Rs 6.16 cr recovered from 70 PF defaulting units in Faridabad, Palwal

Tribune News Service

Bijendra Ahlawat

Faridabad, April 6

After 70 companies were issued arrest warrants for failing to deposit employees provident fund (PF) contribution in the past one year, the authorities concerned have managed to recover Rs 6.16 crore from these defaulting units.

According to officials of the Regional Provident Fund Office in Faridabad, the recovery was made from defaulter companies during the 2023-24 financial year.

The recovery drive was carried out in Faridabad and Palwal districts under which the department issued arrest warrants against defaulters after they failed to respond to notices, said an official.

Claiming that issuance of warrants helped in recovery, he said defaulters could land in jail in case they failed to deposit employees’ contribution in the PF fund.

The Employees’ Provident Fund Organisation (EPFO) has the authority to arrest owner of the defaulting unit after issuance of warrant, the official said.

Of the total recovered amount, five major defaulters paid Rs 1.70 crore. The highest amount of Rs 43,40,687 was pending against a packaging company located in

the region.

As many as 120 bank accounts were frozen by the department during the recovery process.

According to sources in the EPFO (Employees’ Provident Fund Organisation), the drive was undertaken under the Income Tax proceeding rules which provide powers of recovery to the department.

The warrants were issued under Section 8-B and 8-G of the PF Act in which the police were to execute the order. Property of defaulting registered companies could also be attached if they don’t follow PF rules, said an official.

All companies have to deposit the PF amount of employees with the Employees’ Provident Fund Organisation (EPFO) which includes 12 per cent of the salary and an equal amount from the employer. The two districts have at least 28,000 industrial and

commercial units.

“Property of registered firms could also be attached if their owners don’t comply with PF rules,” said Krishan Kumar, Assistant Commissioner, EPFO, Faridabad.

Krishan Kumar said, “Issuance of warrant paves the way for the arrest of the company owner. He is to be produced before the recovery officer of the department”.

“He may be allowed to go after depositing employees’ Provident Fund amount with the EPFO immediately,”

he added.

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