Kingfisher crisis: I-T Dept calls Kingfisher management for meeting today

New Delhi: The Income Tax department has called the Kingfisher Airlines management for a meeting on Thursday. The I-T department has rejected the revised appeal by the airlines, asking the airlines to first revisit the conditions of payments.

Sources have said that the Kingfisher has offered to make payments over 18 months period on weekly basis. They also added that the Income Tax authorities are not happy with the tenure of the payment schedule. And it wants the airlines to bring down the payment tenure.

Meanwhile, Kingfisher Airlines on Thursday started truncated operations in accordance with its new flight schedule, as aviation regulator DGCA examined its operational details to consider whether to take any punitive action against it for flouting norms.

The I-T department has rejected the revised appeal by Kingfisher, asking the airlines to first revisit the conditions of payments.

There was still uncertainty over moves by a consortium of 13 bankers to offer fresh loan for the beleaguered carrier, amid reports that the lead bank State Bank of India has agreed to provide Kingfisher a Rs 1,650 crore relief package. But the bankers were tight-lipped about their plans.

"If the banks find it good business, they will loan their money (to Kingfisher). .... At the same time, the government is not going to ask banks to loan money to any private industry. Its for the banks to decide. They will have to decide on the basis of whether they will get it back or not," Civil Aviation Minister Ajit Singh told reporters here.

(With additional inputs from PTI)

Also See

• Kingfisher crisis: Airlines starts operating new flight schedule
• Kingfisher crisis: No plans to cancel Kingfisher air licence, says Ajit Singh

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