Spicejet (Photo: Shutterstock)
The Delhi Police has registered a case against SpiceJet CEO Ajay Singh and some other senior officials of the airline on the basis of a complaint filed by the Employees’ Provident Fund Organization (EPFO), which alleged that the company did not deposit more than Rs 65.7 crore in PF Contributions, according to a report by The economic times.
According to the complaint, SpiceJet, which employs over 10,000 workers, deducted 12 per cent of employees’ salaries for PF between June 2022 and July 2024, but did not transfer the amount to employees’ PF accounts within of the required period of 15 days.
The Economic Offenses Wing (EOW) of Delhi Police registered the FIR on September 16, naming several people including Ajay Singh, Shiwani Singh (Director), Anurag Bhargava (Independent Director), Ajay Chhotelal Aggarwal and Manoj Kumar .
The FIR emphasized that employers act as trustees of their employees’ PF contributions and are required to submit these funds to the EPFO on time.
On October 4, SpiceJet announced that it had deposited 10 months of PF dues. The airline also stated that it had cleared all outstanding goods and services tax (GST) liabilities and salary arrears after raising Rs 3,000 crore through a qualified institutional placement (QIP).
An airline spokesperson said: “During the first week of raising fresh funds through the QIP, SpiceJet has cleared all outstanding salary and GST dues and has made substantial progress in depositing ten months of PF dues, with the process of addressing other outstanding liabilities in progress.”
In addition to addressing PF contributions, the airline has reached agreements with several aircraft lessors as part of its ongoing efforts to manage its financial difficulties.
SpiceJet has been grappling with numerous challenges, including financial strains and legal issues, and is currently operating with a smaller fleet.
On Friday, SpiceJet shares fell 4.25 per cent, closing at Rs 62.79 on the BSE.
First published: October 5, 2024 | 14:22 IS
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