Question : Default by Companies

(a) whether the management of various companies are not submitting their PF returns in time due to which the workers became the victims as they do not receive the receipt for the contributions;
(b) if so, the details of the defaulting companies and the total amount involved during the last five years;
(c) the action taken/proposed to be taken against the erring companies in the country, State-wise and the details of the money recovered from the defaulters in each State during the said period;
(d) the details of complaints received by the Government on inordinate delay in EPF distribution to beneficiary families; and
(e) the action taken by the Government therein?

MINISTER OF STATE (IC) FOR LABOUR AND EMPLOYMENT
(SHRI BANDARU DATTATREYA)

(a): Instances of non-submission of Provident Fund (PF) returns in time have come to the notice of Employees’ Provident Fund Organization (EPFO). This has been because earlier the establishments were required to deposit the contribution first and to submit return within the time prescribed in the Schemes framed under the Employees’ Provident Funds & Miscellaneous Provisions (EPF&MP) Act, 1952. As a result, the money deposited by the establishments could not be credited to individual members’ accounts. To resolve the issue, EPFO introduced Electronic Challan-cum-Return (ECR) from the financial year 2012-13 wherein the employers of the establishments covered under the EPF&MP Act, 1952 are required to pay the contribution and submit the returns simultaneously. There is no instance of non-submission of returns in cases where the contributions have been received by EPFO.
Contd…2/-


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(b) & (c): For non-submission of returns, prosecution cases have been sanctioned and filed against the defaulting establishments before the competent Court of law under Section 14 of the EPF&MP Act, 1952. However, EPFO does not capture data of amount involved in the prosecution cases filed. The State-wise details of number of prosecution cases filed during the last five years are at Annex.
(d) & (e): The complaints of all types including those relating to inordinate delay in EPF distribution received in Employees’ Provident Fund Internet Grievance Management System (EPFIGMS) during 2014-15 is 1,84,481. Most of these complaints are responded to within 15 days. During 2014-15, 182,321 cases were redressed and only 2,160 cases were pending for disposal on 31.03.2015.

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