This irregularity has come to the fore in CAG’s latest audit report on the public sector undertakings for the year ended March 31, 2017.
A can of worms has been tumbling out of the Rajasthan Tourism Development Corporation Limited (RTDC), where a shocking irregularity has been unearthed – default of provident fund dues to the tune of Rs 12.35 crore during the period from July 2015 to August 2017.
This irregularity has come to the fore in CAG’s latest audit report on the public sector undertakings for the year ended March 31, 2017.
However, the cash-starved corporation has claimed that it could not make the payment owing to its critical financial position.
The report says that it was noticed that RTDC deducted employees contribution at the time of payment of wages or salary but did not deposit it regularly in the provident fund along with employer’s share since July 2015.
The amount of employee’s contribution was utilised for other operating activities. As a result, the provident fund dues accumulated to Rs 9.31 crore upto January 2017.
The company cited paucity of funds due to huge losses as the reason for not depositing the provident fund dues.
RTDC belatedly deposited Rs 4.36 crore towards provident fund dues pertaining to the period from July 2015 to March 2016. The report pointed out that as on September 2017, an amount of Rs 7.99 crore was still pending towards provident fund dues.
Its been said in the report that the corporation, owing to default on payment of PF dues, may have to shell out a penalty of Rs 4.05 crore upto August 2017 as per the clause of the EPF scheme. Along with this, it has to also pay interest. Notably, this is an addition to the ongoing woes of the RTDC, which had already shut down many motels and hotels while deputing many of its employees to other departments citing financial crunch.
The CAG observed that the Centre has incorporated stringent provisions in the act and EPF scheme to safeguard thesocial security needs of employees which cannot be forfeited by any organisation citing shortage of funds.
MONEY MATTERS
- This irregularity has come to the fore in CAG’s latest audit report on the public sector undertakings for the year ended March 31, 2017
- RTDC hadalready shut down many motels and hotels while deputing many of its employees to other departments citing financial crunch.
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