DGCA unmoved by Kingfisher's NOC from creditors

Grounded Kingfisher Airlines has got a no-objection certificates from airport operators, fuel suppliers and some leasing companies, but has failed to win crucial clearance from the aviation regulator, the Director General of Civil Aviation  (DGCA).

Kingfisher Airline CEO Sanjay Aggarwal today met the Director General of Civil Aviation (DGCA) to appraise him of the developments.

However, the airline has not yet received any commitment on funding from the UB Group and the DGCA is unlikely to clear its proposal without a firm commitment on funding from the promoters.

The airline has also failed so far to clear salary dues to employees pending since May 2012.

Meanwhile, the airline has approached the Supreme Court challenging the Karnataka High Court's order directing it to deposit around Rs185 crore with the income tax department as TDS from the salaries of its employees.

A bench headed by Chief Justice Altamas Kabir will hear the case on Monday, sources quoting senior advocate Mukul Rohatgi said.

The Karnataka HC had, in its order dated 5 December 2012, directed Kingfisher Airlines to deposit 50 per cent of the Rs371 crore due to the I-T department. It had also asked the company to furnish bank guarantee for the remaining amount within six weeks.

The company, however, contended that the amount due is much less than the demand made by the IT department and that the I-T department had not given the company a proper hearing.