If not by 31 Dec, Kingfisher can submit revival plan in 2 yrs

DGCA wants the company to give a clear idea of its funds position in the revival plan. Reuters

The plan should have details as to whether Kingfisher Airlines has adequate working capital, whether it has enough funds to settle employees’ dues, whether its aircraft is airworthy and are pilots’ medical requirements fulfilled, the ET report said quoting the DGCA.

According to the report, the new conditions have been set as Kingfisher’s aircraft have been grounded for more than two months. As per the rules, if pilots do not fly for a month, their licence gets redundant, the report said.

Kingfisher Chairman Vijay Mallya, who has proposed to start limited operations by pumping in Rs 425 crore, has very little time left to fulfill all these requirements. It looks almost impossible for him to set all these right before 31 December.

DGCA Arun Mishra had told Firstpost earlier the airline is yet to come back with the revival plan.

The article had said that there are many hurdles to the revival of the airline.

It is also unlikely that competitors will take kindly to his plans to fly again, especially at a time when passenger loads and yields (revenue per passenger) are falling despite this being the peak holiday season.

Not only competitors’ manoeuvres, Mallya has a lot else to worry about too: He needs to ensure at least some dues to vendors are cleared.

Otherwise, how will the airline get continued fuel supplies, operate from some key airports where dues have mounted or even stop lessors from seizing aircraft?

There are tough conditions set. But at the same time, there are relaxations too.

So Mallya can be sure about one thing. Even if his 3 kg gold bricks offering to Lord Venkateshwara is not paying off, the government and  lenders

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Sahara is seeking more time to submit report, the SC defers hearing to Wed

The Supreme Court on Monday gave another opportunity two Sahara group companies or to keep, by tomorrow they will command to return of the money collected from 30 million investors. Reuters

On August 31, the Supreme Court said the OFCD schemes by Sahara India real estate Corporation and Sahara housing investment Corporation were illegal and asked the two companies to refund the money they Sahara collected from investors within 90 days, with 15% interest. It was directed by the companies to deposit the money with Sebi, which would then distribute to investors.

On Monday, a bank under the leadership of Chief Justice Altamas Kabir asked the two companies to tell whether they could repay the full amount of their investors within a week.

Justice Kabir, who is known for his cool attitude, had some harsh words for the companies for non-performance of the apex court order and said that the companies plea deserves not every hearing.

"Your intention is very shaky. Your every step is shaky, according to your need not interpret our order, "the bank said.

Senior lawyer Gopal Subramaniam, displayed for one of the companies, tried to justify to a refund of the full amount is not met, but the Bank strongly refuted him say: "you can change your behavior, that's not to justified righteous".

The Bank, however, granted a day time on the two companies to communicate if they could repay the money or not.

Market regulator SEBI also Sahara the petition against and that has already filed a contempt request against them and said that a strong action should be taken against them.

The Bank, however, said that it is more concerned about the ordinary man, who has invested his money in the companies.

"If you want me to send them to prison, we would send, but we more worried about the investment of the ordinary man," the Bank observed.

During the argument, Justice Kabir lost his cool as senior advocate Mukul Rohatgi, appearing for another firm to plead the case stood, Sahara.

"This is not the way. Even when the losses from your side, you have no right to jump, "said Justice Kabir questions Rohatgi to sit down.

With contributions from PTI

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