The government has found 9 lakh beneficiaries in as many as 80,000 companies took benefit of the Centre’s job formalization scheme, Pradhan Mantri Rojgar Protsahan Yojana (PMRPY), even though they were not eligible, leading to around Rs 300 crore loss to the exchequer.
According to a report published in the Business Standard, These companies allegedly duped the system by taking financial incentives meant to bring new employees in the formal economy. The PMRPY scheme incentivises employers registered with the Employees’ Provident Fund Organisation (EPFO) for job creation by paying a full contribution of employers’ side to Employee Pension Scheme (EPS) and Employees’ Provident Fund (EPF).
Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) scheme was launched in August 2016 and was meant only for new employees who were hired after April 1, 2016, earning wages less than or equal to Rs 15,000 per month.
Around 8,98,576 employees from 80,000 companies were found to be taking benefit of the scheme till July 16, 2019. Till now the government recovered around Rs 222 crore through EPFO after blocking provident fund accounts (over 9 lakh), Daily report.
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