The Economic Offences Wing (EOW) of Delhi Police has filed a First Information Report (FIR) against SpiceJet’s managing director and four other officials for allegedly failing to credit the deducted 12% employee share into their Provident Fund (PF) accounts. The uncredited amount is approximately Rs 65 crore.
The FIR, registered under Section 409 (criminal breach of trust) and Section 120B (criminal conspiracy) of the Indian Penal Code, was prompted by a complaint from the Employees’ Provident Fund Organisation (EPFO) on September 16. An investigation is ongoing, an EOW officer said, as reported by PTI.
The FIR details that Managing Director Ajay Singh, Director Shiwani Singh, Independent Director Anurag Bhargava, and two other officials, Ajay Chhotelal Aggarwal and Manoj Kumar, are accountable for the company’s conduct per the Ownership Declaration Form submitted to the EPFO. The company, employing over 10,000 individuals, deducted the PF share from employee salaries from June 2022 to July 2024, with an obligation to remit these amounts by August 15, 2024.
According to the FIR, the employees’ PF dues must be credited to the EPFO under Section 6 of the EPF and MP Act, 1952, and should be deposited into employee accounts within 15 days of each month’s close. The total unremitted contribution amounts to Rs 65,70,62,540, which violates the EPF scheme regulations.
The FIR also notes that a representative of SpiceJet admitted to the deductions during quasi-judicial proceedings before the assessing officer. The employer is accused of cheating employees and misappropriating funds, leading to potential violations of various legal provisions.
The airline in a statement said, “The case was filed before the company raised fresh funds through the Qualified Institutional Placement (QIP). Since then, the airline has cleared all pending salary and GST dues and made significant progress by depositing ten months of PF dues.”
(With PTI inputs)