Lok Sabha Question No. 199 (UNSTARRED), answered on 2023-12-04
Subject: Indo-Asian News Channel Private Limited
Ministry: LABOUR AND EMPLOYMENT
Asked by: Kumbakudi Sudhakaran

## GOVERNMENT OF INDIA MINISTRY OF LABOUR AND EMPLOYMENT

## LOK SABHA UNSTARRED QUESTION NO. 199 TO BE ANSWERED ON 04.12.2023

## INDO-ASIAN NEWS CHANNEL PRIVATE LIMITED

## 199. SHRI KUMBAKUDI SUDHAKARAN:

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

- (a)whether  the  Government  is  aware  that  M/s  Indo-Asian  News Channel Private Limited (CIN: U92130KL201OPTC026426, Reg. No. 26426)  owes  outstanding  dues  to  its  employees  in  the  form  of salary, provident funds, etc. and if so, the details thereof;
- (b)whether the Government has conducted any inquiry against the company under various provisions of the Employee Provident Fund
- and Miscellaneous Provisions (EPF & MP) Act, 1952;
- (c)if so, the details thereof and if not, the reasons thereof;
- (d)whether any actions have been taken against the company and the Managing Director to recover the arrear payments and if so, the details thereof and if not, the reasons therefor;
- (e)whether the Government is aware of the change in the company's share holding pattern and board of directors; and
- (f)if so, whether the Government permitted the change in the board of directors before clearing the pending dues under the EPF & MP Act?

## ANSWER

MINISTER OF STATE FOR LABOUR AND EMPLOYMENT (SHRI RAMESWAR TELI)

(a) to (c): The enquiries under Section 7A, 14B and 7Q of Employees' Provident Funds and Miscellaneous Provisions (EPF & MP) Act, 1952 have been conducted from time to time by Employees' Provident Fund Organisation (EPFO), the details are as under: -

| Sl. No                            | Inquiry                           | Period                            | Amount                            | Status                            |
|-----------------------------------|-----------------------------------|-----------------------------------|-----------------------------------|-----------------------------------|
| 1                                 | 7A                                | 02/2011 to 07/2012 Rs.            | 27,48,441/-                       | Fully remitted                    |
| 2                                 | 7A                                | 08/2012 to 06/2013                | Rs. 29,36,988/-                   | RRC issued                        |
| 3                                 | 7A                                | 07/2013 to 03/2014                | Rs. 13,58,461/-                   | RRC issued                        |
| 4                                 | 7A                                | 04/2014 to 08/2014                | Rs. 9,10,051/-                    | RRC issued                        |
| 5                                 | 7A                                | 09/2014 to 03/2015                | Rs. 12,37,463/-                   | RRC issued                        |
| 6                                 | 7A                                | 04/2015 to 01/2018                | Rs. 96,80,851/-                   | RRC issued                        |
| 7                                 | 7A                                | 02/2018 to 10/2019                | Rs. 23,18,456/-                   | RRC issued                        |
| RRC: Revenue Recovery Certificate | RRC: Revenue Recovery Certificate | RRC: Revenue Recovery Certificate | RRC: Revenue Recovery Certificate | RRC: Revenue Recovery Certificate |

|   Sl. No | Inquiry   | Period             | 14B (in Rs)   | 7Q (in Rs)             | Total (in Rs)   | Remark     |
|----------|-----------|--------------------|---------------|------------------------|-----------------|------------|
|        1 | 14B       | 02/2011 to 02/2013 | 10,41,403/-   | 5,07,161/-             | 15,48,564/-     | RRC issued |
|        2 | 14B       | 02/2013 to 07/2013 | 10,53,156/-   | 5,05,515/-             | 15,58,671/-     | RRC issued |
|        3 | 14B       | 08/2012 to 01/2018 |               | 34,70,541/-16,73,185/- | 51,43,726/-     | RRC issued |

For  compliance  from  11/2019,  Show  Cause  notice  was issued by EPFO but no reply has been received from the employer. Prosecution  notice  was  also  issued  by  EPFO  to  the  employer  on 16.08.2023,  which  has  been  acknowledged  but  no  reply  has  been received. Damages under Section 14B and Interest under Section 7Q of the EPF & MP Act, 1952 to be assessed based on recovery and remittance of outstanding 7A amount.

An  amount  of  Rs.1,36,45,154/-  towards  Provident  Fund dues assessed u/s 7A, Penal Damages u/s 14B and Interest u/s 7Q of EPF  &  MP  Act,  1952  is  recoverable  as  arrear  demand  from  the establishment.

Contd..3/-

(d): Recovery  actions to recover the arrear  demand  as provided in section 8(B) to 8(G) of EPF & MP Act, 1952 has already been initiated against the establishment and the employer to recover the outstanding amount which includes issue of Certificate Proceeding (CP)-1 Demand Notice to the defaulter, CP-3 Prohibitory Order to the Bank and CP-25 Notice to show cause why a warrant of arrest  should  not  be  issued  to  the  Managing  Director,  Shri  N.  V. Nikesh Kumar.

Further, the establishment has filed Writ Petition No.28653/2023  against the Demand  Notice  in CP-I issued on 01.08.2023  for  recovery  of  Penal  Damages  (14B)  and Interest  (7Q) levied  for  the  period  from  08/2012  to  01/2018  amounting  to  Rs. 50,39,141/-  and  Hon'ble  High  Court  of  Kerala  vide  judgment  dated 08.09.2023 has granted 15 instalments to clear the arrear damages and  7Q  interest  commencing  from  25.10.2023  and  employer  has partly complied with the court's direction.

(e) & (f): The company has applied in the Ministry of Information and  Broadcasting  for  grant  of  permission  for  appointment  of  two directors on its board and change in the shareholding pattern of the company. As on date, the Government has not permitted the change.

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