SpiceJet employees have been waiting for PF for 2.5 years, report reveals

SpiceJet Airlines has not paid provident fund dues to its employees for the last 2.5 years. The last PF was deposited by the company in January 2022. During this period, no-frills was done by the airline for 11,581 employees. This information has come to light in response to an RTI.

Troubled airline SpiceJet may face more financial crisis, as it has come to light that the company has not deposited the employees’ provident fund dues for about two and a half years. Let us tell you that notices and summons were sent to SpiceJet regarding not depositing the PF dues of the employees. SpiceJet has not yet commented on this. RTI has revealed that EPFO ​​has issued notice and summons to SpiceJet in this regard. The airline’s response is awaited in this matter. SpiceJet shares have fallen by 7.6 percent so far this year, but it has increased by 86 percent compared to a year ago.

Earlier in February too, there were reports that the airline had delayed EPFO ​​deposits due to fund crunch and cash crunch, while salaries for the month of January were also paid late. The airline is also facing litigation from various lessors, some of whom are apprehensive about extending aircraft lease periods.

The National Company Law Tribunal (NCLT) had on April 18 issued notice to the low-cost airline on three insolvency petitions filed by three aircraft lessors, alleging defaults totalling Rs 77 crore. In May, KAL Airways and Kalanithi Maran had sought damages of over Rs 1,323 crore from SpiceJet and its chief Ajay Singh and also challenged in the Supreme Court a recent order of the Delhi High Court in the ongoing dispute between the two parties.

In February 2015, Maran and his investment vehicle KAL Airways transferred their 58.46 per cent stake in SpiceJet to Singh. Singh, the SpiceJet co-founder, took over the airline’s liabilities of about Rs 1,500 crore. As per the agreement, Maran and KAL Airways said they paid Rs 679 crore to SpiceJet for the issuance of warrants and preference shares. However, Maran alleged that the warrants and preference shares were not allotted and initiated arbitration proceedings against SpiceJet and Singh.

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