Ludhiana MC remains second highest EPF defaulter, owes ₹8.6 crore to staff
According to official records, the MC had failed to deposit provident fund dues for the period April 2022 to May 2025, amounting to ₹8.6 crore
Ludhiana municipal corporation remained the second-highest employees’ provident fund (EPF) defaulter, with officials confirming that the civic body has failed to deposit the EPF of its outsourcing employees on time. Despite the Employees’ Provident Fund Organisation (EPFO) issuing strict notices and imposing penalties, the MC continues to struggle with compliance.
According to official records, the MC had failed to deposit provident fund dues for the period April 2022 to May 2025, amounting to ₹8.6 crore. This prompted the EPFO to serve a show-cause notice under Section 7A of the EPF & MP Act, 1952, directing the civic body to explain the delay within seven days. The notice warned that failure to respond would lead to formal proceedings for assessment and recovery of the dues.
While the MC was already reeling under the pressure of a pending EPF amount of ₹8 crore, the prolonged delay has now resulted in a penalty of around ₹6 crore, pushing its financial condition into deeper crisis. Senior officials admitted that mismanagement, lack of coordination between departments and the ongoing fiscal crunch have collectively led to this unprecedented burden.
MC commissioner Aaditya Dachalwal said, “We have already started depositing the EPF amount and soon the amount will be cleared.”
Officials revealed that despite repeated reminders from the EPFO, the corporation had not deposited the EPF contributions of hundreds of outsourcing employees working in sanitation, field operations, clerical duties and other essential services. As per the law, any delay attracts interest and penalty, which has now accumulated to a massive figure. Employees said they had repeatedly raised concerns, fearing that their PF accounts were not receiving timely deposits. “We work on the ground every day, but our basic rights are being ignored. Who will take responsibility for our future savings?” asked an outsourcing worker.
The issue has sparked outrage among civic groups and employee unions, who say the negligence not only harms vulnerable outsourcing staff but also severely damages the credibility of the municipal administration. They have demanded strict action against the officials responsible for allowing the dues to pile up for over two years.
The civic body’s financial troubles are not new. The MC has already been struggling to pay salaries, clear contractor bills and manage routine expenses. The latest EPF default has once again highlighted the deep-rooted administrative lapses and poor fiscal planning within the corporation.
Employee working jn Sewa Kendra of MC on requesting anonymity said, “For the past few months, MC has started paying the EPF but it is pending for past several years and department should deposit this amount as soon as possible as this the right of every employee”.
With the MC still holding the second spot on the defaulters’ list, the crisis has raised serious questions about governance and accountability in the city’s civic administration.
Ludhiana municipal corporation has become the second-highest EPF defaulter, failing to deposit ₹8.6 crore in provident funds for outsourcing employees from April 2022 to May 2025. Despite EPFO warnings, mismanagement and fiscal issues persist. Outrage from employees and unions highlights administrative failures, raising concerns over governance as the corporation struggles with ongoing financial crises.