TSRTC gets summons from PF body for diverting Rs 1,189 crore

Hyderabad: The management of the Telangana State Road Transport Corporation has received a summons from the Provident Fund Trust for not paying the contribution amount of employees to the PF Trust.

The Employees' Provident Fund Organisation, under the Union Ministry of Labour and Employment, has initiated a probe into the non-remittance of dues to the extent of around Rs 1,200 crore to the employees of the TSRTC as on February 2022. This was disclosed in an RTI. According to RTI, the RTC management had diverted the PF amount and not paid to the PF Trust. Over Rs 1,189 crore including the share of employees is diverted and not paid by the management. "The total dues to be paid by the TSRTC to PF Trust as on February 2022 towards the PF contribution of employees is Rs 443.48 crores and employers Rs 745.98 crores with total 1,189.46 crores. The total number of pending cases under Employees Deposit Linked Insurance Scheme is 435 cases," mentioned in RTI. Even in the past, the TSRTC did the same and the PF Commissioner had issued summons. RTC employees are angry with the RTC management for diverting the PF amount.

As per RTC officials, RTC has its own EPF (Employees Provident Fund) Trust for its employees. Each employee will contribute 12 percent of the employee's basic wages and dearness allowance towards EPF and the RTC management also will contribute an equal amount.

Trade Union Leader and Former Director Corporation M Nageswar Rao on obtaining information under RTI Act said, "Though it is mandatory and must as per law and act, the monthly recoveries made from the salaries of employees are not deposited with Provident fund trust including the matching contribution of RTC management. As a result, RTC became a defaulter and owes over Rs 1,189 crores to PF trust."

"It is also learnt that the RTC management had not remitted the dues of employees to the RTC employees' provident fund trust in accordance with the law," he added. Trade union leaders urge the Regional Provident Fund commissioner to initiate corrective action against RTC management under Law."