SpiceJet Airline Dues Rs 355 Crore In PF And Tax (Image:X/SpiceJet)

Indian low-cost airline, SpiceJet hasn’t paid Rs 135.3 crore in Provident Fund payments to the employees starting from the period of April to August 2023 as per the document filed with the Bombay Stock Exchange. The airline which is headquartered in Gurgaon has also not paid Rs 220 crore in a tax deduction at source (TDS) for the staff salaries for the aforementioned period.

According to the reports, SpiceJet is struggling to pay its debts which include taxes and statutory dues. The company owes a ballpark amount of Rs 72 crore in disputed TDS payments from 2009 to 2014 and Rs 84.5 crore in disputed Goods and Services Tax (GST) payments from July 2017 to March 2019. Additionally, SpiceJet owes Rs 1.71 crore in service tax from April 2006, as well as customs duties and penalties. The airline blames its financial constraints for the delayed payments. “We operate with transparency and are committed to clearing our dues as soon as possible,” said the company spokesperson.

Also, read| Dubai Airport Barred SpiceJet Passengers From Checking-In?

The airline also mentioned that they plan to raise Rs 3,000 crore by selling securities to qualified institutional buyers. The funds will be utilized to pay statutory dues, settle debts with creditors, pay employee dues, and cover airport fees.

This move comes after the airline recently furloughed 150 cabin crew members due to financial difficulties. In a statement, SpiceJet said, “We will utilize the funds raised to clear our dues and strengthen our financial position.” The company has set a floor price of Rs 64.79 per share and may offer a discount of up to 5% with shareholders’ approval.

However, the airline also faces legal challenges over unpaid dues to aircraft lessors, with several lessors seeking SpiceJet’s liquidation. The Delhi High Court has reprimanded the airline for its inability to settle its financial obligations. In August, the Dubai International Airport barred SpiceJet passengers from checking in. The report said the action has been taken after pending dues from the airline to the international airport. Earlier in the same month, the Mumbai airport under the Adani Group made disruptions in flight take off on account of the non-payment of dues by SpiceJet.

Also, read| SpiceJet Troubles Mount: 10 Points On “Enhanced Surveillance”, Unpaid Dues And Crew On Furlough