July 09, 2011
We working as bonded labour in the name of Agency employee in MECON Limited, A Govt. of India Enterprise, under Ministry of Steel, through Growell H R Solutions Pvt Ltd., No.45, Ist Floor, R.K.Plaza, Nehru Road, Aravind Nagar, Kammanahalli Post,Bangalore-560084, would like to draw the following facts for kind attention of Govt. of India and take proper action in the interest of the nation.
1. That MECON Limited, A Govt. Company under the Ministry of Steel had for the benefit of some vested interests have fraudulently created so many Agencies, Contractors in order to retain thousands of contract employees all over India for the last 4-5 years defying all norms laid down by Govt. of India for retention of contract employees.
2. The modus operandi is first MECON conducts interview/test notifying that MECON requires engineers on contract basis through agency. After selecting candidates ignoring all criteria laid down by Govt. of India they direct pet Agency/Contractors to issue appointment offer letter indicating that candidates will be deputed to Agency/contractor client (MECON) offices located all over India. After appointing them through Contractor/Agency, in gross violation of established rules, they pay far less pay than the regular employees of MECON get for same qualification and same nature of job. Further they deduct PF/ESI, Professional Tax from the employee and they do not deposit to the Concerned Govt. departments in proper way depriving aggrieved employees from PF/Pension/Gratuity ESI benefits. By the time employees able to know the foul play of MECON management they found that they have lost every thing and there is no way other than to leave the job forgoing PF accumulation and other benefits. In their place MECON recruits, in the name of experience, old age retired/VRS employees for duration till their death either on direct roll or Agency/contractors roll. This process is continuing for last 4-5 years. And so far thousand of employees have joined and left MECON through agency/contractors and thousand still are remaining.
3. The are not deducting Income tax at source giving excuse that such employees are on the roll of Agency/Contractor. Agency/Contractors are taking shelter that they are MECON employee. This way both of them are evading Income-tax payment. It is not known how they are showing in their balance sheet and how they are paying corporate income tax.
4. They are deducting professional tax from the employee but not depositing in respective State Govt. Treasury thereby making loss of State Govt. revenue.
5. In case it is established that Agency/Contractors are service provider, they are not paying Service Tax to the Excise Department. In case contract employee are Agency/contractorâs employee then it is not known under what rule MECON is reimbursing
6. They are not paying required salary because they are not registering their companies with appropriate authorities knowingly so that they may not have to submit statutory returns to the Labour Departments/local employment exchange.
7. MECON is misleading CVC, CAG, Ministry by giving falls and fictitious data.
8. If all the misdeeds are translated in terms of money it would go to several crores. It can be termed as scam because overtly or covertly so many Govt. departments are concerned.