"EPFO Defaults Surge to All-Time High, Telangana Tops the List"
Defaults under the Employees' Provident Fund Organisation (EPFO) soared to an all-time high of ₹25,820.88 crore by the end of 2023-24, marking a staggering increase of 69.3% compared to ₹15,254.06 crore a year ago. This alarming rise, reported in EPFO's annual report, highlights growing concerns over non-compliance among employers.
Breakdown of Defaults
Out of the total defaults, ₹16,349.7 crore were attributed to exempted establishments, while ₹9,474 crore fell under the "Not Immediately Realisable" (NIR) category. Defaults by exempted establishments alone increased by 243.7% from ₹1,300.88 crore in 2022-23 to ₹5,318.42 crore in 2023-24. However, only ₹847.77 crore of these arrears were recovered, leaving ₹4,470.65 crore pending.
State-wise Arrears
Telangana emerged as the state with the highest arrears, amounting to ₹3,505.84 crore, followed by:
● Delhi: ₹213.52 crore
● Jharkhand: ₹135.66 crore
● Rajasthan: ₹115.85 crore
These four states accounted for 92.07% of the total arrears under exempted establishments.
NIR Category Defaults
The NIR category, which accounts for 57.9% of total defaults, includes arrears under dispute in courts or establishments in liquidation. In many cases, rehabilitation schemes approved by the Board for Industrial and Financial Reconstruction contributed to delayed recoveries.
Sector-wise Impact
Private sector defaults stood at ₹13,734.85 crore, public sector defaults amounted to ₹2,252.27 crore, and defaults from cooperatives totaled ₹362.58 crore. These figures underscore the significant burden of arrears in the private sector.
Measures for Recovery
In response to the escalating defaults, the EPFO has directed its regional offices to collaborate with state governments for arrear recovery. Measures include:
● Displaying names of the 10 biggest defaulters prominently in regional offices and on the EPFO website.
● Attaching movable and immovable properties of defaulters with assistance from state police.
● Initiating civil and criminal proceedings to expedite recovery efforts.
Growing Concerns
The unprecedented rise in EPFO defaults calls for stricter enforcement measures and enhanced employer accountability to safeguard employee funds. Experts stress the need for policy reforms to ensure timely compliance and recovery of arrears.
"EPFO Acts Against Corruption: Compulsorily Retires 12 Officers in Two Months"
In a major crackdown on corruption and misconduct, the Employees' Provident Fund Organisation (EPFO) has compulsorily retired 12 officers in the past two months. The action, aimed at improving service delivery and maintaining integrity, marks the first significant disciplinary move by the organization in recent years.
Stringent Actions Taken
The EPFO, which manages funds for over 7.37 crore contributing subscribers and 32.56 crore members, acted against officers accused of corruption, including bribery and illegal gratification. The dismissed officials include:
● 10 Group B officers
● 8 Group A officers, who have also been suspended pending further investigation.
A total of 18 officials, including 16 under investigation for criminal charges, were implicated in actions that ranged from monetary benefits in exchange for favors to dereliction of duty.
Legal Framework and Deterrence
The dismissals were carried out under the provisions of Fundamental Rules (FR) 56(j) and Rule 48 of the Central Civil Services (CCS) Pension Rules, 1972, which allow the government to retire officials prematurely for lack of integrity or inefficiency.
“These actions are expected to have a significant deterrent effect and promote accountability within the organization,” an EPFO official stated.
Investigative Oversight
The crackdown is part of a broader initiative by the EPFO to enhance transparency and curb corruption. Investigative authorities, including the Vigilance Department and the Central Bureau of Investigation (CBI), are closely monitoring cases. Seven additional officials are currently under disciplinary proceedings, with administrative actions expected soon.
Improving Service Delivery
Officials emphasized that this move is part of efforts to restore trust and improve service efficiency. With EPFO managing substantial financial contributions from workers across India, maintaining ethical standards is critical.
“This is a landmark step to safeguard the interests of contributors and ensure smooth functioning of the organization,” a source remarked.
Way Forward
As EPFO tightens its measures against corruption, this bold move is likely to set a precedent for other public sector organizations. With increased vigilance and accountability, the organization aims to reinforce public confidence in its operations.
