Amravati EPF Scam: ₹2 Crore Penalty Imposed, Missing Files Raise Big Questions

Amravati: Since 2022, the municipal corporation has been engaging contractual engineers, teachers, and other staff through external agencies on a monthly salary basis. However, a serious irregularity has come to light, revealing that the contractor agency failed to deposit Employees’ Provident Fund (EPF) contributions into the workers’ accounts. Following this, the municipal commissioner imposed a penalty of ₹2 crore on the contractors and issued a show-cause notice. Although replies from the agencies were received, there has been no clarity on the subsequent action taken. Neither have the contractors’ dues been recovered nor has any bank guarantee been seized. Meanwhile, the EPF fraud affecting employees continues unresolved, and the status of the penalty file remains unknown, raising significant concerns.

As per an order issued on February 26, 2026, Municipal Commissioner Soumya Sharma Chandak held M/s Itcons Solutions Pvt. Ltd. accountable based on audit findings. The agency was accused of deducting GST, income tax, and administrative expenses from employees’ salaries improperly. The explanation submitted by the firm was found unsatisfactory, and the audit indicated financial exploitation of workers. Accordingly, the agency was directed to deposit ₹1,56,79,882 within three days to cover discrepancies and misappropriated funds. The order warned that failure to comply would result in freezing of payments, encashment of the bank guarantee, and blacklisting of the firm. Despite such strict directives, there is little visibility on whether any concrete enforcement action has been implemented so far.

In a related case, M/s Mahatma Phule Multi Services Pvt. Ltd., Parbhani branch, Amravati, was also instructed to deposit ₹39,95,560 within three days as a penalty. However, questions are now being raised about the whereabouts of the file related to this penalty, as no information is available regarding its progress. The issue has triggered political attention as well. Youth Congress leader Sameer Javanjal had filed a complaint regarding the EPF fraud involving contractual employees. Taking cognizance, MP Balwant Wankhede directed the administration to investigate the matter and submit a detailed report. Despite this, there are allegations that the municipal administration is merely delaying action, with claims of political pressure being exerted to avoid strict measures.

Earlier, on November 21, 2024, MP Balwant Wankhede had written to Municipal Commissioner Soumya Sharma Chandak, highlighting that several agencies working under the Amravati Municipal Corporation were not depositing EPF and labor insurance contributions for sanitation and other workers. He also pointed out that workers were not being paid wages as per legal provisions and were often receiving only half their entitled salary. Subsequently, on April 1, 2025, orders were issued to conduct an inquiry, which was carried out on July 18, 2025. However, no findings from the investigation have been made public. Expressing dissatisfaction, MP Wankhede criticized the administration for its lack of transparency. Meanwhile, Advocate Shrikantsingh Chavan from the General Administration Department stated that the situation remains unchanged, with the penalty file still pending before the commissioner.