Indian national declared bankrupt in Singapore over unpaid wages

An Indian national and director of seven Singapore companies has been declared bankrupt after 407 workers lodged claims for unpaid wages. The companies provide air-conditioning, plumbing and building services, while authorities have been investigating the wage-related complaints

Singapore: An Indian national, who was a director of several companies owing wages to more than 400 migrant workers, has been declared bankrupt in Singapore, according to a media report.

A bankruptcy order was made against Ramu Palani Velu on August 13, The Straits Times reported on Thursday. He is a Singapore permanent resident.

---

Ramu is a director of seven local companies providing air-conditioning, plumbing and building services, including KPA Engineering, SK Industries and VVR Plant Engineering.

A total of 407 workers, including Indian nationals, have lodged claims for unpaid wages, with some allegedly not receiving their salaries for more than two months.

Signs of trouble emerged in 2025 when five workers from KPA Engineering separately approached the Tripartite Alliance for Dispute Management over unpaid wages.

The cases were resolved within a week, with the workers receiving payment from their employer. However, in May and June, four other KPA Engineering workers filed claims for unpaid salaries.

The cases were still being processed when more than 100 workers turned up at the Ministry of Manpower (MOM) office in Bendemeer on June 22 seeking help.

By then, MOM was already aware of unpaid wage claims after speaking to KPA Engineering employees affected by a dormitory eviction notice issued on June 8.

Authorities had been trying to contact the company’s directors even before the workers approached MOM en masse on June 22.

As the unpaid wages case made headlines, it emerged that Ramu had been out of the country.

He returned on June 26 and has been assisting MOM with its investigations.

According to records from the Ministry of Law’s Insolvency Office, Ramu applied for bankruptcy on July 9.

Employers who fail to pay salaries may face fines of between USD 3,000 and USD 15,000 per charge, as well as imprisonment of up to six months, the report said.