<p>The Central Board of Excise and Customs (CBEC) today said that it has frozen the bank accounts of Kingfisher Airlines for its failure to pay service tax arrears.<br /><br /></p>.<p>"They were paying Rs 1 crore per day. For past few days there has been an interruption. They have not been able to pay, so we have frozen their accounts 2-3 days ago by issuing a letter to the bank," CBEC Chairman S K Goel told reporters.<br /><br />The airlines, he further said, had an outstanding indirect tax arrears of Rs 70 crore and about Rs 35 crore is still due from them.<br /><br />Promoted by liquor baron Vijay Mallya, Kingfisher Airlines has run into financial problems and has suffered losses of over Rs 1,000 crore during the nine-month period ending December 2011.<br /><br />A consortium of 18 bankers including 14 state-owned lenders and four private banks have provide huge sums to the beleaguered airlines which has a total debt of about Rs 7,057 crore and accumulated losses of about Rs 6,000 crore.<br /><br />In view of the precarious financial position, the airlines is finding it difficult to procure fresh funds from the banks.<br /><br />The bankers have been insisting they would not pump in money unless the promoters infused fresh equity into the company.</p>
<p>The Central Board of Excise and Customs (CBEC) today said that it has frozen the bank accounts of Kingfisher Airlines for its failure to pay service tax arrears.<br /><br /></p>.<p>"They were paying Rs 1 crore per day. For past few days there has been an interruption. They have not been able to pay, so we have frozen their accounts 2-3 days ago by issuing a letter to the bank," CBEC Chairman S K Goel told reporters.<br /><br />The airlines, he further said, had an outstanding indirect tax arrears of Rs 70 crore and about Rs 35 crore is still due from them.<br /><br />Promoted by liquor baron Vijay Mallya, Kingfisher Airlines has run into financial problems and has suffered losses of over Rs 1,000 crore during the nine-month period ending December 2011.<br /><br />A consortium of 18 bankers including 14 state-owned lenders and four private banks have provide huge sums to the beleaguered airlines which has a total debt of about Rs 7,057 crore and accumulated losses of about Rs 6,000 crore.<br /><br />In view of the precarious financial position, the airlines is finding it difficult to procure fresh funds from the banks.<br /><br />The bankers have been insisting they would not pump in money unless the promoters infused fresh equity into the company.</p>