Engineers India Limited – ₹193.70 Crore Disappears into Thin Air, CMD Silent
CMD EIL is known for sending legal notices at her whims and fancies, www.indianpsu.com will never give up fair n square reporting, no matter what it costs!
A major controversy has been brewing within Engineers India Limited (EIL) after reports of a staggering ₹193.70 crore loss in the company’s Provident Fund investments. The issue has triggered deep concerns among employees, shareholders, and PSU observers regarding accountability, risk management, and the handling of employee welfare funds.
According to sources, the losses were incurred due to investments in unsecured securities, allegedly in violation of prescribed EPFO investment norms and Ministry of Petroleum & Natural Gas (MoPNG) directives. With a large portion of the loss—₹154.96 crore—being absorbed by the company, questions are being raised as to why shareholders, including the Government of India, should bear the burden instead of those responsible for the investment decisions.
In a detailed questionnaire sent to Ms. Vartika Shukla, Chairman and Managing Director of EIL, www.indianpsu.com had sought clarity on key issues of responsibility, transparency, and corrective action. But she, as always, chose not to reply….
Ms. Shukla tried to throttle the voice of media, that is us – www.indianpsu.com by sending a legal notice to us earlier on another story, but we stood to our story.
🔹 Key Questions on Accountability
Who approved the decision to invest employees’ Provident Fund money in unsecured instruments?
Were these investments made in compliance with EPFO guidelines and MoPNG directives? If not, on what grounds were exceptions made?
What due diligence and risk assessments were carried out before such investments?
Has any internal inquiry or audit fixed responsibility on trustees, fund managers, or senior officials for the massive loss?
🔹 Impact on Employees and Shareholders
The Provident Fund, meant to safeguard the post-retirement future of thousands of EIL employees, has now become a source of anxiety and mistrust. Employees are questioning why their life savings were subjected to avoidable risks, while shareholders are being made to absorb the majority of the loss.
“What measures are being taken to protect the interests of employees whose hard-earned savings were jeopardized?” is one of the pressing questions raised. The company’s silence on specific accountability or disciplinary action has further fueled speculation of internal shielding.
🔹 Transparency and Action Taken
There is growing unease within EIL over the perceived lack of transparency from the top management. Employees allege that the leadership has remained silent on fixing responsibility, while the Board of Directors and MoPNG are yet to make public any action plan.
Questions are also being asked as to why the CMD and senior management have not addressed employees directly or issued an official clarification on this significant financial setback.
🔹 Future Course: EPFO Merger Raises New Concerns
The recent proposal to merge the EIL Provident Fund Trust with the Employees’ Provident Fund Organisation (EPFO) has also come under scrutiny. Many employees see this move as an attempt to deflect attention from alleged mismanagement and poor governance of the existing trust.
Insiders question whether the merger is being used as a cover-up for past lapses, rather than as a reform measure. Employees are demanding clear assurances from EIL management and the Ministry that their future contributions will remain safe and protected under EPFO.
We Report, You Decide…
To be continued
