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

CNN-IBN
Dec 11, 2012 at 10:24am IST

Mumbai: In another blow to the crisis-hit Kingfisher Airlines, the Mumbai Service Tax has begun impounding the airlines' aircraft. One aircraft has been seized and another is in the process of detention.

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. Kingfisher has been grounded since October 1 and on 19 of the same month, the regulator suspended its flying licence.

Mumbai tax dept begins impounding KFA aircraft

The department had sent an order to Kingfisher that seven aircraft will be impounded as it defaulted on Rs 200 cr dues.

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.

(With additional information from PTI)

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