Tax authorities have warned top Indian carrier Jet Airways its bank accounts will be frozen if it does not clear outstanding dues of about 690 million Indian rupees ($13.84 million), local media reported on Sunday.
"They have 24 hours to make the payment, failing which their accounts will be frozen," SK Goel, chairman of the Central Board of Excise and Customs, was quoted by a newspaper as saying.
In a statement, the airline denied having had any warning its accounts may be frozen but said it plans to pay the amount by Monday.
"There is no truth in the statements made to certain sections of the media regarding attaching/freezing any of the company's bank accounts," Jet Airways said in the statement.
India's airlines are reeling under a $20 billion debt load and are struggling to make profits, hurt by higher fuel prices, competition and low fares. Five out of India's six scheduled carriers are loss-making.
Jet's woes follow those of Kingfisher Airlines. Its accounts were frozen last month over outstanding dues.
According to local media, Kingfisher was also issued a "show-cause" notice last week, asking it to explain why it had not paid about 3 billion rupees of tax.