The UT Consumer Disputes Redressal Forum has directed Peregrine Securities Private limited to pay Rs 1 lakh as compensation to each to its five employees for misappropriation of their Provident Funds (PF).

According to the complainants, they were employed with the Peregrine Security Private Limited as security guards since 2001-2002, with a monthly salary of Rs 2470, of which 12 per cent per month was deducted towards the Employee Provident Fund (EPF). The employers had assured that the deductions are being deposited with the concerned EPF authorities and that they could withdraw the same from their EPF account.

The complainants alleged that whenever they approached the employers with PF queries, their request was never considered .

The misappropriation came to light in March 2008 when one of the security guards, Ravinder Singh, asked for the details of his PF account number, total amount accumulated till date and year-wise statement of account received by the employers from the concerned EPF commissioner. Singh maintained that he approached the Regional Provident Fund Commissioner, Punjab and UT of Chandigarh, Sector 17, after his employers delayed his demand.

In response to information sought under the RTI Act, the Regional Provident Fund Commissioner offered a vague response, alleged the complainants.

In its reply, the Peregrine Security Private Limited, maintained, "The complainants were being paid as per the minimum wages prevailing during the time and as declared by the appropriate government/authority. There was no assurance from their side with regard to deposit of EPF, as deduction and deposition is a legal obligation on part of the employer and the employee. The Provident Fund Commission has its own rules, which parties are supposed to comply with." They maintained that the employees never approached them, except by way of legal notice, which was suitably replied to advising them to come to the PF Commission office at Karnal (Haryana) to get the desired details. Regional Provident Fund Commissioner, Karnal, Haryana, in their reply asserted that the complainants have been enrolled as members of the Provident Fund, with effect from December 1, 2006.

... contd.