Lok Sabha Question No. 3208 (UNSTARRED), answered on 2016-12-05
Subject: Non-Contribution to PF Accounts
Ministry: LABOUR AND EMPLOYMENT
Asked by: RAJESHBHAI NARANBHAI CHUDASAMA, KIRIT SOMAIYA

## MINISTRY OF LABOUR AND EMPLOYMENT

## GOVERNMENT OF INDIA LOK SABHA

## UNSTARRED QUESTION NO. 3208 TO BE ANSWERED ON 5.12.2016 NON-CONTRIBUTION TO PF ACCOUNTS

## 3208. SHRI RAJESHBHAI CHUDASAMA:

DR. KIRIT SOMAIYA:

Will  the  Minister  of  LABOUR  AND  EMPLOYMENT  be  pleased  to state:

- (a)whether the Government is aware that some establishments/companies have not submitted/deposited the funds collected by them towards employees contribution in the provident fund accounts, if so, the details thereof;
- (b)whether  the  Government  has  received  complaints  from  various quarters including people's representatives in this regard;
- (c)if  so,  the  details  thereof  and  the  action  taken  by  the  Government against  such  PF  defaulters  during  the  last  three  years  and  the current year, State/UT-wise; and
- (d)the  corrective  steps  taken/being  taken  by  the  Government  in  this regard?

## ANSWER

## MINISTER OF STATE(IC) FOR LABOUR AND EMPLOYMENT (SHRI BANDARU DATTATREYA)

(a) to (c): Complaints  regarding  employees'  contribution  deducted but  not  deposited  by  establishments/companies  are  received  in  field offices  of  Employees'  Provident  Fund  Organization  (EPFO)  and  some references  are  also  received  from  people's  representatives.  One recent      reference  has  been  received  from  Hon'ble  Member  of Parliament, Dr. Kirit Somaiya regarding Rotex Textiles, Thane.  If the complaints  are  found  to  be  true  then  action  is  taken  against  the establishment.  First  Information  Report  (FIR)  under  sections  406/409 of  Indian  Penal  Code  (IPC)  for  breach  of  trust  is  filed  against  such employers.    The  State-wise  details  for  the  last  three  years  and  the current year (upto October, 2016) of FIRs filed under section 406/409 of  IPC  against  employers  who  had  deducted  but  not  deposited employees'  contribution  is  at  Annex-I.    UT-wise  details  are  not maintained by EPFO.

- (d): The  following  actions  have  been  taken  by  EPFO  against  the defaulting establishments to protect the interest of workers covered under  the  Employees'  Provident  Funds  &  Miscellaneous  Provisions (EPF&MP) Act, 1952 :
- (i) Action  under  section  7A  of  EPF  &  MP  Act,  1952  against  the defaulting establishments for assessment of dues.
- (ii) Action under Section 14B of the Act for levying of damages for belated deposit of dues.
- (iii) Action under Section 7Q of the Act for levy of interest for belated remittances.
- (iv) Recovery actions as provided under Section 8B to 8G of the Act.
- (v) Action under section 14 of the Act for filing prosecution against the defaulters before the competent court of law.
- (vi) Action under section 406/409 of Indian Penal   Code (IPC) against the employer for non-payment of employees' share of contribution  deducted  from  the  wages/salary  of  the  employees but not deposited in the Fund.

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Annex referred to in reply to part (c) of Lok Sabha Unstarred Question No. 3208 by  Shri  Rajeshbhai  Chudasama  and  Dr.  Kirit  Somaiya  for  05.12.2016  regarding Non-Contribution to PF Accounts.

State-wise  details  of  First  Information  Reports  under  section  406/409  of  Indian  Penal Code  (IPC)  filed  during  2013-14  to  2016-17  (upto  October,  2016)  before  Police Authorities.

| State             |   2016-17 (Upto October, 2016 |   2015-16 |   2014-15 |   2013-14 |
|-------------------|-------------------------------|-----------|-----------|-----------|
| Andhra Pradesh    |                             0 |         2 |         1 |         1 |
| Bihar             |                             0 |         0 |         0 |         0 |
| Chhattisgarh      |                             0 |         0 |         0 |         0 |
| Delhi             |                             6 |        26 |        10 |         4 |
| Goa               |                             1 |         0 |         0 |         0 |
| Gujarat           |                            12 |         3 |         1 |         3 |
| Haryana           |                             3 |        27 |         0 |         1 |
| Himachal Pradesh  |                             0 |        11 |         3 |        11 |
| Jharkhand         |                             0 |         0 |         0 |         0 |
| Karnataka         |                             2 |        22 |        38 |        67 |
| Kerala            |                             1 |        11 |        16 |        36 |
| Madhya Pradesh    |                             1 |         0 |         0 |         0 |
| Maharashtra       |                            19 |         9 |        11 |         8 |
| North-East Region |                             0 |         2 |         2 |         0 |
| Odisha            |                             0 |         4 |         0 |         0 |
| Punjab            |                             5 |         3 |         4 |         0 |
| Rajasthan         |                             1 |         3 |         0 |         1 |
| Tamil Nadu        |                            23 |        61 |        71 |       208 |
| Telangana         |                            46 |        31 |        15 |        23 |
| Uttar Pradesh     |                             0 |        13 |         0 |         3 |
| Uttarakhand       |                             0 |         1 |         1 |         0 |
| West Bengal       |                            40 |        66 |        55 |        59 |
| TOTAL             |                           169 |       295 |       228 |       425 |

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