मेल /[email protected].

in कर्मचारी भविष्य निधि संगठन

टेलीफोन/Ph:-01894-234097 EMPLOYEES’ PROVIDENT FUND ORGANISATION
(श्रम एवं रोजगार मंत्रालय, भारत सरकार)
Ministry of Labour & Employment, Govt. of India
जिला कार्यालय, अनंत विहार, वार्ड न.- 2, पालमपुर,
जिला-काँगड़ा, (हि.प्र.)- 176061
District Office, Anant Vihar, Ward No.-2, Palampur ,
District-Kangra, (H.P.)-176061

No. EPFO/DO/Palampur/HP/7398/Damages/ Dated: 19.10.2023

THE MATTER OF PROCEEDING UNDER SECTION 14B OF THE EMPLOYEES’

PROVIDENT FUND AND MISCELLANEOUS PROVISIONS ACT, 1952 FOR LEVYING
DAMAGES.(Case Diary No. 412/2023)
Before- Sh. Vijay Kumar, Assistant Provident Fund Commissioner, EPFO, District Office,
Palampur, District-Kangra (HP-176061).
Whereas, M/s Awa Power Company Pvt. Ltd., House No. 04 Ward No. 01 Near
Hotel T Bud Bandla, Palampur EPF Code No. HPSML0007398000 (herein after referred to as
“Establishment”) to which the Employees’ Provident Fund and Miscellaneous Provisions Act,
1952 (herein after referred to as the Act) apply was required to pay:-
a) The Employees’ Provident Fund Contribution under Section 6 of the Act,
b) The Employees’ Pension Fund Contribution under Section 6A of the Act,
c) The Employees’ Linked Insurance Fund Contributions under Section 6-C of the Act,
d) The Administrative Charges of Employees’ Provident fund under Para 38 of the
Employees Provident Fund Scheme, 1952.
e) The Administrative Charges on Employees’ Deposit Linked Insurance Scheme, Section
6-C (4) (a) of the Act, within 15 days of the close of the month to respective EPF
Accounts.
Whereas, the employer in relation to said Establishment failed to pay: -
i) The Provident Fund Contributions,
ii) The Employees’ Pension Fund Contributions,
iii) The Employees’ Deposit Linked Insurance Fund Contribution,
iv) The Administrative Charges on Employees’ Provident Fund,
v) The Administrative Charges on Employees’ Deposit Linked Insurance Fund within the
prescribed time limit and there by attracted the provisions of Section 14B.

As the employer in relation to this establishment failed to pay the above said
contribution/administrative charges to the Fund in-time during the period from 21/05/2021 to
07/06/2023 when the payments were made for the Challan Wage month(s) 02/2012 to 08/2022.

Under section 14B of the Act, where an employer makes default in the payment of any
contributions to the fund, the Pension Fund or the Insurance Fund or in the transfer of
accumulations required to be transferred by him under sub section (2) of Section 15 or Sub-
Section (5) of the Section 17 or in the payment of any charges payable under any other provision
of the Act or of any scheme or Insurance Scheme, the Commissioner under the power conferred
on him vide Notification No. S.O. 1553 dated 19.04.2002 is required to levy damages, not
exceeding the amount of arrears, at the rates specified under Para 32A of the Employees’
Provident Fund Scheme 1952, Para 5 of Employees’ Pension Scheme 1995 and Para 8A of
Employees’ Deposit Linked Insurance Scheme 1976.

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 A summon was therefore issued to the employer in relation to this establishment vide
notice No. HP/SML/0007398/000/Enf 502/Damages/394 dated-11/07/2023 enclosing herewith a
statement showing the details of belated payments made during the above said period and amount
payable under section 7Q and 14B (Annexure A), calling upon him to show cause why damages
on belated remittances as required under section 14B of Employees’ Provident Funds and
Miscellaneous Provisions Act, 1952 should not be recovered from him. Further, explaining the
circumstances leading to the action for levy of damages, furnishing the details of the damages
proposed to be levied and proposing a hearing fixed on 10.08.2023 at 11:45AM either in person
or through an authorized representative duly authorized to do so.

The matter was heard on 10.08.2023, 30.08.2023, 18.09.2023, 09.10.2023 and finally on
12.10.2023. In the proceeding dated 10.08.2023, Sh. Nitin Nagpal, HR executive appeared
virtually on behalf of the establishment stated that the establishment has received the 14B & 7Q
summon issued vide No. HP/SML/0007398/000/ Enf 502/Damages/394 dated 11.07.2023 to the
establishment along with Annexure-A (Damages and Interest Calculation Sheets) and further
stated that the same has been sent to our head office. He requested to provide some time in the
matter. In the proceeding dated 18.09.2023, Sh. Nitin Nagpal, HR executive appeared virtually on
behalf of the establishment stated that the establishment is going to submit representation against
the summon issued to the establishment for levying damages and interest against the
establishment. Shri Ashwani Nagpal, SSA appeared on behalf of department that the
representation from the establishment has already been received through email from RO Shimla
on 31.08.2023. However, an opportunity is again provided to the establishment in the natural
justice to submit any submission in this regard. The matter was finally heard on 12.10.2023. Sh.
Nitin Nagpal, HR executive appeared virtually on behalf of the establishment stated that the
establishment has already submitted its representation against the summon issued to the
establishment vide No. HP/SML/0007398/000/Enf 502/ Damages/394 dated 11.07.2023 along
with calculation sheet for damages and interest. Sh. Nitin Nagpal further stated that financial
condition of the establishment is not well to bear the penalty. He further stated that the
establishment has already submitted balance sheets along with his representation. He again
requested to waive off the penalty imposed against the establishment. He again stated that the
establishment has nothing to say further in the matter and again requested to consider the
representation made by the establishment. The representation of the establishment has already
taken on record. The summon issued to the establishment along with damages and interest
calculation sheet has already been received by it and the establishment has not contended
anywhere in its representation about the calculation of the damages and interest levied to the
establishment. Hence, there is no reason to keep the inquiry pending and hereby closed.

In the written submission made by the establishment which has been received in EPFO,
District Office, Palampur via email on 31.08.2023 in which it is stated that our establishment M/s
Awa Power Company Pvt. Ltd. (with ID HPSML0007398000) had faced an inquiry under
Section 7A of the EPF & MP Act initiated on 18.07.2019 as we failed to deduct/deposit EPF in
respect of some employees during the period 02/2012 to 12/2018. The establishment itself during
the inquiry admitted/accepted the claim of 17 employees and showed our willingness to pay the
dues of the same. Resultantly, a sum of Rs. 22,09,649/- was determined as an outstanding
statutory liability for the inquiry period i.e. 02/2012 to 12/2018 against our establishment vide

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order dated 22.04.2022 in e-proceeding Diary No.414/2019 vide Ref. No. SML/COMP/7A/HP-
0007398000/82-84 passed by the Ld. RPFC-II, H.P. The copy of order dated 22.04.2022 is
attached herewith as Annexure A-1 for your kind perusal. The due liability as determined vide the
said inquiry stands duly paid by our establishment at this stage.

It is to be submitted here that our establishment had only failed to deduct and deposit the EPF of
17 employees for the inquiry period amongst our total number of employees and the EPF of our
rest of the employees was being duly deducted/deposited with our organization. It was not a case
where in the EPF contribution was deducted from the employees and wrongly withheld by our
establishment for any wrongful gain.

Further, it is to be submitted here that our establishment’s failure to deduct/deposit the EPF of the
17 employees was not deliberate and willful but due to the bad financial situation faced regularly
since the year 2011 till date. Our establishment is continuously facing losses since long, still we
are making every effort to subsist in such conditions as our Hydro Power Plant is running at only
30% of its full capacity due to lack of proper transmission system. This is causing huge revenue
Loss and we are facing acute financial crunch on account of this.

The summary details of losses for the year 2011 to 2021 suffered by our establishment along with
the Balance Sheets for the said period is being annexed as Annexure A-2 (Colly) for your kind
perusal. The perusal of these balance sheets will make it evident that the establishment was not in
a position to make ends meet from the revenue earned from its operations/earnings and
resultantly defaulted in deduction/deposit of the EPF of its few employees.

In furtherance to the above submissions and the fact that at this stage our establishment has duly
paid all the statutory dues as determined vide the order dated 22.04.2022 passed under Section 7A
inquiry for the period 02/2012 to 12/2018, the demand notice under reference for levying of
damages and interest under Section 14B and 7Q of the EPF Act, 1952 may be withdrawn in the
interest of justice and fair play for which our establishment shall be highly thankful and
obligated.

Hoping for a favorable decision and action in the said matter.

In view of the representation made by the establishment the provisions of levying damages
against an establishment under section 14-B of the Act is being analyzed. The provision of
Section 14B of Act is reproduced here as under:-

“[14-B. Power to recover damages- Where an employer makes default in the payment of any
contribution to the Fund, the Pension Fund or the Insurance Fund or in the transfer of
accumulations required to be transferred by him under sub-section (2) of section 15 or sub-
section (5) of section 17] or in the payment of any charges payable under any other provision of
this Act or of any Scheme or Insurance Scheme or under any of the conditions specified under
section 17, the Central Provident Fund Commissioner or such other officer as may be authorized
by the Central Government, by notification in the official gazette, in this behalf may recover from
the employer by way of penalty such damages, not exceeding the amount of arrears, as may be
specified in the Scheme.

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 Provided that before levying and recovering such damages, the employer shall be given a
reasonable opportunity of being heard.]”

As per the notification issued vide No. S.O. 1553 dated 19-04-2002 issued by the Central
Government all the Additional Central Provident Fund Commissioner/ Regional Provident Fund
Commissioners/ Assistant Provident Fund Commissioners have been authorized to recover the
damages.

