A public sector Corporation Bank had extended an overdraft of Rs 7.94 crore in 2007-2008 to Robert Vadra’s Sky Light Hospitality when his company had total resources of only one lakh rupees has left officials at the Mangalore based lender scrambling to understand the circumstances in which the transaction took place and whether it conformed to normal lending guidelines. It is not clear from Sky Light’s balance sheets what collateral, if any, was put up for the overdraft. A reliable source told that Corporation Bank extends overdrafts to customers based on their business projects, net worth and past record. Commenting on the size of the overdraft, one official said that in this particular case, on the face of it, Vadra can’t be given an overdraft of that amount. If he has, they the Bank officials have to see why he has been given it. In August 2011, the Central Vigilance Commission CVC had issued a memo to the Department of Financial Services of Corporation Bank seeking an explanation from its former CMD, Ramnath Pradeep, on noticed lapses in giving unsecured loans. The CVC, in the memo, had directed the DFS to take immediate action to stop the CMD from continuing the abuse of authority.