Probe into tax, PF evasion by German firm

NEW DELHI: Regulatory authorities in India are probing the alleged violation of social security laws, misappropriation of provident fund (PF) contributions, and income tax evasion by MW High Tech Projects India Private Limited, a subsidiary of German engineering and construction company M+W Group Gmbh.

To probe allegations of PF evasion pertaining to hundreds of employees of MW High Tech Projects India Private Limited, the Employees’ Provident Fund Organisation (EPFO), late last year, set up a four-member commission of inquiry in Hyderabad.

“Normally, we do not appoint any inquiry committee into the charges of PF violations by companies. But in this case, the magnitude of evasion is said to be very high — to the extent of ₹150 crore. Hence, we appointed a commission of inquiry, headed by an assistant commissioner and three enforcement officers, to probe into the company records. We shall complete the investigation at the earliest,” regional PF commissioner in Hyderabad Bhola Chandrasekhar told HT.

Asked about the total number of employees in the company, Chandrasekhar said his office would have the details of only those employees whose PF was deducted and remitted. “For October 2017, records of which were submitted last month, the company had 963 employees. We have no information about the actual employee strength of the company which operates through different contractors in different parts; each contractor has a different PF code,” he said.

BESIDES PROVIDENT FUND, THE COMPANY HAS ALSO EVADED INCOME TAX, SALES TAX, AND COMMERCIAL TAX