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IN THE HIGH COURT FOR THE STATE OF TELANGANA

AT HYDERABAD

THE HONOURABLE SRI JUSTICE NAGESH BHEEMAPAKA

WRIT PETITION No.2375 of 2026

29.01.2026

Between:

ELICO LIMITED

…Petitioner

AND

Regional Provident Fund Commissioner-I,

Employees’ Provident Funds Organisation,

Regional Office – Kukatpally,

Bhavishyanidi Bhavan, Kukatpally, Hyderabad and 3 others

…Respondents

ORDER:

The Writ Petition is filed seeking a direction to the 2nd

respondent to call for the records of the inquiry proceedings and to

set aside Order No.TS/2104/PF/RO/KKP/14B Order/Dam/23,

dated 25.07.2025, passed under Section 14B of the Act, 1952, and

Order No.TS/2104/PF/RO/KKP/7Q Order/, dated 25.07.2025,

passed under Section 7Q of the Act, 1952, by the 2^nd respondent,

and consequently to set aside the impugned Prohibitory Order vide

No.TS/RO/KKP/14B/Z-I/0002104/2005-26, dated 12.01.2026,

and Prohibitory Order No.TS/RO/KKP/7Q/Z-I/0002104/2005-26,

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dated 12.01.2026, passed by the 2^nd respondent under Sections 8F

and 8B to 8G of the Act, 1952, as being illegal, unjustified, and in

violation of the principles of natural justice.

2. Heard Sri B.Manoj Kumar, learned counsel for the petitioner

and Sri G.Venkateshwarlu, learned Standing Counsel for

Employees Provident Fund Organisation, for respondent Nos.1 and

2. Perused the record.

3. The petitioner Company, engaged in IT-enabled healthcare

and RCM services for US clients and registered in Hyderabad, was

subjected to proceedings initiated by the EPFO for the period from

01.04.1994 to 31.03.2024. During this period, notices were

allegedly not properly served due to the frequent travel of the

management. A summons dated 14.06.2024 was issued under

Section 14B of the Employees’ Provident Funds and Miscellaneous

Provisions Act, 1952 (for short, “the Act”), resulting in orders dated

14.08.2025 determining penal damages of Rs.1,94,06,989/- under

Section 14B and interest of Rs.95,47,256/-,under Section 7Q, the

total summons amount arrived at Rs.2,89,54,245/-. The Petitioner

Company paid an amount of Rs.25,00,000/- out of Rs.95,47,256/-

towards amount under Section 7Q, as such, there is a balance of

Rs.70,47,256/-.Subsequently, attachment orders under Sections

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8F and 8B to 8G of the Act were issued on 12.01.2026 for recovery

of the said amounts. The petitioner received intimation of the

attachment on 19.01.2026 and approached the authorities on

20.01.2026 contending that the orders passed under Sections 14B

and 7Q were never served and were issued in violation of the

principles of natural justice, whereupon copies of the said orders

were furnished to the petitioner.

4. Learned counsel for the petitioner submits that the petitioner

Company is willing to pay the entire outstanding amount in 36

installments and, therefore, prays that this Court may permit the

petitioner Company to make payment in 36 installments to the

respondent EPF Organisation. It is further submitted that the 2^nd

respondent Organisation provides an installment facility as per

Circular No. RRC/28(23)06/BIFR/23781, dated 11.02.2014, which

reads as follows:

“2. The proposal for further revising the conditions for grant

of installments to the establishments for liquidating the arrears

was placed before the Central Board of Trustees in its 202nd

meeting held on 13.01.2014 and the Central Board acceded to the

proposal. The following terms and conditions are now prescribed

for allowing the establishments desirous to avail installment

facility to liquidate the arrears in 36 installments:

a) The facility of installment shall be available to both un-exempted

as well as exempted establishments.

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b) The facility of installment shall cover unpaid employees as well

as employer’s share of PF contribution, damages, interest.

c) Current contributions and employer’s share shall be paid

regularly by 15^th of each month.

d) Each installment shall be paid along with interest under Section

7Q of the month along with current contributions.

e) A revolving bank guara