SpiceJet starts clearing pending salaries

The source said that the company will soon clear all the other dues related to the Provident Fund and TDS.
SpiceJet flight image used for representative purposes only.
SpiceJet flight image used for representative purposes only.(File Photo | PTI)
Updated on
1 min read

Days after raising Rs 3,000 crore through a Qualified Institutional Placement (QIP), budget carrier SpiceJet has started crediting the pending salaries of its employees for June, July and August.

“SpiceJet has cleared all pending salary dues of employees. Salaries of July and August of all employees and those who hadn’t received June salaries were disbursed last evening,” said a source privy to the development.

An employee working with the airline also confirmed receiving his pending salary.

The source said that the company will soon clear all the other dues related to the Provident Fund and TDS. SpiceJet has not paid statutory dues amounting to Rs 427 crore between March 2020 and August 2024.

These statutory dues include Rs 219.8 crore in tax deducted at source (TDS), Rs 71.33 crore in goods and services tax (GST), and Rs 135.47 crore towards provident fund (PF) contribution.

In its QIP document, SpiceJet said it owed Rs 118.9 crore to its employees as of September 15, 2024, in addition to the statutory dues.

SpiceJet said on Monday that it has successfully raised Rs 3000 crore through its recently concluded Qualified Institutional Placement (QIP). The airline would also receive an additional Rs 736 crore from the previous funding round.

Amidst this funding exercise, the airline is also trying to resolve its duels with various lessors and creditors.

SpiceJet on Tuesday said that it has successfully resolved its dispute with Engine Lease Finance Corporation (ELFC) through an amicable settlement. ELFC, which had previously claimed USD 16.7 million, has agreed to settle for an undisclosed amount, which is lower than the initial claim, as per the airline.

Related Stories

No stories found.

X
The New Indian Express
www.newindianexpress.com