Troubled airline SpiceJet may find itself in further financial struggle after it emerged that the company has not deposited employees' provident fund dues over nearly 2-1/2 years, CNBC-TV18 learns.
The last provident fund deposit by SpiceJet was made in in January 2022 for 11,581 employees, query sent to EPFO has revealed.
The EPFO has issued notices and summons to SpiceJet in this regard, an RTI query has revealed. The airline's response in this matter is awaited.
The shares of SpiceJet are down by 7.6 percent so far this year, but up 86 percent when compared to a year ago.
Earlier in February year too, reports had emerged that the airline had delayed EPFO deposits due to shortage of funds and liquidity constraints, while salary for the month of January was delayed.
The airline is also facing litigation from various lessors, with some of them wary of extending the lease for aircraft. The National Company Law Tribunal (NCLT) on April 18 had issued a notice to the low-cost airline in three insolvency plea filed by three aircraft lessors, over a total default of Rs 77 crore.
In May, KAL Airways and Kalanithi Maran had sought over Rs 1,323 crore in damages from SpiceJet and its chief Ajay Singh as well as challenge the recent Delhi High Court order in the ongoing dispute between the two sides in the Supreme Court.
In February 2015, Maran and KAL Airways, his investment vehicle, had transferred their 58.46 percent stake in SpiceJet to Singh. A co-founder of SpiceJet, Singh took on the airline’s liabilities of around Rs 1,500 crore.
As part of the agreement, Maran and KAL Airways said they paid SpiceJet Rs 679 crore for issuing 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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