ibnlive » India » Maharashtra

Dec 11, 2012 at 02:22pm IST

Notice issued to Kingfisher Airlines to vacate Mumbai airport: sources

Mumbai: There is more trouble for Kingfisher Airlines on the ground at the Mumbai airport. Sources have indicated to CNN-IBN that the airline has received a notice from the Mumbai Airport authorities asking the carrier to vacate the airport premises, landing slots and office area. Sources add that the notice has been served after Kingfisher failed to pay airport dues to the tune of Rs 50 crore.

This comes on a day when the Mumbai service tax department has begun impounding the airlines' aircraft. One aircraft has been seized and another is in the process of detention.

ALSO SEE One Kingfisher aircraft seized, more to follow as tax dept begins to impound

The Deputy Commissioner, Service Tax had sent an order a few days back to Kingfisher that the seven aircraft of the airline in Mumbai will be impounded as the airline has defaulted on service tax dues of Rs 200 crore.

Sources say the process of impounding has begun. Meanwhile, Civila Viation Minister Ajit Singh said Kingfisher won't be allowed to fly till it meets all concerns. "Things are where they are, it does not matter who he(Vijay Mallya) is talking to, who he has spoken to. Unless DGCA is satisfied that Kingfisher meets all the financial and security concerns, they will not be allowed to fly." he said.

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Kingfisher has been grounded since October 1 and on 19 of the same month, the regulator suspended its flying licence. The airline has a bank credit of Rs 7,000 crore and the unpaid interest since January 2012 thereon, apart from over Rs 10,000 crore of accumulated losses since the launch in May 2005.