New Delhi: An amount of 24.10 crore of
Employees Provident Fund has been under default in two
state-owned firms, the Government said on Monday.
However, it said the money is not being treated as
loss since the investments made are backed by State Government
guarantees.
"The funds invested are not being treated as
non-performing assets as they are backed by State Government
guarantees," Minister of State for Labour Harish Rawat said in
Lok Sabha.
Employees Provident Fund Organisation had invested Rs
24.10 crore in bonds in Pradeshia Industrial and Investment
Corporation of UP Limited and Uttar Pradesh State Finance
Corporation.
The minister said the two firms defaulted as both the
corporations are suffering losses and "hence they are not able
to pay back."
Last Saturday, the Central Board of Trustees, EPFO`s
apex decision making body. had deferred a decision on
investing 3-5 per cent of its Rs 2.57 lakh crore corpus in
stock indices.
EPFO, however, parks funds in Government-backed
stocks.
The Board also postponed till next meeting a decision
on increasing the minimum wage limit to Rs 15,000 per month
for mandatory deduction in provident fund by employers. At
present, the cap is set at Rs 6,500 a month.
PTI
