Arrest warrants against 29 firms for PF payment default

The Regional Office of the Employees' Provident Fund Organisation (EPFO) has issued arrest warrants against 29 companies for failing to deposit their employees' provident fund contributions. Over the past year, 37 FIRs have been registered across Faridabad and Palwal districts.

The companies' management or owners are being charged under Sections 406 and 409 of the IPC, according to EPFO officials. While an arrest can follow if the defaulters do not clear the outstanding PF amounts within a specified time, officials indicated that FIRs or warrants could be withdrawn if companies settle the owed amounts promptly.

Under government rules, registered companies must deposit 12% of an employee’s basic salary along with a matching employer contribution to the EPFO. Since April, many companies have reportedly deducted the PF contributions from employees' salaries but failed to deposit these in the EPFO accounts.

“Company owners and management were served notices, but they failed to resolve the issue within the given timeframe, leading to FIRs and arrest warrants,” stated a senior official.

This is the first large-scale action against PF defaulters this financial year. The EPFO has issued notices to non-compliant companies over recent months. The arrest warrants are backed by Sections 8-B and 8-G of the PF Act, enabling the police to enforce the order if necessary. Officials added that property attachment or prohibitory orders might be imposed if companies fail to comply, with the option to recover dues from third-party payments owed to the defaulter organisations.

Krishan Kumar, Assistant Commissioner, EPFO, clarified, "Arrest warrants are part of the recovery process, but the accused may be released if the defaulting amount is cleared immediately."