EPFO may attach Subhiksha MD's bank accounts for recovery of Rs1.76 crore
10 March 2009
The Employees Provident Fund Office in Chennai is understood to be weighing plans to attach the personal bank accounts of Subhiksha managing director R Subramanian and the properties of the retail chain as the 15-day deadline for paying up PF dues has expired.
Subhiksha, which forced a closure of its retail chain following financial distress, owes Rs1.76 crore as PF payments of 4,600 employees in Chennai and surrounding regions.
While Subramanian had offered to pay the PF dues from his personal provident fund, it was not sufficient as the account had only Rs70 lakh. The PF authorities now plan to attach his personal bank accounts first and then proceed to attach properties of Subhiksha.
The PF authorities feel that liability also lies with the other stakeholders like ICICI Ventures and Premji Invests, which hold 23 per cent and 10 per cent, respectively in Subhiksha,.
Meanwhile, the hearings on the reverse merger petition of Subhiksha with Blue Green Construction and Investment Ltd and petitions against the merger filed by ICICI Venture and Premji Invest could not be held because of the ongoing stir by layers of the Madras High Court.