Lost hope to recover money from Kingfisher Airlines: United Bank of India

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As per a PTI report, United Bank of India, the state-owned lender, has become the first of the 17 lenders to publicly admit that it no longer expects to recover its dues from the beleaguered Kingfisher Airlines Ltd (KFA).

Interestingly, the Kolkata-based lender was the first bank to attempt to get Vijay Mallya, Chairman of KFA, tagged as a wilful defaulter. Mallya and UB Group, however, challenged this tag in the court. The lenders have so far been able to recover just about Rs 1,000 crore from KFA out of their over Rs 7,500 crore exposure (excluding penal interest), since they recalled the loan in February 2013, by selling pledged shares in group companies.

“Now, nothing is happening on the Kingfisher account and we are not getting any amount. We may ultimately get a few more crores by selling that building (Kingfisher House in Mumbai) and other collaterals”, P Srinivas, Managing Director and CEO, United Bank of India said.

“But when you look at the total loan amount, what we may ultimately recover is just equivalent to interest component. In last two years, we lost interest payment and we may be able to recover that much and the principal amount we may not”, he said.

Read More: http://goo.gl/qs2L4M

HC directs Kingfisher Airlines to pay dues of Rs 52.61 lakh to pilot

Kingfisher-AirlinesNEW DELHI: Kingfisher Airlines Ltd has been directed by the Delhi High Court to pay Rs 52.61 lakh to a pilot towards her outstanding salary and other dues from August 2012 to April 2014.

Justice Jayant Nath directed the now defunct airline to pay the pilot Rs 52,61,450 with nine per cent interest from the date of filing till recovery of the amount as well as cost of litigation.

The court passed the order as none appeared on behalf of the grounded carrier despite serving of summons of judgment.

It referred to a 2011 letter sent to the pilot by which her salary was revised to Rs 2.24 lakh per month, and said the communication was a written contract.

It also observed that in the case of other pilots of the airline in similar situations, the high court had decreed the suits in their favour.

Read More: http://goo.gl/yyaohl

Kingfisher fined for ‘duping’ flyers to take low-cost flight

Kingfisher-AirlinesMUMBAI: The problems don’t seem to be ending for Vijay Mallya. Sending a strong signal to all airlines, the National Consumer Disputes Redressal Commission on Thursday ordered the defunct Kingfisher Airlines to deposit Rs 25 lakh in the Consumer Welfare Fund of the Government of India as fine for making fliers take the low-cost airline, Deccan, after taking payments for the premier-service airline (Kingfisher).

The order follows a complaint filed by a Delhi lawyer, JK Mittal, and an NGO, Consumer Voice, in 2008. “We also direct that one copy each of this order be sent to the Director General, Civil Aviation, and the Secretary to Government of India, Department of Civil Aviation, to consider taking adequate steps to ensure that such unfair means and practices are not adopted by other airlines operating from India,” the commission said.

Read More: http://goo.gl/JZ3P6P

Supreme Court tells Kingfisher Airlines to pay Rs 372cr to Income Tax Department

Kingfisher-AirlinesAs per a TOI report by Amit Anand Choudhary, in a major setback to Vijay Mallya-owned Kingfisher Airlines Ltd, the Supreme Court of India (SC) on Monday directed it to pay around Rs 372 crore to the Income Tax (IT) Department for non-payment for Tax Deducted at Source (TDS) from the salaries of its employees to the government.

A bench of Justices Ranjan Gogoi and N V Ramana dismissed the plea of the beleaguered airline challenging an order of the Karnataka High Court which had last year upheld the assessment order of the IT Department. Taxmen had demanded around Rs 302 crore towards TDS and 70 crore as interest for the assessment years 2010-11, 2011-12, and 2012-13.

“We do not find any legal and valid ground for interference. The special leave petitions are dismissed,” the bench said.

At the beginning of the proceedings, the bench asked senior Advocate Abhishek Manu Singhvi, appearing for the airline, as to how much it intended to pay. Singhvi, however, refused to give a word on payment saying that the IT Department had done wrong assessment of its tax liablility.

Read More: http://goo.gl/1AQOfU

Kingfisher Airlines board accepts CEO Sanjay Aggarwal’s resignation

kingfisher airlines newsNEW DELHI: Kingfisher AirlinesBSE 4.20 % today said its board has accepted the resignation of Sanjay Aggarwal, who had put in his papers as chief executive officer nearly a year ago.

Faced with mounting losses and rising debt, Kingfisher Airlines stopped flying in October 2012. The carrier’s two-year window to renew its flying license also lapsed last year.

The company today informed the BSE that Aggarwal’s resignation has been accepted by the board.

Source: http://goo.gl/VSSouH