Companies

Former Punj Lloyd employees in the soup as PF payouts are held up

Twesh Mishra New Delhi | Updated on July 08, 2019 Published on July 08, 2019

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

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. The employees are contemplating the means to raise further claims with the IRP.

Deductions made

The employees have not been paid their full and final settlements. Several employees that BusinessLine spoke to also 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.

“We had access to the internal portal when employed with Punj Lloyd. The portal stopped updating contributions to the (PF) trust in November despite the amounts being deducted from our salaries. We are now being told the contributions cannot be processed since there is no signing authority to approve the claims,” a former employee said.

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.

“The company is undergoing an insolvency resolution process and the law does not permit a resolution professional to disclose market-sensitive information, especially for a listed company. Rest assured, the statutory PF dues of employees are up to date till March 2019,” said a top official involved with the company’s resolution process, adding that there has been some delay subsequently.

“There is a need to clarify the status of former employees in companies undergoing CIRP. We don’t know whether we must raise our claims with the IRP now handling the company or keep pursuing current company officials,” said another employee who recently quit the organisation.

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Published on July 08, 2019
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