SpiceJet pays Rs 32 crore interest-free advance to promoter Ajay Singh
- Team InGovern
- Sep 11
- 1 min read
SpiceJet has disclosed that its chairman and promoter, Ajay Singh, received an interest-free advance of Rs 32 crore, almost equivalent to five years of his salary. The company has clarified that this advance will be adjusted against his monthly remuneration and is in line with policy. However, this decision comes at a sensitive time for the airline, as over half of its 54 aircraft remain grounded, its domestic market share has dropped to a historic low of 1.9%, and financial pressures continue despite raising funds and clearing statutory dues. Operational challenges have further impacted SpiceJet’s on-time performance and flight cancellations, underscoring the seriousness of the situation.
Our founder and MD, Mr. Shriram Subramanian, highlighted that “Promoter taking advance salary when the company is under financial stress is not a good governance practice.” He further noted that in such circumstances, it would be helpful for the board to place a dissent note or record its discussions, as this would enhance transparency and reflect balanced oversight in safeguarding stakeholder interests.
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