Civic authority defaults on PF contributions

The Bruhat Bangalore Mahanagara Palike (BBMP) is not only bankrupt, but it is also guilty of financial indiscipline. The Employees’ Provident Fund Organisation has attached its accounts in Corporation Bank after the civic authority failed to provide details of its employees to the EPFO.

This now has put a question mark on the payment of salaries of the BBMP’s 12,000-odd employees. The employees’ salary accounts are with Corporation Bank and a private bank and there is scepticism if they will be paid their May salary during the first week of June.

In a letter to the manager of Corporation Bank, J.C. Road branch, on May 22, EPFO’s Regional PF Commissioner K. Narayana ordered the attachment of all accounts the BBMP has with the bank with immediate effect.

Show-cause notice

Mr. Narayana told The Hindu that the BBMP, besides defaulting in the PF contributions since January 2011, had not provided details of its employees to the EPFO. The latter had issued a show-cause notice to the BBMP, seeking why action should not be initiated against it. With no response forthcoming, the EPFO decided to attach the bank accounts.

“The EPFO has the powers as per the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 to levy a fine, issue warrant of arrest or attach the movable and immovable assets of defaulters. To pressure the BBMP to submit the details of its employees, we decided to attach the bank accounts,” Mr. Narayana said.

Dues

He said the EPFO would be able to assess the dues only after the BBMP submits all details pertaining to its employees.

When questioned, BBMP Commissioner Siddaiah said the civic body would comply with the EPFO’s directives.

More time

“However, we need more time to provide details of our employees. We will explore the possibility of getting a stay from the High Court on the attachment of our accounts.”

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