Detecting frauds worth about Rs 1 crore (Rs 10 million) in claims settlement across the country, Employees Provident Fund Organisation on Wednesday decided to set up a fact finding team to investigate into the matter as part of efforts to prevent such misdemeanours.

"A fact finding committee has been appointed, which will look into how and why it (fraud) happened," Labour Minister Sahib Singh Verma told reporters after the meeting of Central Board of Trustees of EPFO, in New Delhi.

Singh said there were instances of forging signatures in claiming the settlements and the cases were detected in Delhi, Bangalore and Gwalior.

He said the cases were pertaining to individuals and the committee would investigate the matter in depth and in one case in Bangalore, the amount involved was as much as Rs 60 lakh (Rs 6 million).

On the overall, Singh said the amount involved was close to Rs 1 crore.

Asked whether there was any connivance with officials in the EPFO, official sources said the committee would look into the matter in totality.

Singh said the committee's report would pave way for the strengthening of the EPFO system to prevent such frauds.

Asked to elaborate, the minister said there was a need to strengthen the internal audit and filling up of posts.

He said the EPFO could settle claims over Rs 50 lakh (Rs 5 million) in the last fiscal.