EPF Money of UPPCL Employees Returned Till Sept 30, Says DHFL Amid Blame Game

Image for representation.
(Credit : Reuters).

Image for representation. (Credit : Reuters).

The Uttar Pradesh government has ordered a vigilance probe after allegations were made that the state-owned UPPCL invested employees’ fund, worth Rs 2,600 crore, with DHFL over a span of two years.


Qazi Faraz Ahmad

Lucknow: The Dewan Housing Finance Corporation Limited (DHFL) on Saturday clarified that all the money invested in the provident funds of the employees of the Uttar Pradesh Power Corporation Limited till September 30, 2019, have been returned by the company on due date.

However, the payment could not be made after September 30 following the directive passed by the High Court.

In a statement issued on November 8, Chairman of DHFL Kapil Wadhawan said, “There are certain media reports circulating which make it to believe that two entities namely, UP PCL CPF Trust and UP State Power Sector Employee Trust, have placed deposits with the company and that the company has not honoured the maturity/interest payment on these deposits on the due date. In particular, as far as Uttar Pradesh PCL CPF Trust and Uttar Pradesh State Power Sector Employee Trust are concerned, the deposits were placed with DHFL from 2017 and an amount of approximately Rs. 1864 Crores have already been repaid towards principal and an amount of Rs.208 Crores has been paid as interest thereon.”

“DHFL was making all payments (maturity and interest) on the fixed deposits held with it, on their respective maturity dates without any delay until the honourable High court order was passed. The Company had already made provisions in the cash flows for payment of fixed deposits maturing till December 2019. However due to restraining order passed by High Court all payments have not been put on hold. DHFL is sensitive to the needs of its fixed deposit holders who have entrusted their money to the Company and has been making every effort to make payment to its fixed deposit holders to the best of its ability,” the statement said.

The Uttar Pradesh government has ordered a vigilance probe after allegations were made that the state-owned UP Power Corporation Limited (UPPCL) invested employees’ fund, worth Rs 2,600 crore, with the controversial Mumbai-based company DHFL over a span of two years.

The issue sparked a major controversy, especially after DHFL's promoters were grilled by the Enforcement Directorate (ED) over their alleged links with a front company owned by Iqbal Mirchi, a former aide of gangster and drug dealer Dawood Ibrahim. Following the ED probe, the Reserve Bank of India (RBI) had even imposed restrictions on withdrawal of money from the company.

“The issue of Employees Provident Fund (EPF) investment in DHFL is serious. Strict action will be taken against whoever is guilty. All the personnel of UPPCL are members of my family, the government will ensure that no one is hurt,” State Power Minister Shrikant Sharma said in a tweet on Saturday.

Meanwhile, Samajwadi Party chief Akhilesh Yadav attacked Uttar Pradesh Chief Minister Yogi Adityanath and said that CM was “so weak that even after wanting to remove the Power Minister, he couldn’t remove him.”

“The UP government is just busy hiding the facts, even though key departments like power are facing a crisis today. In the FIR copy, it is clearly mentioned that on the day when the money was transferred to the DHFL the SP government was not in power. DHFL was not given a single penny during our regime, if anyone is responsible for such a scam it is the CM himself. He has been taking a review of the works done by the departments in the last two years, but why was nothing done in the 2.5 years of the regime,” the SP chief asked in a press conference.

He further demanded a probe into the issue by a sitting-High Court or a Supreme Court judge. “The government in a rush recommended the probe to the CBI, however, the truth will only be unearthed when the probe is done by a sitting judge of the High Court or the Supreme Court. Also, the CM of the state should resign immediately,” the former Chief Minister added.

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