EPFO Probes More Fraudulent Firms in Provident Fund Scam

07 May, 2024

As Pune city police persist in their investigation into 89 allegedly fraudulent companies, which purportedly obtained Rs 18 crore in government benefits through the Atmanirbhar Bharat Rojgar Yojana (ABRY), the Employee's Provident Fund Organisation (EPFO) is gearing up to take action against additional sham establishments. "In a press release issued on Monday, Yogendra Singh Shekhawat, Regional PF Commissioner II (Compliance), stated that further cases of a similar nature are currently under examination, with legal action to ensue upon completion of the investigation." 

According to EPFO officials, recognizing the surge in job losses within private companies amid the Covid-19 pandemic, the central government introduced the Atmanirbhar Bharat Rojgar Yojana (ABRY) in October 2020. Its aim was to bolster employment prospects during the post-Covid recovery period. As part of this initiative, the government pledged to contribute 24 percent of the provident fund (PF) share—comprising 12 percent each from both employees and employers—for a duration of two years to EPFO-registered establishments with up to 1,000 employees. For establishments exceeding 1,000 employees, only the employee's share, equivalent to 12 percent of their wages, would be covered under the scheme.

"At a press conference, Amit Vashist, Regional Provident Fund Commissioner, disclosed that several establishments within EPFO's Pune jurisdiction had submitted falsified documents to exploit welfare schemes. Following an investigation by the enforcement branch, it was revealed that approximately 89 establishments had fraudulently claimed benefits from the central government by submitting fabricated documents and inaccurate declarations. Some of these entities were non-existent at the addresses provided, while others, though operational, had misrepresented employee details to access scheme benefits. A formal complaint against these 89 establishments has been filed with the Pune city police, and further examination of similar fraudulent entities is underway."

Read more at The Indian Express

Publisher: Monisha Ponnappa | Bizprout Expert Systems Private limited