Enforcement Officer Vs Prathigna.Com HR Solutions Pvt. Ltd. (Special Court for Economic Offences, Bengaluru)
₹9,202 PF Default Paid-But Not Wiped Away: Directors Convicted u/s 14(1B) r.w.s. 14A, Yet Escape Imprisonment
Summary:
In Enforcement Officer, EPFO v. M/s Prathigna.Com HR Solutions Pvt. Ltd. & Others, the Special Court for Economic Offences, Bengaluru, considered prosecution for failure to remit the employer’s contribution towards the Employees’ Deposit Linked Insurance Fund within the prescribed period.
Accused No.1 was a company covered by the Employees’ Provident Funds & Miscellaneous Provisions Act, 1952, Employees’ Provident Fund Scheme, Employees’ Pension Scheme & Employees’ Deposit Linked Insurance Scheme, 1976. Accused No.2 was its Managing Director, while accused Nos.3 to 5 were Directors. Proceedings against accused No.6 were split into a separate case because she could not be secured.
The company defaulted in remitting insurance-fund contributions for May, June & July 2019 amounting to ₹2,911, ₹3,074 & ₹3,217 respectively. The total default was ₹9,202. Contributions were required to be paid within 15 days from the close of each month.
After an inquiry, the competent authority passed an assessment order dated 27.11.2024 u/s 7A. A show-cause notice dated 05.03.2025 followed. Since the default continued, the Enforcement Officer instituted prosecution u/s 14(1B) r.w.s. 14A.
