Lok Sabha Question No. 110 (STARRED), answered on 2016-05-02
Subject: PF Defaulters
Ministry: LABOUR AND EMPLOYMENT
Asked by: CH. MALLA REDDY

## GOVERNMENT OF INDIA MINISTRY OF LABOUR AND EMPLOYMENT LOK SABHA

## STARRED QUESTION NO. 110 TO BE ANSWERED ON 02.05.2016

## PF DEFAULTERS

*110. SHRI CH. MALLA REDDY:

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

- (a)whether the Government is aware that a number of employers and establishments  in  the  country  have  not  been  depositing  their contribution  in  the  Provident  Fund  (PF)  regularly  and  if  so,  the details of such companies;
- (b)since when these entities have not deposited their contribution and the  action  taken  by  the  Government  against  such  PF  defaulters during each of the last three years and the current year, State/UTwise;
- (c)the  details  of  the  Government  undertakings/bodies  which  have defaulted  payment  of  their  contributions  in  PF  during  the  said period, State/UT-wise;
- (d)whether the Government has taken any action to ensure compliance of PF laws by all establishments/employers including companies/corporations  owned  by  it  and  if  so,  the  details  thereof and the success achieved therefrom during the said period; and
- (e)the  steps  taken  or  proposed  to  be  taken  by  the  Government  to protect the interests of employees in this regard?

## ANSWER

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

(a) to (e):

A statement is laid on the Table of the House.

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## STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (e)  OF  LOK  SABHA STARRED QUESTION NO. 110 TO BE ANSWERED ON 02.05.2016 BY SHRI CH. MALLA REDDY REGARDING PF DEFAULTERS.

- (a) Instances of non-deposit of contribution by some establishments covered under the Employees' Provident Funds & Miscellaneous Provisions (EPF&MP) Act, 1952 have come to the notice of Employees' Provident Fund Organisation (EPFO) as they have violated the provisions of the Act and the Schemes framed thereunder.
- (b) The details of defaulting  establishments  State/UT-wise for  the  year  2012-13 to 2015-16 (upto December, 2015) are at Annex A.

The following actions have been taken by EPFO  against the defaulting establishments:-

- 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 levy 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  14  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.
7. (c)    A  total  number  of  1195  public  sector  entities  have  defaulted  payment  of  their contributions  in  the  year  2014-15  under  the  Schemes  framed  under  the  Act.    The State/UT-wise  details  of  total  assessed  demand  amounting  to  Rs.  1263.03  crore  in these entities as on 31.03.2015 is at Annex B.
8. (d) EPFO has taken action as enumerated in reply to part (b) of the Question above to ensure compliance of the Act by the defaulting establishments.   These actions have resulted in recovery of Rs. 3240.14 crore from the defaulting establishments during the year 2014-15.
9. (e) EPFO has been taking steps as stipulated under the Act and the Schemes framed thereunder to protect interests of the employees covered under the Act.

ANNEX  REFERRED  TO  IN  REPLY  TO  PART  (b)  OF  LOK  SABHA  STARRED QUESTION  NO.  110  TO  BE  ANSWERED  ON  02.05.2016  BY  SHRI  CH.  MALLA REDDY REGARDING PF DEFAULTERS.

Details  of  number  of  defaulting  establishments  covered  under  the  Employees' Provident Funds & Miscellaneous Provisions Act, 1952.

