Firm Matters

Khaitan & Co successfully represented Hexaware Technologies Ltd before the Central Government Industrial Tribunal No. I, Mumbai (“CGIT”) in a statutory appeal under Section 7I of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (“EPF Act”), allowing Hexaware’s appeal in entirety and setting aside the impugned order passed by the RPFC-I, Vashi under Section 7A of the EPF Act.

The matter arose from an assessment order dated 12 November 2024 whereby the EPFO had determined alleged provident fund liability of approximately INR 26.08 crores against Hexaware on allegations relating to inclusion of HRA, various allowances, trainees and alleged artificial wage splitting. At the interim stage, despite the statutory pre-deposit threshold potentially extending up to 75% of the assessed amount as a pre-condition for admission of appeal, an interim stay was granted subject to deposit of only 10% of the assessed amount.

By its final judgment, the CGIT accepted Hexaware’s submissions across all material issues and allowed the appeal by setting aside the Section 7A order, annulled the consequential demand of INR 26.08 crores, and directed refund of the amount deposited (10%) at the time of admission within eight weeks of receipt of the certified copy.