Sahara India’s Troubles Deepen: EPFO Issues Property Attachment Notice Over ₹1,180 Crore Dues
New Delhi (The Uttam Hindu): The Employees’ Provident Fund Organisation (EPFO) has initiated major action against the Sahara India Group, issuing a notice to attach its properties over ₹1,180 crore in unpaid provident fund (PF) and pension dues. According to the EPFO, Sahara failed to deposit the mandatory PF contributions for lakhs of its employees, forcing the organization to take strict measures.
The Lucknow regional office of the EPFO has directed Sahara India to pay the pending dues within 15 days. The outstanding amount mainly relates to the period between 2010 and 2012, concerning the company’s agents, whom the EPFO classifies as employees. The organization maintains that since these agents were part of the company’s operations, they were entitled to PF benefits. If Sahara fails to make the payment within the stipulated time, EPFO will initiate recovery under Sections 8B to 8G of the EPF Act. With interest and penalties, the total liability could rise to around ₹3,500 crore.
This issue is linked to an ongoing investigation that began in 2013. The Lucknow Bench of the Allahabad High Court had last year set a four-month deadline, following which EPFO issued the recovery order on February 15. Sahara had long argued that its agents were not employees but members, yet the court ruled otherwise, recognizing them as employees. Officials estimate that over 1 million Sahara employees still have pending PF claims.
The Sahara India Group is already entangled in several major financial controversies, including the SEBI bond scam, land deal disputes, and the refund of nearly ₹9,000 crore to investors. Recently, the Jharkhand CID filed a chargesheet against Subrata Roy’s sons in connection with a ₹400 crore land scam. With the latest EPFO notice, Sahara faces the threat of attachment of its real estate and financial assets. Experts warn that if recovery proceedings begin, it could severely impact the group’s cash flow and asset liquidity.