City Court Di­rects Mallya, KFA Chief Exec to Ap­pear on June 7

The Economic Times - - Companies - Our Bureau

Mum­bai: The le­gal chal­lenge mounts on the liquor baron Vi­jay Mallya and San­jay Agar­wal, chief ex­ec­u­tive of King­fisher Air­lines. Yet an­other court — the Es­planade court in Mum­bai — has di­rected them to ap­pear on June 7 for a hear­ing on the case for re­cov­ery of dues filed by the ser­vice tax depart­ment. On Wed­nes­day, the depart­ment ap­proached the court in the case to re­cover dues of .₹ 114 crore, in­clud­ing in­ter­ests. Ac­cord­ing to a se­nior tax of­fi­cial, the air­line which stopped op­er­a­tions in Oc­to­ber 2012, al­legedly did not de­posit the ser­vice tax col­lected on ticket sales with the depart­ment and di­verted the money for other pur­poses.

Se­nior coun­sel Amit De­sai, while ap­pear­ing for Mallya, sought blan­ket ex­emp­tion from the ap­pear­ance in the court. How­ever, Ad­vait Sethna, spe­cial coun­sel ap­pear­ing for the ser­vice tax depart­ment in the case ar­gued that just be­cause the per­son is well-known in­di­vid­ual, he can’t be ex­empted from ap­pear­ing in the court. Af­ter hear­ing ar­gu­ments from both the sides, the court ad­journed the mat­ter and di­rected Mallya and Agar­wal to show up for next hear­ing.

Ear­lier, in late 2014, the rev­enue depart­ment had claimed the first right to re­cover dues by at­tach­ing the King­fisher House in Mum­bai, six air­craft and two he­li­copters, be­sides freez­ing bank ac­counts of the de­funct air­line.

Fresh Sum­mons

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