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EPFO blocks 9 lakh employee accounts after govt finds job incentive fraud: Report

So far, the EPFO has blocked the provident fund accounts of these employees and has recovered Rs 222 crore from the employers concerned

January 31, 2020 / 02:08 PM IST

The government has unearthed about 80,000 companies that have duped the system by availing financial incentives worth Rs 300 crore from the Centre for a flagship scheme meant to create jobs in the formal sector, Business Standard reported.

The report suggests that nine lakh beneficiaries of its Pradhan Mantri Rojgar Protsahan Yojana (PMRPY), a job formalisation scheme, have been found to be ineligible. This is because they were already a part of the formal economy, even before the scheme was brought in.

The Employees’ Provident Fund Organisation (EPFO) has blocked the provident fund accounts of these employees, the report stated. It has, so far, also recovered Rs 222 crore from the employers concerned.

The number of beneficiaries was included in the EPFO payroll database, which is used by the government to show job creation in the formal sector.