NBW against Mallya in cheque bounce case

NBW against Mallya in cheque bounce case

NBW against Mallya in cheque bounce case

The Metropolitan court here on Friday issued a non-bailable warrant against Kingfisher Airlines and its chairman Vijay Mallya in a cheque bounce case filed by GMR Hyderabad International Airport Ltd.

The judge issued the non-bailable warrant against Mallya as his counsel submitted a petition stating that his client is out of the country at present and will be not able to attend the court.

The case pertains to bouncing of cheques issued by Kingfisher Airlines to GMR as charges payable to the Hyderabad airport for handling Kingfisher flights. The case was filed in the Nampally criminal court here for dishonouring cheques worth Rs 10.3 crore.

Kingfisher reportedly issued four cheques for Rs 10.3 crore towards airport charges (parking, landing and navigation).

Earlier in June, the Mumbai International Airport, run by the GVK Group, had filed a cheque bounce case against Kingfisher in a Mumbai criminal court.

As news of the warrant spread, value of stocks of the beleaguered airlines and the United Spirits plunged immediately.

Mallya, who is also the promoter-chairman of liquor giants United Spirits and Unit Breweries, is desperately trying to raise funds to save the airlines.

Kingfisher, which occupied the second position until the previous year, is down to the last slot in terms of market share. It has not posted profits since its launch in May 2005.
In response to the development, the KFA spokesperson said: “We have not been served any warrant.”

Lockout extended

Meanwhile, the airlines has extended its lockout till the next weekend, apparently after failing to convince striking staffers to resume work.

Sources said the KFA management, in an internal mail, said due to operational reasons all flights across its network will be cancelled till October 20.

The mail came a day after Kingfisher CEO Sanjay Aggarwal appealed to all employees, striking over non-payment of salaries for seven months, to return to work. The employees are insisting on payment of salaries before resuming duty.

Aviation regulator DGCA had earlier asked the cash-strapped carrier to stop selling tickets following reports that it had resumed bookings last week.

Kingfisher had declared a lockout on September 28 till October 4 following the strike, cancelling its entire flight schedule, and extended it till October 12 later.

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