Status of PF payments in other parts of the country to be also checked.
The regional office of the Employees Provident Fund Organisation (EPFO) has decided to attach the bank accounts of struggling Subhiksha Trading Services for failing to deposit PF dues even after the expiry of the deadline for doing so.
A senior EPFO official said “the company (Subhiksha) was given 15 days, starting February 20, to pay back the dues. Since these were not paid, we will go ahead with the action and set a target to collect the dues before March 31, 2009, when the fiscal year comes to an end.” The PF dues to be paid for the June-September period of 2008 were around Rs 1.46 crore.
Subhiksha, whose operations have come to a standstill, and which is negotiating with banks for restructuring debt, has said it doesn’t have money to pay either salaries to its staff or the interest on loans from lenders.
Subhiksha founder R Subramanian, however, said he had offered to transfer money from his personal provident fund account to cover a part of the dues. He, however, denied that a deadline set by the Chennai EPFO had expired.
“This offer of payment of personal PF monies was made even though the said account was not attachable under law, as PF monies are not subject to attachment,’’ Subramanian said in an e-mailed statement. “I have executed the necessary papers.’’
The Chennai EPFO says it has also asked its peers in other parts of the country to check the status of the PF payments by Subhiksha. “We have also asked Delhi and Nagpur offices to look at the record of contractors who have been supplying workers for Subhiksha and take action,’’ said source at the Chennai EPFO.
After attaching the retailer’s account, the EPFO can initiate proceedings against the company’s promoters/ board of directors.
