EPFO conducts raid at Pithampur industries

INDORE: Suspecting provident fund evasion of more than hundred employees, Employee Provident Fund Organisation (EPFO) officials carried out a raid at two Pithampur based firms on Friday.

The EPFO team also summoned officials of the two companies — Tirupati Balaji Extraction Private Limited and Shree Tirupati Balajee FIBC Private Limited.

A team of eight provident fund officials carried out the raid at the business premises of both the firms in Sector 1 and 2 of Pithampur respectively.

"Company directors have been evading provident fund benefits which should be availed by the employees. We are taking stringent action against firms evading provident fund benefits of their employees," said Ajay Mehra, Madhya Pradesh provident fund commissioner.

He further said that this is a routine action and department has been scanning all the firms which are involved in evasion of employee benefits. "Majority of employees are not given benefits of provident fund. Those who are given the benefits, in their CTC (Cost to company) basic salary is low and other allowances are increased which also come in the category of provident fund evasion," added Mehra.

Company officials have ordered to submit a report within next three days. As per official sources both the companies were outsourcing their employees from contractors and these employees were not given any kind of benefits.

Concerned companies are the manufacturers and suppliers of various types of polypropylene (PP) plastic products in the Indian domestic market.