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Jalkal department’s outsourced staff accuse pvt firm of embezzling PF funds
The private agency has come under scrutiny after reports surfaced that substantial amount of PF contributions, potentially amounting to around ₹90 lakhs, have been embezzled.
Around 650 outsourced employees of Jalkal, who are hired through a private agency, have alleged that provident fund (PF) amounts are not being deposited into their respective accounts, despite regular deductions from their salaries.
The private agency responsible for managing these employees has come under scrutiny after reports surfaced that substantial amount of PF contributions, potentially amounting to around ₹90 lakhs, have been embezzled.
In response to these findings, Jalkal’s executive engineer Sachin Yadav had previously requested detailed bank and PF account information for all employees from the agency. However, even after a month, the agency has failed to comply, raising concerns about its transparency and accountability.
“Following the audit department’s report, the agency has been served a notice. If the agency fails to provide a satisfactory response and fails to produce bank statements, action will be taken,” he said.
Allegations have surfaced regarding the embezzlement of approximately ₹90 lakh in the Jalkal department, where employees’ provident fund (PF) and employee state insurance (ESI) contributions appear to have been misappropriated by the executing agency. Employees claim that the agency has been deducting PF amounts from their salaries for several months without opening or depositing the funds into their respective PF accounts.
Currently, around 800 employees are deployed in Jalkal through this agency, including approximately 650 workers drawing a salary of ₹11,929, from which ₹1,841 is deducted monthly for PF and ESI contributions. Additionally, about 65 computer operators, who receive a salary of ₹14,696, have ₹2,041 deducted each month for the same purposes. This practice has been in effect since March 1, 2024. However, a recent inquiry by the municipal auditor revealed that no PF amounts have been deposited in the employees’ names, despite the deductions.
“The scandal deepened further when additional irregularities were uncovered regarding the actual number of employees reported by the executing agency. During a surprise inspection led by the Mayor at the Jalkal headquarters, it was discovered that the agency had been drawing salaries for 100 security guards, despite only 60-65 guards being actually deployed.
The Jalkal Employees Union has issued a stern warning of widespread protests if immediate action is not taken to resolve the issue and safeguard the workers’ financial rights.
