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No payment to 15,000 staff for past 5 months: Subhiksha

No payment to 15,000 staff for past 5 months: Subhiksha
PTI
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First Published: Thu, Feb 19 2009. 05 14 PM IST
Updated: Thu, Feb 19 2009. 05 14 PM IST
New Delhi: Distressed retailer Subhiksha on Thursday said its 15,000 employees have been unpaid since October last and it has been directed by Employees Provident Fund Organisation to pay the assessed dues at the earliest.
In connection with an ongoing EPFO inquiry, the regional commissioner has directed the company to pay the assessed dues at the earliest, the company said in a statement.
Subhiksha is currently said to be in deep financial trouble and one of its major shareholders, ICICI Venture, has reportedly sought an investigation into the affairs of the company and also an independent audit.
ICICI Venture, along with some other shareholders that include an entity promoted by IT major Wipro’s chairman Azim Premji, is also said to be opposing Subhikhsha’s move to merge itself with a Chennai-based firm Blue Green Constructions.
The company said it was unable to pay the salaries and arrears to its 15,000 employees since October 2008, but it had repaid a loan of Rs15 crore to one of its shareholders.
While announcing that all its 1,600 stores would remain closed at least till May, the company, burdened under a huge debt, recently said that it immediately needs Rs300 crore.
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First Published: Thu, Feb 19 2009. 05 14 PM IST
More Topics: Subhiksha | Employees | Salaries | Wipro | Azim Premji |