The Income Tax Department on Thursday cautioned the public against buying over 41 lakh equity shares of fugitive tycoon Vijay Mallya's company that 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 oBying utstanding demand in a tax evasion case," IT official N. Rathi told news agency IANS.
The Tribunal has put on sale, the shares of a company called 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 Malllya's 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," Mr Rathi added.
Vijay Mallya had formed the unlisted company (URBBL) in 1988 to bring under a single banner, his 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.