Daijiworld Media Network - Udupi (SP)

Udupi, Nov 21: A private concern, which had been hired to provide staff to the health department, and had been asked to remit employees provident fund (EPF) and employees state insurance scheme (ESI) contributions to respective accounts, has allegedly failed to remit these amounts. The state health department had hired this concern. A police complaint stands filed in the town station here relating to the fraud it has committed in failing to remit amounts to individual provident fund and state insurance accounts of the employees as per the mandate given to it.

The size of the fraud has been calculated at Rs 9.63 lac. The health department had called for e-tenders for filling vacancies created in group D employees and drivers arising out of transfer and retirement of employees. The services of these employees were obtained from an external agency named SP Enterprises. The tender contract for this company had been granted with effect from December 26, 2012, and extended till March 31, 2014.

Relating to workers hired through this external agency, EPF and ESI installments amounting to Rs 3.88 lac for the year 2012-13 for 92 employees, and Rs 5.75 lac for the year 2013-14 towards 93 employees had been sanctioned and remitted to SP Enterprises. This company has been accused of defrauding the health department and individual employees by failing to remit these amounts which were deducted from their salaries, to their provident fund and insurance accounts as per rules.