Indian man declared bankrupt in Singapore after failing to pay wages to 400 workers

An Indian man, Ramu Palani Velu, has been declared bankrupt in Singapore after failing to pay wages to over 400 migrant workers, according to PTI. A bankruptcy order against him was made on August 13, reported The Straits Times. Velu holds Singapore permanent residency and served as director of seven local firms, including KPA Engineering, SK Industries, and VVR Plant Engineering.

More than 400 workers, comprising several Indian nationals, filed claims for unpaid wages, with some stating they hadn't been paid for more than two months.

The problems began in 2025 when five KPA Engineering workers complained to the Tripartite Alliance for Dispute Management about unpaid salaries, which were settled within a week. However, the issue resurfaced in May and June this year when more complaints were filed. By June 22, over 100 workers had sought help at the Ministry of Manpower's office in Bendemeer, and MOM officials were investigating the wage complaints.

Velu had been abroad at the time, returning to Singapore on June 26 and cooperating with the MOM's investigation.

Employers who fail to pay salaries in Singapore can face fines of up to USD 15,000 per offense and a potential jail term of up to six months, as per Ministry of Law records.