Shares of Teamlease Services Ltd fell over 3% after the company informed the exchanges that it has received show cause notice from the EPFO for a dispute worth Rs 185 crore linked to mismanagement of funds.
Teamlease Services share price dropped 3.2% intraday to Rs 1,210 apiece. The scrip was trading 2.04% lower by 11:51 a.m. The benchmark NSE Nifty 50 was down 0.04%.
Teamlease Services informed the exchanges that it has recieved a show cause notice alleging that certain violations in relation to the administration and management of funds by the Employees' Provident Fund Trust.
The key observations include investment losses, misappropriation of reserves, losses on sale of bonds and debentures, and certain employee-related amounts reflected as recoverable, for which supporting documentation has been sought, the filing said.
"The quantum of implication as per the notice is Rs. 1,84,58,42,073/- (Rupees One Hundred Eighty-Four Crore Fifty-Eight Lakhs Forty-Two Thousand Seventy-Three Only) including interest, which the Company disputes," the filing read.
"The Company is currently evaluating the notice and will take appropriate legal action. We remain committed to ensuring full compliance with applicable laws and regulatory requirements and will keep the stock exchanges duly informed of any material developments in this matter," it added.
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