NEW DELHI: Delhi Police‘s Economic Offences Wing (EOW) booked SpiceJet‘s managing director and four other officials for allegedly failing to credit the deducted 12 per cent of employees’ share in their Provident Fund (PF) account worth Rs 65 crore, as reported by news agency PTI citing officials.
“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,” according to the FIR copy accessed by PTI.
All the officials were booked last month on September 16 under Section 409 (Criminal breach of trust by public servant, or by banker, merchant or agent) and 120B (criminal conspiracy) of IPC based on a complaint by the Employees’ Provident Fund Organisation (EPFO) on September 16. The investigation is currently ongoing, as stated by an EOW officer.
The FIR states that at least 12 per cent of employees’ share of PF dues is payable to EPFO under Section 6 of the EPF and MP Act, 1952, and should be remitted to the respective PF accounts of employees/pension fund maintained by the EPFO.
It further mentions that the contribution of employees, amounting to Rs 65,70,62,540 from June 2024 to July 2024, has not been remitted for crediting in the accounts of the employees as Pension Fund contribution within the mandatory 15 days of the close of every month, which is in violation of the requirement of para 38 (1) of EPF scheme 1952 by the aforementioned persons.
It also said that the establishment representative admitted to having made the said deduction during quasi-judicial proceedings (7A inquiry) before the competent assessing officer – RPFC-I and that the employer has cheated the employees and misappropriated the fund, thus committing an offence under sections 316 and 318 of BNS.
However, a company spokesperson said that the complaint was filed before it raised fund via QIP and has cleared all dues after that.
“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” said the spokesperson in a statement.
The airline which has more than 10,000 people deducted 12 per cent of employees’ share of PF dues from their salaries (PF wages) during June 2022 to July 2024, which was to be remitted by August 15, 2024.