Mumbai/Bengaluru: Executives of Kingfisher Airlines, including its chief financial officer and company secretary, could be face criminal cases if the airline's books of account are not produced before the the Serious Fraud Investigation Officer (SFIO).
Mint reported on Monday that the airline's books vanished after a technology vendor, whose dues were not paid, took away computers and servers that housed the company's accounts. Mint, quoting SFIO officials, said the airline claimed it did not a back-up of the files.
"A company has to maintain proper records of accounts, register and muster rolls under Companies Act and various labour laws, contravention of which can result in penalties or imprisonment. A company cannot say it does not have records because it has not paid its IT vendor. This cannot be a defence. A lenient view can be taken if the company premises were damaged in a fire or earthquake," says Ravi Kini, managing partner, Kini & Co.
Kingfisher Airlines founder Vijay Mallya is on a "self-exile" in the United Kingdom after the government turned the heat on him over fraud and alleged fund diversion to offhsore accounts.
"It is a crime. The executive team is liable to be punished," says Shriram Subramaniam, founder at proxy advisory firm InGovern Research Services Pvt Ltd.
04/07/16 Aneesh Phadnis/Business Standard
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Mint reported on Monday that the airline's books vanished after a technology vendor, whose dues were not paid, took away computers and servers that housed the company's accounts. Mint, quoting SFIO officials, said the airline claimed it did not a back-up of the files.
"A company has to maintain proper records of accounts, register and muster rolls under Companies Act and various labour laws, contravention of which can result in penalties or imprisonment. A company cannot say it does not have records because it has not paid its IT vendor. This cannot be a defence. A lenient view can be taken if the company premises were damaged in a fire or earthquake," says Ravi Kini, managing partner, Kini & Co.
Kingfisher Airlines founder Vijay Mallya is on a "self-exile" in the United Kingdom after the government turned the heat on him over fraud and alleged fund diversion to offhsore accounts.
"It is a crime. The executive team is liable to be punished," says Shriram Subramaniam, founder at proxy advisory firm InGovern Research Services Pvt Ltd.
04/07/16 Aneesh Phadnis/Business Standard
