FIR against Ajay Singh, SpiceJet board surfaces day after clearing PF dues

The Delhi Police's Economic Offence Wing had filed an FIR against SpiceJet's managing director Ajay Singh and top officials for cheating and criminal conspiracy in September

Delhi Police have registered a case against SpiceJet Managing Director Ajay Singh and some other top officials of the airline on the basis of a complaint filed by Employees’ Provident Fund Organisation (EPFO), which claimed that the firm failed to deposit over Rs 65.7 crore in PF contributions, according to a report by The Economic Times. 

According to the complaint, SpiceJet, which employs over 10,000 workers, deducted 12 per cent of employees’ salaries for PF between June 2022 and July 2024 but did not transfer the amount to employees' PF accounts within the required 15-day timeframe.

The Economic Offence Wing (EOW) of the Delhi Police registered the FIR on September 16, naming several individuals, including Ajay Singh, Shiwani Singh (Director), Anurag Bhargava (Independent Director), Ajay Chhotelal Aggarwal, and Manoj Kumar.

The FIR emphasised that employers act as trustees for their employees' PF contributions and are obligated to submit these funds to the EPFO on time.

On October 4, SpiceJet announced that it had deposited 10 months' worth of PF dues. The airline also stated that it had settled all pending Goods and Services Tax (GST) obligations and salary arrears after raising Rs 3,000 crore through a Qualified Institutional Placement (QIP). 

A spokesperson for the airline said, “Within the first week of raising fresh funds through the QIP, SpiceJet has cleared all outstanding salary and GST dues and has made substantial progress by depositing ten months' worth of PF dues, with the process of addressing other outstanding liabilities ongoing.”

In addition to addressing PF contributions, the airline has reached settlements with various aircraft lessors as part of its ongoing efforts to manage its financial difficulties.

SpiceJet has been grappling with numerous challenges, including financial strains and legal issues, and is currently operating with a smaller fleet.

On Friday, SpiceJet’s shares declined by 4.25 per cent, closing at Rs 62.79 on the BSE.