Mumbai: SpiceJet, one of India’s prominent low-cost airlines, has revealed a significant financial shortfall, disclosing unpaid dues amounting to Rs 355 crore. The airline has not paid Rs 135.3 crore in Provident Fund (PF) contributions and Rs 220 crore in Tax Deducted at Source (TDS) from employees’ salaries, covering the period from April 2020 to August 2023.
The airline’s financial woes were highlighted in a document filed with the Bombay Stock Exchange (BSE). The document also mentions additional disputed dues, including Rs 72 crore in TDS for the assessment years 2009-10 to 2013-14, and Rs 84.5 crore in Goods and Services Tax (GST) payments from July 2017 to March 2019.
SpiceJet’s financial strain has been attributed to a “constrained financial position,” which led to the airline’s difficult decision to place 150 cabin crew on leave without pay for three months. The airline is now seeking to raise Rs 3,000 crore through the sale of securities to qualified institutional buyers, with the aim of stabilizing its operations and addressing outstanding liabilities.
The proceeds from this sale are expected to be used to clear statutory dues, including the unpaid PF and TDS, as well as to settle liabilities with creditors, aircraft and engine lessors, and to cover airport-related fees1. SpiceJet’s financial challenges have also resulted in 36 of its 58 aircraft being grounded due to various operational issues.
