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Last Updated : Feb 24, 2012 08:26 PM IST | Source: CNBC-TV18

I-T dept rejects KFA's plea to unfreeze bank accounts

Income Tax authorities will not unfreeze bank accounts of Kingfisher Airlines and have asked for an upfront payment of Rs 35-40 crore towards tax dues, CNBC-TV 18 has learnt.


The Income Tax authorities will not unfreeze bank accounts of Kingfisher Airlines and have asked for an upfront payment of Rs 35-40 crore towards tax dues, CNBC-TV 18 has learnt.


KFA has pending dues of about Rs 190 crore toward service tax and has asked for an extention of 18 months to clear dues. However, it is learnt that the IT department has outright rejected this plea.


The accounts were frozen by income tax authorities last week leaving the carrier with little cash and forcing it to cancel more than a hundred flights since Sunday. The airline is operating only 12% of its capacity as it is finding it difficult to stay afloat with nil working capital on hand.


KFA has approached a consortium of bank for debt restructuring and debt restructuring but it is learnt that they have not yet agreed to extend further loans to the beleaguered carrier, which urgently needs funds to save it from collapse.


However, Sanjay Aggarwal, the airline

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First Published on Feb 24, 2012 05:20 pm
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