Vodafone Idea Limited & Anr. Vs Regional Provident Fund Commissioner II (Calcutta High Court)
The matter involved two writ petitions concerning proceedings under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. In WPA 27424 of 2024, Vodafone Idea Limited challenged a notice dated 6 November 2024 issued by the Regional Provident Fund Commissioner seeking recovery of provident fund dues as the principal employer. In WPA 27799 of 2024, the contractor challenged the assessment order dated 6 April 2023 passed under Section 7A of the EPF Act.
Vodafone Idea had entered into a service agreement with the contractor in 2014 for rendering services, which continued until August 2018. By order dated 6 April 2023 passed under Section 7A of the EPF Act, the Regional Provident Fund Commissioner determined provident fund dues of Rs.1,81,34,381 payable by the contractor. The proceedings were conducted only against the contractor, and Vodafone Idea was admittedly neither issued notice nor heard.
The Section 7A order recorded that the contractor repeatedly delayed production of records and that there was suspected wage splitting through excessive conveyance allowance to reduce EPF liability. The authority also found that labour payments had been made through subcontractors, assessed liabilities on the basis of enforcement reports, financial records, salary sheets, work orders and agreements, and recorded that the contractor accepted the quantified dues during the hearing on 23 January 2023.
