The Central Bureau of Investigation (CBI) says former deputy governor of Reserve Bank of India (RBI) KC Chakrabarty is a suspect in two cases, including one related to Kingfisher Airlines, reports The Economic Times.
The agency made this disclosure in a special CBI court, which was hearing Chakrabarty's petition for revocation of a lookout circular (LOC). The circular had barred him from leaving the country in May this year.
LOC was issued for the second case, which was filed by Indian Overseas Bank against Airworth Travels & Tours, a Delhi-based travel company, and unnamed public servants.
Chakrabarty was deputy RBI governor between 2009 and 2014 and has denied all accusations in a May 15 letter to the CBI director. He was chairman and managing director of Indian Bank from 2005 to 2007 and Punjab National Bank from 2007 to 2009.
The CBI court dismissed Chakrabarty's petition, saying that as he is a UK resident the prosecution's concern that he may not return from abroad is justified and his presence was required in two cases.
On May 1, he was stopped in Mumbai from boarding a flight to London because of the CBI lookout circular.
In his May 15 letter, Chakrabarty mentioned his relationship with Airworth and its director Gaurav Mehra was restricted only to travel bookings he made after he retired in 2014.
"In my official capacity, I have never dealt with Mehra nor recommended sanctioning of any credit facility or financial support to his business," He said in the letter.
India Overseas Bank accuses Airworth and its director of "cheating, forgery of valuable securities, forgery for the purpose of cheating, using forged documents as genuine".