JK Cements fail to deposit employees’ CPF
The Jammu and Kashmir Cements Limited has not deposited the Provident Fund of its 740 employees with the Government for last two and a half years, forcing Assistant Provident Fund Commissioner to issue show cause notice to the Managing Director (MD).
The JK Cements has not deposited the Provident Fund of the employee amounting to over Rs 16 Crore, despite deducting it from the employees’ salary. The show cause notice (No:- APFC/PUL/900/369-70 dated 13/10/2017) issued by the Assistant Provident Fund Commissioner Pulwama and Shopian read: “Whereas M/S Managing Director JK Cements Ltd. Khrew, Pulwama is coverable/covered under J&K, Employees Provident Fund Act. 1961. Whereas the management of the said establishment was directed to deposit an amount of Rs. 16,17,67,546.00 vide this office order No. AFPC/pul/01 of 2017 dated: 18/09/2017.”
The show cause notice said the Management of the JK Cements has committed an offence which as per law is punishable with imprisonment and fine.
“Whereas the management of said establishment has not deposited the Provident Fund Contributions and Adm. Charges for the period 05/2015-08/2017 as demanded vide the above mentioned order and as required under Section 7 of the Act read with Para 38 of the Scheme framed there under. Whereas, the management of the establishment has thus committed an offence under Section 14 of the J&K Employees Provident Fund & Miscellaneous Provisions Act. 1961 Act read with Para 82 of the Scheme framed there under”, read the notice.
“Now therefore, M/S Managing Director JK Cements Ltd. Khrew Pulwama may show cause within a period of 15 days from the date of issuance of this notice, as to why prosecution case may not be launched against the person incharge and responsible for conducting of the business of the establishment for contravening the provision of Para 38 of the Employees Provident Fund Scheme, 1961 and further as to why the case may not be referred to the Collector for recovery of the amount as arrears of land revenue as provided under Section 9 of the Act read with Para 82 of the Scheme framed there under”, the notice read.
“In case of non-compliance to the above within the stipulated time, action as provided under section 9, 14 and 16 of J&K, Employees Provident Fund & Miscellaneous Provisions Act, 1961 shall follow without any further notice”, the notice further added.
Sources said that Assistant Provident Fund Commissioner issued the show cause notice after frequent complaints lodged by the recently retired employees of the JK Cements Limited as their CP Fund release was being delayed.
Sources further said that the amount is being spent to run the company which is in losses for last several years and the employees are also losing the interest amount on the CP fund amounting to lakhs of rupees.
Sources said that the 6th Pay Commission arrears of the employees are pending and those who retire are provided cement instead of money to benefit cement mafia. The cement is then sold by these employees at cheaper rates leading to further losses for the retired employees.