Domestic aviation company SpiceJet has paid all pending salaries to its employees after receiving new capital of Rs 3,000 crore.
A source confirmed that this payment includes the salaries for July and August, as well as the remaining salaries for employees who only received partial payment for June.
A spokesperson from SpiceJet confirmed that these pending salaries were paid on Wednesday evening, but did not provide further details.
Ongoing Issues with Provident Fund and Taxes
Despite clearing pending salaries, SpiceJet has not paid its employees’ provident fund for two and a half years.
Additionally, the company has not deposited the tax deducted at source (TDS) from employees’ salaries with the government.
On September 23, SpiceJet announced it had raised ₹3,000 crore through a qualified institutional placement (QIP)
and an additional ₹736 crore in a previous funding round. This funding is expected to enhance the company’s financial stability and support its growth plans.
Issues with Provident Fund and Tax Deductions
Despite settling salaries, SpiceJet has not paid the provident fund for the last two and a half years.
Additionally, the TDS (tax deducted at source) that is taken from employees’ salaries has not been deposited with the government.
On September 23, SpiceJet announced it had raised Rs 3,000 crore through qualified institutional placement (QIP), along with an extra Rs 736 crore from a previous funding round. This funding aims to strengthen its financial stability and growth plans.
Settlement with ELFC
SpiceJet has also resolved a dispute with Engine Lease Finance Corporation (ELFC).
Initially, ELFC claimed $16.7 million from SpiceJet, but they have agreed to settle for an undisclosed amount that is lower than the initial claim.