| S. No.   | Name of the State                                                                                        |   2012-13 |   2013-14 |   2014-15 |   2015-16 (up to December, 2015) |
|----------|----------------------------------------------------------------------------------------------------------|-----------|-----------|-----------|----------------------------------|
| 1.       | Andhra Pradesh including Telangana                                                                       |      1605 |      1461 |       528 |                              883 |
| 2.       | Bihar                                                                                                    |        62 |       147 |        28 |                              110 |
| 3.       | Chhattisgarh                                                                                             |        44 |        87 |       302 |                               88 |
| 4.       | Delhi                                                                                                    |        62 |       105 |        82 |                              211 |
| 5.       | Goa                                                                                                      |       126 |       102 |        61 |                               33 |
| 6.       | Gujarat including Daman & Diu and Dadra & Nagar Haveli                                                   |       293 |       387 |       287 |                              340 |
| 7.       | Haryana                                                                                                  |       170 |       112 |       185 |                              204 |
| 8.       | Himachal Pradesh                                                                                         |         0 |         0 |         0 |                                0 |
| 9.       | Jharkhand                                                                                                |         0 |         0 |         0 |                                0 |
| 10.      | Karnataka                                                                                                |      1217 |      1152 |      1133 |                             1105 |
| 11.      | Kerala including Lakshadweep                                                                             |      2009 |      2078 |       721 |                             1118 |
| 12.      | Madhya Pradesh                                                                                           |       553 |       423 |       446 |                              188 |
| 13.      | Maharashtra                                                                                              |       538 |       181 |       955 |                             1692 |
| 14.      | North-Eastern Region including Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland & Tripura |       135 |       161 |       233 |                              223 |
| 15.      | Odisha                                                                                                   |        96 |        39 |        73 |                              178 |
| 16.      | Punjab including Chandigarh                                                                              |        66 |       485 |       172 |                              348 |
| 17.      | Rajasthan                                                                                                |       119 |       210 |       182 |                              107 |
| 18.      | Tamil Nadu including Puducherry                                                                          |      3609 |      5198 |      4091 |                             2644 |
| 19.      | Uttar Pradesh                                                                                            |       288 |       555 |        67 |                              562 |
| 20.      | Uttarakhand                                                                                              |        66 |        87 |        51 |                               13 |
| 21.      | West Bengal including Andaman & Nicobar Islands and Sikkim                                               |       337 |       374 |       494 |                              885 |
|          | TOTAL                                                                                                    |     11395 |     13344 |     10091 |                            10932 |

## ANNEX B

ANNEX  REFERRED  TO  IN  REPLY  TO  PART  (c)  OF  LOK  SABHA  STARRED QUESTION  NO.  110  TO  BE  ANSWERED  ON  02.05.2016  BY  SHRI  CH.  MALLA REDDY REGARDING PF DEFAULTERS.

Bifurcation  of  demand  in  Public  Sector  (Unexempted)  as  on  31.03.2015  (All Schemes).

| Region                                |   Public Sector | Public Sector   |
|---------------------------------------|-----------------|-----------------|
| Dehradun                              |           25.67 |                 |
| Delhi (North)                         |            0    |                 |
| Delhi (South)                         |            0    |                 |
| Zonal Office (ZO) (Delhi Uttarakhand) |           25.67 |                 |
| Chandigarh                            |           38.76 |                 |
| Ludhiana                              |            3.36 |                 |
| Shimla                                |            1.24 |                 |
| ZO (Punjab & Himachal Pradesh)        |           43.36 |                 |
| Kanpur                                |           51.47 |                 |
| Meerut                                |            5.62 |                 |
| Patna                                 |            9.25 |                 |
| ZO (Uttar Pradesh & Bihar)            |           66.33 |                 |
| Faridabad                             |            0    |                 |
| Gurgaon                               |            0    |                 |
| Jaipur                                |            0.89 |                 |
| ZO (Haryana & Rajasthan )             |            0.89 |                 |
| Ahmedabad                             |            7.54 |                 |
| Baroda                                |            0    |                 |
| Indore                                |          188.96 |                 |
| Surat                                 |            0    |                 |
| ZO (Gujarat & Madhya Pradesh)         |          196.49 |                 |
| Kandivili                             |            0.79 |                 |
| Mumbai-I Bandra                       |          100.02 |                 |
| Mumbai-II Thane                       |            0    |                 |
| Nagpur                                |           29.18 |                 |
| Pune                                  |            0    |                 |
| Raipur                                |           15.06 |                 |
| ZO (Maharashtra & Chhattisgarh)       |          145.05 |                 |
| Bangalore                             |            1.29 |                 |
| Gulbarga                              |            1.56 |                 |
| Mangalore                             |           17.06 |                 |
| Panaji                                |            0    |                 |
| Peenya                                |            0.24 |                 |
| ZO (Karnataka & Goa)                  |           20.15 |                 |

| Bhubaneshwar                                         |   598.70 |
|------------------------------------------------------|----------|
| Guntur                                               |    11.4  |
| Hyderabad                                            |    11.24 |
| Nizamabad                                            |     2.37 |
| ZO (Andhra Pradesh & Odisha)                         |   623.71 |
| Chennai                                              |     0.33 |
| Coimbatore                                           |    27.35 |
| Madurai                                              |     5.67 |
| Tambaram                                             |    25.01 |
| Thiruvananthapuram                                   |    24.87 |
| ZO ( Tamil Nadu & Kerala)                            |    83.23 |
| Guwahati (NER)                                       |    26.55 |
| Jalpaiguri                                           |     6.4  |
| Kolkata                                              |    25.2  |
| Ranchi                                               |     0    |
| ZO (West Bengal, North-Eastern Region and Jharkhand) |    58.15 |
| All India                                            |  1263.03 |

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