No PF to SBI employees on contract roles (upto 5yrs extension)

One of my friends passed out from a Tier 1 B-school and joined SBI as "Management Trainee" in a contract role, extendable up to 5 years. The PSU is not providing any PF, medical, etc. benefits in this role, which otherwise would apply to a "permanent employee". While not giving other benefits is understandable, but is non-allocation of PF in the CTC, legal?
From what i understand, a PSU is required to ensure that any employee even if under a contractor too is required to verify PF payments. Then why a direct contract employee is not eligible.

If in the terms of the contract, the PF Gross ( Basic + DA ) is more than 15,000/- per month and first time employment , the candidate will not be eligible for PF Membership. Otherwise if the PF Gross is 15,000/- or below , the candidate is eligible for PF.
S K Bandyopadhyay ( Howrah, WB)

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