The Telangana High Court directed the Regional Provident Fund Commissioner-I, Hyderabad, to pay 9% annual interest to M/s Virtusa Consulting Services Pvt Ltd on Rs 4.05 crore for the period between May 3, 2024 and November 19, 2025, holding that the EPFO unjustifiably retained the amount after the assessment order was set aside.
Justice Nagesh Bheemapaka held that the EPFO neither refunded the money nor challenged the appellate order during the relevant period, despite repeated representations from the company. The court directed payment of interest within eight weeks and permitted recovery of the amount from officers responsible for the delay.
The court also directed that the bank interest earned on the deposit be donated to the Prime Minister National Relief Fund and clarified that it had expressed no opinion on the merits of the provident fund liability.