EPFO to probe Kingfisher Airlines' PF compliance

Slaps notice of Rs 7.62 lakh on the airline promoted by Vijay Mallya for short payment of PF dues

The Employees' Provident Fund Organisation (EPFO) has constituted a squad of enforcement officers to investigate issues related to payment of PF dues by the beleaguered Kingfisher Airlines.

EPFO has also slapped a notice of Rs 7.62 lakh on the airline promoted by liquor baron Vijay Mallya for short payment of PF dues.

“A Squad of Enforcement Officer has been constituted for verifying compliance position in respect of all its employees as payment of contributions stopped after September 2015,” the labour ministry said.

Notices have been issued to the company for penal damages (Rs 3,34,016), interest dues (Rs 3,55,678) for bleated remittances for certain months and payment of short remittances of Rs 71,910, involving a total liability of Rs 7,61,604, the statement read.

Mallya, mired in controversy for leaving India in the middle of a massive loan default is facing probe from several agencies including Enforcement Directorate.

Under fire over dues totalling Rs 9,000 crore of long-grounded Kingfisher in unpaid loans and interest, Mallya left the country on March 2.

“The last inspection revealed the company has paid EPF and other dues on salary payable up to December 2012. Kingfisher Airlines contributed to the PF in March 2012 for 6,185 employees. The PF compliance to the number of employees have gradually reduced to 3,339 in the month of December 2012,” the statement said.

According to Labour Ministry, Kingfisher Airlines Ltd is registered as employer with EPFO since January 1, 2005.

It further said: "The employment strength of Kingfisher Airlines reduced after December 2012 due to closure of its operations and remittances were made for two skeletal employees up to September 2015 and thereafter minimum administrative charges were paid.

As per the statement, the aviation licence of the airline was suspended in October 2012 by the Director General of Civil Aviation and flight operations stopped from December 2012.

The ministry said a total of 5,675 PF claims were settled from 2012-13 to the employees of Kingfisher airlines. Also, it added that Provident Fund has been in respect of 12 deceased employees.

However, the ministry said: "There is no complaint available on record either from members/unions (Kingfisher employees) regarding non-payment of EPF dues by the company.