Companies & Sectors
DGCA likely to issue show cause notice to Kingfisher

DGCA is looking into legal issues and intends to issue a show-cause notice on suspension or cancellation of license says Ajit Singh

New Delhi/Mumbai: Spelling fresh trouble for the debt-ridden Kingfisher Airlines, aviation regulator Directorate General of Civil Aviation (DGCA) is likely to issue a show-cause notice asking why its flying license should not be suspended or cancelled, reports PTI.
This is being contemplated after the ailing carrier grounded all operations and extended lockout till 12th October after failing to resolve with striking engineers and pilots to the deadlock over non-payment of salaries for last seven months.
"The (Kingfisher) management has declared a lockout. DGCA is looking into legal issues and intends to issue a show-cause notice on suspension or cancellation of license. He (DGCA chief) intends to go ahead with the notice," Civil Aviation Minister Ajit Singh told reporters.
He said the aviation regulator was studying the implications of the strike by the employees of the airline, which has grounded the fleet for safety reasons.
In Delhi and Mumbai, angry staff of the liquor baron Vijay Mallya-owned airline staged protest demonstrations wearing black-bands and carrying placards, to demand speedy disbursal of their dues.
Their protests came in the backdrop of suicide committed by the wife of a Kingfisher employee in national capital on Thursday, apparently due to financial stress due to non-payment of salaries.
Replying to questions, Singh said, "some companies strive (to grow), while some fail. Government can close them down or help them." 
The Minister also maintained that the airline would have to satisfy the DGCA on safety before it gets permission to fly again.
The airline, which had earlier grounded all operations till 4th October, last night extended it by another eight days blaming the staff for the strike since Friday last.
"There are a lot of factors involved in it, including the salaries of the employees, their disgruntlement issues and others. If the employees are disgruntled there is an issue of safety.
"In order to give them permission to fly, they have to satisfy the DGCA on all these issues. The rest is if the law allows or...if we want to suspend their licence or revoke it, we have to see if the law permits," Singh told reporters.




5 years ago

This company deserves to be wound up.The great Dr Vijay Mallya had no time to manage the company.he being the king of good times was required elsewhere-possibly F1,IPL,Race courses,Calendar shoots,Yachts,Monaco,etc.

There will certainly be safety issues, when KFA employees are not paid salaries not just for a month or two but in excess of 6 months.
They will be thinking of where their next meal is coming from or when their lending banker will send goondas/recovery agents to repossess the cars and homes taken on loan.How to pay school/college fees for their loved children?Medical bills of parents.

When all these are weighing heavily on their psyche, can't blame them if safety does get sacrificed sooner than later.
It is a miracle that it has not happened till now as the KFA staff are more committed than their boss towards the airline and the fare paying passengers.

KFA deserves to be closed down.
High time banks started recovery process and invoking the personal guarantee of Dr Vijay Mallya. Sell his mansion,yacht,shares of group companies.
He doesn't deserve any sympathy.
It is his incompetency and love for good life that has brought KFA to the present messy state.

Nifty, Sensex face minor jolt: Friday Closing Report

A close below 5,735 on the Nifty may see some change in trend


The market snapped its four-day winning steak and closed lower on pressure from technology, healthcare and banking stocks. A brief halt in trading on the NSE after erroneous orders executed by Emkay Global Financial Services also weighed on the sentiments. A technical mishap brought down the indicators, however the Nifty recovered from it to close 41 points down at 5747. The benchmark may continue its uptrend, however, look out for the level of 5,735 after which the index may see some reversal. The National Stock Exchange (NSE) saw a volume of 96.80 crore shares and an advance decline ratio of 563:1237.


The Indian market opened in the green following the reforms announcement made by the government after market hours on Thursday. Positive comments from European Central Bank president Mario Draghi that the central bank is ready to buy bonds of debt-ridden countries also supported the sentiments.


The Nifty opened 27 points higher at 5,815 and the Sensex resumed trade at 19,116, up 58 points over its previous close. Stocks of auto, fast moving consumer goods, realty and capital goods sectors were in demand in initial trade.


However, the benchmarks could not sustain the gains as profit booking after four straight days took the indices into the red in a few minutes.


A freak trade at 9.50am on the NSE Nifty saw the index plunging nearly 900 points after which trade on the exchange was halted for 15 minutes. While the National Stock Exchange (NSE) blamed ‘abnormal’ orders placed by stock broker Emkay Global in multiple trades of various stocks at low prices for the crash, market regulator Securities and Exchange Board of India is looking into all aspects of the incident. However, trade at the BSE functioned without any hitch but the Sensex also plunged to its intraday low at the same time. At the lows the Nifty slumped to 4,888 and the Sensex dipped to 18,757, both going below their psychological levels of 5,000 and 19,000 respectively.


Select buying after the freak incident helped the market emerge into the green a short while later and hit its intraday high. The Nifty rose to 5,815 and the Sensex jumped to 19,137 at the highs.


Selling in technology, banking, oil & gas and capital goods stocks pushed the indices lower once again in mid-morning trade. A mild recovery was seen in noon trade following a positive opening of the European markets but the gains lagged strength which kept the indices in the red.


Snapping its four-day winning streak, the market closed lower today as investors had already factored the latest round of FDI reforms announced on Thursday. The Nifty settled 41 points lower at 5,747 and the Sensex dropped 120 points to end the session at 18,938.


The broader indices underperformed the Sensex today as the BSE Mid-cap index declined 0.79% and the BSE Small-cap index dropped 0.90%.


