Aahar Vihar: A contractor that 'ran away' with EPF money

Dated: May 2013.

  • RTI responses reveal that the institute knew that M/S Vihar Aahar had not been depositing employer’s contribution and sometimes even employee’s contributions for SEVEN years (during 2001-2008). Still IITK continued to renew the contract.

  • Institute allowed the contractor to deposit EPF contributions in Ahmedabad Office when the contractor had Kanpur EPF account number. IITK never questioned the contractor.

  • The contractor did not provide EPF account numbers to its employees but institute took no action. It kept renewing the contract.

  • M/S Vihar Aahar’s contract was finally terminated in 2010. However the workers have yet to see their EPF money. IITK for its part has taken no action on this front. In response to an RTI, CPIO IITK wrote that, “Legal Cell at IIT Kanpur has not conducted any enquiry in the matter since IIT Kanpur is not a competent Authority on the subject,”. The law clearly indicates that EPF management is institute’s responsibility. How can IITK claim that it is not a competent authority?

  • In the July 30, 2010 letter from EPF Ahmedabad Office a list of 41 employees with Gujarat EPF Account Numbers is provided as an Annexure. Out of these 41 workers, 4 were not even enrolled in EPF Scheme. These individuals supposedly worked for M/S Vihar Aahar at IITK. This list makes no sense. M/S Vihaar Aahar had contracts to run Visitors Hall along with several Hostel Messes. There were close to 200 workers who worked for M/S Vihar Aahar. Even if one looks at just the VH, currently there are 84 workers. Who are these 41 workers in Annexure-A and what happened to the EPF accounts of remaining workers is still a mystery?

According to the law (Employees’ Provident Fund Scheme, 1952, Chapter V, section 30), “The employer shall, in the first instance, pay both the contribution payable by himself (in this Scheme referred to as the employer’s contribution) and also, on behalf of the member employed by him directly or through a contractor, the contribution payable by such member (in this Scheme referred to as the employee’s contribution).” Therefore, the onus of action in M/S Vihar Aahar case is on IITK and it needs to act without further delay.

In particular IITK needs to:

  • Determine who worked for M/S Vihar Aahar while it was IITK’s contractor

  • What are their EPF account numbers

  • Bring all these accounts to Kanpur Office from Ahmadabad office

  • Bring each EPF account balance to its correct level including penalty

  • Issue EPF Balance statement to each worker