Teamlease Services Receives Show Cause Notice from Employees' Provident Fund Organisation
Teamlease Services Limited has confirmed receipt of a Show Cause Notice (SCN) from the Employees' Provident Fund Organisation (EPFO), Ministry of Labour and Employment, Government of India. The notice, dated April 13, 2026, was received by the company on April 23, 2026.The SCN issued by the EPFO alleges certain contraventions related to the administration and management of funds by the Employees' Provident Fund Trust.
The key observations raised in the notice center on four main areas:
1. Investment Losses
2. Losses on sale of Bonds and Debentures
3. Misappropriation of Reserves
4. Certain employee-related amounts flagged as recoverable, for which supporting documentation has been sought.
Financial Implications and Claims
The notice specifies a total quantum of claims amounting to Rs. 1,84,58,42,073/- (Rupees One Hundred Eighty-Four Crore Fifty-Eight Lakhs Forty-Two Thousand Seventy-Three Only) including interest.The company noted that it disputes this claimed quantum. Teamlease Services Limited also highlighted that in response to a clarification from the Regional Provident Fund Organisation, Bengaluru (Central), the employer had funded the shortfall only to the extent determined by the Balance Sheet, which was funded on March 30, 2022.
Key financial details regarding the claim are summarized below:
| Detail | Quantum of Claim / Implication | Company Status |
|---|---|---|
| Total Quantum of Claim | Rs. 1,84,58,42,073/- | Disputed by the Company |
| Funding Date (Previous) | March 30, 2022 | Based on EPFO clarification |
Teamlease Services Limited stated that the company is currently evaluating the notice and remains committed to ensuring full compliance with applicable laws and regulatory requirements.
TEAMLEASE Stock Price Movement
As of 11:31 AM, shares of Teamlease Services Limited are slipping by 1.12% in live trading, currently at ₹1236. The stock has shed ₹14.00, with 2,981 shares traded in the session so far.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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