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Odisha News, Odisha Breaking News, Odisha Latest News || Ommcom News
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Delhi Police EOW Files Case Against Spicejet MD, Others Over PF Dues

OMMCOM NEWS by OMMCOM NEWS
October 5, 2024
in Nation

New Delhi: In fresh trouble for embattled carrier SpiceJet, the Economic Offence Wing (EOW) of the Delhi Police has filed a case against its Managing Director Ajay Singh and other top officials for cheating and criminal conspiracy by failing to remit its share of provident fund (PF) of more than Rs 65.7 crore.

The FIR, filed on the complaint of Employees’ Provident Fund Organisation (EPFO) in the national capital, mentions five people — Ajay Singh, Shiwani Singh (Director), Anurag Bhargava (Independent Director), Ajay Chhotelal Aggarwal and Manoj Kumar.

“The employer employs more than 10,000 employees and had deducted 12 per cent of employee’s share in lieu of Provident Fund dues from their salaries (PF wages) during the period 06/2022 to 07/2024 (to be remitted by August 15, 2024),” read a copy of the FIR.

The FIR further mentioned that the amount deducted from the salaries of workers as employee share of PF contribution “has not been remitted for crediting in the accounts of the employees as PF/Pension Fund contribution within the mandatory 15 days of close of every month for the period 06/2024 to 07/2024 and is in violation of requirement of para 38 (1) of EPF scheme 1952 by the aforesaid persons.”

According to the FIR, it may be highlighted that the “employer is only a trustee in respect of employees share of contribution deducted 12 per cent from the PF wages of the employees In terms of Para 38 (1) 8 38(2) of the scheme 1952 and is required to remit the said to EPFO within the stipulated time.”

In a statement to IANS, a SpiceJet spokesperson said that within the first week of raising fresh funds through the Qualified Institutional Placement (QIP), the airline has cleared all pending salary and GST dues and has “made significant progress by depositing ten months of PF dues.”

“The process of clearing other outstanding dues is ongoing. In addition, the company has successfully reached settlements with multiple lessors,” said the company spokesperson.

Late last month, the National Company Law Tribunal (NCLT) sought the response of low-cost carrier SpiceJet on a plea by Techjockey Infotech Pvt Ltd, one of its operational creditors, seeking initiation of corporate insolvency resolution proceedings against the debt-ridden airline.

In its application, software solutions startup Techjockey Infotech Private Ltd sought the initiation of corporate insolvency resolution proceedings against the airline on account of an alleged default of around Rs 1.18 crore, stemming from a 2021 agreement wherein SpiceJet acquired cloud services.

The NCLT has admitted the case for consideration and issued a notice to SpiceJet. The case is scheduled to be heard on November 14.

(IANS)

Tags: Economic Offence Wing (EOW)GSTNational Company Law Tribunal (NCLT)
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