TGSRTC Moves HC Against Damages for Delay in Payment of PF Dues

In an order issued on March 21, 2024, the Regional Commissioner of the Provident Fund directed the managing director of TGSRTC to pay damages for the delay in remitting the PF dues to the EPFO. TGSRTC, however, decided to challenge the decision in the High Court.

During the arguments, A. Sudharshan Reddy, Advocate-General of Telangana, representing TGSRTC, submitted to the court that the EPF amounts are liable to be remitted by both the states — APSRTC and TGSRTC — because the EPF Trust was not bifurcated in 2014.

Sudharshan Reddy further submitted that without taking into consideration the fact of bifurcation of the states under the Andhra Pradesh Reorganisation Act, 2014, the Regional Commissioner has fixed the liability on TGSRTC alone.

He contended that after the bifurcation of the erstwhile composite state of Andhra Pradesh, the amounts of the EPF Trust were not yet bifurcated; the EPF trust is still continuing in the name of APSRTC. Even before the settlement of the accounts between the two states for the remittance of EPF amounts, the Regional Commissioner issued the prohibitory orders for the operation of the account.

Arguing further, the AG brought to the notice of the court that the EPF department had issued a circular in the 1990s, directing all the PF Commissioners to finalize the claim of damages within three years. However, contrary to the circular, the Hyderabad Regional Commissioner has ordered damages for the period between 2014 and 2019.

Justice C.V. Bhaskar Reddy heard the arguments of the Advocate-General and opined that these aspects should be examined. Hence, the Judge directed the Regional Commissioner-1 of Hyderabad and other PF officials to file counters by July 15.

The court, however, issued an interim order suspending the orders issued by the EPFO.