(a) whether any major scandal relating to the provident fund
including embezzlements by some higher officials has come to
the notice of the Government;
(b) if so, the details thereof;
(c) the specific action taken against officials involved during the
last three years and the current year; and
(d) the measures taken by the Government for the prevention of such
embezzlements of Provident Fund?
MINISTER OF LABOUR AND EMPLOYMENT (SHRI MALLIKARJUN KHARGE)
(a) & (b): A few instances of serious irregularities pertaining to Provident
Fund evasion, irregularities in Provident Fund assessment and in the matter
of conducting recovery proceedings have come to notice of Employees Provident
Fund Organisation (EPFO). The details are given hereunder:
(i) Evasion of Provident Fund dues by M/s Hiranandani Construction Private
Limited and its sister concerns. The evasion pertains to non-enrolment of
construction site workers for the period from 2002 to 2006.
(ii) Evasion of Provident Fund dues by M/s Pratibha Industries Private Limited
in respect of their construction workers and contract employees involving around
25 Crores of rupees.
(iii) Non-implementation of statutory benefits under the Employees’ Provident
Funds & Miscellaneous Provisions Act, 1952 by M/s. B.L. Kashyap & Sons Limited,
Delhi.
(iv) Evasion in Provident Fund enrolment by M/s B.L. Gupta Construction Private
Limited, Delhi.
(v) Irregularities in conducting recovery proceedings in respect of M/s Mohan
Goldwater and Breweries Private Limited, Lucknow.
(c): The details are given hereunder:
Year 2008:
(1) Criminal case RC/BAI/2008/A/05 has been filed by the Central Bureau
of Investigation (CBI) against the four officers in connection with the
evasion of Hiranandani Group namely Shri K.S. Arya, Regional Provident
Fund Commissioner (RPFC)-I, Shri M.R. Yadav, RPFC-II, Shri Rajanikant,
Assistant Provident Fund Commissioner (APFC) and Shri K. Gopalan, APFC.
Year 2009:
(1) In respect of the case of M/s B.L. Kashyap & Sons Limited, matter
was referred to the CBI who have registered a First Information Report
against nine EPFO officials including one Additional Central Provident
Fund Commissioner as well as company officials.
(2) In respect of irregularities in the case of M/s. B.L. Gupta
Construction Private Limited chargesheet for major penalty under
Rule 10 of Employees Provident Fund Staff (CCA) Rules have been
issued against four Enforcement Officers.
(3) In the case of M/s. Mohan Goldwater and Breweries, the case
was referred to the CBI for investigation for the role played by
the Regional Provident Fund Commissioner-II in-charge,Sub-Regional
Office, Lucknow, the Receiver, and other officials.
Year 2010:
(1) Criminal case RC/26A/2010 Mum. has been filed by the CBI against
Shri Sanjeeva Rao, RPFC-II in respect of evasion by M/s Pratibha
Industries Ltd.
Year 2011:
Nil
(d): The following measures have been taken to prevent such irregularities:-
(i) A detailed circular on Combating Corruption was issued to standardize
operations in the field and their monitoring by introduction of new revised
forms so as to ensure that inspections are carried out comprehensively and
are reflected in quantifiable terms.
(ii) Action against erring officials has been intensified resulting in the
number of charge sheets going up significantly.
(iii) In pursuance to para 2.13
(v) and 2.13
(vi) of the Central Vigilance
Commission’s Vigilance Manual, a list of Officers of Doubtful Integrity has
been finalized with the intent that such officers are not posted to sensitive
or corruption prone areas.
(iv) All major cases are immediately referred to the CBI for investigation.