CAG finds Rs 315 Cr PF gap; 39,000 Assam tea workers not registered with ATEPFO
The report says only 11,98,231 of 12,37,351 eligible workers are registered with ATEPFO
A file image of tea workers at work. (Photo:X)
Guwahati, Dec 3: A Comptroller and Auditor General (CAG) report on the functioning of the Assam Tea Employees’ Provident Fund Organisation (ATEPFO) between 2017-18 and 2021-22 has highlighted several critical lapses.
The report, recently tabled in the Assam Assembly, points to significant gaps in worker registration, massive provident fund (PF) defaults by tea estates, poor settlement of family pension claims and risky investments that may result in further financial losses.
According to the CAG, 1,197 tea estates are registered under ATEPFO, but only 624 have fully enrolled workers.
Of the 12,37,351 eligible workers who should be registered with the organisation, only 11,98,231 are actually enrolled, leaving 39,120 eligible workers uncovered and “deprived of the benefits” of ATEPFO schemes as of March 2022.
The report identifies a shortfall of Rs 315.45 crore in PF contributions from 334 tea estates as of March 2022. Alarmingly, in 83% of these estates, the delay or non-deposit of PF contributions stretched to five years or more.
This figure excludes estates operated by the state-owned Assam Tea Corporation Ltd (ATCL).
Nineteen ATCL-owned tea estates, covering 20,994 employees, have not deposited employee and employer PF contributions since 2005 due to severe financial distress, the CAG notes.
As of March 2022, the total default amount, including statutory interest, stood at Rs 419.07 crore, of which only Rs 32.43 crore (8%) had been deposited. The outstanding dues stood at Rs 386.64 crore.
ATEPFO later informed in October 2023 that ATCL had cleared the entire outstanding PF contribution as of September 2023, though the 15% statutory interest on delayed deposits was still pending.
While ATEPFO settled 87–96% of PF claims and 99% of pension claims between 2017 and 2022, the clearance rate for family pension claims was abysmally low, between 10% and 39% during the same period.
The CAG found that 1,994 settled claims, amounting to Rs 14.01 crore, were never credited to beneficiaries’ bank accounts owing to failed transactions.
Over half of these cases dated back to 2017-18 and 2018-19, remaining unresolved for more than three years.
The audit also flagged that ATEPFO invested in certain corporate bonds “without keeping in view the criteria of safety.” These bonds began defaulting on interest payments in 2019-20, resulting in a loss of Rs 11.42 crore in interest.
Furthermore, the CAG warned of a probable loss of Rs 69.61 crore on the maturity of six such bonds between now and September 2027, unless corrective action is taken.
The findings paint a troubling picture of an organisation struggling with operational gaps, financial risks and poor enforcement of PF obligations, all of which directly affect the security of Assam’s tea workforce.
PTI