Beware! Vijay Mallya's company shares up for sale, but here's why you shouldn't buy

The IT Department has warned the public not to buy the shares of Vijay Mallya’s company that the Debt Recovery Tribunal will put up for sale on October 30.

Debt Recovery Tribunal – II will put the shares for sale though e-auction on October 30. (Image: AFP)

Bengaluru: The Income Tax Department on Thursday warned the public not to buy the shares of fugitive liquor baron Vijay Mallya’s company that the Debt Recovery Tribunal – II, Karnataka will put up for sale though e-auction on October 30. DRT had on September 29 ordered to put on sale the 41.52 lakh (41,52,272) shares of Mallya’s company United Racing and Bloodstock Breeders Ltd (URBBL) in order to recover the outstanding amount loaned by a consortium of banks to the now defunct Kingfisher Airlines between 2008 to 2012. Speaking to news agency IANS, IT official N. Rathi said, “We are cautioning the public that buying Mallya's shares in his subsidiary company United Racing and Bloodstock Breeders Ltd (URBBL) in the e-auction will be at their own risk because they (shares) are under our charge (custody) against outstanding demand in a tax evasion case.” “Sale or transfer of these shares will be void in terms of Section 281 of the Income Tax Act, 1961. Any person purchasing such shares will be doing at his/her own risk, said Rathi referring to a public notice issued by the Principal Chief Commissioner of Income Tax, Karnataka and Goa circle. Even the Service Tax department served a notice to Kingfisher for dues of Rs 87.5 crore, which the airline had collected from the passengers but not deposited with it. Mallya incepted the unlisted company (URBBL) back in 1988 to bring under a single banner, his interest in racing and breeding horses. In 1992, he took over the historic Kuningal Stud Farm, about 70 km northwest of Bengaluru, to breed horses for racing in top class fillies. The 63-year-old fugitive business tycoon has been living in the UK since March 2016 after the some state-run and private banks moved the Tribunal here against sale of his assets, including shares in his group firms for not paying back the loans over Rs 9,000 crore he raised to sustain his loss-making airline.