Citizens' Issues
Activists urge PM not to bailout Kingfisher Airlines using public funds

While there are moves to bailout the ailing airlines using public funds, Kingfisher is offering free wine club memberships and vouchers for premium members

Eminent social activists Aruna Roy and Nikhil Dey have written to the Prime Minister, expressing citizens’ concern about the bailout using public funds, and have questioned the logic of bailing out a private airlines while letting Air India, the national carrier languish.
“We urge you to ensure that taxpayers’ money is not spent to bail out Vijay Mallya’s Kingfisher Airline. We suggest the following as a possible solution to prevent more public money being pumped into Kingfisher and end the increasing harassment to the flying public. We demand that Mr Mallya be forced to bring in funds, that there must be a change in management at Kingfisher Airlines and that aviation policy must be re-examined,” says the letter.

If anyone wants to support their cause or offer suggestions, they can send their comments to the following address:
Aruna Roy, Nikhil Dey;
Mazdoor Kisan Shakti Sangathan(MKSS),
Village- Devdungri, Post-Barar, Dist-Rajsamand, Pin-313341.
Email: [email protected], [email protected]

Meanwhile Kingfisher, on the other hand, is busy offering free wine club memberships and gift vouchers to some premium club members, instead of clearing the overdue salaries of its airline staff.
Shortly after Dr Mallya issued a touching letter to Kingfisher Airlines employees, admitting that the matter of their overdue salary is of ‘personal sorrow’ to him, and promised that he is trying to arrange for funds. Kingfisher sent out mails to ‘King Club Members’ offering free memberships to ‘Wine Society of India’ and a voucher worth Rs2,000 redeemable within a week. On completing the sign up form today, the members will get ‘1,000 king miles free’ and ‘free wine course and tasting’.

Here is the letter sent by the activists to the Prime Minister...




Shibaji Dash

5 years ago

The shares of the liquor companies- United Breweries and United Spirits- having been pledged/leveraged to boost the cash flow, a bail out of King Fisher Airlines by any one will effectually mean also bailing out the liquor companies. Prudence demands that the Group as a whole should be evaluated because the finance, management and control of all these companies are inextricably linked and can not be separated .


5 years ago

Yes, true. Public money should not be used to bail out a company. Why only private? tax payers' money should not be used to 'bail out' any government enterprise as well! It's not a good thing to see that 'Air India' a hugely mismanaged company gets tax payers' money, in rescue. After all 'Air India' does not give us 'free tickets' or do 'public service'!

narendra bagul

5 years ago

Dear sir,
I fully appriciate the concern shown for spending our money to bail out kingfisher airlines. I am also of the opinion that our money should not be use for such things. Our problems are poverty and our money must be spent on iradication of it. And not for bail out

Narendra Bagul


5 years ago

No compassionate ground help should be offered to to King fisher Airlines. Instead go for auction, bring in fund... There are thousands of poor youth educated are knocking the doors of banks for small fund like one or two lakh for which the banks have no compassion or listen to their projects. I completely agree with the move against King fisher.

chandra shekhar

5 years ago

*For any Player in Airline-Industry, what needs to b re-looked is ... was there any unfair trade practice in awarding Licenses...?
*What is the point of going to the PM, does the Government lacks an efficient Administrator ...??
*Please recollect when "Jet-Air" was laying-off its Staff & Raj-Thakre had re-instated them back, how did they manage then, similarly there are SOLUTIONS, which needs to b worked-out & finally if Mallya Vijay gives-up than, allow TATA's to funtion, who had initiated initially & it was then, Deve-Gowda n Mulayam Yadav who roped-in Fresh-Face in "Airways", who had no-past experience & any track-record to show (correct me, if i m wrong) ...???


5 years ago

Every private airline, every private airport project, increasingly every private seaport, increasingly every private shipping company, increasingly every telecom company - and more - are now operating in India from behind what is being referred to as a "corporate veil". Kingfisher is one airline where we knew who was behind the corporate veil, that is also likely to change now as the current situation forces UB to accept loans from unknown entities.

THAT is the larger picture in India. WHO is now pulling the strings, who runs our economy and infrastructure, actually, and on whose behalf, please?

