Companies & Sectors
Kingfisher revival plan: Mallya meets Civil Aviation Secretary

The government is concerned about how the Vijay Mallya-owned and cash-strapped carrier would pay its dues to its service providers, including airport operators, aircraft lessors and oil companies

New Delhi: Ahead of submitting a revival plan to aviation regulator Directorate General of Civil Aviation (DGCA), Kingfisher Airlines Chairman Vijay Mallya on Tuesday met Civil Aviation Secretary KN Shrivastava and briefed him about the steps being taken to revive the beleaguered carrier, reports PTI.


Mallya is understood to have been asked by Shrivastava about the plans to pay off the debts and dues to various vendors, including Airports Authority of India (AAI) which has asked it to vacate two hangars at Kolkata and Chennai airports as it owes the state-run airports body Rs293 crore.


"I have briefed him on revival and restart plan. It would be a comprehensive plan. All hurdles will be crossed," Mallya told reporters after the meeting.


The meeting between UB Group chief and the Secretary, the first since the airline got into regulatory trouble, lasted 30 minutes, official sources said.


Kingfisher is expected to apply to the DGCA for revocation of suspension of its Scheduled Operator's Permit (SOP) or flying license in a few weeks.


For this, it has to submit to DGCA a comprehensive financial and operational plan to revive the airline and its operations, after an over three week impasse with its employees since 30th September, who struck work demanding payment of overdue salaries. The strike was followed by a lockout that was lifted on 25th October.


The services of Kingfisher can be restored only after the DGCA is convinced that the carrier can provide safe and sustainable operations.


The sources said the government is concerned about how the cash-strapped carrier would pay its dues to its service providers, including airport operators, aircraft lessors and oil companies.


The airline is likely to face more trouble soon with the Revenue Department deciding to move the Supreme Court to expedite recovery of tax dues worth about Rs330 crore.


A special leave petition is to be filed jointly by the Income Tax and Service Tax departments to apprise the apex court "of the magnitude of pending dues to the government" and seek vacation of a September 26 Karnataka High Court order restraining the I-T department from making "further recovery".


Following the High Court order, the I-T department had lifted its attachment orders on the airline's bank accounts.


While the I-T department dues stand at around Rs269 crore, the airline owes Rs60 crore to Service Tax department.


Kingfisher is saddled with a loss of Rs8,000 crore and a debt burden of an additional over Rs7,524 crore, a large part of which has not been serviced for several months.




4 years ago


He has told in no uncertain terms that KFA is a public limited company and why he should sell some of his profit making company shares to be put into an airline in India.
That he is not going to sell Family Silver.
Which means that he wants to be the King of Good times at public expense.
Profit is mine, losses will be yours!!

High time the Government and its agencies take strict action against him for all the wrongs/commissions/omissions that he has been repeatedly doing with impunity.
Why no action taken against him for not remitting TDS/service tax collected and not remitted to Government account??
Is it not embezzlement??

Why are the banks not enforcing his personal guarantee??He even had the gall to charge a commission for his personal account to give his PG to his own company.

Why are banks not declaring his entire group of companies as sick under the group health concept?

He is unruffled as he knows that his good friends at high places will ensure that no serious action will be taken against him.He is sure that he is bailed out at the expense of banks.Remember the conversion of bank debt to shares of KFA at a steep premium.Those shares are now valued at Rs 11 and will go down further.Have the banks written down the loss in their books yet?

It is the media like MONEYLIFE that can bring out the real story behind all the cover up and protection given to him.
Please unearth all the shady goings on and his bad management of KFA that has brought misery to KFA staff,public, Government and of course the banks(Custodians of public money!!)

Tribunal asks HDFC ERGO GenLife to pay Rs16.68 lakh to family of accident victim

The Motor Accident Claims Tribunal asked HDFC ERGO General Insurance Co, with which the offending vehicle was insured, to pay Rs16.68 lakh to the deceased's family

New Delhi: The family of a 29-year-old man, who died after a rashly-driven truck hit the car he was driving, has been awarded Rs16.68 lakh as compensation by the Motor Accident Claims Tribunal (MACT).


The MACT has directed HDFC ERGO General Insurance Co Ltd with which the offending vehicle was insured to pay the amount to the deceased's family comprising of his wife, two minor children, mother and unmarried sister.


"I am of the considered view that respondent 3 (insurance company) is liable to indemnify respondent 1 (driver of truck) and respondent 2 (owner of truck) and is liable to make the payment of compensation to the petitioner.


"I accordingly, grant a compensation to the tune of Rs16.68 lakh to all the petitioners (victim's family)," said MACT presiding officer BS Chumbak.


The tribunal's order came on plea by the family of the victim, late Sujit Kumar, who used to work as a driver.


According to the police, the Indica car driven by Kumar was hit by a rashly-driven truck near Ghazipur dairy farm here on 28 November 2011 afternoon.


The car was badly damaged in the mishap while Kumar got fatal head injuries and his body got entangled in the vehicle and a fire brigade rescue team had to called in to extricate his body from the wreckage, the police had added.


Kumar was rushed to the LBS hospital here, where he was declared brought dead.


While the owner and the driver of the truck had argued they had been falsely implicated in the case, an eyewitness to the mishap specifically deposed that the accident occurred due to rash driving by the truck driver.


The tribunal relied on the un-rebutted testimony of the eyewitness to hold that the accident had occurred due to the rash and negligent driving.


RBI unveils customer-friendly measures, eases KYC norms

The central bank is reviewing existing know your customer norms for simplifying them within the provisions of the PMLA and international standards

Mumbai: The Reserve Bank of India (RBI) has announced a slew of measures, including a simplification of the stringent know-your-customer (KYC) norms, to make banking easier for the common man, reports PTI.


"It is proposed to review the existing KYC norms for simplifying them within the provisions of the Prevention of Money Laundering Act and international standards," RBI said in its second quarter policy review.


The central bank also said it will launch a pilot project, using the Aadhar data collected by Nandan Nilenkani-headed Unique Identification Authority, to authenticate banking transactions at ATMs and merchant terminals.


The Aadhar's biometric details can be used for banks along with the MagStripe (for reading coded information) as an additional factor of authentication for "card present" transactions, it said, adding the pilot project will be launched in New Delhi from 15th November.


With the usage of the national electronic fund transfer (NEFT) increasing, it has been decided to have an additional batch of clearing at 0800 hrs in the NEFT system from 19th November, the RBI said.


On the cheque transaction front, RBI said its 'cheque truncation' system used for paper clearing will have a national rollout by December next year.


As the world heads towards more modern electronic payment system, with some countries like Britain moving towards discontinuation of the cheque system, RBI has decided to prepare a discussion paper on disincentivising issuance and usage of cheques and place it for public comments by this December.


The RBI has also accorded a general permission to banks for the issue of co-branded debit and rupee denominated pre-paid instruments, which till now has to be cleared by RBI.


On coin availability, the RBI review report cites the report of a recent high level committee on demand for coins and said banks will be encouraged to explore the possibility of introducing the "franchisee model" for distribution of small notes and coins.


Additionally, drawing from the experience in the priority sector lending (PSL) model, each bank may also be given a lead bank status for a particular area for the management of coins and currency.


The RBI report also said: "Credit institutions may not be furnishing accurate and timely credit data to the credit information companies (CICs) in some cases and also are not relying as much on available credit information at the time of taking a credit decisions as they should". It asked them to change these practices.


On the currency counterfeiting front, it said the state-run banks which account for 90% of currency chests are slow in reporting such incidents, while private sector banks with only 10% of currency chests account for 90% of the reporting.


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