No bill without payment of PF, ESIC

Aurangabad, March 27:

The Aurangabad Municipal Corporation (AMC) has ordered the contractors to pay the Provident Fund (PF) of their workers every month and attach the certificate of payment with the bills. As a result, the contractors have become distraught. For the last four days, the accounts department has stopped accepting bills.

Four months ago, the EPFO had transferred Rs 10 crore from the bank account of the corporation. This had caused a commotion in the AMC. The PF office pointed out that the PF of 221 workers who were made permanent and women's self-help groups workers was deducted. The administration had also filed a petition in the bench in this regard. After hearing the petition, the EPFO has taken the role of returning Rs 5 crore. Hence the corporation has decided to pay the bills of the contractors, self-help groups and agencies only after ascertaining whether they have paid the PF and ESIC of the workers.

Municipal contractors carry out small and large works. Most works are completed in four to eight days with the help of daily wage workers. Hence contractors cannot pay the PF of workers for eight days. Contractors often get no work for six months at a time. Not every contractor has permanent workers. Hence contractors are finding it difficult to fulfill the orders of the municipal corporation.