Forty more bank accounts of Kingfisher Airlines have been frozen by the Service Tax Department. The beleaguered airline owes Rs 40 crore in tax arrears.
Seven accounts of Kingfisher Airline were attached by the Service Tax Department. The Service Tax Department had also attached 37 accounts of Kingfisher before this.
Kingfisher had promised to pay about Rs 1 crore each day, which it failed to do, resulting in the Service Tax Department freezing the company's accounts.
The Service Tax Department is also contemplating attachment of Kingfisher's properties following the company's failure to pay dues before March 31, 2011.
Desperately strapped for cash, Kingfisher stands on the brink of collapse after nearly a week of flight cancellations and resignations by dozens of its pilots.
The carrier needs up to Rs 20 billion in fresh equity infusion to stay afloat, the country's largest lender State Bank of India Chairman Pratip Chaudhuri had said earlier this week.
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