Thu Sep 19 02:53:18 UTC 2024: ## SpiceJet Faces Mounting Financial Strain, Defaults on PF and TDS Payments

**New Delhi, India -** SpiceJet, the budget airline, has disclosed a significant financial burden, revealing unpaid Provident Fund (PF) contributions and tax deducted at source (TDS) amounting to Rs 355.3 crore. The airline owes Rs 135.3 crore in PF payments and Rs 220 crore in TDS from staff salaries between April 2020 and August 2023.

Adding to its financial woes, SpiceJet is also locked in disputes over Rs 72 crore in TDS and Rs 84.5 crore in Goods and Services Tax (GST) payments. Furthermore, the airline faces outstanding service tax and customs duties, including interest and penalties for delays.

The airline’s financial difficulties have been attributed to a “constrained financial position,” which recently forced the company to place 150 cabin crew on unpaid leave for three months.

To address its mounting debts, SpiceJet is seeking to raise Rs 3,000 crore through the sale of securities to qualified institutional buyers. The floor price has been set at Rs 64.79 per share, with a potential discount of up to five percent, subject to shareholder approval. The funds will be used to clear statutory dues, employee payments, and outstanding liabilities, including those owed to aircraft and engine lessors.

Earlier, SpiceJet received a lifeline from Carlyle Group’s aviation unit, which wrote off Rs 4 crore in lease arrears and converted Rs 3 crore into equity.

This news comes amidst a broader effort by the Securities and Exchange Board of India (SEBI) to enhance transparency in the Indian securities market. SEBI is introducing data benchmarking initiatives (DBIs) for municipal bonds, similar to those already implemented for Real Estate Investment Trusts (REITs). This move aims to provide investors with crucial information and analysis, fostering confidence and promoting growth and stability in the market.

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