1. EPFO may seize Kingfisher Airlines assets if PF dues not paid

EPFO may seize Kingfisher Airlines assets if PF dues not paid

The labour ministry has formed a squad of enforcement officers to verify the compliance position in respect of all KFA employees

By: | New Delhi | Updated: March 17, 2016 2:37 AM
The labour ministry has formed a squad of enforcement officers to verify the compliance position in respect of all KFA employees The labour ministry has formed a squad of enforcement officers to verify the compliance position in respect of all KFA employees

The Employees Provident Fund Organisation (EPFO) could attach the properties and seize the bank accounts of the now-grounded Kingfisher Airlines (KFA) owned by Vijay Mallya if the enforcement officers found that the employees’ PF dues were not submitted on time, a source said.

The labour ministry has already formed a squad of enforcement officers to verify the compliance position in respect of all KFA employees, as payment of contributions was stopped after September last year.

Sources said the squad would submit its report in the next nine days and if found guilty under the EPFO Act, the retirement fund body can prosecute Mallya and attach the property of the grounded airlines.

KFA had contributed to the PF in March 2012 for 6,185 employees.

The PF compliance to a number of employees had gradually reduced to 3,339 in December, 2012.

The employment strength further dropped after this due to closure of their operations and remittances were made to two employees only up to September, 2015 and thereafter minimum administrative charges paid.

The labour ministry earlier said there is no complaint available on record either from members /unions regarding non-repayment of EPF dues by the company.

The EPFO has also issued notice to the company for levy of penal damages of Rs 3.34 lakh and interest due of Rs 3.55 lakh for belated remittances for certain months and payment of remittances of `71,910, taking the total liability in the notice to Rs 7.61 lakh.

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