Provident fund bond investment of Rs 11,000 crore at risk
AHMEDABAD: The Employees Provident Fund Organization (EPFO), which has an estimated 2.5 crore members, is questioning its investment in bonds of various companies worth Rs 11,000 crore. This is an investment in which the invested companies have defaulted and no interest or principal is paid. The organization invests the amount of salary savings and interest on it at the time of retirement of the employees in different sectors and pays back accordingly. If this amount is not returned, EPFO's funds could be hit hard. No principal or interest is being paid on the bonds of IL&FS, Reliance Capital with the outstanding amount being Rs 3 crore. In addition, the credit ratings of bonds invested by Indiabulls Housing, IDFC First Bank and Yes Bank have been weakened. EPFO's total investment in Diwan Housing was Rs. As on September 30, Rs. 313.04 crore against principal and Rs. 190.2 crore of interest have not been recovered. Dewan Housing's bankruptcy proceedings have been com