Anna University moves Madras High Court complaining of poor financial position
The Hindu
Anna University appeals in court over provident fund dues, facing financial constraints, with ongoing legal battle.
Anna University has filed a writ appeal in the Madras High Court claiming it is not in a financially sound position to deposit even 30% (₹73.23 lakh) of the provident fund dues of ₹2.44 crore arrived at by a Regional Provident Fund (RPF) Commissioner in Coimbatore.
When the appeal was listed for admission before summer vacation Bench of Justices J. Sathya Narayana Prasad and V. Lakshminarayanan, the university counsel said, the management could at best deposit only ₹10 lakh as a pre-condition to stay the RPF Commissioner’s demand.
However, finding the offer to deposit ₹10 lakh to be too low, the Bench simply adjourned the writ appeal to be heard, after the conclusion of the summer vacation, on June 5. It directed the university counsel to serve the papers on the standing counsel for the RPF Commissioner.
The issue dates back to the period between 2006 and 2010 when the then State government had established Anna University of Technology (AUT) in Coimbatore and four other districts. However, in 2012, all the five AUTs were merged with the Anna University in Chennai.
Pursuant to a complaint received in 2019 regarding non-payment of provident fund to contract workers engaged by the university, the RPF Commissioner inspected the varsity campus in Coimbatore and found non-compliance of the Employees Provident Fund and Miscellaneous Provisions Act, 1952.
Thereafter, a show cause notice was issued to the university for determination of dues with respect to the contract employees working in the Coimbatore regional centre of the varsity since March 1, 2010 and an interim order was passed on February 8, 2022 to deposit ₹2.44 crore within 15 days.
The university took the interim order on appeal to the Central Government Industrial Tribunal which, on May 12, 2022, granted an interim stay of the RPF Commissioner’s order but on condition that the varsity must deposit 45% (₹1.09 crore) of the dues determined by the commissioner.
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