Hiranandani says no case is made out, CBI opposes bail

A special court today deferred till August 18 the hearing on anticipatory bail petition filed by Niranjan Hiranandani, Director of the Hiranandani Group of companies.

Updated: Aug 13, 2010, 22:14 PM IST

Mumbai: A special court today deferred till
August 18 the hearing on anticipatory bail petition filed by
Niranjan Hiranandani, Director of the Hiranandani Group of
companies, who is fearing arrest in a case filed by CBI for
alleged default in payment of provident fund dues of his
employees to the tune of Rs 8.47 crore.

Special Judge S P Hayatnagarkar adjourned the hearing to
August 18 with the consent of both the sides.

CBI today filed a written reply in the court opposing
Hiranandani`s bail plea but the contents were not divulged.

Hiranandani argued that PF officers had miscalculated PF
deductions. He said basic component of salary attracts PF
payment. However, in this case, gross salaries of employees
was taken into account for calculation of default.

The case pertains to deductions of PF of 48 employees of
five firms of the Rs 2000-crore construction group during 2003
to 2006. The petitioner pleaded that employees were hired by a
contractor who was responsible for PF payment.

The law was amended to make employer also responsible if
the contractor failed to pay PF but this had been stayed by
the Bombay High Court during the period (2003 to 2006), he
said.

The petitioner said that initially the PF department had
claimed that the default was to the tune of Rs 168 crore but
later brought down the figure to Rs 9.36 crore.

Hiranandani pleaded that baseless allegations had been
made against him on the basis of erroneous figures and police
machinery was used by his rivals to get him arrested.

-PTI