Taxmen freeze 7 more bank accounts of Kingfisher
02 Mar 2012
Troubled Kingfisher Airline's woes have deepened with the tax authorities freezing seven more bank accounts of the airline, blocking much-needed cash for its daily operations.
The service tax department had earlier frozen 37 accounts of Kingfisher and Friday's action takes the total number of frozen bank accounts of the beleaguered airline to 44.
The tax authorities acted after Kingfisher failed to pay the promised Rs1 crore each day and are now, planning attachment of Kingfisher's properties to recover its dues amounting to Rs60 crore before the end of the financial year.
The income tax department has already frozen some of its accounts for defaults of about Rs300 crore.
This has blocked salaries to employees for the last two months, which in turn could lead to a strike.
The founders of Kingfisher Airlines Ltd are looking at all options to infuse funds into the airline, including sale of stock to foreign investors.
The airlines founders may also convert Rs1,500 crore they had lent to the airline into additional shares, fulfilling a key demand from banks for more equity infusion.
The company was in talks with several investors in India and overseas and also the founders who have Rs1,000 crore in loans with the airline and another Rs500 crore in optionally convertible debentures that could be converted into equity.
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