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Defaults under the Employees' Provident Fund Organisation (EPFO) reached a record ₹25,820.88 crore by the end of 2023-24, marking a 69.3% increase from Rs 15,254.06 crore in the previous fiscal, according to official data.According to The Economic Times report, defaults from exempted establishments increased by 243.7% to Rs 5,318.42 crore, up from Rs 1,300.88 crore in 2022-23. However, recovery was poor, with only Rs 847.77 crore recovered, leaving a balance of Rs 4,470.65 crore.

Telangana reported the highest arrears among exempted establishments at Rs 3,505.84 crore, followed by Delhi (Rs 213.52 crore), West Bengal and Sikkim (Rs 145.26 crore), Jharkhand (Rs 135.66 crore), and Rajasthan (Rs 115.85 crore). These five states accounted for over 92% of the total arrears.The report added that unexempted establishments experienced defaults totaling Rs 16,349.7 crore. A total of Rs 9,474 crore (57.9%) was classified as not immediately realisable (NIR) due to legal challenges, liquidation processes, or Board for Industrial and Financial Reconstruction-approved rehabilitation projects.In the unexempted category, private sector defaults totaled Rs 13,734.85 crore, followed by public sector defaults of Rs 2,252.27 crore and cooperative sector defaults of Rs 362.58 crore.In response, the EPFO has directed its regional offices to work with state governments on recovery efforts. Measures include publicly publicizing the identities of the top ten defaulters in each region, attaching properties of defaulting employers with police aid, and designating jails as civil prisons to speed up recovery.

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