PF Dept initiates action to secure Rs 100-crore savings of JCT ex-staffers

Jalandhar, August 20

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Having received numerous complaints from nearly 15,000 former employees of JCT Mills at Phagwara and Hoshiarpur, the Department of Provident Fund has started the process to secure their Rs 100-crore corpus with the JCT’s EPF Trust.

Sharing details, Regional Commissioner of the Employees’ Provident Fund Organisation (EPFO) Pankaj Kumar said the process started after allegations of irregularities in EPF contributions were pointed out by JCT’s ex-staffers. He said a show-cause notice had been issued to the mill in that regard, which was the first step towards revoking exemption.

“Our audit teams have found that the amount is secure with the banks and is in the shape of demat account as per norms. The banks have been instructed not to sell any bonds or securities of the trust without the approval of the Regional PF Commissioner, ensuring the safety of the EPF amount. For building confidence in the employees, we have decided to secure this amount with us and allow claims as per the demands raised with us,” he said.

The Regional Commissioner said already claims for withdrawal of Rs 45 crore had been received from the JCT employees. He said it was a long procedure but if the company cooperated, the PF department would be able to settle the claims within one year. He said the company, which is now in dire financial straits, was left with just 100 employees on roll with Hoshiarpur mill completely shut and Phagwara mill almost non-operational.

He further said: “During the audit for the financial year 2022-23, the JCT Ltd was found to be in default for not depositing the EPF contributions into the EPF Trust account for this period. As a result, this office has initiated an inquiry under Section 7A of the EPF & MP Act, 1952, to determine the outstanding amount. Teams have also been formed to conduct compliance audits for the year 2023-24 and inspections have also begun.”

The official said: “JCT Ltd has violated the conditions of Paragraph 27AA of the EPF Scheme, 1952, as a result of which the process of revoking the exemption has been initiated through a third-party audit, followed by internal audits. The findings of the audit investigations will be sent to the headquarters in New Delhi for further action, which may include the possibility of revoking the exemption. This process will take some time, and if the institution fails to meet the requirements, appropriate legal action will be taken.”