The cash-strapped airline has been defaulting on payments against lease rentals, oil purchases, landing and parking fee and even service tax and TDS and now two developers from Mumbai has slapped eviction notice to Kingfisher
Mumbai: Vijaya Mallaya-promoted Kingfisher Airlines continues to hit air pockets with two real estate developers from Mumbai now slapping eviction notice for allegedly defaulting on rent payments since last November, reports PTI.
The airlines sources confirmed the development and said the management is negotiating with the developers to resolve the deadlock.
The cash-strapped airline has a rented property in the Andheri suburb of the city, from where it is running a part of its operations, while the main administrative office is located at the Kingfisher House, which the promoter Mallya has been planning to monetise to raise some working capital funds for the airline.
"Senior airlines representatives are in talks with some of the developers for quite some time now to resolve the deadlock and arrive at a solution," Kingfisher Airlines sources told PTI. The airline spokesperson, however, was not available for comments.
The notice by city-based developers-- Samruddha Realtors and Dhruvam Realtors-- is understood to have been served on 11th April through their solicitors, giving a month's time to vacate the space held by the airline at Andheri (East).
The cash-strapped carrier has been struggling for survival for nearly a year and has been defaulting on payments against lease rentals, oil purchases, landing and parking fee and even service tax and TDS.
The airline has a debt burden of over Rs7,000 crore and accumulated losses of Rs6,400 crore. It also owes around Rs280 crore towards the Airports Authority of India and Rs518 crore to Hindustan Petroleum in fuel dues.
In the absence of any succor from lenders, the airline has reduced its operations to one-third from 400 flights a day with just 20 aircrafts.
Income and service tax authorities had many a time frozen its bank account for defaulting on tax payments.
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Registered in Tamil Nadu and operating in AP and Karnataka, the MLM organisation collected about Rs45 crore from Nellore district only
Hyderabad: Andhra Pradesh Police arrested the Chairman of an organisation 'Bharat Prem Sadan' from Vijayawada, who is accused of running a money circulation scheme and collecting crores of rupees from gullible people, reports PTI.
Based on a tip off, CID officers raided the premises at Lotus Land Mark in Vijayawada and arrested Gonugunta Prasad and seized over Rs2 crore in cash besides 70 grams gold ornaments and two vehicles from him, CID additional director general of police SV Ramana Murthy said.
'Bharat Prem Sadan' which has been registered in Tamil Nadu was operating in AP and Karnataka besides Tamil Nadu and four criminal cases (two each in Nellore and Khammam districts) were registered against this organisation, he said.
"This organisation is responsible for collection of huge amounts from the lower middle class people and it collected close to Rs45 crore in Nellore district alone through 29 main agents," Mr Murthy said adding the accused was being produced before a court in Gudur of Nellore.
The cases registered in Nellore district are being investigated by the CID and the cases registered in Khammam district are being investigated by the local police.
Andhra Pradesh police have so far registered 79 cases against various societies including Heavenly Inter Denominal Mission Trust, Bharat Prem Sadan, Youth & Strength Christian Welfare Association among others in different districts of the state and out of this 17 cases were taken over by CID for investigation.
"After taking over investigation by the CID, we elicited the names of the Trust Members, Coordinators and the main agents who are responsible for forming, inspiring the public and also in collection and misuse of money," the top CID officer said.
The CID has been cautioning people against joining money circulation schemes being operated in the guise of Multi-Level Marketing Schemes (MLM) or Network Marketing (NWM). Such schemes were banned under the Prize Chits and Money Circulation Scheme (banning) Act, 1978.