EPFO opens fraud investigation against some employees in probable Rs1000 crore fraud

23 Aug 2022 , 11:13 AM

The Employees’ Provident Fund Organization (EPFO) has launched a probe into possible fraud by its employees at a suburban Mumbai office that may have caused losses of up to Rs 1,000 crore for the retirement fund organization.

The alleged fraud entailed opening fictitious accounts, moving money, or settling disputes with insolvent companies like the erstwhile Jet Airways, which afterwards appealed to the National Company Law Tribunal (NCLT) for an ownership change.

According to Prabhakar Banasure, a member of the central board of trustees for EPFO, “the firm expects EPFO losses related to this specific fraud to accumulate up to Rs 1,000 crore, originating across rule infractions and tax evasions.”

However, an internal investigation is being carried out to ascertain the specific amount of damage while the vigilance department evaluates the records. A final report will be provided to the EPFO central body soon.

The scheme is said to have been carried out in Mumbai’s Kandivali office with the help of former Jet Airways pilots and employees, including a number of foreign nationals.

Machindra Bamne, a senior social security assistant at the Kandivali PF office, is reported to have resolved apparently illegitimate claims submitted by then-Jet employees before Jet was committed to the NCLT for debt resolution.