Delhi HC dismisses plea of EPFO accused of siphoning off Rs 3.88 crore from PF

The Delhi High Court on Saturday dismissed a bail plea of EPFO worker who was accused of siphoning a huge amount of provident funds (PF) and causing a misappropriation of approximately Rs 3.88 crores.

Justice Suresh Kumar Kait dismissed the bail plea of Uaday Singh who has been in judicial custody since March last year. The accused was working as a Data Base Administrator at EPFO before he was put behind the bars.

Initially, an FIR was registered by the Delhi Police but later it was transferred to the Central Bureau of Investigation (CBI).

During the course of the investigation, it was revealed that petitioner Singh joined EPFO in October 2011 and his co-accused Devender Choudhary was also working as Project Engineer with EPFO.

Both Choudhary and Singh were engaged in developing the software of EPFO Department and were dealing with online claims and deductions.

Singh was acquainted with the loopholes of the software programme following which he conspired with Choudhary and planned to withdraw the amount from the Central Account of EPFO, the investigating agency alleged adding that it was decided by them that share of each person would be 20 per cent.

According to the agency, all the accused filled in the details of the fake members in the EPFO portal and the huge amount was transferred in various fake accounts.

The agency further claimed that the EPFO data created by the accused has caused a misappropriation of approximately Rs 3.88 crores. According to an FIR, Singh is alleged to have information about receiving the amount by co-accused Neeraj Kumar in his account from Devender Chaudhary.

However, Singh's counsel said that there are no allegations of misappropriation or transferring of money by his client. But the investigating agency said that co-accused Kumar, in his statement has alleged that Singh had knowledge about the crediting of the sum of money in his account, which allegedly he, later on, shared with Singh and Devendra Chaudhary.

Neeraj Kumar was granted bail on April 13, 2018, by a trial court. Singh has moved the bail plea seeking parity with co-accused Neeraj Kumar. However, Singh bail plea was dismissed by the trial court on the grounds that he had played a key role and has siphoned off a huge amount.

CBI has also opposed Singh's bail plea in the Delhi High Court saying that the investigation is at the advanced stage and probe agency has decided to file an application for cancellation of bail of Neeraj Kumar. It also stated that further investigation is required as to how the money was siphoned off.

"In view of the serious allegations and fraud played upon the EPFO department and the fact that Devender Chaudhary is absconding, I am of the view that present case is not fit for bail," Justice Kait added.