The Central Government vides its notification No. GSR 689 (E) dated 26.09.2008, GSR 688 (E)
dated 26.09.2008 GSR 690 (E) dated 26.09.2008 prescribed the rates of damages to be levied on
belated payments made by any establishment under Provident Fund, Pension Fund, Insurance
Fund respectively in paragraph 32A of Employees’ Provident Fund Scheme 1952, paragraph 5(1)
of Employees’ Pension Scheme 1995 and paragraph 8A (1) of Employees’ Deposit Linked
Insurance Scheme 1976. Here, the provision of paragraph 32A of Employees’ Provident Fund
Scheme is reproduced here as under:-

[32.A. Recovery of damages for default in payment of any contribution- (1) Where an employer
make default in the payment of any contribution to the Fund, or in the transfer of accumulations
required to be transferred by him under sub-section (2) of Section 15 or sub-section (5) of Section
17 of the Act or in the payment of any charges payable under any other provisions of the Act or
the Scheme or under any of the conditions specified under Section 17 of the Act, the Central
Provident Fund Commissioner or such officer as may be authorized by the Central Government
by notification in the Official Gazette in this behalf, may recover from the employer by way of
penalty, damages at the rates given in the table below:-

S. No. Period of default Rates of damages

(percentage of arrears per
annum)
a) Less than 2 months Five
b) Two months and above but less than four months Ten
c) Four months and above but less than six months Fifteen
d) Six months and above Twenty Five

(2) The damages shall be calculated to the nearest rupees, 50 paise or more to be counted as the
nearest higher rupee and fraction of a rupee less than 50 paise to be ignored.]

Accordingly, as per the above provisions, a summon was issued to the establishment vide No.
HP/SML/0007398/000/Enf 502/Damages/394 dated-11/07/2023 u/s 14B of the Act along with
Calculation sheets of damages as per the details of belated payments made by the establishment
in the period 21/05/2021 to 07/06/2023 wherein the payments were made for the Challan Wage
month(s) 02/2012 to 08/2022. The establishment has not made any objection on the calculation
sheets of damages amount levied against the establishment which was provided to it along with
the summon issued to the establishment dated 11.07.2023. However, the establishment has
submitted its representation as described above.

In para 1 of its representation dated 31.08.2023 the establishment submitted that the
establishment had faced an inquiry under Section 7A of the EPF & MP Act initiated on

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18.07.2019 as we failed to deduct/deposit EPF in respect of some employees during the period
02/2012 to 12/2018. The establishment itself during the inquiry admitted/accepted the claim of 17
employees and showed our willingness to pay the dues of the same. Resultantly, a sum of Rs.
22,09,649/- was determined as an outstanding statutory liability for the inquiry period i.e.
02/2012 to 12/2018 against our establishment vide order dated 22.04.2022 in e-proceeding Diary
No.414/2019 vide Ref. No. SML/COMP/7A/HP-0007398000/82-84 passed by the Ld. RPFC-II,
H.P.

In this Para the establishment itself admitted that it had failed to deposit EPF contribution in
respect of its 17 employees during the period 02/2012 to 12/2018 and also accepted/ admitted
there payable dues during 7A inquiry and accordingly it was concluded and the establishments
has paid their EPF and Allied dues. As per provisions of Section 6, Section 6A, Section 6C read
with Paragraph 29 of the Employees’ Provident Fund Scheme, 1952, Paragraph 3 of Employees’
Pension Fund Scheme, 1995, Paragraph 7 of the Employees’ Deposit Linked Insurance Scheme
1976, Paragraph 38 of Employees Provident Fund Scheme, 1952 and Section 6-C (4) (a) of the
Act is required to remit Employees’ Provident Fund contribution, Employees’ Pension Fund
contribution, Employees’ Linked Insurance Fund contribution, Employees Provident Fund
Administrative charges, Employees’ Deposit Linked Insurance Administrative charges within 15
days of close of the month to respective EPF Accounts of EPFO in respect of all the employees as
defined in section 2f of the Act from their date of joining as provided in Paragraph 26 of EPF
Scheme 1952 suo-moto within the prescribed time. All such provisions are reproduced as under:-

Section 6 of the Act-

6. Contributions and matters which may be provided for in Schemes.— The contribution
which shall be paid by the employer to the Fund shall be [ten per cent.] of the basic wages,
[dearness allowance and retaining allowance (if any)] for the time being payable to each of
the employees [(whether employed by him directly or by or through a contractor)], and the
employees’ contribution shall be equal to the contribution payable by the employer in respect
of him and may, [if any employee so desires, be an amount exceeding [ten per cent.]of his
basic wages, dearness allowance and retaining allowance (if any), subject to the condition
that the employer shall not be under an obligation to pay any contribution over and above his
contribution payable under this section]:
[Provided that in its application to any establishment or class of establishments which the
Central Government, after making such inquiry as it deems fit, may, by notification in the
Official Gazette specify, this section shall be subject to the modification that for the words
[ten per cent.], at both the places where they occur, the words [twelve per cent.]shall be
substituted:]
Provided further that where the amount of any contribution payable under this Act involves a
fraction of a rupee, the Scheme may provide for the rounding off of such fraction to the
nearest rupee, half of a rupee or quarter of a rupee.
11[Explanation 1].—For the purposes of this [section], dearness allowance shall be deemed to
include also the cash value of any food concession allowed to the employee.
13[Explanation 2.—For the purposes of this [section], “retaining allowance” means an
allowance payable for the time being to an employee of any factory or other establishment
during any period in which the establishment is not working, for retaining his services.]

Page 5 of 15
Section 6A of the Act-

[6A. Employees’ Pension Scheme.—(1) The Central Government may, by notification in the
Official Gazette, frame a scheme to be called the Employees’ Pension Scheme for the
purpose of providing for—
(a) superannuation pension, retiring pension or permanent total disablement pension to the
employees of any establishment or class of establishments to which this Act applies; and
(b) widow or widower’s pension, children pension or orphan pension payable to the
beneficiaries of such employees.
(2) Notwithstanding anything contained in section 6, there shall be established, as soon as
may be after framing of the Pension Scheme, a Pension Fund into which there shall be paid,
from time to time, in respect of every employee who is a member of the Pension Scheme,—
(a) such sums from the employer’s contribution under section 6, not exceeding eight and one-
third per cent. of the basic wages, dearness allowance and retaining allowance, if any, of the
concerned employees, as may be specified in the Pension Scheme;
(b) such sums as are payable by the employers of exempted establishments under sub-section
(6) of section 17;
(c) the net assets of the Employees' Family Pension Fund as on the date of the establishment
of the Pension Fund;
(d) such sums as the Central Government may, after due appropriation by Parliament by law
in this behalf, specify.
(3) On the establishment of the Pension Fund, the Family Pension Scheme (hereinafter
referred to as the ceased scheme) shall cease to operate and all assets of the ceased scheme
shall vest in and shall stand transferred to, and all liabilities under the ceased scheme shall be
enforceable against, the Pension Fund and the beneficiaries under the ceased scheme shall be
entitled to draw the benefits, not less than the benefits they were entitled to under the ceased
scheme, from the Pension Fund.
(4) The Pension Fund shall vest in and be administered by the Central Board in such manner
as may be specified in the Pension Scheme.
(5) Subject to the provisions of this Act, the Pension Scheme may provide for all or any of the
matters specified in Schedule III.
(6) The Pension Scheme may provide that all or any of its provisions shall take effect either
prospectively or retrospectively on such date as may be specified in that behalf in that
Scheme.
(7) A Pension Scheme, framed under sub-section (1), shall be laid, as soon as may be after it
is made, before each House of Parliament, while it is in session, for a total period of thirty
days which may be comprised in one session or in two or more successive sessions, and if,
before the expiry of the session immediately following the session or the successive sessions
aforesaid, both Houses agree in making any modification in the scheme or both Houses agree
that the scheme should not be made, the scheme shall thereafter have effect only in such
modified form or be of no effect, as the may be; so, however, that any such modification or
annulment shall be without prejudice to the validity of anything previously done under that
Scheme.]

Page 6 of 15
Section 6C of the Act-

[6C. Employees’ Deposit linked Insurance Scheme.—(1) The Central Government may, by
notification in the Official Gazette, frame a scheme to be called the Employees’ Deposit-
linked Insurance Scheme for the purpose of providing life insurance benefits to the
employees of any establishment or class of establishments to which this Act applies.
(2) There shall be established, as soon as may be after the framing of the Insurance Scheme, a
Deposit-linked Insurance Fund into which shall be paid by the employer from time to time in
respect of every such employee in relation to whom he is the employer, such amount, not
being more than one per cent. of the aggregate of the basic wages, dearness allowance and
retaining allowance (if any) for the time being payable in relation to such employee as the
Central Government may, by notification in the Official Gazette, specify.
Explanation.—For the purposes of this sub-section, the expressions “dearness allowance” and
“relating allowance” have the same meanings as in section 6.
(4) (a) The employer shall pay into the Insurance Fund such further sums of money, not
exceeding one-fourth of the contribution which he is required to make under sub-section (2),
as the Central Government may, from time to time, determine to meet all the expenses in
connection with the administration of the Insurance Scheme other than the expenses towards
the cost of any benefits provided by or under that scheme.
(5) The Insurance Fund shall vest in the Central Board and be administered by it in such
manner as may be specified in the Insurance Scheme.
(6) The Insurance Scheme may provide for all or any of the matters specified in Schedule IV.
(7) The Insurance Scheme may provide that any of its provisions shall take effect either
prospectively or retrospectively on such date as may be specified in this behalf in that
Scheme.]
Paragraph 29 of the Employees Provident Fund Scheme, 1952-

