SpiceJet clears provident fund dues

Airline says since raising R3,000 crore through a Qualified Institutional Placement, it has cleared all pending statutory liabilities

Christmas has come early for SpiceJet employees as the airline has cleared all pending employee provident fund (PF) dues amounting to Rs 160.07 crore.

A SpiceJet spokesperson told mid-day, “SpiceJet has successfully cleared all PF dues spanning over two years, reaffirming its commitment to employee welfare and financial accountability.”

This newspaper had previously reported about SpiceJet employees’ PF being cut from their salaries but not being credited to their PF accounts.

According to the airline statement, “Over the past three months, since raising R3,000 crore through a Qualified Institutional Placement (QIP), the airline has cleared all pending statutory liabilities, including Tax Deducted at Source (TDS), Goods and Services Tax (GST), and employee salary dues. With the airline now current on its statutory dues, it is poised to save significantly on interest payments.”

Ajay Singh, chairman and managing director, SpiceJet, said, “We are pleased to announce the clearance of all pending employee PF dues. This marks a new chapter in SpiceJet’s journey. By clearing all pending statutory dues and settling disputes with lessors and creditors, we are demonstrating our unwavering commitment to operational excellence, financial prudence, and the welfare of our employees.”

“In addition to clearing its statutory obligations, the company has resolved multiple outstanding disputes with aircraft lessors and other creditors, significantly improving its balance sheet. The airline’s sustained efforts toward financial stability and operational resilience have recently been recognised by Acuité Ratings & Research Limited, which upgraded SpiceJet’s credit rating by four notches,” the airline statement said.

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