KC Chakrabarty Under Suspicion in Kingfisher and Airworth’s fraud case; CBI Issued LOC Against Him

Former Deputy Governor of Reserve Bank of India is in a tight spot as Central Bureau of Investigation accused him of being involved in Kingfisher Airlines and Airworth Travels & Tours Pvt Limited debt case.

The apex investigation authority has issued Lookout Circular against him by virtue of which he was restrained in May from going to London. His for the withdrawal of LOC in special CBI court in Delhi was rejected by the special judge Savita Rao, believing that his departure from India can become a weapon to escape justice.

However, Chakrabarty, however, denied all allegations of wrongdoing in a May 15 letter to the CBI director. Chakrabarty, who served as deputy governor of the central bank between 2009 and 2014, is now an NRI and lives in London.  He also served as the chairman and managing director of Indian Bank from 2005 to 2007. Chakrabarty was also the chairman and managing director of Punjab National Bank from 2007 to 2009.

Central Bureau of Investigation (CBI) held him ‘suspect’ in two cases, including one related to the debt default by fugitive tycoon Vijay Mallya-founded Kingfisher Airlines and other in the Airworth Travels & Tours Pvt Limited, forgery case filed by Indian Overseas Bank against the agency. The latter, according to Chakrabarty, has been doing his personal bookings after he left office in 2014.