SBI not to give Rs 1,650 cr to Mallya's Kingfisher Airlines

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Kingfisher flight
New Delhi, Feb 22: Putting an end to all speculations, official sources of State Bank of India (SBI) finally declared that they will not lend Rs 1,650 crore money to cash-strapped Kingfisher Airlines owned by Vijay Mallya.

The officials on Wednesday, Feb 22 rejected all rumours over the issue saying that the bank will not provide money to the cash-strapped airlines. Earlier reports claimed that SBI offered an aid of Rs 1650 crore relief package to Kingfisher Airlines.

"Air India is a government concern, what government does for Air India, it cannot do the same for a private airline," said Ajit Singh, civil aviation minister that the government could not do the same for a private airline and have not given a bailout package to Kingfisher airlines.

Sources reveal that the Income Tax department may defreeze the bank accounts of Kingfisher and the latter has agreed to pay its dues partially.

Kingfisher in 2011 owed Rs 53.8 crore to the IT-Department and Rs 100 crore for the year 2012. The airlines is expected to pay Rs 43 crore service tax dues by Mar 2012.

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