Due to its "constrained financial position," low-cost carrier SpiceJet disclosed on Tuesday that it failed to pay statutory dues totaling around Rs 427 crore between April 2020 and August 2024. The outstanding amounts comprise of Rs 71.33 crore in goods and services tax (GST), Rs 219.8 crore in tax deducted at source (TDS), and Rs 135.47 crore in contributions to the provident fund (PF).
The financially challenged airline also revealed that 36 of its 58 aircraft are grounded, "primarily" as a result of "alleged default" in payments to aircraft lessors, unavailability of spare parts and components, and financial difficulties impacting aircraft maintenance.
The financially challenged airline also revealed that 36 of its 58 aircraft are grounded, "primarily" as a result of "alleged default" in payments to aircraft lessors, unavailability of spare parts and components, and financial difficulties impacting aircraft maintenance.
These disclosures were included in SpiceJet's preliminary placement document, which was filed with the BSE in order to raise up to Rs 3,000 crore at a floor price of Rs 64.79 per share through a qualified institutional placement (QIP) procedure. SpiceJet stated that as of September 15, 2024, it owed its employees Rs 118.9 crore in addition to the statutory obligations, which it intends to pay off using money from the QIP.
As of September 15, the airline owed the airport Rs 290 crore, of which Rs 150.3 crore would be paid with the proceeds from the fundraiser. Additionally, it plans to spend Rs 370 crore on fleet expansion.
