Kingfisher crisis: 40 more accounts frozen

Mangaloretoday/ CNN-IBN

New Delhi, March 3: There seems to be no end to the woes of crisis-hit Kingfisher Airlines. Forty more bank accounts of the airlines have been frozen by the Service Tax Department. The Service Tax Commissioner said Kingfisher Airlines owes Rs 40 crore in tax arrears.

Earlier on Friday, reports said that seven accounts of the beleaguered airline were been attached by the Service Tax Department. The Service Tax Department had also attached 37 accounts of Kingfisher before this.

 

 

Kingfisher had promised to pay about Rs 1 crore each day, but that didn’t happen so, the Service Tax Department has frozen the company’s accounts. The Service Tax Department is also contemplating attachment of Kingfisher’s properties following the company’s failure to pay dues before March 31, 2011.

This is over and above the Income Tax department freezing its accounts. The company has already defaults of about Rs 300 crore to the I-T department.

Salaries have not been paid for the last two months. There are possibilities of pilots going on a strike; however no official announcement has been about this yet.

The company needs to arrange for this amount and equity infusion that banks are demanding.