Some of India's biggest aviation firms GMR Infrastructure (GMR Infra), Jet Airways and Kingfisher Airlines have come under a cloud, forcing investors to dump these stocks on Friday.
While GMR Infra was affected by an adverse court ruling in Maldives, Jet and Kingfisher counters witnessed selling pressure following information about non-payment of service tax claims from the government department.
The bearish trend in the stock market aided their fall.
Bangalore-based GMR Infra, which runs four airports in three countries, received a major setback on Thursday when a Maldives civil court restrained the company from charging Airport Development Charge (ADC) from passengers at the GMR Male International Airport.
The court has ruled against the government of Maldives allowing the GMR-led consortium that runs the Male Airport to levy ADC of $25 per departing international passenger and $2 of insurance charge per other passengers.
Following this development, the GMR Infra stock plunged to a new low of Rs 18.60 amidst massive sell-off to finally close at Rs 18.75, down 4.09 per cent.
"We have read the press reports...we are yet to receive the copy of the judgment. We are yet to go through the ruling and evaluate its implications and possible options available to us to address the same," GMR Infra said.
GMR Infra said it has been permitted to collect ADC and insurance charges under the Concession Agreement of June 28, 2010, signed between GMR-MAHB, Maldives Airport Company and The Republic of Maldives.
"GMR is confident that the government of Maldives will take such measures as would be necessary to honour its contractual obligation in this regard, given that the project is of national importance," GMR Infra said.
In case of Jet Airways, its stock plunged over six per cent on information that the firm owes over Rs 1,000 crore to the service tax department. The stock closed down 5.7 per cent at Rs 235.80.
According to marketmen, the service tax department, in an audit report, has raised a tax claim of Rs 1,128 crore on Jet Airways spanning over seven years. A Jet Airways spokesperson declined to elaborate on the matter.
The Kingfisher Airlines stock also plunged during the day on tax claim concerns. The stock closed with a loss of 4.01 per cent at Rs 23.95. Reportedly, the service tax department has also raised a claim of over Rs 800 crore in dues from Kingfisher.
On Thursday, the service tax department froze several bank accounts of Kingfisher Airlines and Air India to recover its tax dues collected by the airlines from the passengers.
Kingfisher Airlines declined to comment on this matter.
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