Exusia India COO’s Plea Rejected, Pune Court Upholds Criminal Investigation into PF and Tax Deduction Misappropriation Case

Pune, 9th January 2025: The Additional Sessions Judge, Pune, presided over by SR Narwade, rejected a revision petition filed by Harpreet Ramkrishan Mehta, a partner and Chief Operating Officer of M/s. Exusia India Pvt. Ltd, Kalyaninagar, Pune, in connection with alleged non-payment of Provident Fund (PF) contributions and tax deductions. The court upheld the earlier order issued by the Judicial Magistrate First Class, Pune, directing an investigation into the matter.

The case arose from a complaint by respondent Ranjeesh Kumar Sharma through lawyer Harpreet Saluja, who alleged that the PF contributions and tax deducted from his salary were not deposited by M/s. Exusia India Pvt Ltd, a management consulting firm. The original order, issued on June 28, 2023, instructed the Yerwada police station to register an offence under Section 156(3) of the CrPC.

The petitioner argued that the allegations were of a civil nature and did not constitute a criminal offence. Counsel for the petitioner, V.R. Joshi, highlighted that a summary suit related to the grievances was pending before a competent civil court. Citing multiple precedents, Joshi contended that the case did not warrant a criminal investigation.

However, the court noted that prima facie evidence suggested misappropriation of PF and tax amounts, which could amount to offences punishable under Section 406 of the Indian Penal Code (criminal breach of trust). The court clarified that initiating a criminal investigation did not preclude the ongoing civil proceedings.

In dismissing the petition, the court emphasized that the Judicial Magistrate’s decision was legally sound and that the investigation would help determine whether any offences were committed. The judgment also dismissed arguments based on precedents as irrelevant to the current case due to differing factual circumstances.

The court directed the petitioner to pay ₹1,000 as costs to each of the respondents for compelling them to contest the revision petition.

Advocate Harpreet Singh Saluja said, “The case highlighted grave violations by the company, including the non-deposit of Employee Provident Fund (EPF) contributions, TDS deducted to the income tax department, as well as the non-payment of dues. After the complaints to the Labor Commissioner and police yielded no action, we sought recourse through the Judicial Magistrate First Class, which on June 28, 2023, directed the police to register an FIR and investigate offences under Sections 406, 417, and 418 of the IPC. The company challenged this order in the Sessions Court, but on January 6, 2025, the court has reaffirmed the Trial Court’s decision, emphasizing the need for accountability and imposing costs on the petitioner company. The Sessions Court upheld the Trial Court’s decision, affirming that failure to deposit EPF and income tax contributions constitutes a criminal offence.”