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More trouble for Kingfisher, seven bank accounts frozen

CNN-IBN
Mar 02, 2012 at 10:29pm IST

Mumbai: Trouble doesn't seem to be getting over for the king of good times, Kingfisher Airlines. According to sources, seven more bank accounts of the beleaguered airline have been attached by the Service Tax Department.

The Service Tax Department had attached 37 accounts of Kingfisher earlier and following Friday's action the total number of bank accounts frozen has reached 44.

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 worth Rs 60 crore 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.

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