1,260 private security companies violated PF rules in 2014-15: Bandaru Dattatreya

NEW DELHI: Over 1,200 private security agencies were found to have violated EPFO laws during 2014-15, Parliament was informed today.

In the previous fiscal (2013-14), 869 such firms were found to have violated the Employees Provident Funds & Miscellaneous Provision Act, 1952. In 2012-13, their number was 667.

Instances of violation of Employees' Provident Funds and & Miscellaneous Provision Act 1952 and schemes framed thereunder and Employee State Insurance Act 1948 by 1,260 private security agencies during 2014-15 have come to the notice of EPFO and ESIC, Labour Minister Bandaru Dattatreya said in a written reply to Lok Sabha.

The Act is implemented by the retirement fund body Employees' Provident Fund Organisation (EPFO), which runs social security schemes for over six crore organised sector workers.

During the last fiscal, the maximum number of such violations were detected in Karnataka (222), followed by Uttar Pradesh (187) and Madhya Pradesh (131).

As per the reply, as much as Rs 29.57 crore of provident fund dues were pending against these security firmsin the last fiscal compared to Rs 16.16 crore in 2013-14 and Rs 152.94 crore in 2012-13.

Similarly, Rs 22.67 crore was due against these firms on account of employees' state insurance premium under Employees State Insurance Act 1948 in the last fiscal compared to Rs 22.29 crore in 2013-14 and Rs 6.22 in 2012-13.

It further said that there were 776 such firms against whom irregularities were detected in respect of ESI Act, 1948 during the last fiscal compared to 738 in 2013-14 and 551 in 2012-13.

The Employees State Insurance Corporation implements the ESI Act 1948, which provides healthcare for the organised sector workers drawing total wages of Rs 15,000 per month.

About two crore workers and their families are covered under the scheme. Therefore, the benefits are available under the scheme for over eight crore people in the country.