KFA dues: Service tax dept seeks its share

KFA dues: Service tax dept seeks its share

Unable to recover over Rs 50 crore dues from Kingfisher Airlines, the services tax department has moved courts to get a share from sale of securities being undertaken by lenders.

“What we are pleading to the court is that whatever money bankers will get from the sale of shares and properties of the airline, we should also be given our dues,” Services Tax Commissioner Sushil Solanki told reporters on the sidelines of a FICCI event here.

The services tax department, which in the past had frozen accounts of the Vijay Mallya-promoted airline, has filed intervention applications in the Debt Recovery Tribunal and the Karnataka High Court in pursuit of the same around three months ago, he said.

A consortium of 17 banks, which had collectively lent over Rs 7,000 crore to the airliner, have initiated recovery proceedings under the available legal avenues using the underlining securities which they had.

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