Khaitan & Co represented Hexaware Technologies Limited in CGIT EPF appeal
The leading law firm in India, Khaitan & Co successfully represented Hexaware Technologies Limited 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”), challenging an order passed under Section 7A by the RPFC-I, Vashi.
Case Background
The dispute arose from an assessment order dated 12 November 2024, wherein the EPFO determined an alleged provident fund liability of approximately INR 26.08 crore against Hexaware Technologies Limited. The allegations included inclusion of HRA, various allowances, trainees, and alleged artificial wage splitting.
At the interim stage, the Tribunal granted a stay subject to deposit of only 10% of the assessed amount, despite the statutory pre-deposit threshold potentially extending up to 75% for admission of appeal.
Key Issues
The primary issues concerned the validity of the EPFO’s computation methodology and whether certain components such as allowances and trainee stipends could be included within the definition of “wages” for provident fund contribution purposes.
Judgment
By its final judgment, the CGIT accepted Hexaware Technologies Limited’s submissions on all material issues and allowed the appeal in entirety. The Tribunal set aside the Section 7A order, annulled the consequential demand of INR 26.08 crore, and directed refund of the amount deposited (10%) at the time of admission within eight weeks from receipt of the certified copy.
Team
The matter was handled by Jeevan Ballav Panda (Partner), Abhinav Rastogi (Partner), Jyoti Sinha (Partner), Dhriti Mehta (Senior Associate), Neha Thirani (Senior Associate), and Tapamoy Ghose (Associate).
Conclusion
This decision provides significant clarity on provident fund assessment practices and reinforces judicial scrutiny over broad-based wage interpretations adopted by authorities under the EPF Act.
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