Reliance gets EPF deal

Anil Ambani's Reliance Capital has been selected along with two other private companies to help manage the employee provident fund which is worth a whooping Rs two lakh 50 thousand crore.
However, the inclusion of Anil Ambani led Reliance Capital as one of the fund managers for the Employee Provident Fund has angered the Left and the Leftist trade unions are alleging foul play.
The CPM alleges the late selection of Reliance Capital is a payback for the trust vote.
Fresh from the victory in the trust vote and with no allies to wave the red flag, the Government seems to have taken the first step in putting the reform process back on track.
The move to allow private fund managers to manage a part of Rs two-lakh fifty thousand crore provident fund corpus has run into controversy.
The CPM and left allied trade union allege that only three players were given the clearance by the committee but it was expanded for a fourth player to enable Anil Ambani owned Relaince capital to co-manage provident funds.
The Government, they allege, was returning the Samajwadi Party a favour - of bailing them out from the crisis.
"It is a political move," says CPI (M) Politburo Member, M K Pandhe.
However, it is not just the politicians who are alleging foul play.
Sources in the mutual fund industry tell CNN-IBN that HDFC and Birla Sunlife had quoted a nil asset management fee in the tender. Tenders usually favour the company that quotes the lowest rates. That apart they also need pass the technical bids.
Sources say bids from HDFC and Birla Sunlife were rejected based on an earlier court judgement that no service can be rendered without consideration.
That left four players in the fray. HSBC quoted the lowest rates, followed by ICICI Prudential and SBI.
And, what was meant to be a best of three, suddenly saw a fourth player in the form of Anil Ambani's Reliance Capital.
The labour ministry has maintained that the entire process has been transparent. But the manner in which a fourth player was squeezed in to manage the graveyard benefits of four crore employees does raise many question marks of credibility and transparency.
Source: CNN IBN