SpiceJet MD booked over PF dues

The Economic Offences Wing (EOW) of the Delhi Police has filed an FIR against the managing director and four other officials of SpiceJet for allegedly not crediting the deducted 12 per cent of employees’ share in their provident fund (PF) accounts, officials said on Saturday.

The uncredited amount was to the tune of Rs 65 crore, they added. The FIR has been registered on the complaint of the Employees’ Provident Fund Organisation (EPFO) on September 16 and the probe was on, an officer of the EOW said.

However, a SpiceJet spokesperson 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 PF dues of 10 months.” “The process of clearing the remaining dues is ongoing. Additionally, we have successfully reached settlements with multiple lessors. SpiceJet remains fully aligned with the financial and operational strategy outlined in the QIP,” it said.

According to the FIR, “Managing director Ajay Singh and director Shiwani Singh, independent director Anurag Bhargava and two other officials Ajay Chhotelal Aggarwal and Manoj Kumar are responsible for the conduct of the business of the establishment as per ownership declaration form 5A submitted to the EPFO.” The company employs more than 10,000 staffers and had deducted 12 per cent of employees’ share in lieu of the provident fund dues from their salaries (PF wages) from June 2022 to July 2024, to be remitted by August 15, 2024, it said.

The FIR said at least 12 per cent employees’ share of PF dues was payable to the EPFO under Section 6 of the EPF and MP Act, 1952, to be remitted in the respective PF accounts of employees/pension fund maintained by the EPFO. The contribution of employees amounting to Rs 65,70,62,540 from June 2022 to July 2024, was not credited to the PF accounts of the employees within the mandatory 15 days of close of every month, and it was in violation of requirement of para 38 (1) of the EPF Scheme-1952 by the aforesaid persons, read the FIR.

It further said the establishment representative admitted to having made the deduction during quasi-judicial proceedings (7A inquiry) before the competent assessing officer.

The employer has therefore, cheated the employees and committed an offence under Sections 316 and 318 of the BNS, it added.

Rs 65 cr not credited

The contribution of employees amounting to Rs 65,70,62,540 from June 2022 to July 2024, was not credited to the PF accounts of the employees within the mandatory 15 days of close of every month, read the FIR.