EPFO Launches Special Drive for Swift Recovery: Employers Urged to Clear Dues

In response to a concerning trend of slow arrears recovery, the Employees' Provident Fund Organisation (EPFO) has announced a special recovery drive scheduled to run from December 2023 to February 2024. This move is aimed at addressing the increasing challenges associated with the recovery of provident fund and allied dues.
The primary goal of the recovery initiative is to collect outstanding dues from defaulting establishments. EPFO emphasizes the importance for defaulting employers to clear pending dues promptly to avoid potential consequences. Defaulting establishments are advised to settle all pending dues towards EPF during the specified drive period. EPFO warns of potential repercussions, including attachment of movable/immovable properties, bank account attachment, appointment of receivers, and even employer arrest and detention.
EPFO, with over 60 million subscribers and a corpus exceeding Rs12 lakh crore, issued a directive to its regional offices. The directive highlights a performance gap in recovering both current and arrear dues, prompting the need for a dedicated recovery drive. EPFO's regional offices are urged to meet recovery targets set by the headquarters during the special drive. The initiative aims at achieving prompt dues recovery without intending to harass employers or defaulters.
As part of the recovery drive, EPFO has instructed its zonal offices to submit weekly consolidated recovery reports. These reports will assess the performance of regional offices in their efforts to expedite dues recovery. In conclusion, the EPFO's special recovery drive underscores a proactive approach to address the challenges of arrears recovery efficiently. Employers are advised to heed this initiative, ensuring timely settlement of pending dues to avoid legal consequences and safeguard the interests of both employees and establishments.



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Changes in Our Business Model
25th Sept 2020
Greetings from Moneylife Advisory Services
Between financial years 2019-21, SEBI has come up with extensive changes to investor advisor regulations. On Sep 23, 2020, SEBI had issued new additional guidelines. This comes just two months after extensive changes announced in July 2020. Earlier, in December 2019 there was an ad hoc circular
As a result of these changes, IAs, cannot accept fees through credit cards, will have to sign a 26-clause investor agreement, have to maintain physical record written & signed by client, telephone recording, emails, SMS messages and any other legally verifiable record for five years. IAs were already asked to record the suitability and rationale for every piece of advice given, sign them and store them for five years.
While these extensive and frequent changes, designed to strengthen the conduct of IAs are well-meaning, these have sharply increased compliance efforts and cost. We, being online advisors, find many of changes harder to implement, compared to advisors working in the physical space. We will have to have an army of advisors, administrative and tech staff to be compliant. If we do this, we will have to divert money to these areas and the cost of our service will double. We want to remain the least-cost service in the market to benefit more and more people. In the circumstances, we are forced to change our business model from “advisory” to “research”. This will mean the following:
What remains the same:
  • Recommendations on insurance, investment and Lion stocks, will continue as a part of the MAS premium subscription. Our strength has always been research and this will remain available to you through our recommendations.
  • The magazine and all textual content will remain as part of the service
  • We will have to suspend the restructuring tool.
What changes:
  • The interactions in Ask / Handholding will offer investment advice but not specific to your situation. It will offer information on investment products and also clarify your doubts about various financial products. It will be a forum for information, not for advice. This will be implemented with immediate effect and our guidelines in Ask, reflect this now.
Over the next few weeks our site and our communication to you will reflect these and other additional changes.
We feel this will not affect you much in terms of what really matters in investing: knowing what to buy and when to buy. This is our edge and it will still be available to you.
Debashis Basu