EPFO Intensifies Action Against Defaulting Establishments in Chhattisgarh

Employees’ Provident Fund Organisation (EPFO), Regional Office, Raipur, has intensified recovery and enforcement action against defaulting establishments in Chhattisgarh. Against total outstanding dues of ₹24.74 crore identified at the beginning of 2026, the organisation has recovered ₹4.23 crore till August 2026. Further legal and recovery action is being pursued under the provisions of the Code on Social Security, 2020, for recovery of the remaining dues.

To strengthen scrutiny and enforcement against establishments delaying statutory contributions and major defaulters in the State, special teams of Enforcement Officers have been constituted under the leadership of Regional Provident Fund Commissioner Jayvadan Ingle. The teams are undertaking focused action to identify outstanding dues, ensure compliance and expedite recovery.

Meanwhile, to facilitate settlement of old disputes and provide relief to employers from prolonged litigation and penal proceedings, the Ministry of Labour and Employment, Government of India, has introduced the ‘VISHWAS-2026’ scheme under the provisions of the Code on Social Security, 2020. The scheme was notified through notification number G.S.R. 525(E) dated June 29, 2026, and came into effect from the date of notification for a period of six months.

The VISHWAS-2026 scheme seeks to facilitate early settlement of old disputes relating to damages and penal liabilities, reduce pending litigation, provide employers an opportunity to regularise statutory compliance and safeguard the social security interests of employees. It also seeks to promote an amicable resolution of disputes between the Employees’ Provident Fund Organisation and establishments.

A wide range of eligible cases has been brought within the ambit of the scheme. These include cases relating to damages or penal liabilities pending before competent judicial forums such as the Central Government Industrial Tribunal, High Courts or the Supreme Court. Cases in which a final order has already been passed but the amount remains wholly or partially outstanding, including cases involving Recovery Certificates, may also be covered.

Cases in which proceedings have commenced and notice has been issued but a final order is yet to be passed are also covered. Similarly, cases where a default has been identified but proceedings for levy of damages or penal liability have not yet been initiated through issuance of notice may also be eligible under the scheme, subject to the prescribed conditions.

A key feature of VISHWAS-2026 is the opportunity for eligible establishments to settle applicable damages and penal liabilities at reduced rates. Depending on the circumstances and period of default, the applicable rate of damages may range from 0.25 per cent to 1 per cent per month under the prescribed provisions. The measure is expected to provide significant relief in resolving long-pending disputes.

The settlement process under VISHWAS-2026 has been designed to be transparent, digital and time-bound. A VISHWAS Cell has been established at the Regional Office of the Employees’ Provident Fund Organisation to provide establishments with information and assistance regarding eligibility, application procedures and speedy disposal of cases.

The Regional Office has appealed to all defaulting establishments to utilise the opportunity under VISHWAS-2026 by depositing the applicable statutory dues, including the statutory interest under Section 7Q, through the prescribed online process. Establishments have been advised to use the scheme for permanent resolution of eligible disputes and avoid possible coercive recovery measures, including legal and attachment proceedings.

In addition, the Ministry of Labour and Employment has launched the Employees’ Enrolment Campaign (EEC), 2026, which will remain operational from July 1, 2026, to October 31, 2026. The campaign provides a special opportunity for voluntary enrolment of eligible employees who were omitted from coverage during the period from April 1, 2009, to March 31, 2026.

Under the campaign, where an employer had not previously deducted the employee’s share of provident fund contribution, the employee’s share may be waived subject to the applicable conditions. The employer is required to deposit the employer’s share, applicable interest and administrative charges, while damages are restricted to a maximum of ₹100.

For exempted establishments, the Ministry of Labour and Employment, Government of India, has also notified the Employees’ Provident Fund Scheme, 2026, through notification number G.S.R. 525(E) dated June 29, 2026. Part C of the scheme provides for a one-time relief measure titled ‘Amnesty-2026’, which will remain applicable for six months from the date of notification.

The Amnesty-2026 provision offers eligible provident fund trusts an opportunity for retrospective regularisation of their past operations where they had been recognised under the Income Tax Act but had not been formally notified under the applicable Employees’ Provident Fund law. Eligible establishments may receive relief in respect of dues, damages and interest, along with relaxation of prescribed conditions relating to minimum employee strength and corpus, subject to the applicable provisions.

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