CBI registers case against EPFO officials, others in Mumbai

NetIndian News Network

New Delhi, July 23, 2010

The Central Bureau of Investigation CBI) today said it had registered a case against the former Regional Provident Fund Commissioner of Navi Mumbai, Mr E S Sanjeeva Rao for allegedly abusing his position for the benefit of a private firm and causing a loss of Rs 24.91 crore to the Government.

The official is currently posted at the Employees Provident Fund Organisation (EPFO) office in Thane, near Mumbai.

Along with Mr Rao, the CBI has filed a case against Mr D M Ambokar, an Enforcement Officer of the EPFO at Vashi (Navi Mumbai), and others.

A CBI press release said the officials abused their official position and entered into a criminal conspiracy with the directors and a consultant of a private firm based in Chembur, Mumbai, along with some unidentified officials of the Navi Mumbai Municipal Corproation, the City and Industrial Development Corporation (CIDCO) and EPFO. It said they cheated the EPFO by passing an order favouring the private company and causing it wrongful gain to the tune of Rs 24.91 crores and a corresponding wrongful loss to the EPFO.

According to the release, the Regional Provident Fund Commissioner passed an assessment order on March 20, 2009 determining dues of Rs 6,72,455 for the period October 2003 to January 2009 without examining the dues of employees engaged in the projects of the Navi Mumbai Municipal Corporation and CIDCO.

It said it was found that the Enforcement Officer, without verifying the facts, accepted the report submitted by the private firm, whereas the employees of the firm and their contribution towards the EPF deduction was not calculated as per procedure of EPF Act, which along with the damages @ 100% should have come to approximately Rs.43,52,67,618 for the period from 2004-05 to 2008-09.

The release said searches were conducted at the office and residential premises of both the public servants and office premises of the firm at Chembur. Incriminating documents recovered during searches are being scrutinized for further investigation, it added.