Agency Faces Possible Contract Termination, Blacklisting Over Statutory Compliance Failure
JAMMU, Oct 8 : The State Health Agency (SHA), Jammu and Kashmir, has initiated stringent contractual action against manpower agency M/s Comtech Solutions over alleged failure to fulfil statutory obligations relating to Employees’ Provident Fund (EPF) and Employees’ State Insurance Corporation (ESIC) contributions of personnel engaged under the Ayushman Bharat-PMJAY programme.
In a final compliance notice, the SHA has directed the agency to deposit Rs 21,48,75,600 and submit documentary evidence establishing payment of the outstanding EPF and ESIC contributions.
The agency has also been asked to furnish complete month-wise details, supporting challans and other relevant records concerning statutory contributions made in respect of employees deployed under the contract.
The action concerns manpower engaged as Pradhan Mantri Arogya Mitras (PMAMs), Data Entry Operators (DEOs) and Helpers under Ayushman Bharat-PMJAY, J&K. The manpower arrangement came into effect from November 1, 2023.
According to the SHA’s notice, the agency was contractually responsible not only for timely payment of wages but also for complying with statutory requirements, including employer and employee contributions towards EPF and ESIC.
The agency, however, allegedly failed to fulfil these obligations despite repeated directions and notices issued by the authorities.
The SHA had earlier issued a show-cause notice on February 4, 2026, directing the agency to clear outstanding EPF and ESIC contributions within the prescribed period. A further final opportunity was reportedly provided through a notice issued on September 1, 2026.
The SHA has observed that records furnished by the agency showed EPF contributions deposited only up to August 2025, indicating that statutory compliance remained incomplete thereafter.
The development assumes significance as more than 500 PMAMs had reportedly raised concerns over delayed salaries and alleged non-deposition of their statutory contributions. Employees had claimed that EPF amounts were being deducted from their salaries but were allegedly not being deposited with the concerned authorities, while concerns were also raised regarding ESIC coverage.
Representations from the affected personnel reportedly indicated that EPF dues had remained pending for around 15 months, with employees claiming approximately Rs 52,170 per person in accumulated pending contributions.
The SHA has now directed Comtech Solutions to regularise all outstanding statutory liabilities and submit complete supporting documentation to the competent authority.
The agency has also been cautioned that failure to comply with the directions could invite further contractual action, including invocation or forfeiture of the Performance Bank Guarantee, termination of the contract and recommendation for blacklisting/debarment from future Government and SHA engagements.
The notice further provides for recovery of any additional amount found payable and initiation of other contractual, statutory or legal proceedings, wherever warranted.
Meanwhile, administrators of empanelled healthcare providers have also been directed to reconcile the month-wise EPF and ESIC employer and employee contributions of PMAMs deployed at their respective institutions with the records of the outsourced agency.
The latest action has come amid concerns among the affected employees regarding the possible expiry of the manpower agency’s contract and apprehension that their deducted statutory contributions could remain unsettled unless the dues are cleared before the agency exits the arrangement.(KNC)