U DURGA PRASAD RAO,J. - (1.) The petitioner-Guntur Municipal Corporation seeks a writ of mandamus declaring the order of respondent in AP/RO/GNT/48914/PD Cell/GNT/2020/291 & 293 dated 24.09.2020 passed under Section 14B & 7Q of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (fort short, 'the Act') as arbitrary and illegal and set aside the same.
(2.) The petitioner's case succinctly is thus: (a) The petitioner Corporation has been passing through severe financial crisis as its revenue collections are far below the expenditure in maintaining the civic amenities. While so, the respondent initiated proceedings under 14B & 7Q of the Act to determine the alleged interest payable by the petitioner Corporation for the period from 01.08.2016 to 31.07.2019. The petitioner paid EPF contributions as a facilitator for the employees of self-help groups and the independent contractors. In fact, those employees cannot be treated as employees of the petitioner. The petitioner submitted the details about various difficulties faced by the Corporation and requested the respondent to drop the proceedings initiated against it. However, the respondent passed the impugned order under Section 14B & 7Q of the Act on 24.09.2020 levying damages of Rs.16,60,795/- and interest of Rs.21,44,190/- for the period from 01.08.2016 to 31.07.2019 though the respondent has no jurisdiction. The respondent has not taken into consideration the submission of the petitioner that during serious pandemic COVID-19 there was shortage of staff and the respondent passed the ex parte order, which is arbitrary and illegal. Hence, the present writ petition.
(3.) Heard Sri Koka Satyanarayana Rao, learned counsel for petitioner, and Sri T.Balaji, Standing Counsel for the respondent.;