29. Contributions
(1) The contributions payable by the employer under the Scheme shall be at the rate of [ten
per cent] of the [basic wages, dearness allowance (including the cash value of any food
concession) and retaining allowance (if any)] payable to each employee to whom the Scheme
applies:
Provided that the above rate of contribution shall be [twelve] per cent in respect of any
establishment or class of establishments which the Central Government may specify in the
Official Gazette from time to time under the first proviso to sub-section (1) of section 6 of the
Act.
(2) The contribution payable by the employee under the Scheme, shall be equal to the
contribution payable by the employer in respect of such employee:
Provided that in respect of any employee to whom the Scheme applies, the contribution
payable by him may, if he so desires, be an amount exceeding [ten per cent] or [twelve per
cent], as the case may be, of his basic wages, dearness allowance and retaining allowance (if
any) subject to the condition that the employer shall not be under an obligation to pay any
contribution over and above his contribution payable under the Act;

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(3) The contributions shall be calculated on the basis of [basic wages, dearness allowance
(including the cash value of any food concession) and retaining allowance (if any)] actually
drawn during the whole month whether paid on daily, weekly, fortnightly or monthly basis.
(4) Each contribution shall be calculated to [the nearest rupee, 50 paise or more to be counted
as the next higher rupee and fraction of a rupee less than 50 paise to be ignored.
Paragraph 3 of the Employees Pension Scheme, 1995-

3. Employees' Pension Fund. - (1) From and out of the contributions payable by the
employer in each month under Section 6 of the Act or under the rules of the Provident Fund
of the establishment which is exempted either under clauses (a) and (b) of sub-section (1) of
Section 17 of the Act or whose employees are exempted under either paragraph 27 or
paragraph 27-A of the Employees' Provident Fund Scheme, 1952, a part of contribution
representing 8.33 per cent. of the Employee's pay shall be remitted by the employer to the
Employees' Pension Fund within 15 days of the close of every month by a separate bank draft
or cheque on account of the Employees' Pension Fund contribution in such manner as may be
specified in this behalf by the Commissioner. The cost of the remittance, if any, shall be
borne by the employer.
(2) The Central Government shall also contribute at the rate of 1.16 per cent. of the pay of the
members of the Employees' Pension Scheme and credit the contribution to the Employees'
Pension Fund :
Provided that where the pay of the member exceeds fifteen thousand rupees per month the
contribution payable by the employer and the Central Government be limited to the amount
payable on his pay of fifteen thousand rupees only.
(3) Each contribution payable under sub-paragraphs (1) and (2) shall be calculated to the
nearest rupee, fifty paise or more to be counted as the next higher rupee and fraction of a
rupee less than fifty paise to be ignored.
(4) The net assets of the Family Pension Scheme, 1971 shall vest in and stand transferred to
the Employees' Pension Fund.
Paragraph 7 of the Employees Deposit linked Insurance Scheme, 1976-

7 Contribution—(1) The contribution payable by the employer and the Central Government
under sub-section (2) and sub-section (3) of Section 6 –C of the Act, shall be calculated on
the basis of the basis wages, dearness allowance (including the cash value of any food
concession) and retaining allowance, if any, actually drawn during the whole month whether
paid on daily, weekly, fortnightly or monthly basis:
3[Provided that where the monthly pay of an employee exceeds 4[fifteen thousand rupees],
the contribution payable in respect of him by the employer and the Central Government shall
be limited to the amounts payable on a monthly pay of 5[fifteen thousand rupees] including
dearness allowance retaining allowance (if any ) and cash value of food concession.]
(2) Each contribution shall be calculated to the 6[nearest rupee, 50 paise or more to be
counted as the next higher rupee and fraction of a rupee less than 50 paise to be ignored].
Paragraph 38 of the Employees Provident Fund Scheme, 1952-

38. Mode of payment of contributions

(1) The employer shall, before paying the member his wages in respect of any period or part
of period for which contributions are payable, deduct the employee's contribution from his

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wages which together with his own contribution as well as an administrative charge of such
percentage [of the pay (basic wages, dearness allowance, retaining allowance, if any, and
cash value of food concessions admissible thereon) for the time being payable to the
employees other than excluded employee and in respect of which provident fund contribution
payable, as the Central Government may fix. He shall within fifteen days of the close of every
month pay the same to the fund [electronic through internet banking of the State Bank of
India or any other Nationalized Bank] [or through Pay Gov platform or through scheduled
banks in India including private sector banks authorized for collection on account of
contributions and administrative charge:
Provided that the Central Provident Fund Commissioner may for reasons to be recorded in
writing, allow any employer or class of employer to deposit the contributions by any other
mode other than internet banking.
(2) The employer shall forward to the Commissioner, within twenty-five days of the close of
the month, a monthly abstract in such form as the Commissioner may specify showing the
aggregate amount of recoveries made from the wages of all the members and the aggregate
amount contributed by the employer in respect of all such members for the month:
Provided that an employer shall send a Nil return, if no such recoveries have been made from
the employees:
Provided further that in the case of any such employee who has become a member of the
pension fund under the Employees' Pension Scheme, 1995, the aforesaid form shall also
contain such particulars as are necessary to comply with the requirements of that Scheme.
(3) The employer shall send to the Commissioner within one month of the close of the period
of currency, a consolidated annual Contribution Statement in Form 6- A, showing the total
amount of recoveries made during the period of currency from the wages of each member and
the total amount contributed by the employer in respect of each such member for the said
period. The employer shall maintain on his record duplicate copies of the aforesaid monthly
abstract and consolidated annual contribution statement for production at the time of
inspection by the Inspector.
[Provided that the employer shall send to the Commissioner returns or details as required
under sub-paragraph (2) and (3) above, in electronic format also, in such form and manner as
may be specified by the Commissioner].
Section 2f of the Act:
2(f) “employee” means any person who is employed for wages in any kind of work, manual
or otherwise, in or in connection with the work of 6[an establishment], and who gets his
wages directly or indirectly from the employer, 7[and includes any person—
(i) employed by or through a contractor in or in connection with the work of the
establishment;
(ii) engaged as an apprentice, not being an apprentice engaged under the Apprentices
Act,1961 (52 of 1961), or under the standing orders of the establishment;]
Paragraph 26 of the Employees Provident Fund Scheme, 1952-

26. Classes of employees entitled and required to join the fund

(1) (a) Every employee employed in or in connection with the work of a factory or other
establishment to which this scheme applies, other than an excluded employee, shall be
entitled and required to become a member of the Fund from the day this paragraph comes into
force in such factory or other establishment.

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 (b) Every employee employed in or in connection with the work of a factory or other
establishment to which this Scheme applies, other than an excluded employee, shall also be
entitled and required to become a member of the fund from the day this paragraph comes into
force in such factory or other establishment if on the date of such coming into force, such
employee is a subscriber to a provident fund maintained in respect of the factory or other
establishment or in respect of any other factory or establishment (to which the Act applies)
under the same employer:
Provided that where the Scheme applies to a factory or other establishment on the expiry or
cancellation of an order of exemption under section 17 of the Act, every employee who but
for the exemption would have become and continued as a member of the Fund, shall become
a member of the Fund forthwith.
(2) After this paragraph comes into force in a factory or other establishment, every employee
employed in or in connection with the work or that factory or establishment, other than an
excluded employee, who has not become a member already shall also be entitled and required
to become a member of the Fund from the date of joining the factory or establishment.
(3) An excluded employee employed in or in connection with the work of a factory or other
establishment, to which this Scheme applies shall, on ceasing to be such an employee, be
entitled and required to become a member of the Fund from the date he ceased to be such
employee.
(4) On re-election of an employee or a class of employees exempted under paragraph 27 or
paragraph 27-A to join the Fund or on the expiry or cancellation of an order under that
paragraph, every employee shall forthwith become a member thereof.
(5) Every employee who is a member of a private provident fund maintained in respect of an
exempted factory or other establishment and who but for exemption would have become and
continued as a member of the fund shall, on joining a factory or other establishment to which
this Scheme applies, become a member of the fund forthwith.
(6) Notwithstanding anything contained in this paragraph [an officer not below the rank of an
Assistant Provident Fund Commissioner] may, on the joint request in writing, of any
employee of a factory or other establishment to which this Scheme applies and his employer,
enroll such employee as a member or allow him to contribute more than rupees [fifteen
thousand rupees] of his pay per month if he is already a member of the Fund and thereupon
such employee shall be entitled to the benefits and shall be subject to the conditions of the
Fund, provided that the employer gives an undertaking in writing that he shall pay the
administrative charges payable and shall comply with all statutory provisions in respect of
such employee.
The above provisions of the Act and the Scheme framed there under are applicable to every
establishment covered under the Act by its own force and suo-moto and every establishment is
required to ensure compliance according to the provisions mention in the Act and the Scheme
framed there under. But the establishment M/s Awa Power Company Pvt. Ltd., House No. 04
Ward No. 01 Near Hotel T Bud Bandla, Palampur having EPF Code No.
HPSML0007398000 failed to ensure compliance of above provisions in respect of the employees
as stated by it in its representation and in respect of whom the EPF and Allied contribution
assessed by the then Assessing Officer vide his order dated 22.04.2022. The above provisions of
the Act and the Scheme framed there under is similarly applicable in respect of the EPF and
Allied contribution paid by the establishment in respect of the employees to whom EPF and
Allied contribution assessed by the then Assessing Officer and deposited by the establishment
from the date wherein it were actually payable by the establishment. The employees in respect of
those EPF and Allied contributions paid by the establishment are also eligible for payment of

Page 10 of 15
interest by EPFO from the date when the EPF contributions was actually payable by the
establishment.

In Para 2 of its representation dated 31.08.2023 submitted that -

It is to be submitted here that our establishment had only failed to deduct and deposit the EPF of
17 employees for the inquiry period amongst our total number of employees and the EPF of our
rest of the employees was being duly deducted/deposited with our organization. It was not a case
where in the EPF contribution was deducted from the employees and wrongly withheld by our
establishment for any wrongful gain.

