The case is related to misappropriation of Provident fund deducted from the salaries of the employees
FinTech BizNews Service
Mumbai, July 27, 2025: Directorate of Enforcement (ED), Kolkata Zonal Office, has provisionally attached immovable properties worth Rs. 15.47 Crore connected to M/s Delta Limited and Others on 23.07.2025 under the provisions of Prevention of Money Laundering Act, 2002. ED has also filed final Prosecution Complaint on 24.07.2025 against Delta Limited and 7 others before Ld. Special Court, Kolkata, as per a press release issued by the ED.
ED initiated investigation on the basis of FIR registered at Hare Street Police Station, Kolkata on the directions of Hon’ble Calcutta High Court, issued in various writ petitions alleging non-payment of statutory dues, such as Provident Fund (PF), despite regular deductions from salaries. The said FIR was registered against M/s Delta Limited and others for alleged criminal conspiracy, cheating, and misappropriation of workers’ Provident Fund deductions.
ED investigation revealed that approximately 800 workers of M/s Delta Limited and its associated entities were cheated through misuse of their Provident Fund Trust (Delta Jute & Industries Ltd Worker’s Provident Fund Trust). The company had an exemption under the EPF Act, which allowed it to manage the PF money through its own Trust. This Trust was meant to work independently for the benefit of employees by properly investing their PF money. However, in violation of this purpose, in criminal conspiracy, employees were appointed as trustees instead of professionals or fund managers. These employees acted only as per the directions of the management and had no real control.
Over the years, due to continuous violations of rules and financial losses, the exemption was cancelled in 2014. Even after this, and even when a court case was going on, the company continued deducting PF from workers’ salaries but did not deposit it either in the Trust or with the PF Authorities. The money was wrongfully retained. The company deliberately avoided depositing the statutory contributions deducted from employees. The withheld amounts, which were subsequently laundered and used for non-permitted purposes including repayment of loans, meeting business expenses, and property transactions etc. Total Proceeds of Crime (POC), in this case, is Rs.15.47 Crore. It is worth highlighting that provisional attachment of full POC in form of immovable properties has been done and final Prosecution Complaint has been filed.
