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Employee funds of Uttar Pradesh Power Corporation were parked in scam-hit DHFL

Our Bureau New Delhi | Updated on November 02, 2019 Published on November 02, 2019

According to the association, an amount of ₹ 1,600 crore belonging to Uttar Pradesh State Electricity employees and officers still remains deposited with DHFL.

Provident fund contributions of employees and officers working at the Uttar Pradesh Power Corporation have been parked in scam hit Dewan Housing Finance Corporation Limited (DHFL).

According to a letter by the Uttar Pradesh State Electricity Board Engineers Association (UPSEBEA), the decision to deposit monies related to General Provident Fund (GPF) and Contributory Provident Fund (CPF) contributions into DHFL was taken by the trustees of the UP State Power Sector Employees Trust on April 21, 2014.

Also read: Govt likely to order SFIO probe into DHFL financial irregularities

Surplus fund to the tune of ₹ 2,631.20 crore contributed by employees was deposited in DHFL’s fixed deposit scheme between March 2017 and December 2018.

According to the association, an amount of ₹ 1,600 crore belonging to Uttar Pradesh State Electricity employees and officers still remains deposited with DHFL. The employees have now approached the state government seeking an assurance of getting their contributions returned.

Read more: DHFL resolution plan: 2.3 per cent of each lender category debt to be converted into equity

Hitting out at the UP state government, Congress General Secretary Priyanka Gandhi Vadra tweeted, “The BJP government in Uttar Pradesh invested the money from provident fund of state’s power corporation personnel in a defaulting company like DHFL. Whose interest was to be served by investing more than ₹ 2,000 crore of the employees’ hard earned money in such a company? Is it justified to play with the future of the employees?”

The Ministry of Corporate Affairs is said to have ordered an investigation by the Serious Fraud Investigation Office (SFIO) into alleged financial irregularities DHFL after finding instances of suspected fund diversions.

DHFL came under the scanner in the wake of allegations that the company had siphoned off ₹ 31,000 crore worth bank loans through layers of shell entities.

Published on November 02, 2019
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