UP govt will ensure return of UPPCL employees' money invested in DHFL

The Uttar Pradesh Corporation Limited (UPPCL) employees, in what could be a big relief, have been ensured the return of provident fund money invested in scam-hit Deewan Housing Finance Limited (DHFL).

"If there are any issues with the return of money from DHFL, Uttar Pradesh Power Corporation Limited (UPPCL) will pay the money to ensure timely payment," the government said in a notification on Saturday.

The notification stated that the state government will lend the required money to the corporation interest-free so that the employees' PF can be returned on time. "Several steps will be taken to ensure that money invested by Uttar Pradesh power sector employees trust and UPPCL Central Provident Fund trust into DHFL is returned in time and upon receiving the money, a decision will be taken on its investment as per the rules," it said.

The Yogi Adityanath-led BJP government on Saturday had also promised that it will return the money of UPPCL employees in connection with the investment of over Rs 2,600 crore of the state power employees' provident fund. Several arrests have been made in connection with the alleged investment of Uttar Pradesh power employees' provident fund money in the scam-hit housing finance company.

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READ: UPCC leader Ajay Kumar Lallu reacts on DHFL Scam

About the EPF Scam

As per the documents seized by the EOW, Sanjay Agarwal, the then Additional Chief Secretary of UP (Energy) and Chairman of UP Power Corporation Limited (UPPCL), was heading the Employees' Trust in which the gigantic scam took place. What makes matters worse for the top Union government Secretary is the mounting pressure from thousands of state government employees and labour unions to initiate action against the bureaucrats responsible for investing their hard-earned money in a controversial private firm, Dewan Housing, and Finance Limited (DHFL).

The documents show that in March 2017, five top officials of the UPPCL, led by Sanjay Agarwal (as Chairman of the Trust), were present in an important Trust meeting that allegedly took the crucial decision of investing provident fund money in DHFL. Out of the five officials, three, including the then Managing Director of UPPCL, AP Mishra, have been arrested by the EOW. The power employees' unions, which have threatened to go on a state-wide strike, are now demanding swift action against the top officials of the power department who threw norms to the wind and opted for a company like DHFL to invest the provident fund of employees.

According to available records, Rs 2,631.20 crore of employees' General Provident Fund was invested in DHFL out of which Rs 1,185.5 crore has been returned by the finance company. A total of Rs 1,491.50 crore of Contributory Provident Fund was invested in the company out of which Rs 669.30 crore has been received by the trust and DHFL is allegedly yet to return Rs 2,267.9 crore (principal amount) of GPF and CPF to the trust.

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(With Inputs from ANI)