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Friday, 19 September 2014

Lenders, tax sleuths vie for first right of recovery from Vijay Mallya

Mumbai: Consortium of fourteen banks has challenged revenue dept's attachment notice before Karnataka HC A consortium of 14 banks fighting to recover money they have lent to Vijay Mallya-promoted Kingfisher Airlines has challenged an attachment notice the service tax department issued against the liquor baron in the Karnataka High Court to recover tax dues. Now it's for the court to decide the first right of recovery between secured lenders and sovereign dues.
The revenue department, a couple of months ago, claimed the first right to recover dues by attaching the Kingfisher House in Mumbai, six aircraft and two helicopters, besides freezing bank accounts of the defunct airline.


It filed a petition with the Debt Recovery Tribunal (DRT) in Mumbai and in Bangalore where banks, led by the State Bank of India, are fighting to recover their dues from Kingfisher Airlines. While 17 banks have lent more than .
Read news in full 16/09/14 Maulik Vyas/Economic Times

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