Alert! Income Tax dept warns about Vijay Mallya shares; this is what it wants you to do

The Income Tax Department on Thursday cautioned the public against buying over 41-lakh equity shares of fugitive liquor baron Vijay Mallya in his company the Debt Recovery Tribunal-II has put up for sale through e-auction on October 30, an official 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," IT official N. Rathi told IANS here.

The Tribunal has put on sale 41,52,272 shares of Mallya in United Racing and Bloodstock Breeders Ltd (URBBL) through e-auction on October 30 to recover the outstanding amounts a consortium of 17 banks had lent to his now defunct Kingfisher Airlines Ltd between 2008 and 2012.

"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," added Rathi, citing a public notice issued by the Principal Chief Commissioner of Income Tax, Karnataka and Goa circle.

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The flamboyant Mallya formed the unlisted company (URBBL) in 1988 to bring under a single banner his growing interest in racing and breeding horses. In 1992, he took over the historic Kuningal Stud Farm, about 70km northwest of Bengaluru, to breed horses for racing in top class fillies.