TeamLease Services Limited Faces 184.58 Crore EPFO SCN Over Fund-Management Issues

TeamLease Services Limited has disclosed to the stock exchange of India that it has received a Show Cause Notice (SCN), dated April 13, 2026, issued by the Employees’ Provident Fund Organisation (EPFO), Ministry of Labour and Employment, Government of India. The company had received the notice on April 23, 2026.

In the said notice, the EPFO has alleged that the company is involved in certain violations concerning the administration and management of funds by the Employees’ Provident Fund Trust. The key issues include investment losses, losses on the sale of bonds and debentures, misappropriation of reserves and certain employee-related amounts depicted as recoverable. For clarification regarding the same, the authority has sought the relevant supporting documentation.

The notice has proposed an aggregate tax demand amounting to Rs 184.58 crore (including interest) on the company. However, the company has disagreed with this amount and stated that it had earlier taken clarification from the Regional Provident Fund Office in Bengaluru, which allowed the employer to fund only the shortfall as per its balance sheet. The company claims it has already funded this shortfall on March 30, 2022.

Presently, the company is thoroughly analysing the notice and cooperating with authorities to resolve the matter. It has also claimed that it will adopt relevant legal steps to challenge the demand, if required.

The company has disclosed the aforesaid information through an intimation dated April 28, 2026, addressed to the Bombay Stock Exchange (BSE) Limited and the National Stock Exchange of India (NSE) Limited, issued under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The company has claimed that it has made a delay of 5 days in furnishing this intimation due to some unavoidable administrative reasons and the time needed to determine whether the notice was significant.