The
Employees’ Provident Fund Organisation (EPFO), India, claims it is one of the
largest provident fund institutions in the world in terms of members and volume
of financial transactions.
A
recent news item revealed there were crores of unaccounted money lying with the
EPFO. Various reasons could be attributed to this. Many keep changing jobs
frequently and don’t claim the PF amount deducted from their salaries, as the
sum would be less and thus, might not be worth the effort. At times, due to
misunderstanding with the management, people quit jobs, and in such cases, even
if they had worked for four or five years, it becomes difficult to get the PF
money, as the management may refuse to sign or delay processing the
application. Apart from this, there are instances of inordinate delay on the
part of the PF office in dispensing the amount, be it settlement or dispersal
of pension.
In
fact, Clause 72 (7) of the Employees’ Provident Funds Scheme, 1952, specifies a
unique provision casting responsibility on the Regional Provident Fund
Commissioner concerned to settle claims (complete in all respects) within 30
days. If there is any deficiency in the claim, the same shall be recorded in
writing and communicated to the applicant within 30 days from the date of
receipt of such application. In case the Commissioner fails without sufficient
cause to settle a claim complete in all respects within 30 days, the
Commissioner shall be liable for the delay beyond the said period and penal
interest at the rate of 12 per cent per annum may be charged on the benefit
amount and the same may be deducted from the salary of the Commissioner.
Despite
this, there are repeated complaints about the delay and it is a relief that a
subscriber to a Provident Fund scheme has been held to be a consumer and the
processing of his claim by the Regional Provident Fund Office to be a service
within the meaning of the Consumer Protection Act, in furtherance to the
landmark decision by the Supreme Court in Regional Provident Fund Commissioner
Vs. Shiv Kumar Joshi in 1999.
Since
then, numerous complaints have been heard and disposed of by consumer fora, and
recently, in a complaint filed before the Himachal Pradesh State Consumer
Disputes Redressal Commission, where, the complainant, who was contributing to
the EPF was entitled to pension after retirement, did not get the amount for
the period January to August 2008, in spite of repeated representations. The
EPF contended that they had transferred the money to the bank where he had his
pension account on August 28, 2008 and therefore, it was for the bank to disperse
the amount of pension to him. However, the Commission observed that the delay
of eight months could not be overlooked and ordered compensation of Rs. 1500 to
be paid to the complainant.
The
Employees Provident Fund Organisation appears to be taking steps to address the
grievance of consumers, the most recent one being their newly launched portal
Employees Provident Fund Internet Grievance Management System. However, it is
vital that these proactive measures are effectively implemented.
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