KERALA AGRO MACHINERY
CORPORATION EMPLOYEES’ CONTRIBUTORY PROVIDENT FUND SCHEME
4. MEETING AND DECISIONS OF THE BOARD OF
TRUSTEES:
7. SUBSCRIPTION AND CONTRIBUTION:
10. CONDITIONS FOR WITHDRAWALS FOR VARIOUS
PURPOSES:
12. REPAYMENT OF AMOUNTS WITHDRAWN.
13. AMOUNT WITHDRAWN BUT NOT REPAID MAY BE
DEEMED AS INCOME:
14. WITHDRAWAL WITHIN ONE YEAR
BEFORE RETIREMENT
17. DECISIONS OF THE BOARD OF
TRUSTEES FINAL:
18. LIABILITY OF THE TRUSTEES.
19. EMPLOYEES’ PENSION SCHEME
1995.
21. STATUTORY PROVISIONS TO HAVE
OVER-RIDING EFFECT
The Fund shall be called K.A.M.C.
Employees’ Contributory Provident Fund and these rules framed under The EPF & Misc. Provisions Act,
1952 shall be deemed to be applicable from 1st April, 1973.
In
these rules unless there is anything repugnant in the subject or
context:
a)
‘Employer’ means M/s. Kerala Agro Machinery
Corporation Ltd., Athani represented
by its Board of Directors or the Managing Director to whom the ultimate
control over the affairs of the establishment is vested.
b)
‘Establishment’ means the Kerala Agro
Machinery Corporation Ltd., Athani.
c)
‘Employee’
means any person who is employed for wages in any kind of work manual or
otherwise, in or in connection with the work of the establishment and who gets
his wages directly or indirectly from the employer and includes any person:
i) Employed by or
through the contractor in or in connection with the work of the establishment.
ii) Engaged as an apprentice, not being an apprentice under The
Apprentices Act,1961(52 of 1961) or
under the standing orders of the establishment.
d)
FUND’
means the KA.M.C. Employees’
Contributory Provident Fund established under these rules.
e)
Trustees’
means and include the trustees of the Fund for the time being.
f)
‘Member’
means an employee who is required under these rules to subscribe to the Fund,
and shall include such other persons to whom the Employees’ Provident Fund
Scheme may be extended.
g)
‘Family’ means –
i) In case of a male member,
his wife, his children, whether married
or unmarried and dependent parents of the member, and the widow and children of
a deceased son of the member.Provided that, if a member proves that his wife
has ceased, under the personal law
governing him or the customary law of the community to which the spouse
belongs, to be entitled to maintenance, she shall no longer be deemed to be a
part of the member’s family for the purpose of these rules, unless the member
subsequently intimates by express notice in writing to the Board of Trustees
that she shall continue to be so regarded; and
ii) In the case of a female
member, her husband, her children
whether married or unmarried, her dependent parents, her husband’s dependent
parents and her deceased son’s widow and children. Provided that if a member, by notice in writing to
the Board of Trustees expresses her desire to exclude her husband from the
family, the husband and his dependent parents shall no longer be deemed to be a
part of the member’s family for the purpose of these rules unless the member
subsequently cancels in writing any such notice.
Explanation In either of the above two cases, if the child of a member
has been adopted by another person, and if, under the personal law of the
adopter, adoption is legally recognized, such a child shall be considered as
excluded from the family of the member.
h)
‘excluded employee’ means
i) an employee who having been
a member of the Fund withdrew the
full
amount of his accumulations in
the Fund under Rule 15 of these rules.
ii) Apprentice.
i)
‘children’
means legitimate children and includes adopted children; if the Board of Trustees is satisfied that under the
personal law of the member adoption of a child is legally recognized.
j) ‘Basic Pay’ means all emoluments which are earned by an employee while on duty or on leave or on holiday with wages in either case in accordance with the terms of the contract of employment and which are paid or payable in cash to him, but does not include –
i) the cash value
of any food concession
ii) Any Dearness
allowance (that is to say, all cash payments by whatever name called
paid to an employee on account of a rise in the cost of living,) house
rent allowance, overtime allowance, bonus, commission or any other similar
allowance, payable to the employee in respect of his employment or of work
done in such employment.
iii) Any present
made by the employer.
k) ‘Financial Year’ means the period commencing on the 1st of April and ending on the 31st March.
l) All other words and expressions not defined herein shall have the same meaning respectively assigned to them in the Employees’ Provident Fund & Misc. Provisions Act, 1952 and the Scheme framed thereunder.
i.
