Delhi State Industrial & Infrastructure Devl. Corporation Ltd. N-36, Bombay Life Building, Connaught Circus, New Delhi-110001

(Personnel Division)

No.DSIIDC /O.O./Estt./ Dated : 24th June, 2015

MEMORANDUM

Sub: Contraventions of the provisions of the Act

Please find enclosed a letter received from Employees Provident Fund Organization. It has been informed by the Additional CPFC. Delhi (North) that the provisions of the Employees Provident Fund Act 1952 are not being complied with by the contractors appointed by the Corporation for getting the works of maintenance of sewerage, roads. construction of building etc..

carried out in unauthorized colonies and other places.

It is incumbent upon all the CEs to ask for a list of employees being appointed by the contractor and also to ensure that the PF contribution is deposited by them in the CPF Account of each employee hired by them. CEs may ensure that payment is released to contractor only after obtaining a

certificate to the effect that the contractor has remitted the contribution towards PF contribution in respect of each and every worker. Contractor concerned may be asked to handover a copy of challan as a proof of their

actually having deposited the EPF contribution in respect of each of the employees engaged by him/them. In addition, their PF Nos. may also be

taken and sent to Chairman, EPF Trust, Chief Manager (IEM) for putting the

same on the website. Non-compliance of these orders shall be viewed very seriously and action as per DSIIDC Staff Service Rule 1978 read in conjunction with Rule 72 CCS CCA Rule 1965 shall be taken against the defaulter (s).

Encl : As Above

1. CE-I 2. CE-II

(S.P. Pant) Chief Manager (P)

Copy to :

1. PS to MD 2. PA to GM 3. PS to FA 4. PA to GM 5. Manager (Works)

bs4e 6. DM (IT) for upload on website7. All CAOs'8. DAM (CPF) to ensure compliance of the above

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ar. P. a LL.B., A.C.A., PhD

Additional C.P.F.C., Delhi (North)

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VnTig: 011-27376772 tkfii : 011-27376777

Employees' Provident Fund Organisation Regional Office, (Delhi North)

(Ministry of Labour & Employment, Government of India) 28, Community Centre, Wazirpur Industrial Area, Delhi-110052

Phone : 011-27376772 Fax : 011-27376777 Email : rpfcdelhiarediffmail.com

ro.delhi.north@epfindia.govin

E/DUEx/ Misc./ 3 86

VT1o/D.O. No. • June, 201.5 R-lico/Dated •

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I take an opportunity to draw your attention towards the non compi-nc= of the statutory provisions, laid down under Employees' Provident Funds & Miscellaneous Provisions Act 1952 & the Schemes, framed there under. The said Act is a social welfare legislature and Employees' Provident Fund Organization is securing the compliance of the statutory provisions for providing the social security benefits i.e. Provident Fund, Pension benefit and Insurance benefit. For the proper application of this act, it is statutory obligation on the part of the employer to comply with the provisions of the act in true spirit and intention of the legislature.

I would like to mention here that in order to check the compliance status of your establishment, a squad of the enforcement officers, headed by Assistant Provident Fund Commissioner was deputed to your establishment. From the perusal of the compliance audit report, submitted by the squad, certain major contraventions of the conditions governing grant of exemption have been noticed but prior to invoking the panel actions, an interaction was held with the senior officials deputed by you on your behalf during the meeting scheduled on 08-06-2015 in the Regional Office (Delhi North) Wazirpur. I was surprised to note that the responsible officials of your establishment were als ot in •osition to 'ustif the contraventions of the provisions of the Act. Hence some of the major contraventions of t e provisions o serious

1) nature are as under:-

As per the provisions of section 8A of the EPF & MP Act 1952 read with Para 30 of the EPF Scheme 1952, it is the responsibility of the principle employer to ensure the compliance under the said Act irrespective of the fact that employee is regular, perm-anent, casual, daily wages, on contract or engaged through or by contractor but your establishment has failed to ensure the compliance of the casual and contractor employees whereas: the facility is available on the EPFO Website to check the actual remittance of the P F Contribution in r/o the employees engaged through the contractor.

It is the statutory duty of the employ0o upload the monthly return, electronically on the website of the EPFO showin • therein the ctual stren th of the employees including those engaged by or through the contractors. The submission of the false in orma ion in the statutory return is an offence u/s 14(2)of the EPF & M P Act 1952 read with Para 76 of the EPF Scheme 1952. It reveals from the monthly return uploaded by your establishment that the actual employment strength is not reported. It is the failure on the part of employer. The requisite records as prescribed under the Act in respect of the contractor em ensured whether the contractor employees are in receipt of the P.F. benefits

he EPF Trust of M/s DSMDC Limited (DU7858) was required to be merged with the EPF Trust of M/s DSIIDC Ltd. (DU 277) consequent upon merger of M/s DSMDC with

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Sh. Sanjeev Ahuja

Your ncerely,

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M/s DSIIDC w.e.f. 01.04.2006. However, the EPF Trust of M/s DSMDC is still existing as a separate entity and not yet merged. The funds are also stated to be lying idle resulting in loss of interest.

(4) kr:\) The establishment is engaged in maintenance of sewage & roads of unauthorized colonies besides maintenance & con • •ui n s o Delhi Government where th re i - • •emen o arge num •er o cons ru ion contractors The establishment, as the Principal Employer, has not ensured the extension of P.F. benefits to the construction workers. No records were produced before the Inspecting Squad in respect of the employees of the Civil Contractors.

You may appreciate that depriving the eligible employees, particularly low paid employees, from their statutory social security benefits guaranteed under the statute is a matter of grave concern and needs to be checked immediately. It is requested to ensure the PF contribution in r/o all eligible employees by issuing suitable instructions to all concerned officials of the establishment

Further it has been brought to my notice that out of the 943 Universal Account Numbers (UAN) allotted to the employees only 176 have been validated using Aadhar as KYC. It is requested to issue necessary directions in order to upload the KYC details based on Aadhar & bank account in respect of the employees / subscribers duly validated through the Employer UAN Portal and also provide dedicated UAN activation Helpdesk to enable employees to register themselves on the UAN Employee Portal so that they could get access of various services available on the EPFO Website.

In view of the above circumstances, it is hereby requested to intervene in the matter for proper compliance of the statutory provisions to avoid any legal complication.

Your co-operation is solicited.

Managing Director M/s DSIIDC N-36, Bombay Life Building, Connaught Circus, New Delhi-110001