In respect of contention made by the establishment in this Para it has already been explained that
the establishment is required to pay EPF and Allied contribution in respect of all the eligible
employee as per the above provisions within due date of payment. The establishment is itself
accepting that it has failed to remit EPF contribution in respect of 17 employees within due date
of payment when it was actually payable by it. As per as contention of the establishment that it
was a not a case where EPF contribution was deducted from the employees and wrongly
withheld by our establishment for any wrongful gain. Under EPF Act where EPF contribution
was deducted from the salary/wages of the employees and wrongly withheld by the establishment
for any wrongful gain, such establishment also commits another offence which is cognizable and
non bailable offence as provided in section 405 and 406 of Indian Penal Code 1860 for which the
employer committing such criminal breach of trust offe nce shall be punished with
imprisonment of either description for a term which may extend to three years, or with fine,
or with both. Thus the contention of the establishment is irrelevant here.

In Para 3 of its representation dated 31.08.2023 submitted that our establishment’s failure to
deduct/deposit the EPF of the 17 employees was not deliberate and willful but due to the bad
financial situation faced regularly since the year 2011 till date. Our establishment is continuously
facing losses since long, still we are making every effort to subsist in such conditions as our
Hydro Power Plant is running at only 30% of its full capacity due to lack of proper transmission
system. This is causing huge revenue Loss and we are facing acute financial crunch on account
of this.
The contention of the establishment is not true and contradictory with reference to its contention
in Para 2 and 3. In Para 2 of its representation the establishment stated that it has remitted EPF
and Allied contribution in respect of all other employees except these 17 employees and stated in
Para 3 that it has failed to pay EPF contribution in respect of these 17 employees due to financial
situation being faced by it since 2011 till date and it was not deliberate and willful. These
statements of the establishment are contradictory to each other. Further, the establishment also
paid monthly salary/wages to these employees regularly in the period and also accepted it has
remitted EPF contribution in respect of rest of employees. The establishment was required to
deduct the Employee Share of PF contribution from their due monthly salary/wages and remit the
same along with the Employer Share of contribution and other allied contribution/administrative
charge within due date. Thus it proves that the establishment was willfully avoiding its liability of
Employers contribution as well as other allied contribution and Administrative charges payable
by the establishment on account of salary/wages of these employees.
In Para 4 & 5 of its representation dated 31.08.2023 submitted the summary details of losses for
the year 2011 to 2021 suffered by our establishment along with the Balance Sheets for the said

Page 11 of 15
period is being annexed as Annexure A-2 (Colly) for your kind perusal. The perusal of these
balance sheets will make it evident that the establishment was not in a position to make ends meet
from the revenue earned from its operations/earnings and resultantly defaulted in
deduction/deposit of the EPF of its few employees.

In furtherance to the above submissions and the fact that at this stage our establishment has duly
paid all the statutory dues as determined vide the order dated 22.04.2022 passed under Section
7A inquiry for the period 02/2012 to 12/2018, the demand notice under reference for levying of
damages and interest under Section 14B and 7Q of the EPF Act, 1952 may be withdrawn in the
interest of justice and fair play for which our establishment shall be highly thankful and
obligated.

The establishment itself accepted that it has remitted EPF and Allied contribution in respect of
rest of its employees further it has also paid salary/wages to these employees also in the period
but as far as remitting EPF and Allied contribution in respect of these employees it has pretended
that is the establishment is suffering from financials losses. It has also accepted here that it has
also deposited the EPF and other allied contributions in respect of these employees after the order
passed by the then Assessing Officer dated 22.04.2022. It also proves that the establishment was
avoiding its liability in respect of these employees before taking statutory action against the
establishment.

In context of the representation made by the establishment it is appropriate to refer to the settled
legal position in this regard where various Hon’ble Courts pointed out their observation in this
regard-

The Hon’ble Punjab and Haryana High Court vide its judgment dated 30/06/1998 in M/s Elsons
Cotton Mills Ltd. v/s Regional Provident Fund Commissioner has held that “Financial difficulties
for whatever reasons such as labour trouble, strike, power shortage, raw material shortage etc.
cannot be accepted as legitimate grounds in allowing the employer to shift the time limit laid
down by the law for deposits of Provident Fund dues. The deposit of Provident Fund dues by the
stipulated time of 15th of the month following to which the dues relate as provided under Para 38
of the Employees’ Provident Fund Scheme, 1952 is an unqualified absolute statutory obligation
of the employer. This obligation cannot be allowed to be diluted by plea of financial constraints
and other extraneous factors. It is significant to note that even the employees’ share of
contributions which had been deducted from the wages of employees and was money in trust with
the employer had not been deposited in time. Obviously this part of contribution had been
misused in meeting other financial needs of the company. This aggravates the nature of default.

The plea of financial hardship has been rejected by the Hon’ble High Court of Gujarat in the case
of m/s Arvind Mills Ltd. v/s R.M. Gandhi, 1982 Lab, I.C. 344 (Gujarat DB). The following
extracts of the judgment deserve reproduction:-

“We will be setting at naught the will of the parliament if we were to say that a mere averment to
the effect that the payment could not be made on account of financial hardship is sufficient to
mitigate the damages. Even if it was established that the financial position of the company was
embarrassing, it would not justify taking such a view. In a way every company needs finance and
has even to borrow from financial institutions. Even the fact that the company is running in a loss

Page 12 of 15
for some years would not justify committing defaults in respect of payment due under the Act and
Scheme.”

In the important judgment delivered by Honorable Supreme Court in CA No. 9488 title
Arcot Textile Mills Ltd. Vs the RPFC & Ors., it has been upheld that “ it is seemly to note that
Section 14B has been enacted to penalize the defaulting employers as also to provide reparation
for the amount of loss suffered by the employees. It not only a warning to employers in general
not to commit a breach of the statuary requirements but at the same time it is meant to provide
compensation or redress to the beneficiaries, i.e., to recompense the employees for the loss
sustained by them.”

In the landmark judgment delivered by Honorable Supreme Court, titled M/s Organo
Chemical Industries & Union of India & Others on 23/07/1979 (55 FJR. 283), held that “Section
14B of the EPF and MP Act, 1952 (Power to recover damages) was enacted to deter employers
and to thwart them from making defaults in carrying out their statutory obligations to make
payment to the Provident Fund. The object and the purpose of the section is to authorize the
Assistant Provident Fund Commissioner to impose exemplary or punitive damages and thereby to
prevent employers from making defaults. Constitutionally speaking, such a penal levy included in
damages is perfectly within the area of implied powers and the legislature may, while enforcing
collections, legitimately and reasonably provide for recovery of additional sums in the shape of
penalty so as to see that avoidance is obviated. Such a penal Levy can take the form of damages
because the reparation for the injury suffered by the default is more than the narrow computation
of interest on the contribution.”

As per the landmark judgment delivered by Honourable Supreme Court in CA no. 2136/2012
titles as” Horticulture Experiment Station…vs The Regional Provident Fund”, it has been upheld that,
“that any default or delay in the payment of EPF contribution by the employer under the Act is a sine
qua non for imposition of levy of damages under Section 14B of the Act 1952 and mens rea or actus
reus is not an essential element for imposing penalty/damages for breach of civil
obligations/liabilities.”

As per the landmark judgment delivered by Honorable Division Bench of Gujarat High
Court in LPA No. 12/2010 in SCXA No. 3347/2009, it was held that “(1) in the absence of
specific provisions in the Act prohibiting or restraining the authorities from taking any further
action of recovery of the amount due and payable by the employer, it is always permissible for
the authorities to proceed ahead without waiting for the expiry of the statutory time period of
appeal as provided under section 7-1 of the Act. Any other interpretation in this regard would
render provisions and the object of the Act otiose (2). Mere filling of appeal without obtaining
any relief from the Appellate authority shall not preclude or prohibit the authorities to proceed
further in the matter for recovery of the amount.”

Damages-cannot be evaded even on sufficient reasons for belated payment

Even though there is sufficient reason for the employer to make belated payment, that is not a
ground for granting exemption from paying penalty or damages. [Ernakulam District Co-
operative Bamk Vs. R.P.F.C-2000 (1) LLJ 1662 (Ker. H.C.).]

Page 13 of 15
In view of the above discussion and settled legal position in this regard, the representation made
by the establishment dated 31.08.2023 for withdrawing demand notice under reference for
levying of damages and interest under Section 14B and 7Q of the EPF Act, 1952 is not found fit
and appropriate with reference to above statutory provisions of the Act and Scheme frame there
under and above settled legal positions and decisions made by the various Hon’ble Courts in
above cases those are relevant to the matter. Furthermore, as per the provisions of the Act and the
Schemes as reproduced here in above, nowhere the authorized officers have been empowered to
reduce or waive the damages to be levied against the establishment but to levy damages against
the establishment as per the rates given here in above. The establishment is also duty bound to
remit its statutory obligations within the time limit. This obligation cannot be allowed to be
diluted by plea of financial constraints and other extraneous factors. Accordingly the
representation made by the establishment cannot be considered.

