EOW files FIR against SpiceJet's officials for not crediting employees' share in PF accounts

New Delhi: The Economic Offences Wing (EOW) of Delhi Police has filed an FIR against the managing director and four others officials of SpiceJet for allegedly not crediting the deducted 12 per cent of employees' share in their Provident Fund (PF) account, officials said on Saturday.

The uncredited amount is to the tune of Rs 65 crore, the added.

The FIR under Section 409 (Criminal breach of trust by public servant, or by banker, merchant or agent) and 120B (criminal conspiracy) of IPC has been registered on the complaint of the Employees' Provident Fund Organisation (EPFO) on September 16 and the probe was on on, an officer of the EOW said.

SpiceJet's spokesperson in a statement, however said, "The case was filed before the company raised fresh funds through the Qualified Institutional Placement (QIP). Since then, the airline has cleared all pending salary and GST dues and made significant progress by depositing ten months of PF dues.

"The process of clearing the remaining dues is ongoing. Additionally, we have successfully reached settlements with multiple lessors. SpiceJet remains fully aligned with the financial and operational strategy outlined in the QIP," it said.

According to the FIR, a copy of which was accessed by PTI, "Managing director Ajay Singh and Director Shiwani Singh, Independent Director Anurag Bhargava and two other officials Ajay Chhotelal Aggarwal and Manoj Kumar are responsible persons for the conduct of the business of the establishment as per Ownership Declaration Form 5A submitted to EPFO."

The company employs more than 10,000 people and had deducted 12 per cent of employees' share in lieu of the Provident Fund dues from their salaries (PF wages) during June 2022 to July 2024, to be remitted by August 15, 2024, it said.

The FIR stated that at least 12 per cent employees' share of PF dues is payable to EPFO under Section 6 of the EPF and MP Act, 1952 to be remitted in the respective PF accounts of employees/pension fund maintained by the EPFO.

The contribution of employees amounts to Rs 65,70,62,540 from June 2024 to July 2024 which has not remitted for crediting in the accounts of the employees as Pension Fund contribution within the mandatory 15 days of close of every month, and is in violation of requirement of para 38 (1) of EPF scheme 1952 by the aforesaid persons, reads the FIR.

It further says the establishment representative admitted to having made the said deduction during quasi-judicial proceedings (7A inquiry) before the competent assessing officer - RPFC-I.

The employer has therefore, cheated the employees and misappropriated the fund and thus, committed an offence under sections 316 and 318 of BNS, it added.