SpiceJet CMD Ajay Singh directed by Supreme Court to pay $1 million monthly to clear arrears
New Delhi/UNI: The The Supreme Court of India has ordered Ajay Singh, the Chairman and Managing Director (CMD) of SpiceJet, to pay $1 million every month for the next six months to clear arrears amounting to $3 million owed to Credit Suisse.
Singh is required to make regular monthly payments of $500,000 to the financial institution.
The two-judge bench, led by Justice Vikram Nath and Justice Ahasanuddin Amanullah, issued this directive, emphasizing Singh's obligation to comply.
Singh has been summoned to appear in court on the next hearing date scheduled for October 20.
SpiceJet had recently announced the completion of a $1.5 million payment to Credit Suisse, demonstrating its commitment to adhering to the Supreme Court's orders.
During a previous hearing, the apex court had criticized the CMD for not adhering to its directives and had warned that failure to make the payments might result in imprisonment in the Tihar jail.
The court has also acceded to the request of Singh's senior counsel, Kapil Sibal, for a six-month grace period to settle the arrears.
After the hearing, a spokesperson for SpiceJet issued a statement, expressing gratitude to the Supreme Court for recognizing the company's compliance with previous orders and accepting its proposal to disburse the $3 million arrears over the next six months.
The airline affirmed its unwavering commitment to fulfilling its financial obligations and maintaining the highest standards of compliance while engaging positively with all stakeholders.