SpiceJet Fails To Pay Statutory Dues Of Rs 427 Cr Since 2020

Owing to its constrained financial position, SpiceJet, the Gurugram-based airline has not paid the statutory dues amounting to Rs 427 crore between April 2020 to August 2024. The airline revealed that the dues include Rs 219.8 crore in tax deducted at source (TDS), Rs 71.33 crore in goods and service tax (GST) and Rs 135.47 crore towards the contribution to provident fund (PF).

The airline disclosed this information in its preliminary placement document submitted to the Bombay Stock Exchange (BSE) on Monday for the purpose of raising funds. The airline aims to raise up to Rs 3,000 crore through a qualified institutional placement (QIP) process with Rs 64.79 per share being the floor price.

The airline is struggling to pay the monthly salaries to its employees as the document revealed that it owes around Rs 118.9 crore to its employees as of 15 September 2024. The airline seeks to pay them with the funds from the QIP. As far as the airport dues of the airline are concerned, it stood at Rs 290 crore as of 15 September 2024 and the airline aims to settle around Rs 150.3 crore from the money raised.

The information provided by the airline disclosed that 36 of its 58 aircraft were grounded due to three primary reasons. The alleged default in payment to aircraft lessors, unavailability of components and spare parts along with the financial constraints impacting the aircraft maintenance have added to these troubles.

The airline is actively seeking to expand its operations and intends to allocate Rs 370 crore for fleet expansion. In addition, Rs 750 crore is to be used to settle outstanding liabilities to creditors which include financiers, engineering vendors and aircraft and engine lessors. Around Rs 601.5 crore is to be utilised for paying the statutory dues, while to unground and maintain the existing flee, the airline will utilise Rs 410 crore.