The Central Bureau of Investigation (CBI) has registered a case against two high-ranking Nokia employees in Mumbai following allegations of a substantial provident fund fraud. The accused are alleged to have siphoned off ₹19.33 crore from the Employees' Provident Fund Organisation (EPFO) by creating 94 fake provident fund accounts.
The individuals named in the CBI's First Information Report (FIR) are Vaibhav Verma, identified as the Payroll Cluster Lead, and Kamaraju Mutyala, Head of Payroll Management at Nokia. The FIR states that during the financial year 2023-24, these officials purportedly established 94 fictitious EPF accounts and diverted the substantial sum into them. Unidentified public servants and private individuals are also implicated in the alleged conspiracy.
How the Nokia PF Fraud Was Uncovered
The irregularities came to light after Nokia transitioned its provident fund management. Previously operating as an exempted establishment under the Employees' Provident Fund Act, Nokia managed its PF contributions through a private trust. In July 2023, the company applied to surrender this exemption, and upon approval, transferred all past member accumulations to the EPFO, becoming an unexempted establishment from September 2023.
During the subsequent processes following this transfer, the EPFO's Zonal Fraud Risk Management Committee identified significant discrepancies. Their investigation pinpointed 94 non-genuine beneficiary accounts that had received provident fund payments, triggering a deeper probe.
Internal Audit and Company Response
Nokia launched an internal forensic audit into the matter, which ultimately identified Verma and Mutyala as the individuals responsible for processing the fraudulent fund transfers. The forensic examination reportedly recovered deleted submission files from the accused's laptops, electronic records detailing non-existent employees, and false employment confirmations, along with KYC approvals for fake accounts, all processed using official credentials.
Following its internal investigation, Nokia took swift action, suspending both employees and initiating disciplinary proceedings against them. The company then informed the EPFO about the discovered fraud, which led to the registration of the CBI case. A Nokia spokesperson confirmed the company's commitment to ethical standards and full cooperation with the authorities, stating, "Nokia takes compliance seriously and is committed to the highest standards of ethics and integrity in its business practices. We are fully cooperating with the relevant authorities in connection with their investigation."
The CBI has registered the case under pertinent provisions of the Bharatiya Nyaya Sanhita, the Prevention of Corruption Act, and the Information Technology Act, indicating a comprehensive legal approach to the alleged financial crime.