Muthoot Microfin Limited has received an order from the Regional Provident Fund Commissioner, Kochi (Kerala), proposing levy of damages and interest for delayed remittance of provident fund dues under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952.

The demand primarily relates to the national lockdown period in April 2020, during which the company provided advance salaries to employees. These advances were formally accounted for as salary in February 2021, and the requisite Provident Fund contributions were remitted in March 2021. The EPFO classified this timeline, along with other minor administrative delays, as delayed remittances.

To ensure regulatory compliance and avoid further litigation, Muthoot Microfin has remitted penal damages amounting to ₹40,08,000 (Rupees Forty Lakhs Eight Thousand Only). Following this payment, the proceedings have been closed. The company anticipates no material impact on its financial position, operations, or other activities beyond the stated amount.