As far as the Kingfisher loans are concerned, it is also more important to nail down those responsible in governance and the banks and the oil companies and elsewhere, who brought things to this pass.

I support your move, and suggest that a larger move be made to pin down those responsible, since this is a bigger scam than 2G and CWG. It must also include the private airports and other aviation infrastructure issues, as well as an even bigger investigation into how and why the business of international air cargo to/from India, which in terms of value is higher than passenger aviation, has been almost totally lost to non-Indian operators.

Humbly submitted . . . VM


5 years ago

There a good solution by Deepak in below article. He asks govt to let Kingfisher fail and bail out Public banks and let private banks handle them self by mergers or otherwise

Babubhai Vaghela Ahmedabad 9427608632

5 years ago

Copy of Representation made by Shri Ashok Singh to Prime Minister seeking Permission to Prosecute Shri S Roy Choudhury CMD HPCL for Corruption in Kingfisher & other cases.

High court says I-T department filing appeals ‘mechanically’

The Karnataka High Court while passing strictures for filing repeated appeals and wasting taxpayers’ money said the I-T department can recover the fine of Rs1 lakh from the official who has filed the appeal and made DSL Software needlessly approach three forums

The Karnataka High Court, in a recent judgement, passed strictures on Income-Tax (I-T) department for filing repeated appeals and wasting taxpayers’ money. “It seems that the (I-T) department is filing these appeals mechanically—either for the purpose of statistics or to save their skins without application of mind,” the court said. It also said the I-T department can recover the cost of Rs1 lakh from the official who has decided to file these appeals.

“Having regards to the facts of the case, the Parliamentary intention and the object sought to be achieved and the way the two appellate authorities have pointed out that express provision, the view of the (I-T) department in contrary to law, unsustainable and cannot be countenanced. Hence, we are of the view that the appellants (I-T Dept) are liable to pay costs of Rs1 lakh for making the assessee (DSL Software) to contest the cases in three forums and wasting the tax payers’ money,” the high court said in its order.

The case relates to DSL Software, a 100% export-oriented unit (EOU), which was denied benefits of the tax holiday under Section 10B of the I-T Act. The I-T department extended the tax holiday period to 10 years from five years, to be reckoned from the date, the eligible unit started software development.

As per the previous amendment, DSL Software claimed benefit of tax holiday in accordance with the un-amended provision of Sect 10B for five years till 1997-98. However, after the amendment that came into force from 1 April 1999, DSL Software claimed the tax holiday benefits for 1999-2002, which was challenged by the I-T department. The I-T department said since DSL Software had already claimed tax benefits under Section 10B prior to the amendment; it cannot take the same benefit under the new amendment. DSL Software filed an appeal before the Commissioner of Income Tax (Appeals).

The appellate commissioner held that there is nothing in the Act to provide that the units which have fully availed the benefit of exemption under Section 10B in accordance with the provisions of Section 10B(7) as it stood originally shall not get the benefit of amended provision introduced by I-T (Second Amendment) Act, 1998. The commissioner said DSL Software is entitled for exemption under Section 10B for the assessment years (1999-2002) under consideration.

Aggrieved by the order from the appellate commissioner, the I-T department filed an appeal to the I-T Tribunal. After taking note of the object with which the amendment was introduced as well as the amended provisions, the tribunal held that the provisions of Section 10B do not place the old and new EOU units on a different footing. While dismissing the appeal, the tribunal said, “The reference in the proviso is to the unexpired period of 10 years without any qualification. It does not refer to the unexpired period of the tax holiday duration. The substituted section, being without any qualification is therefore to be held as applicable to the assessee (DSL Software).”"

The I-T department then approached the high court, which also dismissed its petition while passing structures on the functioning of the department. The court said, orders passed by the tribunal as well as the first appellate authority are strictly in accordance with law and do not suffer from any legal infirmity, which calls for interference and no substantial question of law arises for consideration in this appeal.

“The case brings to the fore the way in which the I-T department, without a proper application of mind, are filing appeals against the orders of the tribunal and thus, wasting the precious time of this court and wasting the tax payers’ money. It only shows the lack of application of mind and it is our experience that it is not an isolated case. It seems that the department is filing these appeals mechanically either for the purpose of statistics or to save their skins without application of mind,” the court said.

