Kingfisher was grounded in October 2012 due to severe financial crunch
Vijay Mallya
New Delhi: The government has rejected an application by Kingfisher Airlines to re-appoint Vijay Mallya as the managing director. This was informed by the company in a statement to the stock-exchanges on Monday.
The corporate affairs ministry to which the application was made, has rejected the application. “Kingfisher Airlines has informed BSE that the ministry of corporate affairs has rejected the application made by the company under Section 269 of the Companies Act, 1956 for approval of the Central government for re-appointment of Vijay Mallya as managing director of the company for a period of 5 years from October 16, 2013 without remuneration,” said the company.
Kingfisher Airlines shares were up by 4.69 per cent on the BSE on Monday. Kingfisher was grounded in October 2012 due to severe financial crunch. The company currently commands a market value of about Rs 100 crore, as against a high of over '10,000 crore before troubles began at the airline in late 2012.
Meanwhile, in a surprise move, Vijay Mallya has resigned as the director from his group firm Mangalore Chemicals and Fertilizers Limited (MCFL), which is the target of a takeover battle between Deepak Fertilisers and Zuari Group.
( Source : dc correspondent )
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