South Mumbai firm proprietors booked for PF irregularities
Department official reports on irregularities in a South Mumbai metal extraction firm deducting money but depositing nothing; two owners booked
Like in most companies, employees of South Mumbai based metal extraction firm Nicomet Industries assumed that the PF deduction from their salary monthly was going towards their savings. They couldn't be more wrong as the proprietors of the firm, Atul Agrawal and Rajendra Agrawal were booked by the Cuffe Parade police after an official from the PF department noticed irregularities and reported it.
According to the police, Hema Hatee, the PF department official, spotted that between May 2014 to September 2016, money to the tune of Rs 1.26 crore at last count, was regularly deducted from the employees' salary, but was never deposited in the State Bank of India's EPF account.
The officer then filed a complaint with the police, after which an investigation was launched.
Prima facie, the police found malpractices in the company's operation and registered the FIR against the owners.
Confirming the scam, DCP and spokesperson, Dr Rashmi Karandikar said, "We have registered the FIR under section 406 (criminal Breach of trust) and 34 (common intention) of the Indian Penal Code. There are two persons named in FIR, as they are the owners of the company. We have questioned them and are investigating into the matter."
What is PF?
PF is a tax-exempt corpus deducted monthly at a rate of 12 per cent of the basic pay (it changes yearly). However, at present, from the employer's contribution, 8.33 per cent is deposited in the Employee Pension Scheme (EPS) while the remaining 3.67 per cent is deposited in the EPF account.
Rs 1.26cr Total sum deducted from salaries but never deposited
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