New Delhi: An Indian expatriate businessman and director of multiple companies in Singapore has been declared bankrupt following allegations of unpaid wages involving more than 400 migrant workers.
According to a report by The Straits Timesa bankruptcy order was issued against Ramu Palani Velu on August 13. Ramu, who is a Singapore permanent resident, is facing claims to outstanding salaries owed to employees working under his companies.
407 Workers File Claims Over Pending Salaries
Ramu serves as a director of seven Singapore-based companies involved in air-conditioning, plumbing and construction services. These companies include KPA Engineering, SK Industries and VVR Plant Engineering.
A total of 407 workers, including several Indian nationals, have reportedly filed claims seeking payment of pending wages. Some employees claimed that they had not received their salaries for more than two months.
The issue came to light after over 100 workers approached the Ministry of Manpower (MOM) office on June 22 seeking assistance regarding unpaid wages.
Ministry of Manpower Investigated Matter
The Ministry of Manpower was already aware of the wage dispute after receiving complaints from affected employees of KPA Engineering following dormitory eviction notices issued on June 8.
Officials had attempted to contact the company directors before the workers gathered at the MOM office.
As the allegations of unpaid salaries gained attention, reports emerged that Ramu was outside Singapore at the time. He returned on June 26 and cooperated with the ministry's investigation.
Bankruptcy Filing and Legal Action
Records from Singapore's Ministry of Law's Insolvency Office show that Ramu filed for bankruptcy on July 9, before the bankruptcy order was issued in August.
Under Singapore law, employers who fail to pay wages can face penalties, including fines ranging from SGD 3,000 to SGD 15,000 per charge and imprisonment of up to six months.
The case highlights growing concerns over wage protection for migrant workers employed in Singapore's construction and service sectors.
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