InvestorQ : How EPF fraud of Rs 100 crore was done from inactive accounts?
natasha Samani made post

How EPF fraud of Rs 100 crore was done from inactive accounts?

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Neha Samdani answered.
1 year ago
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There has been news that fraud has been done on inactive EPF accounts. Now, you must be wondering how it could have happened?

Here’s how:

Fraud was particularly done on EPF accounts of small companies which are inactive from 2006 and some checks and balances were not done for such accounts. Another thing that they have done is withdrawing in smaller amounts. Say, they have withdrawn only Rs 2,00,000 as there will be no audit of such accounts (it happens only for a withdrawal above Rs 5 lacs).
There were few employees involved from the Mumbai EPF office in this and one of the clerks was the mastermind of this game plan. So far around 8 employees have been suspended, and there is a possibility that a bigger fraud is under the mat. Therefore, more investigations are going on.

So, technically, only those establishments were captured, not operating for a long-time, and no one had an eye on those organizations. A part of the investigation also revealed that the fraudsters had submitted forged/fabricated returns, various forms, specimen signature cards, and therefore, fictitious claims in the name of original members (inoperative) of non-members. Not only this but, the officers were pressured to clear the claims as soon as possible.

We can only see the front picture now but with the investigation going on, we could be able to get the bigger picture soon.
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