EPFO slaps prosecution notice on TSRTC for PF default

Hyderabad: In a major blow to the crisis-hit TSRTC, the Employees Provident Fund Organisation served prosecution notice on the Corporation management for defaulting on payment of employees PF.

Regional PF Commissioner Vipin Kumar Sharma issued the prosecution notices to RTC Chairman and Managing Director Sunil Sharma.

The RTC management was asked as to why penal action should be initiated for its failure in complying with the rules set under PF Act, defaulting the remittances of PF contribution and non-remittance of employees share of PF for the period from the date of inception of TSRTC to till date.

Sources said that instead of depositing the money with PFO, the management was utilising the same money for salaries and other expenses.

Every month the management collects over Rs 50 crore from the employees as PF. Apart from the PF, the management has allegedly utilised the CCS (Credit Cooperative Society) money.

The management has to give Rs 550 crore to the CCS and the court has also directed it to give Rs 200 crore within six weeks.