The shares held by Mallya are expected to be kept open for e-auction on October 30 by the Debt Recovery Tribunal (DRT) - II, Karnataka, the Southern Indian state (Photo: PUNIT PARANJPE/AFP/Getty Images).

In a strict warning, India’s Income Tax (IT) department has cautioned the public not to purchase the shares of United Racing and Bloodstock Breeders Limited (URBBL), owned by fugitive Indian business tycoon, Vijay Mallya.

The shares held by Mallya are expected to be kept open for e-auction on October 30 by the Debt Recovery Tribunal (DRT) – II, Karnataka, the southern Indian state.

The DRT in Karnataka’s capital city Bengaluru had notified for an e-auction of 41,52,272 shares owned by liquor baron on September 29 in an attempt to recover the outstanding sum issued by a consortium of banks to Mallya’s stalled Kingfisher Airlines.

The IT department has already created charge against the shares owned by Mallya on account of outstanding demand. Therefore, sale, transfer of these shares will be invalid under section 281 of the Indian IT Act. Any person buying such shares will be purchasing so at his own risk, a statement from the IT department said.

The IT department has also written to the Karnataka DRT to put on hold the e-auction of the shares scheduled for October 30, according to the media reports.

An appellate tribunal had asked country’s federal law enforcement and economic intelligence agency, Enforcement Directorate (ED) to maintain ‘status quo’ in connection with the properties of Mallya until November 26.

It asked until the next date of hearing, Mallya is restricted not to make an agreement with and change the status of the movable and immovable assets and also shall not create third party interest in any manner directly or indirectly.