CBI Registers Case Over Alleged ₹20-Crore EPF Fraud, Probes Telecom Firm Officials And Unknown EPFO Staff

Mumbai, July 30, 2026: The Central Bureau of Investigation (CBI) has registered a case against two officials of a telecommunication company and unknown Employees' Provident Fund Organisation (EPFO) employees over allegations of the fraudulent addition of fictitious members during the surrender of exemption and the fraudulent withdrawal of EPFO funds into fictitious accounts after the surrender of exemption by representatives of the establishment.

EPFO Complaint Triggers Probe

According to the CBI, a letter was received from Utkarsh Jeet Singh, Regional Provident Fund Commissioner (Vigilance), Vigilance Headquarters, EPFO. The telecommunication company was an exempted establishment under Section 17 of the Employees' Provident Funds and Miscellaneous Provisions Act.

Subsequently, the establishment submitted an application seeking surrender of its exemption. The proposal for the transfer of past accumulations to the EPFO and commencement of compliance as an un-exempted establishment with effect from September 2023 was accepted and approved.

Upon surrender of exemption, the establishment was under a statutory obligation to transfer to the EPFO the entire past accumulations standing to the credit of all eligible members and to furnish complete, accurate and duly authenticated member-wise records, including past accumulation statements, contribution details, withdrawal particulars, supporting vouchers and all other relevant documents necessary for verification, reconciliation, accounting and transfer of provident fund balances to the EPFO.

Alleged Fake Members Detected

The matter originated from complaints received through multiple grievances sent via email and the Centralized Public Grievance Redress and Monitoring System (CPGRAMS), which alleged large-scale fraudulent activities in relation to PF accounts and furnished details of 70 purportedly fake members whose PF accumulations had allegedly been transferred and settled despite them not being genuine employees of the establishment. The complaint further alleged illegalities in the processing of such claims.

The EPFO brought the matter relating to the suspected fictitious members to the notice of the establishment, whereupon the establishment initiated an internal investigation. The establishment independently examined the matter and reportedly detected serious irregularities relating to the provident fund transfer claims presently under examination by the EPFO.

Rs 20 Crore Alleged Fraud

The establishment subsequently submitted an update in January 2025 alleging cheating, fraud, fabrication of records and submission of false information before the EPFO. During its internal investigation, the establishment reportedly identified two employees as officials responsible for processing provident fund transfer-related activities.

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The establishment further deposited approximately Rs 20 crore with the EPFO that had allegedly been dishonestly withdrawn in furtherance of a criminal conspiracy through fake PF accounts in the instant fraud, resulting in an alleged wrongful loss of approximately Rs 20 crore to the establishment.

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