NEW DELHI: In yet another financial trouble brewing at SpiceJet, the cash-starved airline is said to have not deposited employees’ provident fund (EPF) dues over nearly two-and-half years according a report published in New Indian Express.
As per a report, SpiceJet has not deposited the Employees’ Provident Fund contributions of its 11,581 staff since January 2022.
This information was provided by the Employees Provident Fund Organisation (EPFO) in response to a financial channel’s RTI query. This is not the first time that SpiceJet has been accused of delaying the EPFO deposits due to a shortage of funds. Since the last few years, the airline has missed the timeline for depositing TDS and delayed salary payments to employees on multiple occasions.
EPFO said they issued notices and summons under Section 7A of the EPF and MP Act 1952 against the airline for not depositing its contributions.
The airline is facing various legal disputes regarding non-payment to lessors in courts. Then the current management is involved in a lengthy legal battle with KAL Airways and former promoter Kalanithi Maran. There are also reports that SpiceJet is operating on a cash-and-carry mode at all its airports in India.
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Maran and his KAL Airways on May 27 had said they would seek over Rs 1,323 crore in damages from SpiceJet and its chief Ajay Singh. Maran will challenge the recent Delhi High Court order. The low-cost carrier on May 17 received a major relief as a division bench of the Delhi HC set aside a single judge’s order that had upheld an arbitral award requiring SpiceJet and Singh to refund Rs 579 crore plus interest to Maran.
The National Company Law Tribunal (NCLT) in April this year had issued a notice to the low-cost airline in response to three insolvency pleas filed by aircraft lessors, citing a total default of Rs 77 crore.
This is not the first time that SpiceJet has been accused of delaying EPFO deposits due to a shortage of funds. Since last few years, the airline has missed timeline for depositing TDS and delayed salary payments to employees on multiple occasions. EPFO said they issued notices and summons under Section 7A of the EPF and MP Act 1952.
Source: newindianexpress
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