Logistics

Private airline linked to HDIL promoters put on the block

Forum Gandhi Mumbai | Updated on October 02, 2019 Published on October 02, 2019

Privilege Airways logo   -  Website/pa

Mumbai International Airport Limited issues public notice cautioning potential buyers of the airline

Privilege Airways Private Limited, a private airline firm linked with the promoters of Housing Development Infrastructure Limited (HDIL), seems to be on the block.

Mumbai International Airport Limited (MIAL) has issued a public notice cautioning potential buyers of Privilege Airways of dues owed by the airline to the airport.

"As on 31st May 2019, Privilege owes MIAL an amount of Rs 2.05 crore excluding interest and other charges in respect to the said aircraft on account of landing and parking charges,” said the notice dated September 24.

An aircraft owned by Privilege is parked at Chhatrapati Shivaji Maharaj International Airport (CSIMA), Mumbai since 2012.

According to the Ministry of Corporate Affairs’ (MCA) data, Rakeshkumar Wadhwan and Sarang Wadhwan, promoters of Housing Development Infrastructure Limited (HDIL) are the only two directors of Privilege Airways. The Wadhwans are also the promoters of Privilege Industries Limited.

Earlier, the EOW lodged an FIR against the Wadhwans of HDIL along with other authorities of PMC Bank on alleged fraud and unpaid dues towards the public sector bank.

According to the MIAL’s notice, 2003 Bombardier Challenger 300, a 9 seater charter aircraft which was registered in 2010 as VT PIL by Privilege Airways Private Limited has been parked at CSMIA since July 05, 2012.

The notice added that the MIAL was given an understanding that the aircraft was up for sale. The said aircraft is listed on several international websites for sale. The notice further added that the buyer of the aircraft will be liable to pay the pending dues.

“Please note that the said aircraft will not be released/cleared from CSMIA until and unless the above payment is made by the prospective buyer,” it added.

What is Privilege Airways?

According to the MCA data, Privilege Airways is a private company and was incorporated in February 2006. The company has authorised capital of Rs 30 crore. The company has book debts worth Rs 45 crore and unpledged movable property worth Rs 45 crore since July 2010. The last Annual General Meeting (AGM) of Privilege Airways was held in September 2018.

According to the Directorate General of Civil Aviation (DGCA), Privilege Airways is a non-scheduled airline and has a 10 seater Falcon 2000 under code ‘VT-HDL’ and the 2003 Bombardier Challenger 300.

HDIL, in their annual report of 2019 has said that Privilege Airways as a part of Privilege Industries Limited is an 'enterprise significantly influenced by key management personnel namely the two Wadhwans and Darshan Majmudar who is the Chief Financial Officer & Company Secretary, HDIL.'

In 2017, and 2018, according to the balance sheet of HDIL. As a part of the related party transactions, HDIL declared ‘trade payable, advances for projects’ worth Rs 1.12 crore was 'outstanding' and 'payable' to Privilege Airways each year respectively.

Published on October 02, 2019
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