Last year, to curb increased litigation, the revenue department revised the limits for filing appeals before the I-T Appellate Tribunal (ITAT), high courts and the Supreme Court to Rs3 lakh, Rs10 lakh and Rs25 lakh, respectively. The department was expecting the number of cases to fall by about 25% to 1,500 per month from 2,000 cases a month. The assessee of course is free to move higher courts in case of an adverse verdict. The measures were expected to cut litigations by 13% in the case of ITAT and 25% to 30% each in the case of high courts and the Supreme Court, said PTI in a report.



Tira T

5 years ago

It is not a new thing in the IT deptt. The judicial sections in all the field offices and the CBDT are filled up by the most recalcitrant and corrupt officials, with neither the requisite expertise and knowledge or will to work. Moreover, they get money for filing wrong and useless appeals only to help the dishonest taxpayers. When CCITs and all below are busy making money with impunity, the judicial wings cannot be expected to do justice to their jobs. ITAT, a corruption-riddled body, also contributes to the deliberate confusion. The root cause is corruption from top to bottom.


5 years ago



No name am scared of the goons

5 years ago

1 lakh is a pittance I say but the court has done the right thing. This directive should be given publicity and the officers involved must be hauled up for vexatious acts. The IT Dept. is starved and is way below achieving its target each year. So the period after 1st Nov leading up to 15th March is HAPPY OPEN SEASON in hunting parlance. The tax authorities club and bludgeon every assessee into parting with "whatever reasonable" that they can collect. As citizens, we have brought it upon ourselves and are nurturing this Frankenstein organisation. TDS or the lack of it is being used as a weapon to harass the tax payer. Ask around and you will see the honest taxpayers who are bitter about the poor treatment meted out to them. The Dept. writes each year in its report some refined thoughts like a bird or bees sucking nectar (that's them in the metaphor) from the flowers to make honey while ensuring the flowers bloom and thrive (the poor tax payer) for the next season. All of these refined Chanakyan thoughts are lost on the goons manning the field formations - especially the rascals in Aaykar Bhavan. Waste of print and more dead trees; their behaviour is more like a pack of frenzied hyenas at the sight of someone's meal.

We must urge the CBDT to simplify the procedures and collect more efficiently. We must also ensure that judgements or rulings of courts in cases be used in assessments from the date of pronouncement and not be retro fitted on assessments of a past period. In my opinion, after having been chewed up badly by the rascals, the flaw lies with the central officers of the CBDT & its associated TRU who know the impact of developments but don't issue circulars.

From where we lie, things can only improve.

Please join me in praying for India.


Ratanlal Purohit

In Reply to No name am scared of the goons 5 years ago


Jaiprakash gets shareholders nod to hive off cement business

Jaiprakash Associates is in the process of setting up manufacturing units in Gujarat and Karnataka

Jaiprakash Associates said its shareholders and creditors have approved the hiving off of the cement business to a wholly-owned subsidiary, Jaypee Cement Corporation (JCCL).

"We are pleased to inform that the equity shareholders and creditors of the company, in their respective meetings held on 25 February 2012, have duly approved the scheme of arrangement," Jaiprakash Associates said in a communique to the Bombay Stock Exchange (BSE).

The company said while 99.99% of the shareholders, who cast their votes favoured the scheme of arrangement, 99.87% of the creditors, who voted, approved the plan.

Cement is one of the major businesses of Jaiprakash Associates, the flagship company of the Jaypee group. Besides expanding capacity in North, East and Central India, it is in the process of setting up manufacturing units in Gujarat and Karnataka.

Jaypee Group has an aggregate installed capacity of 26.20 million tonne per annum of cement at present. It is in the midst of expanding capacity to 35.90 million tonne.

Jaiprakash Associates has interests in areas such as infrastructure development, real estate and hospitality. The proposed demerger is expected to benefit both the transferor and the demerged firm as it would provide focused management for the respective businesses of the two companies, it had earlier said.

In the late afternoon, Jaiprakash Associates was trading at around Rs74.95 per share on the Bombay Stock Exchange, 6.92% up from the previous close.


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