SpiceJet finds itself in a new legal quagmire as the Economic Offences Wing (EOW) of the Delhi Police has initiated a criminal case against its Managing Director Ajay Singh and other senior executives.
The complaint centers on allegations of cheating and conspiracy linked to the non-remittance of over Rs 65.7 crore in employees’ provident fund (PF) contributions.
The First Information Report (FIR) was lodged following a complaint by the Employees’ Provident Fund Organisation (EPFO), identifying five key individuals – Ajay Singh, Shiwani Singh (Director), Anurag Bhargava (Independent Director), Ajay Chhotelal Aggarwal, and Manoj Kumar.
The FIR states that during the period from June 2022 to July 2024, SpiceJet deducted 12% from its employees’ salaries as their share of PF contributions but failed to deposit these amounts within the mandated timeframe.
Additionally, the FIR also states that the airline must remit these funds by the deadline of 15 August 2024.
The FIR highlights that the airline, which employs over 10,000 individuals, must act as a trustee for the deducted contributions and remit them to the EPFO as stipulated by the Employees’ Provident Funds Scheme, 1952.
SpiceJet Vows To Resolve Financial Obligations
As per IANS, a spokesperson for SpiceJet responded to the allegations, emphasizing the airline’s commitment to rectifying its financial obligations.
“Following our recent capital infusion through a Qualified Institutional Placement (QIP), we have addressed all pending salary and GST dues and made considerable strides in depositing ten months’ worth of PF contributions,” the spokesperson stated.
They further reassured that efforts to resolve other outstanding debts are ongoing, and the airline has successfully settled disputes with several lessors.
In a related development, the National Company Law Tribunal (NCLT) recently sought a response from SpiceJet concerning a plea from Techjockey Infotech Pvt Ltd, one of its operational creditors.
Techjockey Infotech has initiated proceedings for corporate insolvency resolution, alleging that SpiceJet defaulted on payments amounting to approximately Rs 1.18 crore, which stemmed from a 2021 agreement for cloud services.
Meanwhile, the NCLT has accepted the case for review and will hear it on 14 November.
As SpiceJet navigates these legal and financial challenges, the future of the airline remains uncertain amidst mounting scrutiny and obligations.
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