EPFO recovers Rs 4.48 cr from GADVASU, waive-off still uncertain

Taking one step ahead under its ongoing action on Guru Angad Dev Veterinary and Animal Sciences University (GADVASU), the employees provident fund organization (EPFO)

Taking one step ahead under its ongoing action on Guru Angad Dev Veterinary and Animal Sciences University (GADVASU), the employees provident fund organization (EPFO) of GADVASU has recovered Rs4.48 crores by attaching veterinary institute’s bank account.

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The EPFO attached the bank account of the university to recover the pending provident fund balance to the tune of Rs 8.5 crore from April 2006 to October 2017. The EPFO submitted its closure report on the matter in April 2019.

As per the EPFO records, more than 500 employees working with the GADVASU, mostly working on a contractual basis are yet to covered under the EPF Act.

FIRST SUMMONS

The first summons in the matter was issued to GADVASU on October 16, 2017. In 2017, the provident fund department had initiated an inquiry against the establishment after the latter was not extending benefits of provident fund to 500 employees mostly working on contractual basis, which is mandatory under the Employees Provident Fund and Miscellaneous Provisions Act 1952. The first summons in the matter was issued to GADVASU on October 16, 2017.

UNIV FILES REVIEW PETITION

After several proceedings in the period of one and a half years, the EPFO gave a closure report in April 2019, following which the establishment moved a review petition on June 27, 2019. “GADVASU in the non-profit-making institution and hence it cannot be termed as industry and has been exempted by the central government from the provisions of EPF Act up to March 31, 2015, and is a research institute it does not come under the scheduled industry which is covered under the provisions of EPF Act” contended GADVASU in the review petition filed with EPFO.

PETITION REJECTED AS UNIV CHARGES STUDENT FEE

The petition was however rejected by the EPFO Ludhiana, which said that since the establishment charges fees from students, it should be reflected in the income of the financial statement, and hence the act applies to the establishment.

Following the rejection, the university moved a petition to the additional central provident fund commissioner Chandigarh, asking it to waive off employees’ share balance which is about Rs 3.98 crores against the total defaulting amount of Rs 8.5 crores. In its petition, GADVASU asserted that from 2006 to 2017, they have not debited any capital from employees’ accounts as an equal PF share.

“We recovered 100 percent of employers’ share out of the total pending PF amount. The matter for the waiver of employees’ share is still under consideration with the office. Currently, EPFO is examining their application, we cannot affirm on whether their plea will get accepted or not,” said Dheeraj Gupta, EPF regional commissioner.

“There is a procedure that will be followed to address their waive-off plea. There are several parameters to be put into consideration. Such as, to what extent were the discrepancies intentional or unintentional. We will most probably decide on waive-off application given by GADVASU by next week,” he added.