The shares of private sector airline, Jet Airways have fallen 2 per cent after concerns over a possible tax payment default of around Rs. 69 crore by the company.

According to reports, the IT department has warned the airline that it might have to freeze its bank accounts on non-payment of dues of around Rs. 69 crore for the month of January and February.

Jet's Senior Vice-President (Finance) M Shivkumar said, “There has been some delay due to a hike in oil prices and other costs. We are effecting the payments by Monday. Everything will be normal then.”

The Jet Airways spokesperson said in a company statement that service tax dues of Rs. 35 crore for January will be paid by the company on March 12 while the remaining dues for February will be paid on March 15.

The company said that the reports that some of the company’s accounts were frozen are untrue. Shares of Jet Airways fell two percent in morning trade to Rs 290.35 on the Bombay Stock Exchange (BSE).

Domestic airlines like Kingfisher, Jet Airways and Spicejet have reported losses due to rising costs of fuel and operations. Kingfisher is canceling hundreds of flights, as it is unable to pay oil firms for fuel while Jet Airways has been advised to raise funds.