Muthoot Microfin Limited announced that it has received an order from the Regional Provident Fund Commissioner, Kochi (Kerala), under the provisions of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, proposing the levy of damages and interest on account of delayed remittance of provident fund dues. The major portion of this demand relates to the period of the national lockdown (April 2020) imposed due to the COVID-19 pandemic. During this period, despite the total closure of offices and branches, the Company took a proactive, employee-centric stance by providing financial support in the form of advance salaries to ensure the well-being of its workforce.
Upon formal accounting treatment of these advances as salary in February 2021, the Company promptly remitted the requisite Provident Fund contributions in March 2021. The EPFO has treated this specific timeline, along with certain other minor administrative delays in other periods, as delayed remittances under the Act. The order, under sections 14B and 7Q of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, was dated January 6, 2026, and received by the Company on January 9, 2026.
The period to which the communication applies is from 01/04/2019 to 31/03/2024. In the interest of regulatory compliance and to avoid further litigation costs, the Company has duly remitted the penal damages amounting to INR 40,08,000 with the Regional Provident Fund Commissioner, Kochi (Kerala), and upon such payment, the proceedings stand closed. The Company does not anticipate any material impact on its financial position, operations, or other activities arising from this matter, other than the amount stated above.
