EPFO to scrutinise transactions closely after Rs 21-crore fraud
Six employees of a regional office in Mumbai who were found to be prime conspirators behind the fraud were suspended. The case is now likely to be handed over to the Central Bureau of Investigation
- Aug 20, 2021,
- Updated Aug 20, 2021 9:55 AM IST
Following the siphoning off funds to the tune of Rs 21 crore by a team of Group B and Group C staff from dormant provident fund accounts, the Employees’ Provident Fund Organisation (EPFO) has decided to scrutinise all transactions at all field offices in the country. An internal audit that took place in EPFO office in Mumbai took the decision after the incident came to light.
Six employees of a regional office in Mumbai who were found to be prime conspirators behind the fraud were suspended. The case is now likely to be handed over to the Central Bureau of Investigation, two government officials told Livemint.
The EPFO will now scrutinise COVID-19 withdrawals as the fund manager allowed employees to withdraw their corpus to deal with income losses.
One official in the know told the daily that Mumbai-based EPFO offices have already started the exercise in an effort to control any future damage. The official said that siphoned funds were from a common fund and not from any particular set of accounts. “The amount may be small but it has highlighted the fraud and unethical practice of some,” stated the official.
Union labour and employment secretary Apurva Chandra said that action has been initiated by the EPFO and the situation is now under control. Records of the suspended officials are being scrutinised and their employment history is being tracked.
One of the officials said that the incident happened in the first wave of COVID-19, weeks after the COVID-19 withdrawal scheme was announced. As withdrawals increased, more and more officials got involved in settling cases, leading to the six accused siphoning off the amount.
According to official data, at least 7.63 million salaried workers dipped into their retirement savings to deal with the COVID-19 crisis.
Also read: Here's all you want to know about EDLI scheme under EPF Also read: How EPF interest is calculated: All you need to know
Following the siphoning off funds to the tune of Rs 21 crore by a team of Group B and Group C staff from dormant provident fund accounts, the Employees’ Provident Fund Organisation (EPFO) has decided to scrutinise all transactions at all field offices in the country. An internal audit that took place in EPFO office in Mumbai took the decision after the incident came to light.
Six employees of a regional office in Mumbai who were found to be prime conspirators behind the fraud were suspended. The case is now likely to be handed over to the Central Bureau of Investigation, two government officials told Livemint.
The EPFO will now scrutinise COVID-19 withdrawals as the fund manager allowed employees to withdraw their corpus to deal with income losses.
One official in the know told the daily that Mumbai-based EPFO offices have already started the exercise in an effort to control any future damage. The official said that siphoned funds were from a common fund and not from any particular set of accounts. “The amount may be small but it has highlighted the fraud and unethical practice of some,” stated the official.
Union labour and employment secretary Apurva Chandra said that action has been initiated by the EPFO and the situation is now under control. Records of the suspended officials are being scrutinised and their employment history is being tracked.
One of the officials said that the incident happened in the first wave of COVID-19, weeks after the COVID-19 withdrawal scheme was announced. As withdrawals increased, more and more officials got involved in settling cases, leading to the six accused siphoning off the amount.
According to official data, at least 7.63 million salaried workers dipped into their retirement savings to deal with the COVID-19 crisis.
Also read: Here's all you want to know about EDLI scheme under EPF Also read: How EPF interest is calculated: All you need to know