The Employees Provident Fund Organisation (EPFO) on March 17, 2026, issued notification regarding the Timely conclusion of proceedings relating to assessment or levy of PD in IBC cases.
The circular addresses issues in filing Employees’ Provident Fund (EPF) claims under the Insolvency and Bankruptcy Code, 2016 (IBC), where claims are often rejected due to delays or inflated and improperly assessed dues. It highlights concerns that EPF authorities sometimes raise demands without properly identifying beneficiaries or incorrectly place liability on principal employers instead of compliant contractor establishments, leading to litigation and ineffective recovery.
Given the strict timelines under IBC, the document stresses the need for accurate, evidence-based assessment of EPF dues and timely filing of claims to improve recovery chances. It mandates that assessment work in all IBC-related cases will now be handled by senior officers (RPFC-I or RPFC-II) at the Regional Office level, with hearings conducted on a day-to-day basis and all pending cases to be completed by May 31, 2026.
All existing cases must be transferred to the concerned Regional Office officers within 7 days, with reporting to the Head Office. Additionally, Zonal ACCs will conduct 100% administrative scrutiny of decided cases and monthly reviews of pending cases to ensure accountability and consistency.
Overall, the directions aim to ensure uniformity, timely processing, accurate assessment, and improved recovery of EPF dues in insolvency cases while reducing litigation and inefficiencies.
[Notification No. IB8V/2920254e-120360/16388]
