The Central Bureau of Investigation (CBI) has registered a criminal case against two senior employees of Nokia Solutions and Networks India over an alleged Employees’ Provident Fund Organisation (EPFO) fraud involving ₹19.33 crore. Investigators claim the accused created dozens of fake provident fund accounts and diverted money into them, leading to one of the biggest alleged PF-related frauds reported in recent years.
The case has drawn national attention because it involves alleged manipulation of employee welfare funds, an area considered highly sensitive as it directly affects retirement savings and social security benefits.
Allegations of 94 Fake PF Accounts
According to the CBI’s FIR, the accused allegedly created 94 fictitious provident fund accounts during 2023-24. These accounts were reportedly used to channel and withdraw ₹19.33 crore through fraudulent transactions.
The investigation also names unidentified public servants and private individuals, indicating that authorities suspect the fraud may have involved a wider conspiracy extending beyond the two company officials.
Officials are now examining financial records, electronic evidence and transaction trails to determine whether additional individuals participated in planning or facilitating the alleged scam.
Transition to EPFO Triggered Discovery
The alleged fraud came to light during Nokia’s transition from an exempted provident fund establishment to the regular EPFO system.
Earlier, the company managed employee provident fund contributions through its own approved trust under provisions of the EPF Act. In 2023, Nokia sought to surrender this exempted status and move all employee provident fund accounts under the EPFO framework.
After regulatory approval, employee fund balances were transferred to EPFO, and the company started functioning as a non-exempt establishment from September 2023. It was during this migration and verification process that irregularities reportedly surfaced.
Internal Audit Revealed Serious Irregularities
An internal forensic audit conducted by Nokia reportedly uncovered suspicious fund transfers and inconsistencies in employee records.
Investigators allegedly recovered deleted electronic files from laptops used by the accused. The forensic review also reportedly found records relating to individuals who were never employed by the company, fabricated employment confirmations, and Know Your Customer (KYC) approvals processed using official credentials.
Authorities believe these digital records could play a crucial role in establishing how the fake accounts were created and how money was allegedly diverted.
EPFO Committee Identified Non-Genuine Beneficiaries
The EPFO’s Zonal Fraud Risk Management Committee reportedly examined the transactions after the migration process and identified 94 beneficiary accounts that appeared to be non-genuine.
The committee’s findings strengthened suspicions that provident fund money had been diverted through fabricated employee records.
The EPFO, one of India’s largest social security organisations, manages provident fund, pension and insurance benefits for millions of workers across the country, making the integrity of its financial systems a critical concern.
Nokia Suspends Employees, Assures Cooperation
Following the internal investigation, Nokia suspended both employees named in the FIR and initiated disciplinary proceedings.
The company also informed the EPFO about the suspected irregularities, which eventually resulted in the CBI registering the criminal case.
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In an official statement, Nokia said it maintains strict compliance standards and is committed to ethical business practices. The company added that it is fully cooperating with investigating agencies while refraining from commenting further because the matter remains under investigation.
Charges Filed Under Multiple Laws
The CBI has invoked provisions of the Bharatiya Nyaya Sanhita (BNS), the Prevention of Corruption Act and the Information Technology Act in connection with the alleged fraud.
Investigators are expected to examine financial documents, digital devices, bank records and official approvals to establish the complete money trail. Authorities are also working to identify any additional beneficiaries who may have received funds through the fake provident fund accounts.
Wider Implications for Corporate Compliance
The case has once again highlighted the importance of robust payroll controls, digital security and continuous auditing of employee benefit systems.
Experts believe organisations handling large employee welfare funds must strengthen verification mechanisms, improve internal oversight and regularly audit payroll and provident fund records to detect irregularities before substantial losses occur.
The investigation remains ongoing, and the CBI is expected to question additional individuals as it examines whether the alleged fraud involved a larger network operating within or outside the organisation.
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