TeamLease Shares Decline 2% Following Receipt of Rs 184-Crore EPFO Show Cause Notice

TeamLease Services Shares Fall 2% Following Show-Cause Notice from EPFO

Shares of TeamLease Services plummeted 2% on April 28 after the firm received a show-cause notice from the Employees' Provident Fund Organisation (EPFO) for alleged contraventions in fund management.

At 12 pm on April 28, TeamLease shares were trading 2% lower at Rs 1,225 apiece. This development comes as a result of a show-cause notice issued by the EPFO, which alleges certain contraventions in relation to the administration and management of funds by the Employees' Provident Fund Trust.

The key observations made by the EPFO include Investment Losses, Losses on sale of Bonds and Debentures, Misappropriation of Reserves, and Certain employee-related amounts reflected as recoverable, for which supporting documentation has been sought.

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TeamLease has responded to the allegations by stating that it has taken clarification from the Regional Provident Fund Organisation, Bengaluru (Central), which has allowed the employer to fund only to the extent of the shortfall arrived as per the Balance Sheet. The company claims to have funded the shortfall on March 30, 2022, and is working closely with the department to resolve the demand.

The company is currently evaluating the notice and has stated that it will take appropriate legal action to address the allegations.

TeamLease Services Limited is a human resource and staffing company that provides temporary and contractual workers for various industries, including retail, manufacturing, and e-commerce.

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