India’s most preferred airline, SpiceJet financial crisis is hurting employees. Earlier, Chief Financial Officer Sanjeev Taneja had also quit the organization due to concerns over mounting losses.
It is now reported that the airline company has emerged in failing to deposit PF in employees’ accounts.
A SpiceJet spokesperson said, “There has been certain deferral on discharging of payments but no default on any statutory payments.”
“The company has been actively paying dues and clearing the outstanding. SpiceJet has been discharging its current GST liabilities on a regular basis”, a SpiceJet spokesperson said.
A SpiceJet spokesperson further added, “The company has been making payments as per mutually agreed payment plan and we have discharged our liabilities until February 2022.”
“SpiceJet will receive more than Rs 200 crore next week as part of the emergency credit line guarantee scheme (ECLGS) and the money will be used to clear other statutory dues and lessor payments,” the spokesperson added.
SpiceJet is currently operating fewer than 50 per cent of flights following the July 27 order of the Directorate General of Civil Aviation (DGCA) in the wake of a spate of incidents.
The airline is allegedly defaulting on depositing tax deducted at source (TDS) with authorities and allegedly not depositing PF in employee accounts. It is also reportedly defaulting on some statutory payments too.
The airline has earlier delayed August salaries. It is yet to give employees Form 16 for fiscal 2021-22 due to which they are facing issues in filing tax returns. SpiceJet employees have also claimed there was a delay in disbursal of July month salary for staff. The employees have often faced stress issues due to financial irregularities.
The company said that they have started to see some green shoots of relief with a reduction in fuel price effective August 1.
SpiceJet expects that passenger demand is to be strong as they enter the traditional strong season by end-September.
