SpiceJet has disclosed unpaid Provident Fund (PF) contributions and tax deducted at source (TDS) totaling Rs 355.3 crore for the period from April 2020 to August 2023. In a document filed with the Bombay Stock Exchange, the airline admitted it owes Rs 135.3 crore in PF payments and Rs 220 crore in TDS from staff salaries during the same period.
In addition, SpiceJet is embroiled in disputes over Rs 72 crore in TDS and Rs 84.5 crore in Goods and Services Tax (GST) payments, alongside crores owed in service tax and customs duties, including interest and penalties for delays. The disputed TDS dates back to AY 2009/10 to AY 2013/14, while the GST dues span from July 2017 to March 2019.
The financial difficulties are attributed to a “constrained financial position,” which last month led to 150 cabin crew being placed on unpaid leave for three months.
To alleviate its financial woes, SpiceJet plans to raise Rs 3,000 crore through the sale of securities to qualified institutional buyers. The floor price has been set at Rs 64.79 per share, with a potential discount of up to five percent, subject to shareholders’ approval. The proceeds will be used to clear statutory dues, employee payments, and outstanding liabilities, including those owed to aircraft and engine lessors.
Earlier, SpiceJet announced that Carlyle Group’s aviation unit would write off Rs 4 crore in lease arrears and convert Rs 3 crore into equity.