New Delhi: The Employees’ Provident Fund Organisation (EPFO) has launched “VISHWAS 2026”, a one-time dispute resolution initiative to facilitate amicable settlement of disputes relating to the levy of penalty or damages under Section 14B of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 and Section 128 of the Code on Social Security, 2020.
VISHWAS, 2026, has been introduced with the objective of promoting voluntary compliance, reducing litigation, and enabling speedy resolution of long-pending disputes relating to penalty or damages while safeguarding the interests of employees. The scheme provides employers with an opportunity to settle eligible cases through a transparent, fully digital and time-bound process, according to an official statement issued on Friday.
Applications under VISHWAS 2026 have to be submitted online through the EPFO Employer Portal using Digital Signature Certificate (DSC) or e-Sign. The process has been designed to ensure ease of filing, online verification, digital processing and issuance of settlement orders within a defined timeframe.
The scheme, which came into force on June 29, 2026, will remain operational for six months.
The scheme covers four broad categories of cases which include cases where orders for penalty or damages are under challenge before a judicial forum; final damages or penalty orders where recovery is pending or only partly made, including Recovery Certificate (RRC) cases; cases where notices have been issued but final orders for damages or penalty are yet to be passed; and cases where notices for penalty or damages are yet to be issued.
Under VISHWAS 2026, damages or penalty for defaults pertaining to the period prior to 14 June 2024 will be recalculated at substantially reduced rates, namely 0.25% per month for defaults up to two months, 0.50% per month for defaults from two to less than four months, and 1.00% per month for defaults exceeding four months. These concessional rates are intended to encourage employers to resolve pending disputes expeditiously.
To avail the benefits of the Scheme, employers are required to ensure that the entire interest payable under Section 7Q of the EPF & MP Act, 1952 or Section 127 of the Code on Social Security, 2020, as applicable, has been fully remitted before submitting an application. Applicants are also required to furnish an undertaking that no further appeal shall be pursued in respect of the dispute settled under the Scheme.
The Scheme contains detailed provisions regarding adjustment of amounts already paid towards damages or penalty, regulation of statutory pre-deposits made for filing appeals, and settlement of pending cases in a fair and transparent manner. However, establishments where penalty/damages have already been fully recovered, cases involving fraud, misappropriation or deliberate falsification of records, and cases where the applicable statutory interest has not been fully deposited are excluded from the Scheme.
To facilitate smooth implementation, EPFO has issued detailed operational guidelines to all its Zonal, Regional and District Offices. Dedicated VISHWAS Cells are being established across field offices to assist employers, process applications expeditiously and ensure timely disposal. Regular monitoring at Zonal and Head Office levels will be undertaken to ensure effective implementation of the Scheme, the statement added.
(IANS)
