Despite the labour ministry's claims that it is vigourosly chasing the employees provident fund defaulters, the money that employers - in the public and private sectors - owed to the fund mounted to Rs 1,758 crore (Rs 17.58 billion) till July, but Employees Provident Fund Organisation might be able to realise only Rs 571 crore (Rs 5.71 billion).

"Of the outstanding arrears of Rs 1,758 crore (till July 2003), as much as Rs 1,187 crore (Rs 11.87 billion) is currently not enforceable and only Rs 571 crore is immediately realisable," sources in the ministry told PTI in New Delhi on Wednesday.

As much as 68 per cent of the outstanding arrears cannot be recovered due to several reasons including court stay, winding up of establishments and the Board for Industrial and Financial Reconstruction cases.

Labour Minister Sahib Singh Verma had given a warning to the defaulting establishments, saying EPFO would initiate legal action, freezing of bank accounts, attaching of property, blacklisting from obtaining government orders and making public the defaulters.

The EPFO had reported arrears of Rs 1,511 crore (Rs 15.11 billion) to be recovered from employers in 2002-03.

Though there was a fresh addition of Rs 443 crore (Rs 4.43 billion) during the first quarter of this year, taking the total arrears to Rs 1,955 crore (Rs 19.55 billion), EPFO could recover about Rs 228 crore (Rs 2.28 billion) during the quarter, leaving outstanding arrears of Rs 1,758 crore till July 2003.

Sources said the directorate of recovery would soon start functioning and a monitoring mechanism had already been stepped up at the central office level.