The diamond baron who stunned the corporate world by gifting hundreds of cars, flats and jewellery to his employees as Diwali bonus in October this year, is in news again. But this time, for exactly an opposite reason - he evaded the payment of employees' Provident Fund to the tune of Rs16.66 crore.
Savji Dholakia, chairman of Rs6,000 crore Hare Krishna Exports, is facing legal action as Employee Provident Fund Organisation's (EPFO) Surat regional branch has issued a notice to his firm for provident fund evasion of the employer's contribution to the employees' PF to the tune of Rs 16.66 crore.
The company has not paid EPF to employees for last many years.
Legal actions against the company could include seizure of its bank accounts for evading the payment of provident fund. The EPFO slapped a final demand notice to the company on Friday asking the company to pay the amount withing 15 days.
The notice stated that the company employs around 3,165 people including diamond workers, but it has registered only 17 of their employees under EPF, thereby violating the PF and Factory Act rules.
In an order, issued last week after a two-year investigation, the EPFO authorities want the company to deposit Rs 16.66 crore within 15 days along with interest of 12 percent per annum as a penalty and annual damages at the rate of 25 percent.
About 1,200 artisans and engineers of the company were given cars, flats and jewellery as bonus from the company on Diwali this year.
Dholakia gifted 491 cars and 207 flats to his employees as Diwali bonus.