The authority is bound to levy damages in consonance with Section 14B read with Para
32A of Employees’ Provident Fund Scheme, 1952, para 5(1) of Employees’ Pension Scheme,
1995 and para 8A (1) of Employees’ Deposit Linked Insurance Scheme, 1976 keeping in view of
legal position relating to the levy of damages, factum of delay and consequential loss to statutory
fund. With these observations I proceed to pass the following order:

Accordingly, on the basis of the records/document adduced before me, I, Vijay Kumar,
Assistant P. F. Commissioner decided to close the Proceedings and pass the following order: -

ORDER

I, Vijay Kumar, Assistant P. F. Commissioner, Employees’ Provident Fund Organization,

District Office, Palampur, Himachal Pradesh, therefore in exercise of the powers conferred on me
vide Notification No. S.O.1553 dated 17.04.2002 under section 14B of the Employees’ Provident
Funds and Miscellaneous Act, 1952 order that the establishment is liable for payment of damages
for the period reflected in summons [i.e., as detailed in Annexure-A]. After considering the
relevant facts of the case, I also order that in the interest of Justice and equity it will be
reasonable, just and fit to levy damages at the rates prescribed under para 32A of Employees’
Provident Fund Scheme, 1952, para 5(1) of Employees’ Pension Scheme, 1995 and para 8A (1)
of Employees’ Deposit Linked Insurance Scheme, 1976 for the period from 21/05/2021 to
07/06/2023 as detailed below:-
Damages Levied under Section 14B (Amount in Rupees)
Period
A/C No. 1 A/C No. 2 A/C No. 10 A/C No. 21 A/C No.22 Total
02/2012 to 14
1356246 71521 643861 41801 92159 2205588
08/2022 B

(Total: Rupees Twenty Two Lakh Five Thousand Five Hundred Eighty Eight Only)

I, further order that the damages of Rs. 2205588/- (Rupees Twenty Two Lakh Five
Thousand Five Hundred Eighty Eight Only) levied under section 14B of the Employees’
Provident Funds and Miscellaneous Act, 1952 should be paid by the aforesaid employer through
a Challan generated on the ECR portal by log in to the portal and using the Challan entry option
duly furnishing the details in the fields provided for Penal Damages, within 15 days of receipt of

Page 14 of 15
this order, failing which action under 8B to 8G of the Employees’ Provident Funds and
Miscellaneous Act, 1952 to recover the amount of damages will be initiated without any further
notice.

This order is issued without prejudice to levy of damages, if any, due in respect of any
previous/subsequent period/ escaped amount/ additional levy for same period as indicated supra.

Issued under my hand and seal on 19th October 2023.

(Vijay Kumar)
Assistant P.F. Commissioner
District Office, Palampur

To,

M/s Awa Power Company Pvt. Ltd.

House No. 04 Ward No. 01 Near Hotel T Bud
Bandla, Palampur (HP-176061)

Copy to:

Sh. Braham Dass, AEO for information and with the direction to recover the above mentioned
amount from the establishment.

Assistant P.F. Commissioner

District Office, Palampur

Page 15 of 15
 मेल /[email protected] कर्मचारी भविष्य निधि संगठन
टेलीफोन/Ph:-01894-234097 EMPLOYEES’ PROVIDENT FUND ORGANISATION
(श्रम एवं रोजगार मंत्रालय, भारत सरकार)
Ministry of Labour & Employment, Govt. of India
जिला कार्यालय, अनंत विहार, वार्ड न.- 2, पालमपुर,
जिला-काँगड़ा, (हि.प्र.)- 176061
District Office, Anant Vihar, Ward No.-2, Palampur,
District-Kangra, (H.P.)-176061

No. EPFO/DO/Palampur/HP/7398/Interest/ Dated: 19.10.2023

THE MATTER OF PROCEEDING UNDER SECTION 7Q OF THE EMPLOYEES’

PROVIDENT FUND AND MISCELLANEOUS PROVISIONS ACT, 1952 FOR LEVYING
INTEREST.(Case Diary No. 412/2023)
Before- Sh. Vijay Kumar, Assistant Provident Fund Commissioner, EPFO, District Office,
Palampur, District-Kangra (HP-176061).
Whereas, M/s Awa Power Company Pvt. Ltd., House No. 04 Ward No. 01 Near Hotel
T Bud Bandla, Palampur EPF Code No. HPSML0007398000 (herein after referred to as
“Establishment”) to which the Employees’ Provident Fund and Miscellaneous Provisions Act,
1952 (herein after referred to as the Act) apply was required to pay:-
a) The Employees’ Provident Fund Contribution under Section 6 of the Act,
b) The Employees’ Pension Fund Contribution under Section 6A of the Act,
c) The Employees’ Linked Insurance Fund Contributions under Section 6-C of the Act,
d) The Administrative Charges of Employees’ Provident fund under Para 38 of the
Employees Provident Fund Scheme, 1952.
e) The Administrative Charges on Employees’ Deposit Linked Insurance Scheme, Section
6-C (4) (a) of the Act, within 15 days of the close of the month to respective EPF
Accounts.
Whereas, the employer in relation to said Establishment failed to pay: -
i) The Provident Fund Contributions,
ii) The Employees’ Pension Fund Contributions,
iii) The Employees’ Deposit Linked Insurance Fund Contribution,
iv) The Administrative Charges on Employees’ Provident Fund,
v) The Administrative Charges on Employees’ Deposit Linked Insurance Fund within the
prescribed time limit and there by attracted the provisions of Section 7Q.

As the employer in relation to this establishment failed to pay the above said
contribution/administrative charges to the Fund in-time during the period from 21/05/2021 to
07/06/2023 when the payments were made for the Challan Wage month(s) 02/2012 to 08/2022.

Under section 7Q of the Act, the employer shall be liable to pay simple interest at the rate
of 12% per annum or at such higher rate as may be specified in the Scheme on any amount due
from him under the Act from the date on which the amount has become so due till the date of its
actual payment, the Commissioner under the powers conferred on him vide GSR DATED
30.06.1997 is required to levy simple interest at the rate of 12% per annum.

A summon was therefore issued to the employer in relation to this establishment vide
notice No. HP/SML/0007398/000/Enf 502/Damages/394 dated-11/07/2023 enclosing herewith a
statement showing the details of belated payments made during the above said period and amount
payable under section 7Q and 14B (Annexure A), calling upon him to show cause why interest on
belated remittances as required under section 7Q of Employees’ Provident Funds and

Page 1 of 13
Miscellaneous Provisions Act, 1952 should not be recovered from him. Further, explaining the
circumstances leading to the action for levy of interest, furnishing the details of the interest
proposed to be levied and proposing a hearing fixed on 10.08.2023 at 11:45AM either in person
or through an authorized representative duly authorized to do so.

The matter was heard on 10.08.2023, 30.08.2023, 18.09.2023, 09.10.2023 and finally on
12.10.2023. In the proceeding dated 10.08.2023, Sh. Nitin Nagpal, HR executive appeared
virtually on behalf of the establishment stated that the establishment has received the 14B & 7Q
summon issued vide No. HP/SML/0007398/000/ Enf 502/Damages/394 dated 11.07.2023 to the
establishment along with Annexure-A (Damages and Interest Calculation Sheets) and further
stated that the same has been sent to our head office. He requested to provide some time in the
matter. In the proceeding dated 18.09.2023, Sh. Nitin Nagpal, HR executive appeared virtually on
behalf of the establishment stated that the establishment is going to submit representation against
the summon issued to the establishment for levying damages and interest against the
establishment. Shri Ashwani Nagpal, SSA appeared on behalf of department that the
representation from the establishment has already been received through email from RO Shimla
on 31.08.2023. However, an opportunity is again provided to the establishment in the natural
justice to submit any submission in this regard. The matter was finally heard on 12.10.2023. Sh.
Nitin Nagpal, HR executive appeared virtually on behalf of the establishment stated that the
establishment has already submitted its representation against the summon issued to the
establishment vide No. HP/SML/0007398/000/Enf 502/ Damages/394 dated 11.07.2023 along
with calculation sheet for damages and interest. Sh. Nitin Nagpal further stated that financial
condition of the establishment is not well to bear the penalty. He further stated that the
establishment has already submitted balance sheets along with his representation. He again
requested to waive off the penalty imposed against the establishment. He again stated that the
establishment has nothing to say further in the matter and again requested to consider the
representation made by the establishment. The representation of the establishment has already
taken on record. The summon issued to the establishment along with damages and interest
calculation sheet has already been received by it and the establishment has not contended
anywhere in its representation about the calculation of the damages and interest levied to the
establishment. Hence, there is no reason to keep the inquiry pending and hereby closed.

In the written submission made by the establishment which has been received in EPFO,
District Office, Palampur via email on 31.08.2023 in which it is stated that M/s Awa Power
Company Pvt. Ltd. (with ID HPSML0007398000) had faced an inquiry under Section 7A of the
EPF & MP Act initiated on 18.07.2019 as we failed to deduct/deposit EPF in respect of some
employees during the period 02/2012 to 12/2018. The establishment itself during the inquiry
admitted/accepted the claim of 17 employees and showed our willingness to pay the dues of the
same. Resultantly, a sum of Rs. 22,09,649/- was determined as an outstanding statutory liability
for the inquiry period i.e. 02/2012 to 12/2018 against our establishment vide order dated
22.04.2022 in e-proceeding Diary No.414/2019 vide Ref. No. SML/COMP/7A/HP-
0007398000/82-84 passed by the Ld. RPFC-II, H.P. The copy of order dated 22.04.2022 is
attached herewith as Annexure A-1 for your kind perusal. The due liability as determined vide the
said inquiry stands duly paid by our establishment at this stage.

It is to be submitted here that our establishment had only failed to deduct and deposit the EPF of
17 employees for the inquiry period amongst our total number of employees and the EPF of our

Page 2 of 13
rest of the employees was being duly deducted/deposited with your organization. It was not a
case wherein the EPF contribution was deducted from the employees and wrongly withheld by
our establishment for any wrongful gain.

Further, it is to be submitted here that our establishments failure to deduct/deposit the EPF of the
17 employees was not deliberate and willful but due to the bad financial situation faced regularly
since the year 2011 till date. Our establishment is continuously facing losses since long, still we
are making every effort to subsist in such conditions as our Hydro Power Plant is running at only
30% of its full capacity due to lack of proper transmission system. This is causing huge revenue
Loss and we are facing acute financial crunch on account of this.

