CAG raps EPFO for slow recovery, legal lethargy
During 2010-11, EPFO’s total arrears amounted to R2,383.49 crore of which dues amounting to R1,851.31 crore, or 77.67%, may not be “immediately realisable” and R532.18 crore are realisable through recovery proceedings.
The arrears falling under the “not immediately realisable” category could not be recovered over the years due to various reasons including disputes in courts and tribunals, liquidation of firms, recovery action barred by the Acts of central and state governments and sanction of installments. A major chunk of arrears cannot be recovered as many companies were referred for rehabilitation.
Stay orders by courts have blocked R1,022.42 crore of arrears while liquidation of companies resulted in PF dues of R244.26 crore.
As on March 31, 2011, of the 148 cases in the Supreme Court, only 23 were decided. The pendency in high courts stood at 8,933 while the number was even greater for district courts at 16,262.
The interest payment due to EPFO for late remittances by companies, as mandated under Section 7Q of EPFO Act, amounted to R303.23 crore in 2010-11.
In contrast to the huge arrears, EPFO recovered R219.79 crore by attachment and sale of properties of defaulting establishments.
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