THE ENFORCEMENT department of Provident Fund (PF) Office raided the headquarters of the UP Handloom Corporation Limited (UPHCL) following irregularities in the contribution of employees’ provident fund. A team led by assistant commissioner RP Tenduria raided the headquarters of the UPHCL and demanded all documents related to contribution of employees’ PF.
According to well-placed sources, about Rs six crore are pending against the PF contribution of the UPHCL, though the PF share has been deducted from the wages of the employees.
The UPHCL contributed to the PF till May, 2002. Thereafter, from June 2002 till date no contribution had been deposited with the PF department, informed official sources.
However, the salary had been paid to employees posted with the UPHCL headquarters till December, 2004. Similarly, till June 2003, salary had been paid to show room employees of UPHCL.
As for the employees posted with the 10 projects of the UPHCL, the contribution to the PF of staff of seven projects located at Dhampur, Moradabad, Meerut, Gorakhpur, Maunathbhanjan and Banaras ( which was being made at the regional PF offices concerned)had also not been made, said sources. At present, UPHCL employees are not being provided any insurance cover. Therefore, in case of death of an employee, the dependents of the deceased were unable to get immediate relief, informed sources.
This problem started about 15 years back when the UPHCL sought exemptions from the provident fund department from the insurance contribution on the pretext that it would provide a better insurance scheme to its employees. The exemptions were given by the PF authorities. A new LIC scheme for the employees was also introduced, but to due to irregular contribution, the LIC stopped the benefit under the scheme, informed sources.
{{/usCountry}}This problem started about 15 years back when the UPHCL sought exemptions from the provident fund department from the insurance contribution on the pretext that it would provide a better insurance scheme to its employees. The exemptions were given by the PF authorities. A new LIC scheme for the employees was also introduced, but to due to irregular contribution, the LIC stopped the benefit under the scheme, informed sources.
{{/usCountry}}Sources from the PF department said that if any irregularities were found, the account of the UPHCL was likely to be seized.
Senior officials of the UPHCL were unavailable for comment.