Companies

Employees start getting PF dues from insolvency-hit Punj Lloyd

Twesh Mishra New Delhi | Updated on July 26, 2019 Published on July 26, 2019

Over 200 former employees of insolvency-hit Punj Lloyd have now got their Provident Fund dues.

Recipients told BusinessLine that disbursements from the Punj Lloyd Group Employee Provident Fund Trust to their accounts are being made in tranches. Around 100 employees got their dues last week, another 100 got this week.

On July 8, BusinessLine had reported that employees have not been paid their full and final settlements and several employees alleged that the group has not been making contributions to the Punj Lloyd Group Employee Provident Fund Trust since November 2018 despite deducting the amount from salaries.

“At least 40 employees have confirmed on a WhatsApp Group that the PF dues have been credited to their account. Now, the employees are awaiting full and final payment from the company,” a former employee said.

Undergoing a CIRP

The diversified Punj Lloyd Group is now undergoing a Corporate Insolvency Resolution Process (CIRP) and faces claims of about ₹6.6 crore from its former employees.

“The PF amount was much higher than the full and final payment due to most long-term employees. Now, it is being said that the remaining amount would be credited when the resolution process closes and operational creditors are paid,” another former employee said.

Commenting on the status of remaining payments, employees said that there is a need to clarify the status of former employees in companies undergoing CIRP.

Till May 6, 87 former employees had raised claims as creditors under the ‘Employees and Workmen’ category under the insolvency resolution process. Of the total claim, the Interim Resolution Professional (IRP) has admitted ₹81.65 lakh. A chunk of the remaining claims are still being examined.

But a top official involved with the company’s resolution process said that statutory PF dues of employees were up to date till March 2019. He said there was some delay in disbursements but that was procedural.

The staffers also said that since the contributions were not made into the Employees’ Provident Fund Organisation, they are finding it hard to make claims through government authorities.

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Published on July 26, 2019
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