Did the ED Seize Rs 15.47 Crore Property of Delta Limited?
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Synopsis
The Enforcement Directorate has taken significant action against Delta Limited, attaching properties worth Rs 15.47 crore due to alleged financial misconduct. This case highlights the importance of compliance with labor laws and safeguarding employee contributions. The ongoing investigation aims to bring accountability to those involved in the misappropriation of workers' funds.
Key Takeaways
- ED Provisional Attachment: Rs 15.47 crore in properties seized.
- Legal Framework: Actions taken under PMLA.
- Impact on Workers: Approx. 800 employees affected.
- Misuse of Funds: Allegations of non-payment of PF dues.
- Corporate Governance: Importance of compliance with labor laws.
Kolkata, July 25 (NationPress) - The Enforcement Directorate (ED) from the Kolkata Zonal Office has provisionally attached immovable properties valued at Rs 15.47 crore linked to Delta Limited and others, as per the Prevention of Money Laundering Act (PMLA), an official disclosed on Friday.
The properties were seized on July 23, and a final prosecution complaint was filed against Delta Limited and seven additional parties on July 24 in a special PMLA court in Kolkata.
According to the agency, the investigation was triggered by an FIR lodged at the Hare Street Police Station, Kolkata, following directives from the Calcutta High Court. This FIR alleged that statutory dues, including Provident Fund (PF), were not paid despite regular salary deductions. The FIR implicated Delta Limited and others for alleged criminal conspiracy, cheating, and misappropriation of workers’ provident fund contributions.
As per ED, the investigation revealed that around 800 workers associated with Delta Limited were cheated through the misuse of their Provident Fund Trust (Delta Jute and Industries Ltd Worker’s Provident Fund Trust).
The company was granted an exemption under the EPF Act, permitting it to manage PF funds via its trust. This trust was supposed to operate independently for the employees' benefit by wisely investing their PF contributions. However, in violation of this mandate, employees were appointed as trustees instead of professionals or fund managers, as stated by the ED.
The report indicated that these employees acted solely under management directives, lacking genuine control. Due to ongoing rule violations and financial losses, the exemption was revoked in 2014.
Even after the revocation and during ongoing litigation, the company continued to deduct PF from workers’ salaries but failed to deposit it either in the trust or with the PF authorities, wrongfully retaining the funds. The company intentionally avoided depositing the statutory contributions deducted from the employees.
According to the ED, the withheld amounts were laundered and utilized for unauthorized purposes, including loan repayments, covering business expenses, and property transactions.
The total proceeds of crime in this case amount to Rs 15.47 crore. The ED emphasized that the provisional attachment of the complete proceeds of crime in the form of immovable properties has been executed, and a final prosecution complaint has been lodged.
Point of View
I emphasize the importance of transparency and accountability in corporate governance. The enforcement of laws like the PMLA is crucial in protecting worker rights and ensuring fair treatment in the workplace. This case serves as a reminder for corporations to adhere to legal obligations to avoid severe repercussions.
NationPress
26/07/2025
Frequently Asked Questions
What triggered the ED's investigation into Delta Limited?
The investigation was initiated following an FIR lodged at the Hare Street Police Station, Kolkata, upon the directions of the Calcutta High Court, alleging non-payment of Provident Fund dues.
How many workers were affected by Delta Limited's actions?
Approximately 800 workers associated with Delta Limited were affected due to the misuse of their Provident Fund Trust.
What amount was seized by the ED?
The Enforcement Directorate provisionally seized properties valued at Rs 15.47 crore connected to Delta Limited.
What violations did Delta Limited commit?
Delta Limited was accused of not depositing deducted Provident Fund contributions and misusing workers' funds for unauthorized purposes.
What law governs the ED's actions in this case?
The actions taken by the Enforcement Directorate are governed by the Prevention of Money Laundering Act (PMLA).
