The Supreme has held that in case of any default or delay in payment of Employees Provident Fund (EPF) contribution by employers, the authorities can impose penalty and damages without establishing if there was any criminal intent, reports Amit AnandChoudhary.
A bench of Justices Ajay Rastogi and Abhay S Oka dismissed a plea of a company which had challenged imposition of damages of Rs 85,548 in addition to Rs 74,288 which it had not contributed towards EPF. It held that once default in payment of contribution is admitted, the damages are consequential and the employer is under an obligation to pay the damages for delay in payment of contribution of EPF.