TRUST TO MOVE HC FOR RECOVERY
LUCKNOW: The Uttar Pradesh Power Sector Employees Trust, which had invested power staff’s provident fund worth over Rs 2,600 crore in DHFCL, is gearing up to file a legal suit in the Bombay high court for the recovery of around Rs 22,00 crore from the shady firm.
LUCKNOW: The Uttar Pradesh Power Sector Employees Trust, which had invested power staff’s provident fund worth over Rs 2,600 crore in the Diwan Housing Finance Corporation Ltd (DHFCL), is gearing up to file a legal suit in the Bombay high court for the recovery of around Rs 22,00 crore from the shady firm that has defaulted on the repayment.
The funds were invested in the Mumbai-based unsecured private company ignoring the laiddown guidelines.
The power employees, however, are mounting a pressure on the state government asking it to take the guarantee for the safety and return of their PF money invested in the DHFCL.
The first investment of the PF in the company began on March 17, 2017 and continued for more than two years when the fraud was finally discovered in July this year.
UP Power Corporation Ltd (UPPCL) chairman and principal secretary, energy, Alok Kumar who is the ex-officio chairman of the Trust said, “We are consulting our lawyers to file case against the DHFCL in the Bombay high court for return of the money.”
The Bombay high court had a few months ago frozen the company bank accounts after it defaulted on the money of many other investors.
Sources said mere filing of the suit against the DHFCL will not guarantee the return of the money. “The company, on the high court’s direction, will make payments to the investors from the little funds it has in banks and the court will give priority to investors who approached it first,” they pointed out.
Kumar said the trust would do its best to get the employees’ money back.
“Otherwise, also, we are working out an alternative plan as well to ensure that employees’ PF is returned to them,” he said, adding, “We did call the board’s meeting in this regard the other day and will meet again to discuss the plan.”
He claimed that PF payments to employees had not been stopped.
“We are making PF advance etc to employees even today,” he said.
The power employees, on the other hand, are insisting the government took the guarantee for their money and have given a week’s ultimatum for the same. The UP Power Officers’ Association that kept away from today’s demonstration, the call for which was given by a different body, was satisfied with the action taken by the government so far.
“We demand the government to issue a notification within seven days taking guarantee for the return of employees Rs 2,600 crore PF stuck in the DHFCL,” Association president and working president, KV Ram and Awadhesh Kumar Verma said in a statement.
Sources said the state government might meet the demand in view of growing protests and criticism by employees’ unions.