EPFO Penalty Proceedings Against Lawful Procedure: FCIK

SRINAGAR: The Federation of Chambers of Kashmir (FCIK) has taken strong exception to the penalty proceedings launched by the Employees Provident Fund Organisation (EFPO) against hundreds of employers in Jammu and Kashmir valley under section 14B of the Provident Fund Act for making belated payments after respective due dates of filling of returns during January 2019 to April 2023 and has termed the action against the procedure established by law.

In a statement, the FCIK has challenged the prudence of the organisation for having invoked section 14B of the Act which could only be done under concrete evidence regarding any culpable state of mind of the employer while committing default in timely remittances. FCIK stated that the action taken by EPFO had sent shockwaves to employers for the reason that this provision of the Provident Fund Act was extremely harsh and envisaged for recoveries through coercive methodology including attaching bank accounts and properties.

FCIK regretted that EPFO J&K had completely played ignorant to the prolonged lockdowns during the reorganization of state, Covid restrictions coupled with snapping of internet services which had led to complete halt to business activities in Jammu and Kashmir during aforementioned time period and has asked that how could EPFO expect employers to follow normal rules and regulations under most abnormal conditions when the very movement of people had been restricted.

FCIK has taken up the matter with Central Provident Fund Commissioner GOI with a plea to quash the demands raised by EPFO against J&K employers. While giving an overview of the operational and economic conditions of enterprises in J&K particularly in Kashmir valley, FCIK has solicited intervention of the CPFC for quashing of demands raised by EPFO J&K against employers for penal damages including interest and administrative charges during the period of January 2019 to April 2023. The waiver of penal damages was also sought in consideration of Central Provident Fund Organisation’s own Circular No C-1/Misc./2020-21/vol.1/1112 dated 15-05-2020 and relevant apex Court directions, reads the statement of FCIK.