SpiceJet Admits Major Financial Misconduct

18 Sep 2024 , 01:14 PM

SpiceJet has admitted that it failed to pay tax authorities around Rs 220 crore in tax deducted at source (TDS) from employee salaries between April 2020 and August 2023. In addition, the airline owes nearly Rs 135.3 crore in provident fund (PF) payments to its employees during the same time period.

According to SpiceJet’s preliminary placement document (PPD) submitted with the Bombay Stock Exchange (BSE), about Rs 72 crore of TDS for the assessment years 2009-10 to 2013-14 is challenged. It also identified significant dues in customs, service tax, and goods and services tax (GST) as “disputed.”

“Due to our financial constraints, we have delayed in depositing/paying the statutory dues,” the cash-strapped ailrine stated. These dues include TDS and the timely filing of TDS returns, employee gratuity dues, provident fund, and goods and services tax and return filing.

SpiceJet plans to raise Rs 3,000 crore by the end of the month by selling shares to suitable institutional investors via a Qualified Institutional Placement (QIP). While Yes Bank has approved the QIP, ICICI and Indian Bank are yet to do so, the carrier stated.

SpiceJet intends to use the proceeds from this issuance to strengthen its financial status and return to full operations.

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