The Delhi High Court on Tuesday dismissed a plea filed by Dewan Chand Builders challenging the attachment of its properties in Delhi by the Provident Fund department.
In its ruling, Delhi High Court judge Justice J R Midha also asked the petitioner to pay 20 per cent of the pending dues of over Rs 2.05 crore.
“After failing to pay the dues of Rs 2.05 crore to the PF department, the recovery department attached the construction company’s office premises and two vehicles on May 16. The builder moved the High Court in an effort to challenge the recovery process. But the court declined their plea and asked to pay 20 per cent of the dues,” EPFO Standing Counsel Satpal Singh said.
“Further, the Court ordered to first pay 20 per cent of pending amount then file a prayer plea for freeing up the sealed properties,” Mr Singh added.
On May 16, Delhi-based construction company faced the wrath of recovery department of Delhi (Central) provident fund for failure to pay dues to its employees. The provident fund department attached the office of Dewan Chand Builders Pvt Ltd in South Delhi’s Greater Kailash locality along with a Mercedes Benz car and a Maruti Suzuki car. It also took a cheque of Rs 2.05 crore from the construction company towards the pending dues.
Regional Provident Fund Commissioner (RPFC) 2 (Central Delhi) Kumar Punit said that the department is making all effort to recover the pending dues from all establishments.
Under Section 7A of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, that determines the monies due from employers, the company had to pay Rs 2,05,38,982 to the provident fund department. After failing to pay the dues on time, the recovery wing moved to recover the money on April 1.
Besides Mr Punit, Enforcement Office (Legal) Akshay Mittal and Advocate Avik Mishra were also present in the court to put the department’s points. Senior Counsel P P Khurana represented the Dewan Chand Builders in the court.