Vadodara: Two directors of a food processing company were arrested by the police in connection provident fund (PF) fraud.

The police said that Jignesh Nayak, a resident of Surat, Chandravadan Prajapati, a resident of Chhani, and other directors of Stratus Foods Private Limited had deducted provident fund amount from salaries of 125 employees but, they did not deposit this amount in their provident fund accounts with the government. The company had been deducting the amount from the salary since March last year under the head of provident fund contribution.

The company also did not deposit its own contribution of 12% and administrative charges of 1.36% with the provident fund office.

The police arrested Nayak and Prajapti on Wednesday and also summoned another director Sneh Chaudhary to the police station on Thursday.

A police official said that Chaudhary was to come to the police station on Thursday morning but she did not turn up.

A police official said that the directors of the company used around Rs 11 lakh of PF money for their personal use. A source in the police department said that several suppliers of the company had also come forward saying that an amount ranging in crores of rupees has not been paid. However, no complaint has been registered in this regard.

A local court sent Nayak and Prajapati to police remand for three days for custodial interrogation.


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