Bombay Rayon’s directors misappropriate Rs 1.90 cr from EPF

In a shocking case, three directors of a reputed garment manufacturer have been charged with misappropriating Rs 1.90 crore of their employees’ provident fund (EPF).

It has come to light that Prashant Agarwal, Janardhan Agarwal and Aman Agarwal, all of whom are directors of Bombay Rayon Fashions Limited, collected Rs 1.90 crore as provident fund contributions from 1400 workers at the company’s Tarapur plant between October 2014 and December 2015. It is believed that the directors split the money between themselves instead of depositing the amount with the government in the State Bank of India, Boisar branch. The fraud was detected by Provident Fund inspector Ganesh Ghaiwat who lodged a complaint with the police.

The police has so far lodged a complaint but not arrested the three. They are collecting more evidence against them and may charge them under additional sections of the IPC.

Bombay Rayon Fashions was established in 1986. Today, it employs nearly 32,000 workers all over its locations in Maharashtra and Karnataka and manufactures and exports top-end readymade garments, fabrics and textile products.