Can the provident fund department initiate any legal action against the lessor for the default by the lessee for his establishment/factory registered at rented premises? Under which section?
From India, Dehradun
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From India, Dehradun
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The issue is not clear. I understand the situation like this: An employer with PF registration has given his establishment to someone else, the lessee, to run the business. The latter is operating it under the license of the lessor only. In this circumstance, the liability will fall on the lessor because, as per records, he is the employer. The lessee, who is running the establishment in exchange for a percentage of profits/income, is only an agent. Please confirm if this is the situation.
From India, Kannur
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4526From India, Kannur
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Sir, the problem is that the PF department is threatening Mr. A, who leased his premises to Mr. B. Mr. B registered his firm under PF and absconded with PF liability. Now the department is putting pressure on Mr. A, even though he only rented his premises and was not linked with Mr. B or the establishment.
Regards.
From India, Dehradun
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Regards.
From India, Dehradun
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PF authorities will never 'threaten' an employer but will call on the employer who defaulted on payment to pay the arrears of PF. In this case, this has also happened. Never use the word threatening unless there is any personal interest to the officer concerned.
Now coming to the issue, I must say that the premises where some business activity is being carried out are under your control only, though you have an arrangement with another person to run it. That arrangement is between you and the lessee, and EPFO has nothing to do with it. It is also presumed that the lessee is remitting the PF under your RC only. I don't think that the EPFO will issue two RCs with the same address. So long as the RC is active, you are the employer and you should pay it if the lessee has not paid it on your behalf.
From India, Kannur
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Now coming to the issue, I must say that the premises where some business activity is being carried out are under your control only, though you have an arrangement with another person to run it. That arrangement is between you and the lessee, and EPFO has nothing to do with it. It is also presumed that the lessee is remitting the PF under your RC only. I don't think that the EPFO will issue two RCs with the same address. So long as the RC is active, you are the employer and you should pay it if the lessee has not paid it on your behalf.
From India, Kannur
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Provident fund.zip
PROVIDENT FUND.rar
PROVIDENT FUND.doc