EPFO probing Kingfisher’s delay on provident fund contributions

EPFO has slapped a notice of Rs7.62 lakh on Kingfisher Airlines, promoted by Vijay Mallya, for a shortfall in remitting PF dues


Labour minister Bandaru Dattatreya says EPFO noticed that Kingfisher had under-reported compliance in respect of 14 international workers and there were belated remittances of PF contribution. Photo: Priyanka Parashar/Mint
Labour minister Bandaru Dattatreya says EPFO noticed that Kingfisher had under-reported compliance in respect of 14 international workers and there were belated remittances of PF contribution. Photo: Priyanka Parashar/Mint

New Delhi: Retirement fund body Employees’ Provident Fund Organisation (EPFO) is probing alleged non-compliance in provident fund (PF) contribution norms by Kingfisher Airlines regarding its international workers.

“It has come to the notice of EPFO that the company had under-reported compliance in respect of 14 international workers and there were belated remittances of PF contribution,” labour minister Bandaru Dattatreya told Lok Sabha in a written reply.

Proceedings under section 7C of the Employees’ Provident Funds & Miscellaneous Provisions (EPF& MP) Act, 1952 to redetermine the escaped amount for the period October, 2012 to January, 2014 have been initiated in respect of the 14 international workers, the minister added.

“Further, there are instances of belated remittances of provident fund contribution by the Kingfisher Limited for which proceedings under section 14B and 7Q of EPF & MP Act, 1952 to levy penal damages and interest have been initiated,” Dattatreya said.

In March, EPFO formed an enforcement squad to investigate issues related to the payment of PF dues by the long-grounded Kingfisher Airlines.

The EPFO has also slapped a notice of Rs.7.62 lakh on the airline promoted by beleaguered businessman Vijay Mallya for short payment of PF dues.

Mallya, who is the owner of Kingfisher and many other firms that owe over Rs.9,000 crore of dues to lenders, left India in the middle of a massive loan default and is facing an investigation by several agencies including the Enforcement Directorate.

Earlier this month, his tenure in the Rajya Sabha came to an end with chairman Hamid Ansari accepting his resignation.