15-05-2025
HC restrains EPFO from taking action against Tata Lockheed Martin Aerostructures over dues
Hyderabad: The
Telangana high court
has directed the Employees' Provident Fund Organisation (
EPFO
) not to take any
coercive action
against
Tata Lockheed Martin Aerostructures
Ltd, located in Adibatla, in connection with the recovery of alleged dues.
The EPFO had issued prohibitory orders against the company, seeking recovery of approximately ₹10 crore.
Challenging these orders, the firm approached the high court, arguing that the recovery process was hampering its operations, particularly in the production of critical defence components.
Counsel for Tata Lockheed Martin contended that the EPFO had acted unilaterally, without issuing a prior notice or offering a hearing, in violation of provisions under the EPF Act. They informed the court that, despite being notified about the pending legal proceedings, the EPFO had already transferred over ₹4 crore from the company's accounts held in two private banks.
"The EPFO went ahead with the recovery even after being informed that the matter is sub judice," the counsel told the court. They further alleged that EPFO officials coerced bank authorities into transferring the funds by threatening them with arrest. "We have video evidence to substantiate this claim," the counsel said.
Arguing that the firm is a strategic defence manufacturer, the company sought the court's intervention to unfreeze its accounts, pointing out that it had already paid 40% of the amount mentioned in the prohibitory orders.
In response, EPFO's counsel contended that the company was financially sound and should clear the dues before contesting the case. "We only instructed the banks to transfer the specified amounts while allowing continued operation of the accounts," the counsel said.
The high court, while restraining the EPFO from taking any further coercive steps, posted the matter for further hearing on May 21.
