HC directs PF commissioner to release frozen accounts of TGRTC employees

HYDERABAD: The Telangana High Court single bench of Justice C V Bhaskar Reddy on Friday directed the Regional PF Commissioner II Regional Office 1, Hyderabad, to release the PF accounts of TGRTC employees. He asked the RTC managing director and the PF commissioner to file their counter affidavits before adjourning the writ petition to July 15.

The judge was hearing the writ filed by the RTC MD, seeking a direction to suspend the prohibitory orders issued by the PF Commissioner, asking the Union Bank of India to freeze the accounts of RTC for not depositing the employees’ PF contribution, though such amount is deducted by the corporation.

The RTC had recently deducted Rs. 40 crore towards PF contribution from the salaries of its employees, but did not deposit in their PF accounts; rather the RTC utilised the amount for its day-to-day functioning. As the matter stood thus, Rs. 900 crore, which was deducted from the employees’ salaries towards PF (for period March 2014 to September 2019) is still pending, to be paid to the banks.

Sudershan Reddy, Advocate-General, while arguing for the RTC MD, informed the court that the bifurcation of RTC between AP and Telangana had not been done as per the AP Reorganisation Act, 2014. The amounts, as stated by the PF Commissioner, had to be paid to the banks by both AP and Telangana RTC. Deliberations between the States to settle the issue are still going on.