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Service Tax deptt moves to recover Rs 535cr dues, Vijay Mallya's aircraft to go under hammer

the Finance ministry has said that the service tax department will "very shortly" auction liquor baron Vijay Mallya's aircraft to recover dues estimated at nearly Rs 535 crore.
India TV Business Desk April 02, 2016 22:42 IST
India TV Business Desk

New Delhi: Beleaguered liquor baron Vijay Mallya is in the dock over unpaid loans of Rs 7,600 crore. His sudden exit from India in theĀ  idst of the controversy and court summons has created a furore both inside and out of parliament.

The government, on its part, has said that it will recover every penny that he has borrowed. In line with its intent, the Finance ministry has said that the service tax department will "very shortly" auction liquor baron Vijay Mallya's aircraft to recover dues estimated at nearly Rs 535 crore.

"Vijay Mallya's some of the properties have been attached. His aircraft are with us. So, that is what we are going to auction very shortly," Central Board of Excise and Customs chairman Najib Shah said at a press meet on Saturday.

Last month, the service tax department had claimed in a petition to the Bombay high court that Mallya's total disputed liability in respect of service tax was to the tune of Rs 535 crore.

It was also claimed that Mallya had collected a large sum of money as service tax from flyers of the now-grounded Kingfisher Airlines on behalf of the government, but the same was not deposited in the government treasury.

Mallya, whose group company owes over Rs 9,000 crore to 17 banks, had left the country on March 2 and is believed to be in the UK.

(With PTI inputs)