BENGALURU: Ahead of an e-auction of shares owned by proclaimed offender Vijay Mallya in United Racing and Bloodstock Breeders Ltd (URBBL) by Debt Recovery Tribunal- II, the Income Tax Department has warned the public against buying the same. The tribunal, in an earlier notice, had decided to auction 41,52,272 shares held by Mallya, who fled the country after defaulting on loans of several thousand crores, on October 30.
However, a statement issued by the Chief Commissioner of Income Tax noted that the “Income-Tax Department has already created charge against the said shares on account of outstanding demand. Therefore, such sale or transfer of these shares will be void in terms of Section 281 of the Income Tax Act. Any person purchasing these shares will be doing so at their own risk”.
As per Section 281 of the Act, auction or transfer of assets involved in any case being handled by the department requires an assessee to obtain permission from the assessing officer.