Kingfisher crisis: I-T department freezes airlines accounts

New Delhi, May 29: The

department on Tuesday reportedly froze the bank accounts of debt laden Kingfisher

over non-payment of IT dues, said sources.

Sources reveal that the airlines has been slapped with a notice of Rs 342 crore. The airlines is supposed to pay Rs 9 crore a week but paid only Rs 4.5 crore for two weeks and then stopped.

"We are not lenient with Kingfisher and are treating it at par with Air India and Jet Airways," said SBI Chairman Pratip Chaudhuri.

He further said that there was no scope for debt to the airlines.

"The company has been told that if FDI rules are changed it becomes easier for them (to raise capital)," he said.

"If we call off the guarantees or discontinue it, the whole fuel chain supply would stop. If we precipitate the action it will endanger jobs and connectivity in the country. So, we are working with the company," he said.

OneIndia News