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Pay dues within 8 months: I-T Dept to Kingfisher

CNN-IBN
Feb 24, 2012 at 05:23pm IST

New Delhi: Rejecting the revised appeal by Kingfisher Airlines to allow 18 months to clear dues, the Income Tax Department on Friday sought Rs 35-40 crore as upfront payment and asked the airline to pay the balance dues in 8 months.

Unhappy with Kingfisher's offer to make payments over 18 months period on weekly basis, the I-T Department summoned the airline management for a meeting and made it clear that the status quo prevails.

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.

Pay dues within 8 months: I-T Dept to Kingfisher

The Tax Department on Friday sought Rs 35-40 crore as upfront payment and asked the airline to pay the balance dues in 8 months.

There was still uncertainty over moves by a consortium of 13 bankers to offer fresh loan for the beleaguered carrier, amidst 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.

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