SpiceJet clears pending employee provident fund worth Rs 160 crore
MUMBAI: SpiceJet said on Friday that it has cleared all pending employee provident fund (PF) dues amounting to Rs 160.07 crore, spanning over two years.
Over the past three months, since raising Rs 3,000 crore through a Qualified Institutional Placement (QIP), the airline said that it has cleared all pending statutory liabilities, including Tax Deducted at Source (TDS), Goods and Services Tax (GST), and employee salary dues.
“This marks a new chapter in SpiceJet’s journey. By clearing all pending statutory dues and settling disputes with lessors and creditors, we are demonstrating our unwavering commitment to operational excellence, financial prudence, and the welfare of our employees,” said Ajay Singh, Chairman and Managing Director, of SpiceJet.
Singh added, “With the successful implementation of our financial turnaround strategy, we are confident in our ability to continue delivering superior service to our customers and achieving sustainable growth.”
SpiceJet had not paid statutory dues amounting to Rs 427 crore between March 2020 and August 2024. These statutory dues include Rs 219.8 crore in tax deducted at source (TDS), Rs 71.33 crore in goods and services tax (GST), and Rs 135.47 crore towards provident fund (PF) contribution.
In addition to clearing its statutory obligations, SpiceJet said that it has also resolved multiple outstanding disputes with aircraft lessors and other creditors. Following the clearances, Acuité Ratings & Research Limited, upgraded SpiceJet’s credit rating by four notches.
A few months back, the Gurugram-based airline was struggling to remain afloat due to a lack of funds and rising legal cases over its inability to pay vendors and lessors.
Amidst the chaos, the Directorate General of Civil Aviation (DGCA) had placed Spicejet under enhanced surveillance on September 13, 2024 over a severe cash crunch at the airline which had impacted its ability to discharge mandatory obligations of aircraft maintenance. In mid-October, DGCA removed the low-cost carrier from the enhanced surveillance regime.
