Live Law: Jaipur: Tuesday, May 16, 2017.
A PF scam
running into crores of rupees has come to light through an RTI appeal. The EPFO
got into alert mode with the RTI request and alerted investigating agencies,
besides initiating an internal inquiry. Central Information Commissioner Prof M
Sridhar Acharyulu directed the EPFO to give a report to the appellant about the
status of his claim and explanation to his complaint for de-freezing of account
within 21 days.
The
commission took a serious note of the scandal, the quantum, width and depth of
which is yet to be understood and observed that the respondent authority has a
duty to secure the hard-earned money of the workers in PF accounts and inform
them about their response to this PF misappropriation scandal by probing it and
giving a report of action taken within two months. This CIC order shows the
potential of RTI in exposing small or medium frauds that are widespread in lakhs
of public authorities all over the country.
The Public
Information Officer (PIO) of EPFO told the Central Information Commission, in a
second appeal by Mr Sandeep, that the PF contribution of employers were getting
credited in someone else’s account instead of their respective PF account and
consequently, the appellant alleged that his PF money was sent to some other
account and someone else’s PF money has been received in his account. This
indicates a huge scam that needs to be probed and the money of workers should
be protected their PF account.
The PIO
explained that they have suspicion on two establishments, which are into habit
of receiving the cheque of the member but the signature and amount on it will
be of someone else. The PIO expressed shock that such a fabrication of the
establishments giving different account numbers and other relevant details. The
appellant was an employee of one of two establishments.
The officer
claimed that the respondent authority is releasing the PF funds to the
employers concerned only in two situations i.e., (1) when the amount has been
withdrawn in an employer’s name himself, and (2) when there is no withdrawal is
recorded, but if the amount is received in an employer’s account through a
different name, then the respondent authority is withholding the release of PF
fund and tag it as suspicious account.
Mr Sandeep
filed RTI application seeking to know name of the EPFO official dealing with
his PF a/c, date of transfer of his money, name of person in whose account his
money has been transferred, his address and account number, action taken or
inquiry report, if any, as his saving account with the CBI had been frozen
without any notice to him. He was informed by the bank about some fraudulent
preliminary enquiry being carried out by the EPFO. He complained that EPFO Vigilance
department froze his account without giving him any notice. He also sought to
know the time required to unfreeze his account due to financial difficulty.
The CPIO
informed that the desired information/documents cannot be provided under
section 8(1)(h) of the RTI Act, 2005, as the matter is under investigation and
the revelation of the information would impede the process of investigation.
The PIO told
the CIC that a fraud of more than Rs 3 crore has come to light and presently
the matter is entrusted to the SHO, Ashok Vihar police station, under which the
investigation is in process. The PIO submitted that the information sought by the
appellant could not be given because his PF account number was frozen along
with 190 other accounts in pursuant of an investigation initiated suo motu by
the EPFO.
Mr Sandeep
explained his difficulties as his amount was locked up because of freezing his
account. The officer expressed inability to copy the documents as those were
handed over to police for investigation.
(Decision in Sandeep Tanwar v. PIO, EPFO, CIC/EPFOG/A/2017/111939, on12.5.2017)