CAG Report Reveals Serious Issues in Assam Tea Employees’ Provident Fund Management

A recent CAG report has exposed significant operational failures within the Assam Tea Employees’ Provident Fund Organisation, revealing alarming gaps in worker registration and substantial defaults in provident fund contributions. With over 39,000 eligible workers lacking coverage and a staggering Rs 419 crore in defaults, the report raises serious concerns about the financial security of Assam's tea workforce. The findings also highlight poor processing of family pension claims and risky investments that could lead to further losses. This troubling situation calls for urgent corrective measures to protect the interests of tea workers in the region.

By Narendra Chaudhary Dec 3, 2025, 16:53 IST

Critical Findings from the CAG Report

Guwahati, Dec 3: A recent report by the Comptroller and Auditor General (CAG) has uncovered significant shortcomings in the operations of the Assam Tea Employees’ Provident Fund Organisation (ATEPFO) for the period from 2017-18 to 2021-22.

The report, which was presented in the Assam Assembly, highlights alarming deficiencies in worker registration, substantial defaults in provident fund (PF) contributions by tea estates, inadequate processing of family pension claims, and risky investment practices that could lead to further financial setbacks.

According to the CAG, while 1,197 tea estates are registered with ATEPFO, only 624 have successfully enrolled their workers.

Out of 12,37,351 eligible workers, only 11,98,231 are registered, leaving 39,120 workers without access to ATEPFO benefits as of March 2022.

The report indicates a shortfall of Rs 315.45 crore in PF contributions from 334 tea estates as of March 2022, with 83% of these estates experiencing delays or failures in PF contributions for five years or longer.

This figure does not include estates managed by the Assam Tea Corporation Ltd (ATCL).

Nineteen tea estates owned by ATCL, which employ 20,994 workers, have not made any PF contributions since 2005 due to severe financial difficulties, as noted by the CAG.

As of March 2022, the total amount in default, including statutory interest, reached Rs 419.07 crore, with only Rs 32.43 crore (8%) deposited, leaving outstanding dues at Rs 386.64 crore.

ATEPFO reported in October 2023 that ATCL had settled all outstanding PF contributions as of September 2023, although the 15% statutory interest on late payments remains unpaid.

Between 2017 and 2022, ATEPFO managed to settle 87–96% of PF claims and 99% of pension claims, but the rate for family pension claims was alarmingly low, ranging from 10% to 39% during the same timeframe.

The CAG also discovered that 1,994 settled claims, totaling Rs 14.01 crore, were not credited to beneficiaries’ accounts due to transaction failures.

Many of these unresolved cases date back to 2017-18 and 2018-19, remaining pending for over three years.

The audit raised concerns about ATEPFO's investments in certain corporate bonds that did not adhere to safety criteria, leading to interest payment defaults starting in 2019-20, resulting in a loss of Rs 11.42 crore.

Additionally, the CAG warned of a potential loss of Rs 69.61 crore on the maturity of six such bonds by September 2027 unless corrective measures are implemented.

The findings present a concerning view of an organization grappling with operational inefficiencies, financial risks, and inadequate enforcement of PF obligations, all of which jeopardize the welfare of Assam’s tea workers.