05 July, 2007

Initiation of legal action for fraudulently depriving workers from P.F. benefits by dubiously splitting the establishment in 8 concerns, would be proper and legal.

Held. Imposition of Rupees one Lac cost besides directing Provident Fund Authorities to initiate legal action against the petitioner will be appropriate who, by adopting devious means and misrepresentations , have deprived the workers from the benefit of provident funds by splitting into eight establishments fraudulently and not disclosing their real ownership besides taking cover of legal proceedings to dissuade the Provident Fund Authorities to proceed with investigation about coverage of employees under the Employees’ Provident Funds & Miscellaneous Provisions Act.
An order by the court obtained fraudulently by the petitioner will be nullity and non est in eye of law.

Sewa International Fashions & Anr vs Employees’ Provident Fund Organization and Ors 2007 LLR 450 Delhi High Court

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