I-T freezes Kingfisher’s bank accounts | india | Hindustan Times
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I-T freezes Kingfisher’s bank accounts

india Updated: Feb 18, 2012 23:56 IST
HT Correspondent
HT Correspondent
Hindustan Times
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Kingfisher Airlines (KFA) has plunged into a fresh crisis with the income tax department freezing its bank accounts last week. This was after it failed to deposit the tax deducted from employees’ salaries and vendors with the income tax authorities for close to two years.

Sources said the impact on the airline’s operation was immediate. Over one-third of its already-truncated schedule had been hit in the last two days. The aviation regulator had earlier cancelled 175 slots allotted to KFA under the winter schedule after it was found operating only 243 flights out of the 418 slots allotted to it. The airline, sources said, had decided to suspend around 40 flights till March-end.

The airline did not respond to an email and text message from HT.

Sources said operations were also hit as two more of its planes were grounded in one week. Out of its fleet of 64 planes, 20 are already grounded. Operations out of Lucknow, Bhubaneshwar, Patna, Srinagar, Kolkata and Hyderabad could be stopped.