Hiranandani says no case is made out, CBI opposes his bail

A special court today deferred till August 18 the hearing on anticipatory bail petition filed by Niranjan Hiranandani, Director of the Hiranandani Group of companies, who is fearing arrest in a case filed by CBI for alleged default in payment of provident fund dues of his employees to the tune of Rs 8.47 crore.

Special Judge S P Hayatnagarkar adjourned the hearing to August 18 with the consent of both the sides.

CBI today filed a written reply in the court opposing Hiranandani's bail plea but the contents were not divulged.

Hiranandani argued that PF officers had miscalculated PF deductions. He said basic component of salary attracts PF payment. However, in this case, gross salaries of employees was taken into account for calculation of default.

The case pertains to deductions of PF of 48 employees of five firms of the Rs 2,000-crore construction group during 2003 to 2006. The petitioner pleaded that employees were hired by a contractor who was reponsible for PF payment.

The law was amended to make employer also responsible if the contractor failed to pay PF but this had been stayed by the Bombay High Court during the period (2003 to 2006), he said.

The petitioner said that initially the PF department had claimed that the default was to the tune of Rs 168 crore but later brought down the figure to Rs 9.36 crore.

Hiranandani pleaded that baseless allegations had been made against him on the basis of erroneous figures and police machinery was used by his rivals to get him arrested.