Chennai: PF officials are understood to have planned to attach the personal bank accounts of Subhiksha MD R Subramanian and properties of the retail chain as the 15-day deadline given by the EPFO to the company for paying provident fund dues has ended.
According to EPFO officials, Subhiksha had been given a 15-day time from 19 February to pay up dues amounting to a sum of Rs1.76 crore.
Subramanian has expressed willingness to cover part of the company staff’s provident fund dues from his personal PF account, though the law does not allow the same.
A statement issues by the company said that Subramanian’s willingness to pay for the dues has been intimated to the PF Commissioner, where the matter of employees’ EPFO is pending, and the managing director has carried out necessary paperwork in this regard.
“As part of the hearing, the company had clarified its position regarding the financial situation and the fact that a CDR (corporate debt restructuring) was underway. The willingness of the promoter/MD R Subramanian to make over all the money in his personal PF account to cover part of the dues was also intimated,” the statement said.
“This offer of payment of personal PF money was offered even though the said account was not attachable under law as PF money is not subject to attachment,” it added.
It, however, did not disclose the exact amount of money owed to employees. Subhiksha had earlier stated that salaries and PF contributions of its 15,000-odd employees have been stopped since August 2008 due to severe liquidity crunch.
The company added that Subramanian has executed necessary papers for transfer of money in his PF account.