CAG exposes gaps in Assam Tea Workers’ provident fund safety net, 40000 still uncovered

The Assam Tea Employees’ Provident Fund Organisation (ATEPFO), tasked with ensuring social security benefits for workers in the state’s tea sector, has come under scrutiny with the Comptroller and Auditor General (CAG) flagging numerous operational deficiencies in its latest performance review.

The report, covering the financial years 2017–18 to 2021–22 and recently tabled in the Assam Legislative Assembly, states that nearly 40,000 eligible tea workers remain outside the ambit of provident fund (PF) schemes despite being entitled to enrollment. Of the projected 12,37,351 workers under ATEPFO’s coverage area, only 11,98,231 are registered, resulting in 39,120 workers being deprived of essential PF benefits.

The report further highlights significant defaults by tea estates in depositing PF contributions. As of March 2022, 334 estates had failed to deposit a cumulative amount of ₹315.45 crore, with delays extending up to five years in 83 percent of the cases. Estates under Assam Tea Corporation Limited (ATCL), already reeling from financial distress, were found to be the biggest defaulters.

Nineteen ATCL estates, with 20,994 employees under ATEPFO, had reportedly defaulted on both employee and employer PF share since 2005. Their outstanding dues, including statutory interest, stood at ₹419.07 crore, but only ₹32.43 crore (8%) had been deposited until March 2022 — leaving ₹386.64 crore still unpaid. ATEPFO later informed that by September 2023, ATCL cleared the pending contribution, while interest payments remained ongoing.

Although the organisation achieved high settlement rates for PF (87–96%) and pension claims (up to 99%) during the audit period, settlement of family pension cases remained alarmingly low, at only 10–39%. Additionally, 1,994 processed claims worth ₹14.01 crore were never credited to beneficiaries due to transaction failures, with more than half pending for over three years.

The CAG has also raised concerns over risky corporate bond investments made without adhering to mandated safety criteria. These investments have already caused an interest loss of ₹11.42 crore since 2019–20 and may lead to potential losses amounting to ₹69.61 crore by maturity through September 2027.

The report concludes that while ATEPFO plays a critical role in safeguarding the welfare of Assam’s tea workforce, its persistent operational lapses, weak enforcement of compliance, and questionable investment decisions are undermining the very social security framework it is meant to protect.