Provident fund office attaches BHPV's assets

Bharat Heavy Plates and Vessels' PF dues put at Rs 23 crore

Vizag-based Bharat Heavy Plates and Vessels Limited (BHPV) today received a big blow with the local Employees Provident Fund (EPF) office attaching the plant and other moveable assets.

The loss-making public sector undertaking, which is eagerly awaiting the Union government's nod for its revival package, has not paid provident fund (PF) dues amounting to Rs 23 crore.

The plant and machinery, locomotives, motor vehicles, furniture, office equipment and other movable assets of BHPV were attached in an execution of a warrant of attachment issued by the EPF recovery officer.

"BHPV management has not paid the PF contribution of both the employees and the employer since 2001. We have given several notices to the management to pay the PF contribution. Finally, we had to attach the assets under Section 8 of the PF Recovery Act to recover the dues, which is close to Rs 23 crore," T V Subba Reddy, regional provident commissioner, told Business Standard.

"Other public sector undertakings (PSUs) in Visakhapatnam are paying the PF contribution without defaulting, and this is the first time that we are attaching the assets of a PSU for recovery. If the management still neglects the attachment notice, we have powers to arrest the management," Subba Reddy said. Out of the Rs 23-crore dues, the interest on the PF contribution amount accounts for nearly Rs 6 crore.

Speaking to Business Standard, a senior officer at BHPV said: "Due to financial crunch, we have not been in a position to pay the salaries regularly to the workers from the last few months. How, then, can we pay the PF contributions promptly?"

"Out of the Rs 23-crore PF due, around Rs 6 crore includes interests and penal interests only," he added.

BHPV's accumulated losses were placed at Rs190 crore, which were more than 50 per cent of the company's equity. From last November, the company has not been paying the salaries and instead has only been paying salary advances to its staff and workers.

At present, the company's wage dues are about Rs 8 crore. The monthly wage burden is around Rs 1.4 crore.

In its revival package, which was recently submitted to the central government, the BHPV management requested the Centre to pay the wage and PF dues and extend financial support for sometime to pay the salaries regularly.