IndiGo receives tax penalty notice of Rs 58.75 crore

The crisis-ridden IndiGo received a tax penalty notice of Rs 58.75 crore on December 11 from the Additional Commissioner of CGST, Delhi South Commissionerate, for the financial year 2020-21, the company announced on Friday.

In a filing to the BSE, IndiGo termed the tax order erroneous. It asserted that it has a strong case on merits, supported by external tax advisors.

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The carrier emphasised that the development is not expected to materially impact its financial position, day-to-day operations, or broader business activities.

Earlier today, the Directorate General of Civil Aviation (DGCA) suspended four Flight Operations Inspectors (FOI), who are responsible for overseeing airline safety, pilot training & operational compliance.

The four-member panel comprises Joint Director General Sanjay Brahamane, Deputy Director General Amit Gupta, senior Flight Operations Inspector Kapil Manglik, and FOI Lokesh Rampal, with a mandate to identify the root causes of widespread operational disruptions at the leading domestic carrier.

Further, IndiGo CEO Pieter Elbers has been summoned to appear before a DGCA Committee of Officers on December 12 as the regulator examines the root causes of the disruptions.

The crisis erupted for the airlines earlier this month due to the flight duty time limitation (FDTL) rules. The rules expanded rest hours, limited night duties, and mandated 48 hours of weekly rest.