Budget airline SpiceJet disclosed on Tuesday that it has not paid statutory dues totalling Rs 427 crore from April 2020 to August 2024 due to severe financial constraints. The unpaid amounts include Rs 219.8 crore in tax deducted at source (TDS), Rs 71.33 crore in goods and services tax (GST), and Rs 135.47 crore towards provident fund (PF) contributions.
In a regulatory filing submitted to the BSE, SpiceJet revealed that 36 of its 58 aircraft are grounded due to financial difficulties, including defaults on payments to aircraft lessors and issues with aircraft maintenance and spare parts.
These disclosures came as part of the airline's preliminary placement document, filed to raise ₹3,000 crore through a qualified institutional placement (QIP) at a floor price of ₹64.79 per share. SpiceJet plans to use the funds to clear statutory dues, settle airport and employee liabilities, and expand its fleet.
The airline also noted pending dues of ₹118.9 crore owed to employees and ₹290 crore in airport fees, with a portion of the QIP funds earmarked to cover these obligations. Additionally, ₹370 crore will be allocated to fleet expansion.
SpiceJet's financial troubles have resulted in regulatory scrutiny, with the Director General of Civil Aviation (DGCA) placing the airline under enhanced surveillance. Legal experts warn that the airline could face severe penalties for failing to remit taxes like GST, which could lead to legal action, including possible imprisonment for key management personnel.
Despite the challenges, SpiceJet remains optimistic about clearing its dues using funds from the QIP, but its financial woes, including six consecutive years of losses, have raised concerns about the airline’s long-term viability.
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