Cash-Strapped SpiceJet Settles Rs 310 Crore In TDS Dues

In line with its regional connectivity initiatives, SpiceJet recently launched UDAN flights connecting Shivamogga in Karnataka with Chennai and Hyderabad

The company has also successfully negotiated settlements with several aircraft lessors

Source : Pexels

SpiceJet announced on Tuesday that it has settled outstanding TDS (Tax Deducted at Source) obligations of about Rs 310 crore, which includes employee TDS, for up to the second quarter of FY 2025. The airline had previously deferred approximately Rs 220 crore in TDS deductions from employee salaries between April 2020 and August 2023.

Starting September 26, 2024, SpiceJet has settled over Rs 600 crore in outstanding dues, which includes unpaid salaries, GST liabilities, and Provident Fund (PF) contributions, according to a press release from the airline. The company has also successfully negotiated settlements with several aircraft lessors.

In line with its regional connectivity initiatives, SpiceJet recently launched UDAN flights connecting Shivamogga in Karnataka with Chennai and Hyderabad. Additionally, the airline has introduced double daily services between Chennai and Kochi to meet the growing demand for travel between these two key hubs.

“We are committed to setting our house in order and are pleased to have cleared all pending TDS dues. The successful clearance of dues marks a significant step forward for SpiceJet. It reinforces the airline's commitment to financial stability and responsible business practices. With a stronger financial position, SpiceJet is well-equipped to continue its growth trajectory and provide exceptional air travel services to its valued customers," said Ajay Singh, Chairman and Managing Director of SpiceJet.

Previously, cash-strapped SpiceJet secured Rs 3,000 crore funding, settled all outstanding salary and GST obligations and deposited ten months' worth of provident fund dues. On September 23, the airline revealed it had raised Rs 3,000 crore through a Qualified Institutional Placement (QIP) of shares.

A spokesperson for the airline stated that within the first week of receiving the new funds, SpiceJet has successfully addressed all pending salary and GST obligations and made significant progress by depositing ten months' worth of provident fund dues.