PF defaulters to be blacklisted
By Our Economy Bureau | 10 Jul 2003
Mumbai: The union labour ministry has initiated action against all companies that have defaulted in paying their provident fund (PF) dues as part of its Compliance 2004 programme.
According to the ministry''s plans, all PF defaulters will be given a month''s time to clear their dues failing which, all the nodal ministries will be asked to blacklist the defaulting companies. Simultaneously, banks and financial institutions will also be instructed to freeze their respective credit facilities.
Labour Minister Sahib Singh Verma says the Compliance 2004 programme will include attachment of property and bank accounts of defaulters, launch of prosecution proceedings in criminal courts, arrest of defaulters and appointment of receivers. As of now, the Employees Provident Fund Organisation has arrears totalling Rs 1,511 crore.
Verma says the multi-pronged campaign will target defaulting establishments, including exempted ones, which had misappropriated workers'' dues or had failed to pay them their money and meet legal obligations voluntarily.