Besides, the watchdog has issued a show cause notice to the budget carrier under the relevant provisions of the Aircraft Rules, 1937, for its failure to continue the operation of the service in a safe, efficient and reliable manner, the source said.
Earlier, the airline had suspended the sale of tickets till May 15 and has cancelled flights till May 12.
The carrier has filed a plea for voluntary insolvency resolution proceedings before the National Company Law Tribunal (NCLT), which has reserved its order.
The source said the airline has been directed to stop the booking and sale of tickets directly or indirectly, with immediate effect and until further orders.
The airline has been asked to submit its reply within 15 days of the receipt of the show cause notice, and further, a decision on the continuation of its Air Operators Certificate (AOC) will be taken on the basis of the reply submitted by it, the source added.
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