Delhi government today ordered filing of an FIR against a private security agency for allegedly violating labour laws and conducting financial fraud on "a grand scale".
"The security contractor, Kore Securities, was collecting over Rs 22,000 per security guard per month while paying only Rs 8,000 to each guard, as opposed to the contractually agreed upon Rs 13,000 per month.
"This fraud brings the amount paid to security guards lower than the minimum wage in Delhi. No weekly off-days were provided to security guards (601 in total) whilst the company continued to bill the Delhi government, effectively robbing the security guards of their well-deserved salary," government said in a statement.
The security agency could not be reached for their comment.
"Tourism Minister Kapil Mishra recommended the termination of contracts and filing of an FIR against Kore securities, which has indulged in massive violation of existing labour laws and conducted financial fraud on a grand scale," it stated.
It said the security guards were working 12 hour shifts as per the re-negotiated contracts but were being paid for only 8 hours of duty.
"The total loss to the exchequer works out to be over Rs 5 crore. The components of this fraud include underpaid PF contributions to employees, underpayment of Rs 5,000 per employee per month for guards working 12 hour shifts and over billing of DTTDC for days that are taken off by employees only on paper but are working on ground," the statement added.
