleged that Batra colluded with Mallya in sanctioning loans to the airline without following due diligence procedures. Batra was arrested in 2017 in connection with the case and was listed as accused number 8 in the CBI chargesheet. His application seeking discharge from the case was rejected by a special court in Mumbai last year.
The CBI has alleged that Batra’s responsibility in the Kingfisher Airlines scam is “second only to the CMD”. The agency has accused Batra of being involved in all three sanctions to the airline, which turned into non-performing assets and were later declared as fraud. The closure of the disproportionate assets case against Batra does not affect the ongoing investigation into the Kingfisher Airlines loan fraud case. The CBI will continue to investigate Batra’s role in the scam, and he may still face charges and penalties if found guilty.