Jayanta (Service) 16 April 2013

Query on pf

One Hindu employee had passed away in 2006 leaving behind two wives. Not clear about legality of the second marriage. Now the succession certificate issue is pending before the Court. Although EPF Scheme mentions about "Unclaimed Deposit Account" bearing no interest after issuance of PO, my reading is that technically the wording does not arise as the clarity on the real claimant is pending before the Judicature. This can not be transferred to Unclaimed Deposit Account, as opined by one Advocate. I am not with legal background and hence seek considered opinion.

In another case, employee has been dismissed and he has gone to Labour Court. Pending the ruling, can employer terminate and remit the amount to Unclaimed Deposit Account.

All these violate natural justice.

Please enlighten me.

Regards,

Jayanta16.04.2013

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2 Replies

Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 ) 07 May 2013

For unclaimed funds in fixed deposits, the government has introduced the Banking Laws (Amendment) Bill, 2011 which has a provision for setting up a "Depositor Education and Awareness Fund" to take over inoperative deposit accounts which have not been claimed or operated for 10 years or more.

that the Ministry of Labour and Employment has informed the government that the amount lying in the inoperative accounts under the EPFO cannot be utilized except for the settlement of the members' account.