Special court issues summons to Vijay Mallya

I-T officials filed a criminal complaint against Kingfisher and Mallya for failure to remit TDS
Thu, Feb 21 2013. 02 58 PM IST
In fresh trouble for the head of crisis-ridden Kingfisher Airlines Ltd, Vijay Mallya, the special court for economic offences has issued summons to him on an income-tax (I-T) department criminal case for not remitting to government the tax deducted at source (TDS) from salaries of its employees. The courts action came after it took cognizance of the offence under sections 276B and 278B of the Income Tax Act, 1962, for not remitting Rs.74.94 crore deducted as TDS in 2009-10 fiscal andRs.23.70 crore imposed as interest for not meeting the deadline stipulated for payment.

Feb 26, 2013, 03.40 PM IST

Kingfisher down 5% after govt cancels int'l flying rights

Shares of Kingfisher Airlines (KFA) tumbled around 5 percent to Rs 10.74 after the civil aviation ministry withdrew its international flying rights along with cancellation of slots at domestic airports.

KFA offered over 3,500 seats each day on international network and now these will be given away to other airlines that operate on same routes. Simultaneously, the airline's domestic will also be given away to other carriers.

Kingfisher agrees to pay 6-month salary; stock up 5%

hares of Kingfisher Airlines (KFA) were locked at 5 percent upper circuit on Friday after the company agreed to

pay six months' salary to its employees.

Meanwhile, DGCA told KFA that paying salaries is not sufficient to revoke licence suspension. "We want assurance on payment to other stakeholders and credible revival plan with financial details," DGCA said, according to government sources.

Mar 09, 2013, 01.00 PM IST

SC dismisses KFA's plea on depositing Rs 185cr to IT dept

The Supreme Court today rejected Kingfisher Airlines' plea against the Karnataka High Court's order directing it to deposit around Rs 185 crore with the Income Tax Department as TDS from its employees' wages.

The apex court, which had asked the cash-strapped airlines to deposit the money within four weeks, refused to extend the time limit as sought by the Kingfisher's counsel.

The bench headed by Justice R M Lodha rejected the airline's plea to give three more weeks. The Vijay Mallyaowned airlines had challenged the December 5 order of the high court directing it to deposit 50 per cent of the Rs 371 crore to IT department. It had also asked the company to furnish bank guarantee for the remaining amount within six weeks.

The company had contended that the amount due is much less than the demand made by the IT Department and the department had not given it a proper opportunity to hear its case.

It said the Department had issued notices without providing the company reasonable and sufficient opportunity of being heard.

The Department had claimed that the company had illegally withheld the revenue even after deducting the said amount from various sources, including by way of tax deducted at source (TDS).

The Department, in December 2011, had demanded payment of about Rs 372 crore as TDS from the company for the assessment years 2010-11,and 2011-12 following analysis of records.

Mar 14, 2013, 09.40 PM IST

SBI board gives nod for recovery proceedings against KFA

SBI board today gave a formal approval to the management for issuing the recall notice to Kingfisher.

The board has also asked the bank to go ahead and start recovery proceedings. A committee of four lenders has also been set up to look into the ways of recovery. This includes sale of Kingfisher's Mumbai office and property in Goa and sale ofUnited Spirits Limited shares pledged with the banks. Lenders can also invoke personal guarantees of Vijay Mallya.