Air India in deep trouble, bank accounts frozen again

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Air India
Mumbai, Jan 13: Debt ridden Air India's bank accounts have been frozen again by the Service Tax Department for the non-payment of dues of over Rs 300 crore.

This is the second time that the national carrier's accounts have been frozen by the Customs and Central Board of Excise.

Reports revealed that 11 accounts of Air India and 10 of crisis hit Kingfisher Airlines were frozen by the department in Dec, which were later relieved after the airlines made payments.

The move comes after banks in a meeting on Thursday, Jan 12 considered a fresh CDR proposal for the carrier.

"Yes, we have frozen 11 bank accounts of Air India as they have not made any payment after the part-payments done last month," said a senior official, Central Board Excise and Customs.

Earlier, SK Goel, Chairman, Central Board of Excise and Customs (CBEC) had said that Air India and Kingfisher Airlines owe Rs 360 towards service tax to the government.

"While Kingfisher Airlines has paid Rs 20 crore towards service tax for December and some arrears, the airline still owes Rs 60.33 crore," Goel had said.

Goel further said that Kingfisher Airlines had paid Rs 20 crore in Jan and had promised to clear all its dues by the end of March.

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