The top sectoral gainers were BSE Consumer Durables (up 0.66%); BSE Fast Moving Consumer Goods (up 0.61%); BSE Auto (up 0.55%); BSE Capital Goods (up 0.43%) and BSE Oil & Gas (up 0.41%). The major losers were BSE TECk (down 1.65%0; BSE IT (down 1.62%); BSE Healthcare (down 1.40%); BSE Bankex (down 1.09%) and BSE PSU (down 0.32%).


Thirteen of the 30 stocks on the Sensex closed in the positive. The major gainers were Tata Motors (up 2.24%); Hindustan Unilever (up 1.60%); Mahindra & Mahindra (up 1.16%); ONGC (up 1.09%) and Hindalco Industries (up 0.89%). HDFC (down 4.89%); Sun Pharma (down 2.48%); Wipro (down 2.41%); Infosys (down 1.84%) and ICICI Bank (down 1.57%) settled as the top losers on the index.


The top two A Group gainers on the BSE were—Essar Oil (up 15.46%) and Indiabulls Real Estate (up 5.52%).

The top two A Group losers on the BSE were—Shree Cement (down 6.70%) and Rashtriya Chemicals & Fertilisers (down 5.63%).


The top two B Group gainers on the BSE were—Swasti Vinayak Art & Heritage Corporation (up 19.81%) and Vinayak Polycontainers (up 19.32%).

The top two B Group losers on the BSE were—Bio Green Industries (down 12.32%) and K-Lifestyle Industries (down 11.11%).


Out of the 50 stocks listed on the Nifty, 14 stocks settled in the positive. The key gainers were Tata Motors (up 2.62%); HUL (up 1.63%); M&M (up 1.23%); Hindalco Ind (up 0.93%) and ONGC (up 0.88%). The main losers were HDFC (down 5.08%); Reliance Infrastructure (down 2.76%); Jaiprakash Associates (down 2.64%); Wipro (down 2.59%) and Sun Pharma (down 2.55%).


Markets in Asia closed higher on positivism exhibited by ECB president on Thursday. Investors are now awaiting the key employment report from the US, hoping that job creation in September will ease the slowdown concerns.


The Hang Seng gained 0.31%; Jakarta Composite surged 0.93%; the Nikkei 225 rose 0.44%; the Straits Times climbed 0.69%; the Seoul Composite added 0.12% and the Taiwan Weighted closed 0.11% up. Bucking the trend, the KLSE Composite lost 0.07%. Markets in China were closed for trade today.


At the time of writing, the three European markets were up between 0.45% and 0.98% and the US stock futures were trading marginally higher.


Back home, foreign institutional investors were net buyers of shares amounting to Rs944.53 crore on Thursday while domestic institutional investors were net sellers of stocks totalling Rs818.55 crore.


Oriental Bank of Commerce has cut the deposit rates on maturities between one and three years by 10 basis points to 9% per annum. The move has come in the wake of softening interest rates in the system and comfortable liquidity. The stock fell 0.37% to close at Rs292.85 on the NSE.


Wind turbine maker Suzlon today said it has bagged a contract from Surat Municipal Corporation (SMC) to set up an 8.4MW project in Gujarat. The company will have to set up, operate and maintain the 8.4MW project, which comprises of four units of Suzlon's S95-2.1 MW turbines. The stock tanked 2.23% to close at Rs17.50 on the NSE.


Essel Group on Thursday pared its stake in IVRCL with sale of shares worth nearly Rs68 crore, around six months after it had expressed interest in raising its holding in the infrastructure firm. Essel Group, which had acquired 10.2% in IVRCL in March 2012, through secondary market transactions and subsequently increased it to 12.27%, had said that the group is keen to increase its stake. IVRCL tumbled 5.77% to close at Rs44.95 on the NSE.


Sahara seeks review of SC verdict on refunding Rs24,000 crore

Interestingly, Sahara filed the review petition a week after promising to the apex court that its two companies would refund the money within stipulated time frame

New Delhi: The Sahara group on Friday moved the Supreme Court seeking review of the verdict ordering it to refund Rs24,000 crore, raised from investors through optionally fully convertible debentures (OFCDs), reports PTI.


Challenging the apex court's 31st August verdict on 55 counts, the group sought the hearing of its review petition in the open court.


Setting the deadline to refund the money, the apex court had said if the group companies -- Sahara India Real Estate Corporation (SIREC) and Sahara Housing Investment Corporation (SHIC) -- fail to refund the amount, SEBI can attach properties and freeze bank accounts of the companies.


It had asked the companies to refund the money to their investors within three months with 15% annual interest.


It had also asked Sahara to furnish all its documents to SEBI and also appointed one of its retired judges, Justice BN Aggarwal, to oversee the action taken by SEBI against the two Sahara group firms.


Interestingly, the group filed the review petition a week after promising to the apex court that its two firms would refund the money within the stipulated time frame.


"We will refund the amount. There is no question of going back," senior advocate Gopal Subramaniam, appearing for the company, had told the apex court on 28th September.




5 years ago

Being an investor myself, I can relate to the fears and uncertainties of people in times like these. But,with a company like “Sahara”, these fears seem irrational. They have stood strong for the past 33 years,and braved the storms of resentment and injustice. I see the current situation also as a malicious intent to destabilize the image and position of the company. I would request all my fellow investors to support Sahara, in these turbulent times and have patience and faith in this company.

David N

5 years ago

Was Sahara fair in raising such large amount by public deposits? May be Sahara is a clean corporation which would not misuse funds, but think of fly by night operators who could vanish with money raised from public like the Teak Farm Promoters of the Nineties! Companies have to abide by rules and regulations and there can not be exceptions...

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