EPFO Fraud: Audit finds Rs 37-cr embezzlement, may go up to Rs 100 cr; 8 officials suspended, CBI launches probe – Tips that ACCOUNT HOLDERS should abide by

Many accounts which have been used to do the fraud are accounts that were open by small companies. In these accounts small contributions were made by the employees of these companies. People are now finding it difficult to withdraw money from their accounts

Many accounts have been lying dormant with the EPFO where no transaction has happened over a long period. These dormant accounts were used to embezzle the money by the accused officials. Source: PTI

A matter of misappropriation of money worth Rs 100 crore has come to light before the Employees’ Provident Fund Organisation (EPFO). The EPFO will be investigating all transactions since 2017. After an internal audit by the EPFO, it was found that embezzlement amounting to Rs 37 crore has taken place, which could even go up to Rs 100 cr.

The retirement fund organisation has already suspended 8 officials and a probe by the Central Bureau of Investigation has also begun.

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After this shocking news came to the fore, the EPFO suspended 8 officials in its Mumbai region branch. One of the main accused is absconding.

The case has been handed over to the premier investigating agency after EPFO found out the alleged embezzlement of money.

EPFO is one of the World's largest Social Security Organisations in terms of clientele and the volume of financial transactions undertaken. The EPFO is under the administrative control of Ministry of Labour and Employment, Government of India.

How did the embezzlement happen?

After the Coronavirus Pandemic hit the country, this social security organisation relaxed conditions on withdrawal of EPFO money for the common man in need. The relaxations were used to carry out the alleged embezzlement.

After people lost incomes and jobs, many applied for withdrawal of money from their provident fund accounts. As the EPFO was mindful of the problems being faced by the people, it facilitated processes for expeditious settlements.

It is said that the senior officials shared their passwords and IDs with other colleagues in order to expedite the settlement process. Many senior officials took advantage of this access and withdrew money from several accounts.

Use of dormant accounts

Many accounts have been lying dormant with the EPFO where no transaction has happened over a long period. These dormant accounts were used to embezzle the money by the accused officials.

Initially some money was put into these accounts and later money was withdrawn using fake documents.

Tips to Account Holders

Many accounts which have been used to do the fraud are accounts that were open by small companies. In these accounts small contributions were made by the employees of these companies. People are now finding it difficult to withdraw money from their accounts.

The accounts holder should look at their accounts from time-to-time. They will also get information related to their contributions and the interest rates.

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EPFO Personal Finanace