15 L employees with PF a/cs stuck with IL&FS bonds

New Delhi, February 17

A spanking new but restive community of 15 lakh salaried employees is concerned about its money deposited with the Employees Provident Fund Organisation (EPFO).

At the cutting edge of the ever burgeoning IL&FS crisis, these employees are exposed to toxic investments. Most of these Employee Provident Funds and Employee Pension Funds have stated that the IL&FS resolution plan must provide repayment before secured creditors as the resolution framework proposed by the company doesn’t provide for any payment to secured creditors.

Since these are tradeable instruments, the exact quantum is not known, but investment bankers estimate it to be in thousands of crores since the infrastructure company’s bonds were preferred by retirement funds that have a low-risk appetite but still have to get assured returns. — IANS