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EPFO seeks first right to assets in bankruptcies!

The Employees’ Provident Fund Organisation (EPFO) may gain the first right to assets of a company that goes bankrupt, according to an amendment proposed by the labour ministry. The proposal says that during recovery or liquidation process, the pension fund money should receive priority over other debts. The proposal has been circulated for consultations among various stakeholders including the relevant ministries and experts and later will be forwarded to the cabinet. If approved, the proposal may be tabled in the winter session of Parliament. EPFO is seeking to recover Rs 574 crore from IL&FS and Rs 700 crore from DHFL and 500 crore from some other companies.

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