I-T dept warns public against purchasing URBBL shares held by Vijay Mallya

Sale and transfer of these shares will be void in terms of Section 281 of the Income Tax Act, says department

The Income Tax Department on Thursday cautioned people against purchasing the shares of United Racing and Bloodstock Breeders Limited (URBBL), held by fugitive Vijay Mallya. 

The I-T department's warning comes as the Karnataka's Debt Recovery Tribunal-II published a sale proclamation stating that e-auction of 4.152 million shares will be held on October 30 this year.

"This is to bring to the notice of the public that the Income Tax department has already created charge against the said shares on account of outstanding demand. Therefore, such sale/transfer of these shares will be void in terms of Section 281 of the Income Tax Act. Any person purchasing such shares will be doing so at their own risk," the income tax department said in a statement. 

The income tax officials have written to the Karnataka Debt Recovery Tribunal too to put the e-auction on hold, said sources in the Income Tax department.