FDCM sitting over staff’s EPF arrears worth Rs 2 crore

NAGPUR: Over 1,800 retired employees of Forest Development Corporation of Maharashtra (FDCM), a wholly-owned government company involved in commercial extraction of timber, have been running from pillar to post to get EPF (employer’s contribution) arrears amounting to Rs2 crore.
FDCM is sitting over the issue since three years. The Employees’ Provident Fund Organization (EFPO) too had issued a show-cause notice to FDCM on May 23, 2017 warning legal and penal action for non-payment of arrears but has done nothing since then.
At least 1,861 FDCM retired employees were paid 4th, 5th and 6th Pay Commission arrears worth Rs19.87 crores pending from January 1986 till April 2004.These arrears were paid as per the Nagpur Bench of Bombay High Court order on September 3, 2015.
However, FDCM’s Retired Employees’ Coordination Committee member Ramesh Maitre, who is spearheading the demand, said though arrears have been paid, the corporation is sitting over 12% employer’s contribution (EPF share) amount of Rs2.40 crore and hence they suffered huge financial loss.
“Only two employees have been paid such 12% share amount but the remaining 1,859 employees have been meted out injustice,” said Maitre.
After their representation to EFPO, the then assistant PF commissioner DP Nanoti in a show-cause issued to FDCM on May 23, 2017, had stated that “FDCM violated Section 6 of the EPF & Miscellaneous Provisions Act 1952. As per the provisions of the said Act and manual of accounting procedure wherever the wages arrears are paid, the relative contribution should be recovered and remitted within 15 days from the date of disbursement of such arrears. Besides, the retired employees who are eligible for pay revision benefits are entitled to PF benefits at par with serving employees.”
However, despite taking such a strong stand in 2017, during 2018, the EPFO officials on a follow-up by aggrieved employees, including Maitre, have communicated at least five times citing an apex court ruling of 2011 in a case pertaining to Marathwada rural bank employees’ union vs management of the bank stating the employer is bound to pay PF but the employer cannot be compelled to pay the excess amount of statutory liabilities.
However, Maitre alleged EFPO is taking a U-turn on the issue. “The apex court case ruling cannot be interpreted in FDCM matter. Had it been so, why EPFO issued show-cause notice to FDCM in 2017. Secondly, in a similar case, EFPO, Bandra in Mumbai, on November 20, 2018 had ruled in favour of retired employees in a case against the Maharashtra State Cooperative Cotton Growers’ Marketing Federation.”
PF Commissioner Vikas Kumar refused to comment on the FDCM arrears issue. Talking to TOI, FDCM managing director N Rambabu said, “There is no legal clarity on the EPF arrears’ issue. We will set up a committee to consider the matter.”
PW Muneshwar, president of the retired employees’ coordination committee, said, “The dilly-dallying by both the institutions shows they are reluctant to pay arrears to employees who have been fighting for justice for long.”
xxxxxxxxxxx