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RAKESH TRIKHA (Associate Professor)     14 January 2010

Mismanagement of EPF

My self  is working as associate professor in a Punjab Goverenment aided (95% grant in aid scheme) college for last 20 years. My date of appointment is 17/10/1989.

 My Provident Fund Account is not maintained properly by the Principal/Management of the college. There is gross violation of EPF rules due to which we have already suffered a huge financial loss. In this grave concern I want to bring the following points for your kind consideration a

1.         The college authorities are not following the General Pattern of Standard Provident Fund rules. The Provident Fund of some employees both teaching and Non teaching is being deposited with regional Provident Fund Commissioner, Amritsar (that includes Principal of the college and the non teaching staff dealing with the Provident Fund),but our provident fund is deposited in a Saving Bank Account in Allahabad bank/State Bank of Patiala in Pathankot at an interest rate of 3.5% and in between amount  is sweeped to Fixed deposits( from 23/01/2007).But the overall average  rate of interest is much below the present rate of interest i.e. 8.5% at present.

         In this connection I have to submit that

a)      Our Basic salary at the time of appointment was Rs. 2200 ( as on  17/10/89),Can management treat us as exempted employees category by not depositing the PF with you from the date of appointment/confirmation.

b)      In case we are exempted can they manage PF without PF commissioner  permission?

c)       In case we are exempted, Do they have to follow rules of EPF?

d)      Can a Management keep PF of the employees at TWO different places?

e)      Can management provide lesser rate of interest on provident fund and mismanage provident fund of the few employees as per their suitability?

f)       Can a Management deduct Provident fund of employee after few years of confirmation at their will?

g)      Can a management Deposit Provident Fund at any date / or after few months?

[even in the ordinance at serial no.4 in the middle of line 3(copy enclosed)” such contributions shall be credited to the fund month by month”]

h)      Can a management/principal deny Annual PF statement of PF account showing interest accrued and PF deposited ?( Not even a single statement is given to us till date from the date of deduction of PF)

Our college is affiliated to GNDU amritsar .(Ordinance of PF attached).

Through this letter I want to take help from all experts that how should I proceed in this matter so that my PF is deducted on time and and I get proper rate of interest .

Please help me by giving judgments relating to my case so that i can take legal course of action so that I can recover my loss of Lakhs of rupees

Valuable suggestions of all of you will be highly helpful so please  guide and advice me

Thanks to all in anticipation

 



Learning

 3 Replies

V. VASUDEVAN (LEGAL COUNSEL)     14 January 2010

Dear Mr. Trikha, Instead of answering your queries points-wise, it would suffice to respond that the issues highlighted by you are in gross violation of the EPF Act and Rules. Please visit the website of EPF Department, epfindia.com where the complete details are available in the form of FAQ. Particularly once you are covered by EPF, even if the management maintain an exempted trust, they are bound to pay you the interest as declared by by EPF and any deficit has to be borne by the management. Also they are bound to provide you monthly statement on-line and in your payslip. I am surprised as to what the EPF Inspectors are doing on this mis-management. Report to higher authorities at EPF directly. Vasudevan
1 Like

RAKESH TRIKHA (Associate Professor)     15 January 2010

V. Vasudevan has given very good advice. I appeal to all legal experts to give me more advice and high court or supreme court judgements relating to my case.

thanks

Sudhir Kumar, Advocate (Advocate)     21 November 2011

Good case.  I amnot able to understand the authentiricy of the four pages of so called ordinace copies by send by you.  It is not lcear as to who passed it and whether it can be used to overrule EPF&MP Act 1952 passed by parliament.

It appears that yur authorites are deducting employee share adn not depositing with the EPFO. they are liable u/s 406/409 of IPC and even police can directly interefer.

Now coming to your questions :-

Our Basic salary at the time of appointment was Rs. 2200 ( as on  17/10/89),Can management treat us as exempted employees category by not depositing the PF with you from the date of appointment/confirmation.

As per EPF&MP Act 1952 and rules thereunder. No you are not exempted.  Even if you are then there would hve been no deduction.  Bu deducting PF from your salary the employers have shown bounding that you are not exampted and they are bound to deposit the same with EPFO least be liable for prosecution under EPD&MP Act 1952 as well as IPC s/406/409.

In case we are exempted can they manage PF without PF commissioner  permission?

In case we are exempted, Do they have to follow rules of EPF?

As per EPF&MP Act 1952 and rules thereunder. employee is not exempted only companies are exampted and RPFC nobody to exampt any company the power lies with Central Govt. Such examption is given only if the company has a PF trust with better terms (atleast not infererion terms) than EPFO and trust follows elaborate procedure.  The system of keeping money in saving account is of no rescue to employer.

Can a Management keep PF of the employees at TWO different places?

Can a management Deposit Provident Fund at any date / or after few months?

As per EPF&MP Act 1952 and rules thereunder. They cannot keep at all beyond 25th of each month.

Can management provide lesser rate of interest on provident fund and mismanage provident fund of the few employees as per their suitability?

As per EPF&MP Act 1952 and rules thereunder. Even if cmpany is exampted the same can be cancelled on this ground itself of paying lesser rate of interest.

Can a Management deduct Provident fund of employee after few years of confirmation at their will?

As per EPF&MP Act 1952 and rules thereunder. Deductiion has to start form day one.

Can a management/principal deny Annual PF statement of PF account showing interest accrued and PF deposited

As per EPF&MP Act 1952 and rules thereunder. As per given facts they are nobody to maintain the PF account so the question of issue of slips dos not take place.

IT IS SUPRISE THAT SO FAR YOU HAVE NOT MET THE RPFC AT AMRITSAR.  IN CASE HE TAKE NO ACTION YOU CAN WRITE TO CPFC AND CHIEF VIGILONCE OFFICER OF EPFO AT DELHI AND EVEN REQUEST CENTRAL VIGILANCE COMMISSION TO COME FORWARD.  This issue can cost a few careers in PF office. for further you can coantract me newsroom972@yahoo.co.in


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