PF dept warns of strict action against defaulters

Ludhiana: “A number of business establishments are habitual defaulters of provident fund, and despite being eligible for coverage under the Provident Fund Act, are deliberately avoiding registration.” This was stated by Employees Provident Fund Organisation (EPFO) regional commissioner-1 Dheeraj Gupta at a media interaction organised by the Employees Provident Fund Organisation (EPFO) Ludhiana on Friday at its office near the Bus Stand. Briefing mediapersons, Gupta said the EPFO was going to take strict measures against such establishments in the near future. He also said the organisation had recently issued a show cause notices to 500 establishments, including industries, schools, colleges, and hospitals for not providing information about contractors and contractual employees.
He further said: “Around 6,000 establishments are registered with the PF department in Ludhiana, out of which roughly 1,500 are defaulters, not depositing their amounts in time. Since Ludhiana is a big city, there could be some more establishments still not registered under the PF Act. We are in the process of scrutinizing them. We are going to be strict in enforcing compliance with those who are habitual offenders. I have received third-party information that there are many establishments which have more than 20 people, but are not registered under the EPF Act, and there are also many establishments showing fewer employees in their books as compared to their actual number of workers. We will verify this information, and after verifying, we will take action as per law, after following the due process of inspections. PF is not a choice available with the eligible establishments, but mandatory for them to comply.”
Gupta — who was accompanied by Brij Mohan and Sumit Singh (both regional commissioners-2) — added: “Our overall focus is to provide EPF benefits to all eligible workers, and 100% settlement of claim in 10 days. Our immediate focus will be on KYC completion of all workers, and we will talk to employers, seeking their cooperation in this regard. But if there is still no compliance, action will be taken against those employers who are willfully not submitting KYC, Aadhar, and bank account details of their workers, and also not approving the KYC of employees through DSC (Digital Signature Certificate).”
The EPFO office is in the process of issuing notices to schools and bus owners for extension of EPF benefits to bus conductors and drivers.
WRONG SIDE OF LAW
* Around 6,000 establishments registered with PF dept in Ludhiana, out of which roughly 1,500 are defaulters.
* EPFO receives contribution for 2,93,971 members as on date.
* There are 34,507 establishments registered with DIC in Ludhiana.
* 3,862 school buses ply in the city, according to DTO data.