Sugar factory fails to remit staff contributions into employees provident fund account

Chittoor: Misappropriation of funds pertaining to the employees provident fund (EPF) to a tune of Rs.2.34 crore was noticed in Chittoor Cooperative Sugars. Based on a complaint lodged by the ousted employees of Chittoor Cooperative Sugars, the officials of Employees Provident Funds Organisation, Kadapa conducted an enquiry and found fault with the management of Chittoor Cooperative Sugars in payment PF contribution dues from December 2011 to January 2015  towards the Provident Fund Account  relating to 400 employees of the sugar factory.

The affected employees of the factory approached several times the Commissioner of Labour for initiating necessary action against the management of the factory.  As there was no  response from the concerned  Labour department officials,   the employees later approached Human Rights Commission seeking  justice . In turn the Secretary, Human Rights Commission served notices to the Chittoor Cooperative Sugars instructing them to take remedial action for clearing the PF dues to employees.

It may be noted here that Chittoor Cooperative Sugars factory downed the shutters two years ago causing heavy loss to the employees.  Speaking to The Hans India here on Sunday, K Anjaneyulu, Managing Director, Chittoor Cooperative Sugars has admitted the lapses of the factory in clearing the EPF contribution to the EPF organization.  As there was no production in the factory for the last three years, it could not meet the demands of the employees, he said. 

He made it clear that Government has to take a decision over the demands of the employees.  Ramamurthy Reddy, an employee decried that the management has deducted the Provident Fund contribution from the salaries of the employees right from the beginning. He alleged that the management of the factory has intentionally failed to remit to EPF organisation and cheated the employees. 

By Chilakapati Prabhakar