Sudden 7A Proceedings After 15 Years: How to Handle Missing Records and Remedies?

The E.O. did not visit my establishment for 15 years and suddenly started proceedings under 7A. He wants records for the last 15 years, and I cannot produce such old records. What are the remedies, and how can I get rid of this problem?

Court Ruling on Record Keeping Duration

Is there any court ruling or law that specifies showing records up to 7 years for income tax, etc.?

There is no time bar to make an enquiry under Sec. 7-A of the P.F. Act, and the P.F. Authority can call for records of previous years extending to the point of time when the Act became applicable to your establishment. You can submit whatever records you have, explaining to him the difficulty of retrieving records as old as 15 years. However, you will be heard in proceedings under Sec. 7-A as per the principles of natural justice.

Regards,
B. Saikumar
HR & Labour Law Advisor
Mumbai

Request for Affidavit Guidance

Now the E.O. is asking for an affidavit for records beyond 7 years. What should I write in the affidavit so that they can consider my case on the basis of natural justice?

Regards,
[Name]

I advise you to consult an advocate locally to be both technically and factually sound in your replies to statutory authorities, as it will not be appropriate to give any specific reply here without going through papers, records, and facts of the case.

Regards,
B. Saikumar
HR & Labour Law Advisor
Mumbai

As you know, statutory compliances like PF, ESIC, LWF, etc., are very much mandatory for all institutions. PF authorities have the power to call for all documents such as salary slips, number of employees, attendance register, balance sheet, salary register, and many more. It is the employer's duty to maintain all these records from the inception of the company. Please let me know the number of employees working since the company's inception and the current strength.

However, as suggested by Mr. Saikumar, an experienced member, you should first consult a labor consultant/advocate and provide maximum proof/documents to avoid further proceedings, other than 7-A.

For any further queries, please post.

Regards,
Vijayan K

In my opinion, please show all the records you have, along with the challans relating to contributions deposited. Besides, provide in writing that you do not have other documents from the old period.

You may also submit the position of account statements issued by the department during these years to prove that you had fully complied in the past, as duly accepted by the department.

You may also state that no complaint from any employee was received by you regarding PF during this period.

Produce the Inspection Register before him, showing the last inspection done by the EO.

Obtain a copy of the Inspection Report of the EO for further action to be taken by you in the future.

Also, get a copy of any complaint received by the department.

Regards,
Chandok A.K. RPFC (Retd.) (Link no longer exists - removed)