Vishal Retail gets a breather from SC

Vishal Retail’s appeal against an Employees Provident Fund

Organisation directive to deposit Rs 3.5 crores toward the provident fund dues of 13,000 of the ailing supermarket chain’s workers was admitted by the Supreme Court of India. Issuing a notice to the EPFO, the court directed Vishal Retail to deposit Rs 50 lakh with the provident fund body within a period of four weeks. The EPFO had directed the debt-ridden company to deposit Rs 11 crores toward the provident fund of 13,000 workers for the period between July, 2002, and January, 2009.

Vishal Retail had appealed against the demand to the Provident Fund Appellate Tribunal, which directed it to deposit 40 per cent of the amount with the EPFO as a precondition for hearing the appeal. Earlier, the apex court had on February 22 extended the deadline for depositing the amount till February 28 on the request of the debt-ridden retail chain. The apex court’s direction came over an appeal filed by Vishal Retail challenging an order of the Delhi High Court to deposit 30 per cent of the amount demanded by EPFO.

The company challenged the tribunal order before the High Court, which refused a stay on it. However, considering the financial health of the company, the court reduced the amount to be deposited to 30 per cent of the dues and directed the tribunal to hear the plea. Vishal Retail had subsequently approached the high court again, requesting it to extend the deadline till February 25, which was granted with a rider that no further extension will be granted. Last month, Vishal Retail had reported a net loss of Rs 19.37 crores for the quarter ended December 31, 2010.