CBI registers FIR against Nokia employees for Rs 19.33 crore EPFO fraud

The Central Bureau of Investigation (CBI) has registered a case against two employees of Nokia Solutions & Networks India Pvt Ltd for their alleged involvement in a fraudulent withdrawal of approximately Rs 19.33 crore from the Employees' Provident Fund Organisation (EPFO).

The Central Bureau of Investigation (CBI) has registered a case against two employees of Nokia Solutions & Networks India Pvt Ltd for their alleged involvement in a fraudulent withdrawal of approximately Rs 19.33 crore from the Employees' Provident Fund Organisation (EPFO). The accused, identified as Vaibhav Verma (Payroll Cluster Lead) and Kamaraju Mutyala (Head of Payroll Management), along with unidentified public servants and private individuals, have been booked under various sections of the Bharatiya Nyaya Sanhita (BNS), the Prevention of Corruption Act, and the Information Technology Act.

The case pertains to the period between 2023 and 2024, when Nokia was in the process of surrendering its "exempted establishment" status under the EPF Act of 1952. According to an FIR registered, the accused allegedly siphoned off provident fund accumulations into 94 fictitious or non-genuine employee accounts. The matter came to light after the EPFO's Zonal Fraud Risk Management Committee conducted a preliminary inquiry based on a complaint received through the CPGRAMS portal. The investigation revealed that out of 70 suspected accounts initially identified, 66 had no employer-employee relationship with Nokia. Further scrutiny identified an additional 28 non-genuine members, bringing the total to 94.

Nokia Solutions & Networks India Pvt Ltd subsequently conducted an internal forensic audit, which pinpointed Verma and Mutyala as the key officials responsible for processing and certifying the fraudulent transfer-related records. The company's audit uncovered that files submitted to the EPFO were deleted from the suspects' laptops shortly after filing. "The forensic audit detected electronic communications containing details of non-Nokia employees, false confirmations regarding employment status, and approval of KYC (Know Your Customer) particulars for fake accounts using official credentials," the FIR stated.

Following the internal findings, Nokia suspended both officials and initiated disciplinary proceedings. To mitigate the loss caused to the EPFO, the company reportedly deposited approximately Rs 20 crore (including interest) with the organisation. The internal enquiry by the EPFO also observed procedural and supervisory lapses in the processing of the Past Accumulation Statements. The CBI's Economic Offences Branch in Mumbai is now conducting a comprehensive investigation to identify all persons responsible and trace the flow of the embezzled funds. (ANI)