Section Text
Where an employer makes default in the payment of any
contribution which he is liable to pay in accordance with the provisions of Chapter III or Chapter IV, as the
case may be, or any scheme framed thereunder or in the transfer of accumulations under Chapter III, or in
the payment of any charges payable under any other provision of this Code, the Central Provident Fund
Commissioner or the Director General of the Corporation, as the case may be, or such other officer as may
be authorised, by notification, by the appropriate Government, may levy on, and recover from, the employer
by way of damages, an amount not exceeding the amount of arrears, in such manner as may be specified in
the regulations for the purposes of Chapter IV and in respect of Provident Fund Scheme, Pension Scheme
and Insurance Scheme, such levy and recovery shall be in the manner as may be specified in the respective
schemes framed by the Central Government:
Provided that before levying and recovering such damages, the employer shall be given an opportunity
of being heard:
Provided further that the Central Board or the Corporation, as the case may be, may reduce or waive
the damages levied under this section in relation to an establishment for which a resolution plan or
repayment plan recommending such waiver has been approved by the adjudicating authority established
under the Insolvency and Bankruptcy Code, 2016 (31 of 2016) subject to the terms and conditions as may
be specified by notification, by the Central Government.