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Subhiksha MD asked to clear EPF dues

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  • The regional provident fund commissioner in Chennai has asked Subhiksha managing director R Subramanian to immediately pay up its due of Rs 1.76 crore. After an enquiry, the commissioner has said that no other director bears any responsibility for the provident fund default and has held Subramanian personally accountable. “Most of the day-to-day functions were attended by R Subramanian, managing director, even though ICICI Venture Ltd has substantial interest in the running of the establishment,” the commissioner noted. “The specific personal responsibility or involvement of the nominee directors and independent directors is found not established. Accordingly, the nominee directors and the independent directors other than R Subramanian are found not personally liable for the current period of default on the part of the establishment,” the commissioner stated. However, the financial responsibilities of the investors and bankers continue as per law, he added. The order quoted Subramanian as saying that as a measure of cost cutting, all the employees had agreed from June 2008 onwards to restrict their contributions to Rs 6,500, which is the salary ceiling for the purpose of EPF & MP Act, 1952.

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