Hold of epf amount
Querist :
Anonymous
(Querist) 10 September 2018
This query is : Resolved
Dear Experts
I am posting this for one of my friend as under:
My friend A was working with a private big fortune 500 company. He has been told to resign due to health ground (He has passed through a Major stomach surgery)and he submitted resignation to his boss. He has taken loan from the company earlier. After resignation company is asking for repayment of loan and my friend is not in condition to repay back the loan due to ill health and not joining any job.
The said company kept in hold the EPF amount of my friend . I only want to know whether EPF trust of any company can hold EPF for recovery of any loan due to company.
Urgent reply solicited
Regards
Sudhir Kumar, Advocate
(Expert) 11 September 2018
The action of company is illegal.
Please submit written complaint to RPFC.
Dr J C Vashista
(Expert) 11 September 2018
1. What is the action taken by the employee?
2. Posting this question on behalf of "friend" ??
3. You are "anonymous" author ???
Guest
(Expert) 11 September 2018
Anonymous authors are accustomed to post only hypothetical academic queries, not real problems.
In your case, what was secret in your case, which compelled you to keep yourself anonymous, even when you are not likely to get any harm from the company of your friend and also that he has already left the company? Why try to make fools of the experts to get answer to your hypothetical academic problem on a fake question in the name of your friend?
However, can you clarify, DO YOU MEAN TO SAY that your friend wants his EPF balance paid to him but not willing to repay his debt of the company towards him?
You don't know how the company can recover its dues even at the time of making payment by appropriate adjustment even without showing any deduction from EPF balance.
Querist :
Anonymous
(Querist) 11 September 2018
Thanks to Mr Sudhir Kumar
Sir one more thing I want to know that the company has its own EPF Trust in this case whom to write , whether company trusts are within the jurisdiction of RPFC
Guest
(Expert) 11 September 2018
@ Mr. Sudhir Kumar,
Academic queries usually are added with subsequent supplementary questions. Now please satisfy that fellow.His next question can be, under whicih section withholding of payment of EPF is illegal. But, he does not prefer to give any clarification to my query.
He should know that any authority on receipt of complaint would not issue any decree against the ex-employer of his friend. Rather, if there is even slightest of truth in his story, by making any complaint, he would be buying much more troubles for his friend by earning wrath of his ex-employer, more particularly when that is a big company pertaining to 'Fortune 500' companies of the world over. Only 8 of the 'Fortune 500' companies operate in India, which have very strong law departments of theirs working for the companies.They know well how to legally deal with such type of fugitives. They cannot be said to be helpless, even if any directive is issued by some authority.
First of all, as of commonsense, he should have known that his friend was obliged to get NOC with no due certificate from various departments of the company before expecting clearance of f&f from the company.