The summary details of losses for the year 2011 to 2021 suffered by our establishment along with
the Balance Sheets for the said period is being annexed as Annexure A-2 (Colly) for your kind
perusal. The perusal of these balance sheets will make it evident that the establishment was not in
a position to make ends meet from the revenue earned from its operations/earnings and
resultantly defaulted in deduction/deposit of the EPF of its few employees.

In furtherance to the above submissions and the fact that at this stage our establishment has duly
paid all the statutory dues as determined vide the order dated 22.04.2022 passed under Section 7A
inquiry for the period 02/2012 to 12/2018, the demand notice under reference for levying of
damages and interest under Section 14B and 7Q of the EPF Act, 1952 may be withdrawn in the
interest of justice and fair play for which our establishment shall be highly thankful and
obligated.

Hoping for a favorable decision and action in the said matter.

In view of the representation made by the establishment the provisions of levying Interest against
the establishment under section 7Q of Act is being analyzed as under. The provision of section
7Q is reproduced here as under:-

[7-Q. Interest payable by the employer- The employer shall be liable to pay simple interest at the
rate of twelve percent per annum or at such higher rate as may be specified in the Scheme on any
amount due from him under this Act from the date on which the amount has become so due till
the date of its actual payment:

Provided that higher rate of interest specified in the Scheme shall not exceed the lending rate of
interest charged by any scheduled bank.]

Accordingly, as per the above provisions, a summon was issued to the establishment vide No.
HP/SML/0007398/000/Enf 502/Damages/394 dated-11/07/2023 u/s 7Q of the Act along with
Calculation sheets of damages as per the details of belated payments made by the establishment
in the period 21/05/2021 to 07/06/2023 wherein the payments were made for the Challan Wage
month(s) 02/2012 to 08/2022. The establishment has not made any objection on the calculation
sheets of interest amount levied against the establishment which was provided to it along with the
summon issued to the establishment dated 11.07.2023. However, the establishment has submitted
its representation as described above.

In para 1 of its representation dated 31.08.2023 the establishment submitted that the
establishment had faced an inquiry under Section 7A of the EPF & MP Act initiated on

Page 3 of 13
18.07.2019 as we failed to deduct/deposit EPF in respect of some employees during the period
02/2012 to 12/2018. The establishment itself during the inquiry admitted/accepted the claim of 17
employees and showed our willingness to pay the dues of the same. Resultantly, a sum of Rs.
22,09,649/- was determined as an outstanding statutory liability for the inquiry period i.e.
02/2012 to 12/2018 against our establishment vide order dated 22.04.2022 in e-proceeding Diary
No.414/2019 vide Ref. No. SML/COMP/7A/HP-0007398000/82-84 passed by the Ld. RPFC-II,
H.P.

In this Para the establishment itself admitted that it had failed to deposit EPF contribution in
respect of its 17 employees during the period 02/2012 to 12/2018 and also accepted/ admitted
there payable dues during 7A inquiry and accordingly it was concluded and the establishments
has paid their EPF and Allied dues. As per provisions of Section 6, Section 6A, Section 6C read
with Paragraph 29 of the Employees’ Provident Fund Scheme, 1952, Paragraph 3 of Employees’
Pension Fund Scheme, 1995, Paragraph 7 of the Employees’ Deposit Linked Insurance Scheme
1976, Paragraph 38 of Employees Provident Fund Scheme, 1952 and Section 6-C (4) (a) of the
Act is required to remit Employees’ Provident Fund contribution, Employees’ Pension Fund
contribution, Employees’ Linked Insurance Fund contribution, Employees Provident Fund
Administrative charges, Employees’ Deposit Linked Insurance Administrative charges within 15
days of close of the month to respective EPF Accounts of EPFO in respect of all the employees as
defined in section 2f of the Act from their date of joining as provided in Paragraph 26 of EPF
Scheme 1952 suo-moto within the prescribed time. All such provisions are reproduced as under:-

Section 6 of the Act-

6. Contributions and matters which may be provided for in Schemes.— The contribution
which shall be paid by the employer to the Fund shall be [ten per cent.] of the basic wages,
[dearness allowance and retaining allowance (if any)] for the time being payable to each of
the employees [(whether employed by him directly or by or through a contractor)], and the
employees’ contribution shall be equal to the contribution payable by the employer in respect
of him and may, [if any employee so desires, be an amount exceeding [ten per cent.]of his
basic wages, dearness allowance and retaining allowance (if any), subject to the condition
that the employer shall not be under an obligation to pay any contribution over and above his
contribution payable under this section]:
[Provided that in its application to any establishment or class of establishments which the
Central Government, after making such inquiry as it deems fit, may, by notification in the
Official Gazette specify, this section shall be subject to the modification that for the words
[ten per cent.], at both the places where they occur, the words [twelve per cent.]shall be
substituted:]
Provided further that where the amount of any contribution payable under this Act involves a
fraction of a rupee, the Scheme may provide for the rounding off of such fraction to the
nearest rupee, half of a rupee or quarter of a rupee.
11[Explanation 1].—For the purposes of this [section], dearness allowance shall be deemed to
include also the cash value of any food concession allowed to the employee.
13[Explanation 2.—For the purposes of this [section], “retaining allowance” means an
allowance payable for the time being to an employee of any factory or other establishment
during any period in which the establishment is not working, for retaining his services.]

Page 4 of 13
Section 6A of the Act-

[6A. Employees’ Pension Scheme.—(1) The Central Government may, by notification in the
Official Gazette, frame a scheme to be called the Employees’ Pension Scheme for the
purpose of providing for—
(a) superannuation pension, retiring pension or permanent total disablement pension to the
employees of any establishment or class of establishments to which this Act applies; and
(b) widow or widower’s pension, children pension or orphan pension payable to the
beneficiaries of such employees.
(2) Notwithstanding anything contained in section 6, there shall be established, as soon as
may be after framing of the Pension Scheme, a Pension Fund into which there shall be paid,
from time to time, in respect of every employee who is a member of the Pension Scheme,—
(a) such sums from the employer’s contribution under section 6, not exceeding eight and one-
third per cent. of the basic wages, dearness allowance and retaining allowance, if any, of the
concerned employees, as may be specified in the Pension Scheme;
(b) such sums as are payable by the employers of exempted establishments under sub-section
(6) of section 17;
(c) the net assets of the Employees' Family Pension Fund as on the date of the establishment
of the Pension Fund;
(d) such sums as the Central Government may, after due appropriation by Parliament by law
in this behalf, specify.
(3) On the establishment of the Pension Fund, the Family Pension Scheme (hereinafter
referred to as the ceased scheme) shall cease to operate and all assets of the ceased scheme
shall vest in and shall stand transferred to, and all liabilities under the ceased scheme shall be
enforceable against, the Pension Fund and the beneficiaries under the ceased scheme shall be
entitled to draw the benefits, not less than the benefits they were entitled to under the ceased
scheme, from the Pension Fund.
(4) The Pension Fund shall vest in and be administered by the Central Board in such manner
as may be specified in the Pension Scheme.
(5) Subject to the provisions of this Act, the Pension Scheme may provide for all or any of the
matters specified in Schedule III.
(6) The Pension Scheme may provide that all or any of its provisions shall take effect either
prospectively or retrospectively on such date as may be specified in that behalf in that
Scheme.
(7) A Pension Scheme, framed under sub-section (1), shall be laid, as soon as may be after it
is made, before each House of Parliament, while it is in session, for a total period of thirty
days which may be comprised in one session or in two or more successive sessions, and if,
before the expiry of the session immediately following the session or the successive sessions
aforesaid, both Houses agree in making any modification in the scheme or both Houses agree
that the scheme should not be made, the scheme shall thereafter have effect only in such
modified form or be of no effect, as the may be; so, however, that any such modification or
annulment shall be without prejudice to the validity of anything previously done under that
Scheme.]

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Section 6C of the Act-

[6C. Employees’ Deposit linked Insurance Scheme.—(1) The Central Government may, by
notification in the Official Gazette, frame a scheme to be called the Employees’ Deposit-
linked Insurance Scheme for the purpose of providing life insurance benefits to the
employees of any establishment or class of establishments to which this Act applies.
(2) There shall be established, as soon as may be after the framing of the Insurance Scheme, a
Deposit-linked Insurance Fund into which shall be paid by the employer from time to time in
respect of every such employee in relation to whom he is the employer, such amount, not
being more than one per cent. of the aggregate of the basic wages, dearness allowance and
retaining allowance (if any) for the time being payable in relation to such employee as the
Central Government may, by notification in the Official Gazette, specify.
Explanation.—For the purposes of this sub-section, the expressions “dearness allowance” and
“relating allowance” have the same meanings as in section 6.
(4) (a) The employer shall pay into the Insurance Fund such further sums of money, not
exceeding one-fourth of the contribution which he is required to make under sub-section (2),
as the Central Government may, from time to time, determine to meet all the expenses in
connection with the administration of the Insurance Scheme other than the expenses towards
the cost of any benefits provided by or under that scheme.
(5) The Insurance Fund shall vest in the Central Board and be administered by it in such
manner as may be specified in the Insurance Scheme.
(6) The Insurance Scheme may provide for all or any of the matters specified in Schedule IV.
(7) The Insurance Scheme may provide that any of its provisions shall take effect either
prospectively or retrospectively on such date as may be specified in this behalf in that
Scheme.]
Paragraph 29 of the Employees Provident Fund Scheme, 1952-

29. Contributions
(1) The contributions payable by the employer under the Scheme shall be at the rate of [ten
per cent] of the [basic wages, dearness allowance (including the cash value of any food
concession) and retaining allowance (if any)] payable to each employee to whom the Scheme
applies:
Provided that the above rate of contribution shall be [twelve] per cent in respect of any
establishment or class of establishments which the Central Government may specify in the
Official Gazette from time to time under the first proviso to sub-section (1) of section 6 of the
Act.
(2) The contribution payable by the employee under the Scheme, shall be equal to the
contribution payable by the employer in respect of such employee:
Provided that in respect of any employee to whom the Scheme applies, the contribution
payable by him may, if he so desires, be an amount exceeding [ten per cent] or [twelve per
cent], as the case may be, of his basic wages, dearness allowance and retaining allowance (if
any) subject to the condition that the employer shall not be under an obligation to pay any
contribution over and above his contribution payable under the Act;
(3) The contributions shall be calculated on the basis of [basic wages, dearness allowance
(including the cash value of any food concession) and retaining allowance (if any)] actually
drawn during the whole month whether paid on daily, weekly, fortnightly or monthly basis.

