Daijiworld Media Network

Mumbai, Dec 8: National carrier Air India found itself in deeper trouble on Thursday December 8 with the Mumbai service tax department freezing its bank accounts for non-payment of dues.

Liquor baron Vijay Mallya's Kingfisher Airlines too met the same fate, for the second time in two months.

While Air India owes service tax dues worth Rs 100 crore, Kingfisher Airlines is due to pay Rs 70 crore.

The dues, though they were collected from consumers, were not paid to the service tax department, despite being give enough time from the department, sources said.

Earlier in November, Kingfisher's account was frozen for two days, till the Airlines gave an assurance of making the outstanding payments in installments. The Airlines is under heavy debts running into thousands of crores, from all quarters including oil companies and aircraft manufacturers.

Sources said that Air India's total dues run into over 40,000 crore. According to last month's figures, both its working capital loan and aircraft loan are over Rs 21,000 crore.

Sources said that the government may roll out a Rs 30,000-crore package over a period of 10 years to save the national carrier.