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Vijay Mallya to present clear picture of cash-strapped Kingfisher Airlines today

CNN-IBN
Mar 20, 2012 at 06:39am IST

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New Delhi: Kighfisher Airlines Chairman Vijay Mallya is expected to meet the DGCA on Tuesday to try and salvage what remains of his ailing airline. Mallya will be presenting his plans on how to revive the company.

There is a high chance that the airline's licence could be cancelled. The income tax department is also threatening to take the airline to court for non-payment of dues.

Sources have also said that the move has come as the 15-day notice period to Kingfisher Airlines has expired, leaving the government concerned by the scaling down of services.

Vijay Mallya to present clear picture of KFA today

The income tax department is also threatening to take the airline to court for non-payment of dues.

The summer schedule of the airline has been reduced to only 16 of its 64 aircraft and Union Civil Aviation Minister Ajit Singh has said that the airline cannot function like this.

The service tax department has already frozen as many as 40 bank accounts of the debt-ridden Kingfisher for non-payment of dues worth Rs 76 crore, which also include arrears and interest. Its IATA accounts too have been frozen.

The Service Tax department can take Kingfisher to court under Section 76 and 78 of the Finance Act. Under the provisions of the Act, the CBEC can charge up to 200 per cent of the tax evaded as penalty.

The income tax department too frozen the carrier's bank accounts for not depositing tax deducted at source.

The airline has a debt of Rs 7,057.08 crore. The financial crunch has hit its operations with dozens of flights being cancelled. Tax authorities have added to its woes by freezing its bank accounts for non-payment of dues.

With additional information from PTI

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