Page 6 of 13
(4) Each contribution shall be calculated to [the nearest rupee, 50 paise or more to be counted
as the next higher rupee and fraction of a rupee less than 50 paise to be ignored.
Paragraph 3 of the Employees Pension Scheme, 1995-

3. Employees' Pension Fund. - (1) From and out of the contributions payable by the
employer in each month under Section 6 of the Act or under the rules of the Provident Fund
of the establishment which is exempted either under clauses (a) and (b) of sub-section (1) of
Section 17 of the Act or whose employees are exempted under either paragraph 27 or
paragraph 27-A of the Employees' Provident Fund Scheme, 1952, a part of contribution
representing 8.33 per cent. of the Employee's pay shall be remitted by the employer to the
Employees' Pension Fund within 15 days of the close of every month by a separate bank draft
or cheque on account of the Employees' Pension Fund contribution in such manner as may be
specified in this behalf by the Commissioner. The cost of the remittance, if any, shall be
borne by the employer.
(2) The Central Government shall also contribute at the rate of 1.16 per cent. of the pay of the
members of the Employees' Pension Scheme and credit the contribution to the Employees'
Pension Fund :
Provided that where the pay of the member exceeds fifteen thousand rupees per month the
contribution payable by the employer and the Central Government be limited to the amount
payable on his pay of fifteen thousand rupees only.
(3) Each contribution payable under sub-paragraphs (1) and (2) shall be calculated to the
nearest rupee, fifty paise or more to be counted as the next higher rupee and fraction of a
rupee less than fifty paise to be ignored.
(4) The net assets of the Family Pension Scheme, 1971 shall vest in and stand transferred to
the Employees' Pension Fund.
Paragraph 7 of the Employees Deposit linked Insurance Scheme, 1976-

7 Contribution—(1) The contribution payable by the employer and the Central Government
under sub-section (2) and sub-section (3) of Section 6 –C of the Act, shall be calculated on
the basis of the basis wages, dearness allowance (including the cash value of any food
concession) and retaining allowance, if any, actually drawn during the whole month whether
paid on daily, weekly, fortnightly or monthly basis:
3[Provided that where the monthly pay of an employee exceeds 4[fifteen thousand rupees],
the contribution payable in respect of him by the employer and the Central Government shall
be limited to the amounts payable on a monthly pay of 5[fifteen thousand rupees] including
dearness allowance retaining allowance (if any ) and cash value of food concession.]
(2) Each contribution shall be calculated to the 6[nearest rupee, 50 paise or more to be
counted as the next higher rupee and fraction of a rupee less than 50 paise to be ignored].
Paragraph 38 of the Employees Provident Fund Scheme, 1952-

38. Mode of payment of contributions

(1) The employer shall, before paying the member his wages in respect of any period or part
of period for which contributions are payable, deduct the employee's contribution from his
wages which together with his own contribution as well as an administrative charge of such
percentage [of the pay (basic wages, dearness allowance, retaining allowance, if any, and
cash value of food concessions admissible thereon) for the time being payable to the
employees other than excluded employee and in respect of which provident fund contribution
payable, as the Central Government may fix. He shall within fifteen days of the close of every
month pay the same to the fund [electronic through internet banking of the State Bank of

Page 7 of 13
India or any other Nationalized Bank] [or through Pay Gov platform or through scheduled
banks in India including private sector banks authorized for collection on account of
contributions and administrative charge:
Provided that the Central Provident Fund Commissioner may for reasons to be recorded in
writing, allow any employer or class of employer to deposit the contributions by any other
mode other than internet banking.
(2) The employer shall forward to the Commissioner, within twenty-five days of the close of
the month, a monthly abstract in such form as the Commissioner may specify showing the
aggregate amount of recoveries made from the wages of all the members and the aggregate
amount contributed by the employer in respect of all such members for the month:
Provided that an employer shall send a Nil return, if no such recoveries have been made from
the employees:
Provided further that in the case of any such employee who has become a member of the
pension fund under the Employees' Pension Scheme, 1995, the aforesaid form shall also
contain such particulars as are necessary to comply with the requirements of that Scheme.
(3) The employer shall send to the Commissioner within one month of the close of the period
of currency, a consolidated annual Contribution Statement in Form 6- A, showing the total
amount of recoveries made during the period of currency from the wages of each member and
the total amount contributed by the employer in respect of each such member for the said
period. The employer shall maintain on his record duplicate copies of the aforesaid monthly
abstract and consolidated annual contribution statement for production at the time of
inspection by the Inspector.
[Provided that the employer shall send to the Commissioner returns or details as required
under sub-paragraph (2) and (3) above, in electronic format also, in such form and manner as
may be specified by the Commissioner].
Section 2f of the Act:
2(f) “employee” means any person who is employed for wages in any kind of work, manual
or otherwise, in or in connection with the work of 6[an establishment], and who gets his
wages directly or indirectly from the employer, 7[and includes any person—
(i) employed by or through a contractor in or in connection with the work of the
establishment;
(ii) engaged as an apprentice, not being an apprentice engaged under the Apprentices
Act,1961 (52 of 1961), or under the standing orders of the establishment;]
Paragraph 26 of the Employees Provident Fund Scheme, 1952-

26. Classes of employees entitled and required to join the fund

(1) (a) Every employee employed in or in connection with the work of a factory or other
establishment to which this scheme applies, other than an excluded employee, shall be
entitled and required to become a member of the Fund from the day this paragraph comes into
force in such factory or other establishment.
(b) Every employee employed in or in connection with the work of a factory or other
establishment to which this Scheme applies, other than an excluded employee, shall also be
entitled and required to become a member of the fund from the day this paragraph comes into
force in such factory or other establishment if on the date of such coming into force, such
employee is a subscriber to a provident fund maintained in respect of the factory or other
establishment or in respect of any other factory or establishment (to which the Act applies)
under the same employer:

Page 8 of 13
 Provided that where the Scheme applies to a factory or other establishment on the expiry or
cancellation of an order of exemption under section 17 of the Act, every employee who but
for the exemption would have become and continued as a member of the Fund, shall become
a member of the Fund forthwith.
(2) After this paragraph comes into force in a factory or other establishment, every employee
employed in or in connection with the work or that factory or establishment, other than an
excluded employee, who has not become a member already shall also be entitled and required
to become a member of the Fund from the date of joining the factory or establishment.
(3) An excluded employee employed in or in connection with the work of a factory or other
establishment, to which this Scheme applies shall, on ceasing to be such an employee, be
entitled and required to become a member of the Fund from the date he ceased to be such
employee.
(4) On re-election of an employee or a class of employees exempted under paragraph 27 or
paragraph 27-A to join the Fund or on the expiry or cancellation of an order under that
paragraph, every employee shall forthwith become a member thereof.
(5) Every employee who is a member of a private provident fund maintained in respect of an
exempted factory or other establishment and who but for exemption would have become and
continued as a member of the fund shall, on joining a factory or other establishment to which
this Scheme applies, become a member of the fund forthwith.
(6) Notwithstanding anything contained in this paragraph [an officer not below the rank of an
Assistant Provident Fund Commissioner] may, on the joint request in writing, of any
employee of a factory or other establishment to which this Scheme applies and his employer,
enroll such employee as a member or allow him to contribute more than rupees [fifteen
thousand rupees] of his pay per month if he is already a member of the Fund and thereupon
such employee shall be entitled to the benefits and shall be subject to the conditions of the
Fund, provided that the employer gives an undertaking in writing that he shall pay the
administrative charges payable and shall comply with all statutory provisions in respect of
such employee.
The above provisions of the Act and the Scheme framed there under are applicable to every
establishment covered under the Act by its own force and suo-moto and every establishment is
required to ensure compliance according to the provisions mention in the Act and the Scheme
framed there under. But the establishment M/s Awa Power Company Pvt. Ltd., House No. 04
Ward No. 01 Near Hotel T Bud Bandla, Palampur having EPF Code No.
HPSML0007398000 failed to ensure compliance of above provisions in respect of the employees
as stated by it in its representation and in respect of whom the EPF and Allied contribution
assessed by the then Assessing Officer vide his order dated 22.04.2022. The above provisions of
the Act and the Scheme framed there under is similarly applicable in respect of the EPF and
Allied contribution paid by the establishment in respect of the employees to whom EPF and
Allied contribution assessed by the then Assessing Officer and deposited by the establishment
from the date wherein it were actually payable by the establishment. The employees in respect of
those EPF and Allied contributions paid by the establishment are also eligible for payment of
interest by EPFO from the date when the EPF contributions was actually payable by the
establishment.
In Para 2 of its representation dated 31.08.2023 submitted that -
It is to be submitted here that our establishment had only failed to deduct and deposit the EPF of
17 employees for the inquiry period amongst our total number of employees and the EPF of our
rest of the employees was being duly deducted/deposited with our organization. It was not a case
where in the EPF contribution was deducted from the employees and wrongly withheld by our
establishment for any wrongful gain.

