Delhi Police EOW files case against SpiceJet MD and officials over PF dues

The FIR states that SpiceJet deducted 12% of employees’ salaries for PF contributions but failed to remit these amounts as required

PGurus Newsdesk

October 5, 2024

The FIR states that SpiceJet deducted 12% of employees’ salaries for PF contributions but failed to remit these amounts as required

FIR against Ajay Singh, SpiceJet board surfaces day after clearing PF dues

In a significant development for struggling airline SpiceJet, the Economic Offences Wing (EOW) of the Delhi Police has filed a case against Managing Director Ajay Singh and several senior officials for allegedly failing to remit over Rs.65.7 crore in provident fund (PF) contributions.

The case, initiated following a complaint from the Employees’ Provident Fund Organisation (EPFO), includes five individuals: Ajay Singh, Director Shiwani Singh, Independent Director Anurag Bhargava, and officials Ajay Chhotelal Aggarwal and Manoj Kumar.

The FIR states that SpiceJet, which employs over 10,000 people, had deducted 12% of employees’ salaries for PF contributions from June 2022 to July 2024, but failed to remit these amounts as required. According to the FIR, the company did not credit the deducted funds to employee accounts within the mandatory 15-day timeframe, violating the EPF Scheme of 1952.

The FIR further emphasizes that the employer acts as a trustee for the employee’s PF contributions and is obligated to remit the deducted amounts to the EPFO on time.

In response to the allegations, a SpiceJet spokesperson stated that the airline has cleared all pending salaries and GST dues following a recent fundraising round through Qualified Institutional Placement (QIP), and has made substantial progress in depositing ten months of outstanding PF dues. The spokesperson added that efforts to settle other outstanding dues are ongoing, and the company has successfully negotiated settlements with multiple lessors.

The airline is already under scrutiny, as the National Company Law Tribunal (NCLT) recently requested a response from SpiceJet regarding a plea from Techjockey Infotech Pvt Ltd, one of its operational creditors, seeking to initiate corporate insolvency resolution proceedings against the airline for an alleged default of approximately Rs 1.18 crore linked to a 2021 agreement for cloud services.

The NCLT has accepted the case for consideration and issued a notice to SpiceJet, with a hearing scheduled for November 14.

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