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SpiceJet, a prominent Indian budget airline, has found itself embroiled in a financial scandal involving the alleged misappropriation of employee Provident Fund (PF) contributions. The Economic Offences Wing (EOW) of the Delhi Police has booked SpiceJet's managing director, Ajay Singh, along with four other officials, for failing to credit the deducted 12 percent employee PF share, amounting to Rs 65 crore, into the designated accounts. This action stems from a complaint filed by the Employees' Provident Fund Organisation (EPFO).
The FIR (First Information Report) accuses SpiceJet of violating the provisions of the EPF and MP Act, 1952, which mandates the remittance of employee PF contributions to their respective accounts within 15 days of the end of each month. The accused officials are alleged to have deliberately withheld these funds between June 2022 and July 2024, resulting in a substantial financial loss to the employees. The EPFO alleges that the company's representatives acknowledged deducting the PF contributions during a quasi-judicial inquiry, further substantiating the claims of misappropriation.
However, SpiceJet has countered these allegations, claiming that the complaint was filed before the company raised funds through a Qualified Institutional Placement (QIP). The airline asserts that it has since cleared all outstanding salary and GST dues and has made significant progress in paying ten months of PF dues. The company spokesperson emphasizes that the process of settling the remaining dues is ongoing, and the airline remains committed to its financial and operational strategy outlined in the QIP. Despite these reassurances, the investigation by the EOW is ongoing, and the future ramifications for SpiceJet and the implicated officials remain uncertain.
Source: SpiceJet officials booked for for not crediting employees' share in PF accounts