Page 9 of 13
In respect of contention made by the establishment in this Para it has already been explained that
the establishment is required to pay EPF and Allied contribution in respect of all the eligible
employee as per the above provisions within due date of payment. The establishment is itself
accepting that it has failed to remit EPF contribution in respect of 17 employees within due date
of payment when it was actually payable by it. As per as contention of the establishment that it
was a not a case where EPF contribution was deducted from the employees and wrongly
withheld by our establishment for any wrongful gain. Under EPF Act where EPF contribution
was deducted from the salary/wages of the employees and wrongly withheld by the establishment
for any wrongful gain, such establishment also commits another offence which is cognizable and
non bailable offence as provided in section 405 and 406 of Indian Penal Code 1860 for which the
employer committing such criminal breach of trust offe nce shall be punished with
imprisonment of either description for a term which may extend to three years, or with fine,
or with both. Thus the contention of the establishment is irrelevant here.

In Para 3 of its representation dated 31.08.2023 submitted that our establishment’s failure to
deduct/deposit the EPF of the 17 employees was not deliberate and willful but due to the bad
financial situation faced regularly since the year 2011 till date. Our establishment is continuously
facing losses since long, still we are making every effort to subsist in such conditions as our
Hydro Power Plant is running at only 30% of its full capacity due to lack of proper transmission
system. This is causing huge revenue Loss and we are facing acute financial crunch on account
of this.
The contention of the establishment is not true and contradictory with reference to its contention
in Para 2 and 3. In Para 2 of its representation the establishment stated that it has remitted EPF
and Allied contribution in respect of all other employees except these 17 employees and stated in
Para 3 that it has failed to pay EPF contribution in respect of these 17 employees due to financial
situation being faced by it since 2011 till date and it was not deliberate and willful. These
statements of the establishment are contradictory to each other. Further, the establishment also
paid monthly salary/wages to these employees regularly in the period and also accepted it has
remitted EPF contribution in respect of rest of employees. The establishment was required to
deduct the Employee Share of PF contribution from their due monthly salary/wages and remit the
same along with the Employer Share of contribution and other allied contribution/administrative
charge within due date. Thus it proves that the establishment was willfully avoiding its liability of
Employers contribution as well as other allied contribution and Administrative charges payable
by the establishment on account of salary/wages of these employees.
In Para 4 & 5 of its representation dated 31.08.2023 submitted the summary details of losses for
the year 2011 to 2021 suffered by our establishment along with the Balance Sheets for the said
period is being annexed as Annexure A-2 (Colly) for your kind perusal. The perusal of these
balance sheets will make it evident that the establishment was not in a position to make ends meet
from the revenue earned from its operations/earnings and resultantly defaulted in
deduction/deposit of the EPF of its few employees.

In furtherance to the above submissions and the fact that at this stage our establishment has duly
paid all the statutory dues as determined vide the order dated 22.04.2022 passed under Section
7A inquiry for the period 02/2012 to 12/2018, the demand notice under reference for levying of
damages and interest under Section 14B and 7Q of the EPF Act, 1952 may be withdrawn in the
interest of justice and fair play for which our establishment shall be highly thankful and
obligated.

Page 10 of 13
The establishment itself accepted that it has remitted EPF and Allied contribution in respect of
rest of its employees further it has also paid salary/wages to these employees also in the period
but as far as remitting EPF and Allied contribution in respect of these employees it has pretended
that is the establishment is suffering from financials losses. It has also accepted here that it has
also deposited the EPF and other allied contributions in respect of these employees after the order
passed by the then Assessing Officer dated 22.04.2022. It also proves that the establishment was
avoiding its liability in respect of these employees before taking statutory action against the
establishment.

In context of the representation made by the establishment it is appropriate to refer to the settled
legal position in this regard where various Hon’ble Courts pointed out their observation in this
regard-

In this context the judgment of Honorable Supreme Court dated 23.05.2006 in Civil
Appeal No. 9523-9524/2003 in the matter of the Chairman, SEBI Vs. Shriram Mutual Fund and
another is brought in wherein it is the Honorable Supreme Court has clearly observed that “In our
opinion mens rea is not an essential ingredient for contravention of the provisons of the Civil Act.
In our view, the penalty is attracted as soon as contravention of the statutory obligations as
contemplated by the Act is established and, therefore, the intention of the parties committing such
violation becomes immaterial. In other word the breach of Civil obligation which attracts penalty
under the provisions of an Act would immediately attract the levy of penalty irrespective of the
fact weather the contravention was made by the defaulter with any guilty intention or not.”

The Hon’ble Punjab and Haryana High Court vide its judgment dated 30/06/1998 in M/s
Elsons Cotton Mills Ltd. v/s Regional Provident Fund Commissioner has held that “Financial
difficulties for whatever reasons such as labour trouble, strike, power shortage, raw material
shortage etc. cannot be accepted as legitimate grounds in allowing the employer to shift the time
limit laid down by the law for deposits of Provident Fund dues. The deposit of Provident Fund
dues by the stipulated time of 15 th of the month following to which the dues relate as provided
under Para 38 of the Employees’ Provident Fund Scheme, 1952 is an unqualified absolute
statutory obligation of the employer. This obligation cannot be allowed to be diluted by plea of
financial constraints and other extraneous factors. It is significant to note that even the
employees’ share of contributions which had been deducted from the wages of employees and
was money in trust with the employer had not been deposited in time. Obviously this part of
contribution had been misused in meeting other financial needs of the company. This aggravates
the nature of default.

The plea of financial hardship has been rejected by the Hon’ble High Court of Gujarat in
the case of m/s Arvind Mills Ltd. v/s R.M. Gandhi, 1982 Lab, I.C. 344 (Gujarat DB). The
following extracts of the judgment deserve reproduction:-

“We will be setting at naught the will of the parliament if we were to say that a mere
averment to the effect that the payment could not be made on account of financial hardship is
sufficient to mitigate the damages. Even if it was established that the financial position of the
company was embarrassing, it would not justify taking such a view. In a way every company
needs finance and has even to borrow from financial institutions. Even the fact that the company
is running in a loss for some years would not justify committing defaults in respect of payment
due under the Act and Scheme.”

Page 11 of 13
 Here it will be relevant to discuss a important judgment passed by the Hon’ble Supreme
Court of India in Civil Appeal No. 9488/2013, titled M/s Arcot Textile Mills Ltd., v/s Regional
Provident Fund Commissioner & others, it has been upheld that “it is quite vivid that though an
appeal lies against recovery of damages under Section 14B of the Act, no appeal is provided for
against imposition of interest as stipulated under Section 7Q” and “When the authority chooses
to pass an independent order under Section 7Q the same is not appealable.”

In view of the above discussion and settled legal position in this regard, the representation made
by the establishment dated 31.08.2023 for withdrawing demand notice under reference for
levying of interest under Section 7Q of the EPF Act, 1952 is not found fit and appropriate with
reference to above statutory provisions of the Act and Scheme frame there under and above
settled legal positions and decisions made by the various Hon’ble Courts in above cases those are
relevant to the matter. Furthermore, as per the provisions of the Act as reproduced here in above,
nowhere the authorized officers have been empowered to reduce or waive the interest to be levied
against the establishment but to levy interest against the establishment as per the rates given here
in above. The establishment is also duty bound to remit its statutory obligations within the time
limit. This obligation cannot be allowed to be diluted by plea of financial constraints and other
extraneous factors. Accordingly the representation made by the establishment cannot be
considered.

The authority is bound to levy interest in consonance with Section 7Q keeping in view of legal
position relating to the levy of Interest, factum of delay and consequential loss to statutory fund.
With these observations I proceed to pass the following order:-

ORDER

Interest Levied under Section 7Q (Amount in Rs)

Period A/C No. 1 A/C No. 2 A/C No. 10 A/C No. 21 A/C No.22 Total

02/2012 to
7Q 1068975 59265 504090 32902 71488 1736720
08/2022
I, Vijay Kumar, Assistant P. F. Commissioner, Employees’ Provident Fund Organization,
District Office, Palampur, Himachal Pradesh, therefore in exercise of the powers conferred on me
under section 7Q of the Act having applied my mind to the facts and circumstances of the case
and in view the reasons stated herein before consider it fit and expedient to levy and do hereby
levy interest against the establishment under section 7Q as per details below:-

(Total: Rupees Seventeen Lakh Thirty Six Thousand Seven Hundred Twenty Only)

I, further order that the Interest of Rs. 1736720/- (Rupees Seventeen Lakh Thirty Six
Thousand Seven Hundred Twenty Only) levied under section 7Q of the Employees’ Provident
Funds and Miscellaneous Act, 1952 should be paid by the aforesaid employer through a Challan
generated on the ECR portal by log in to the portal and using the Challan entry option duly
furnishing the details in the fields provided for Penal Damages, within 15 days of receipt of this
order, failing which action under 8B to 8G of the Employees’ Provident Funds and Miscellaneous
Act, 1952 to recover the amount of interest will be initiated without any further notice.

Page 12 of 13
 This order is issued without prejudice to levy of interest, if any, due in respect of any
previous/subsequent period/ escaped amount/ additional levy for same period as indicated supra.

Issued under my hand and seal on 19th October 2023.

(Vijay Kumar)
Assistant P.F. Commissioner
District Office, Palampur

To,

M/s Awa Power Company Pvt. Ltd.

House No. 04 Ward No. 01 Near Hotel T Bud
Bandla, Palampur (HP-176061)

Copy to:

Sh. Braham Dass, AEO for information and with the direction to recover the above mentioned
amount from the establishment.

Assistant P.F. Commissioner

District Office, Palampur

Page 13 of 13