PF office attaches Subhiksha's accounts

The Chennai Employees’ Provident Fund Office (EPFO) today said it had attached all bank accounts of Subhiksha Trading Services for failing to pay provident fund (PF) dues.

The move comes after Subhiksha, which is negotiating with banks for a corporate debt restructuring (CDR) package, failed to pay employee provident fund dues to the tune of Rs 1.46 crore for June-September 2008 after the expiry of the deadline set by the PF office.

Meanwhile, R Subramanian, managing director, Subhiksha Trading Services, said “he has not been intimated about any such thing (attachment of bank accounts) by the EPFO.” He said the retail chain had 13 bank accounts.

A senior EPFO official said “the company (Subhiksha) was given 15 days starting February 20 to pay the dues. Since the dues were not paid, we initiated action last week and attached all its bank accounts.” He added: “We will stick to our target of collecting the dues before March 31, 2009, when the fiscal year comes to an end.”

Subhiksha, whose operations have come to a standstill, has said it doesn’t have any money to pay its employees, creditors or interest as it expanded too fast.

Subramanian had earlier said he had offered to transfer money from his personal provident fund account for paying a part of the dues. He, however, denied that a deadline set by the Chennai EPFO had expired.

“This offer of payment of personal PF monies was offered even though the said account was not attachable under law as PF monies are not subject to attachment,’’ Subramanian said in an e-mailed statement. “I have executed the necessary papers.’’

Meanwhile, the Chennai EPFO has asked PF offices in other parts of the country to check the status of PF payments by Subhiksha. “We have asked Delhi and Nagpur EPFO offices to look at contractors who have been supplying workers for Subhiksha,” said a source in the Chennai EPFO.