Sahara India under EPFO scanner for payment defaults

Sahara India, which is already being investigated by market regulator Sebi, has now also come under the scanner of the provident fund department and is amongst the top defaulters of the Employees' Provident Fund Organisation (EPFO) in the country.

Five of the group firms including Sahara India Financial Corporation and the former Sahara Airlines are part of the top 50 companies in the country that have defaulted on depositing contributions to the Employees' Pension Fund on behalf of its employees.

Official data reveals that in total, the Subrata Roy-promoted group owes Rs 3,341.67 lakh to the EPFO as dues (see chart).

These largely relate to the Employees' Provident Fund (EPF) linked Employees' Pension Scheme.

Under the scheme, 8.33 per cent from the 24 per cent provident fund contributions (12 per cent as employees' share and 24 per cent of employer's share) are deposited.

According to the Employees' Provident Fund Act, it is a criminal offence for an employer to deduct but not deposit employees' provident fund and related contributions. In such cases, the EPFO can also seize property of the defaulter to recover dues and the defaulter can be charged under Sections 405 and 420 of the Indian Penal Code.

Significantly, Sahara India first came under the EPFO's radar after it published numerous advertisements in national newspapers that boasted of a 10 lakh plus workforce.

Following this, the provident fund department had asked the group to furnish details of its employees.

But the Lucknow headquartered group then approached the Allahabad High Court against the notice. It was however directed by the High Court earlier this year to submit all relevant details to the provident fund department.

More than one email from The Indian Express sent to Sahara got no response from the group.

Sahara is already under investigation the by market regulator Sebi in a refund case involving over Rs 24,000 crore it collected from over three crore investors.

The Securities Appellate Tribunal is understood to take up for hearing sometime this week an appeal by Subrata Roy against a Sebi order to freeze his assets, along with similar appeals filed by two Sahara group firms and three other directors.
Courtesy:
Surabhi : New Delhi, Mon Apr 22 2013, 09:20 hrs
http://www.indianexpress.com/news/sahara-india-under-epfo-scanner-for-payment-defaults/1105753/0