What if the contribution is not remitted within time?
All belated remittances will attract Penal Damages and Interest ranging from 17-37% per annum. Besides, prosecution steps will be initiated against the employer before the Judicial First Class Magistrate. Default in remittance of employees share of contribution deducted from their salary constitutes Criminal Breach of Trust punishable under Section 406/409 of Indian Penal Code. Non-remittance of contribution will also lead to recovery proceedings such as attachment of bank account, attachment and sale of movable and immovable property of the establishment and employer and arrest and detention of the employer in civil prison.
