Subhiksha owes Rs 5 cr as PF dues

CHENNAI: The Employees' Provident Fund Office (EPFO) has initiated an inquiry into Subiksha for non-payment of provident fund (PF) dues of its employees. The company has not been remitting PF dues since June last year.
According to the PF records, there are around 4,600 employees of Subhiksha (Chennai and neighbouring places) and the default amount till date stands at Rs 5 crore."But this is a continuing amount and the figure will be higher next month," says an official at the EPFO's regional office in Chennai.
On its part, the PF office has already initiated an inquiry in January under Section 7A of the Employees Provident Fund and Miscellaneous Provisions Act, 1952. Section 7A of the Act deals with determination of moneys due from employers. "Right now, the process is going on for assessment of dues under Section 7 (A)," says the official.
The first hearing of was held on Tuesday where Subhiksha's managing director R Subramanian was provided an opportunity to present his side of the story. Subramanian later confirmed to TOI that he was present at the hearing and said the matter was adjourned to a later date. The next inquiry is scheduled for February 11.
On completion of the assessment, a report would be prepared and a copy would be given to Subhiksha. The company would be given 15 days to remit the amount failing which the regional office can invoke penal provisions under the Act. The first step would be to attach the bank accounts of the company. "But that's of no use because the company is already sinking," said the official.
The next step is to hold the promoters/board of directors of the company liable. The movable and immovable assets of the company could also be sold in order to make PF payments. "The Act very clearly lays down that worker's rights cannot be undermined," says the official. "As the matter is extremely sensitive, we are also asking Subhiksha to make remittances during the course of the inquiry itself."
The company would also have to pay interest and damages which has arisen due to non-payment of provident fund on time.
Last week, Subramanian told TOI that the company has not been paying salaries for its employees as it was cash strapped and its stores across the country were on a "standstill" mode. "At stake is the fate of 15,000 people," he had said.