CIDCO recovers Rs 2.5 crore in PF dues from defaulting contractor

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Navi Mumbai: In a major relief for 320 contractual workers, CIDCO has recovered Rs 2.5 crore in unpaid provident fund (PF) dues from manpower contractor Vishal Experts Services Pvt. Ltd., which had defaulted on deposits for nearly two years.

The company, responsible for supplying third- and fourth-grade employees to CIDCO, had failed to transfer the statutory PF contributions to the Employees' Provident Fund Organisation (EPFO), prompting worker complaints.

Acting swiftly, CIDCO’s Personnel Department issued a notice and withheld the contractor’s payments for three months, compelling the company to clear seven months’ dues in March last year.

Following this, CIDCO adopted a one-month-at-a-time payment approach, which further pressured the contractor into depositing an additional 18 months of dues, bringing the total recovery to 25 months.

On 6th March, a fresh show-cause notice was issued, warning of contract cancellation and blacklisting if salaries were not paid by the 10th of each month, as per tender terms. The contractor has since complied, transferring salaries on time for the past two months.

Due to this order issued by the Personnel Department, the company concerned has been depositing the salaries of the contractual employees into the employees' accounts by the 10th of every month for the last two months, informed Pramada Bidve, Manager of the Personnel Department.

He said that the dues of the provident fund for the last 25 months have been paid from the concerned contractors, and the remaining dues for the remaining four months will be paid as soon as possible.

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