BIAL files criminal complaint against KFA, Vijay Mallya

Airlines accused of defaulting on payment to airport operator
Last Updated 24 October 2013, 19:59 IST

Liquor baron Vijay Mallya-owned Kingfisher Airlines (KFA) landed in more trouble with the Bangalore International Airport Limited (BIAL) filing a private criminal complaint in a magistrate court at Devanahalli in Bangalore Rural district seeking clearance of Rs 208 crore dues.

“We moved the magistrate court in Devanahalli on October 21 filing a private criminal complaint against KFA, Vijay Mallya, chairman and managing director, Sanjay Agarwal, chief executive officer, A Raghunathan, chief financial officer and Bharath Raghavan, company secretary, ” the BIAL lawyer Siddarth told Deccan Herald.

The BIAL sought action under IPC sections 403 ( dishonest misappropriation of property), 406 (criminal breach of trust), 409 ( criminal breach of trust by public servant, or by banker, merchant or agent), 120 B (criminal conspiracy), 418 (cheating) and 430 (mischief) and direction to the Devanahalli police to probe the matter. 

While the BIAL lawyers claimed that they registered an FIR with the police on Thursday, DCP (North-East) T Suresh said the police are yet to receive an official order from the court and would act accordingly once the report is received.

User development fee

The Director General of Civil Aviation had issued a circular on September 22, 2008 directing the airlines to collect user development fees (UDF) and passenger service fees (PSF) under the provisions of the Airports Economic Regulatory Authority of India Act, 2008. The circular also directed the private airliners to remit the money to the airport operator (BIAL).

 The KFA collected Rs 260 per domestic passenger from July 1, 2009 and Rs 1,070 per international passenger from September 3, 2008. The UDF was collected till September 30, 2012 and PSF till March 25, 2012, the days when the airlines stopped operations. As per the directions, the airlines had to remit the money with the BIAL, but failed to do so. Instead, the airlines used the money to clear its other dues, the BIAL alleged.

The KFA remitted some money during the initial stage and stopped it later. The BIAL’s financial audit is underway and the exact amount owed by the KFA would be known shortly, sources said.

(Published 24 October 2013, 19:59 IST)

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