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A diamond baron, who stunned the corporate world by gifting hundreds of cars, flats and jewellery to his employees as Diwali bonus, is in news again. But this time, for the wrong reasons.
Savji Dholakia, chairman of Rs 6,000 crore Hare Krishna Exports, is facing legal action as Employee Provident Fund Organisation's (EPFO) Surat regional branch has issued notice to his firm for provident fund evasion of employees to the tune of Rs 16.66 crore.
Legal actions against the company could include seizure of its bank accounts for evading the payment of provident fund. The EPFO slapped a final demand notice to the company on Friday.
The notice stated that the company employs around 3,165 people including diamond workers, but it has registered only 17 of their employees under EPF, thereby violating the PF and Factory Act rules. The company has not paid EPF to employees for last many years.
In an order, issued last week after a two-year investigation, the EPFO authorities want the company to deposit Rs 16.66 crore within 15 days along with interest of 12% per annum as penalty and annual damages at the rate of 25%.
Dholakia hit headlines when he gifted 491 cars and 207 flats to his employees as Diwali bonus in 2014.
Savji Dholakia, chairman of Rs 6,000 crore Hare Krishna Exports, is facing legal action as Employee Provident Fund Organisation's (EPFO) Surat regional branch has issued notice to his firm for provident fund evasion of employees to the tune of Rs 16.66 crore.
Legal actions against the company could include seizure of its bank accounts for evading the payment of provident fund. The EPFO slapped a final demand notice to the company on Friday.
The notice stated that the company employs around 3,165 people including diamond workers, but it has registered only 17 of their employees under EPF, thereby violating the PF and Factory Act rules. The company has not paid EPF to employees for last many years.
In an order, issued last week after a two-year investigation, the EPFO authorities want the company to deposit Rs 16.66 crore within 15 days along with interest of 12% per annum as penalty and annual damages at the rate of 25%.
Dholakia hit headlines when he gifted 491 cars and 207 flats to his employees as Diwali bonus in 2014.