The
Fund shall vest in a Board of Trustees established by the employer according to
the directions given by the Central Government or the Central Provident Fund
Commissioner, as the case may be, from time to time. The Board of Trustees will be responsible for
and accountable to the Employees Provident Fund Organisation, inter alia, for
proper accounts of the receipts into and payment from the Provident Fund and
the balance in their custody. The Board
of Trustees shall consist of
a)
The
Managing Director
b) Three of the Directors nominated by the Board of Directors of Kerala Agro
Machinery Corporation Ltd.
c)
Four
of the Subscribers to the Fund elected by the Subscribers.
The Chairman of the Fund shall be the Chairman of the
Company, if he is a Trustee or any other Management Trustee. The Board may at any time vary the
constitution of the board of Trustees.
ii.
The
Managing Director and Director Trustees shall cease to be trustees when they
cease to hold their respective offices.
The term of office of a Trustee shall be five years from the date of
election or nomination. A person
representing employer or employees shall be eligible for appointment as a member of the Board of Trustees for a
maximum of not more than two terms provided that a member who has already
completed two or more terms in the Board may continue his present term subject to the provisions of
the Scheme. The Director Trustee and
the Subscriber Trustee may at any time resign from the Board of Trustees by
giving notice in writing to the Managing Director. Every vacancy in the Board of Trustees may be filled up by a
fresh nomination or election as the case may be. Provided further that a Trustee elected or nominated to fill the
casual vacancy shall hold office for the remaining period of the term of the Trustees in whose place he is elected
or nominated.
iii.
Number
of Trustees to the Board of Trustees shall neither be less than four nor more
than twelve.
i)
No
business shall be transacted at a meeting of the Board of Trustees unless at
least four trustees of the Board are
present, of whom at least one should be from employer’s side and one from the
employees side.
ii)
The
question arising at the meeting shall be decided by all the trustees
present, If there is a tie, the
Chairman of the meeting will have a casting vote to decide the issue.
iii)
Resolution
in writing circulated to all the members of the Board of Trustees and approved
by not less than five members shall be valid as if they have been passed at the
meeting of the Trustees.
iv)
The
Trustees may nominate one among themselves to be the Secretary of the
Fund. The Secretary shall have the
custody of the records of the Fund and shall be its Chief Executive.
v)
The
Board of Trustees shall meet at least once in every three months and shall
function in accordance with the guidelines that may be issued from time to time
by the Central Government/Central Provident Fund Commissioner (CPFC) or an officer authorised by him.
i)
The
Accounts relating to the Fund shall be maintained as provided in Rule 74 of the
Income Tax Rules. The accounts shall be
finalised yearly as on 31st March and shall be audited and presented
at the meeting of the Trustees held immediately thereafter.
a) The Accounts of
the Provident Fund maintained by the Board of Trustees shall be subject to
audit by a qualified independent chartered accountant annually. Where considered necessary, the CPFC or the
RPFC in charge of the Region shall have the right to have the accounts
reaudited by any other qualified auditor and the expenses so incurrred shall be
borne by the employer.
b)
A
copy of the Auditor’s report along with the audited balance sheet should be
submitted to the RPFC concerned by the
Auditors directly within six months after the closing of the financial year
from 1st April to 31st March. The
format of the balance sheet and the information to be furnished in the report
shall be as prescribed by the Employees’ Provident Fund Organisaiton and made
available with the RPFC Office in electronic format as well as a signed hard
copy.
c)
The
same Auditors should not be appointed for two consecutive years and not more
than two years in a block of six years.
ii)
The
fund shall vest in the Board of Trustees who will be responsible for and
accountable to the employees’ Provident Fund Organisation inter-alia for proper
accounts of the receipts into and payments from the Fund and the balance in
their custody.
iii)
The
Board of Trustees shall maintain detailed accounts to show the contributions
credited, withdrawal and interest in respect of each employee. The maintenance of such records should preferably be done
electronically. The establishments
should periodically transmit the details of members’ accounts electronically as
and when directed by the CPFC/RPFC.
iv)
The
Board of Trustees shall issue an annual statement of accounts to every employee
within six months of the close of the
financial/accounting year free of cost once in an year. Additional print outs can be made available
as and when the members want, subject to nominal charges. Such statement of accounts shall be accepted
as correct and binding on the members.
Save that if any manifest error
shall be found therein and notified by the members to the Board of Trustees in
writing within two months of receipt of the annual statement of accounts, the
same may be rectified.
v)
The
employer shall make necessary provisions to enable all the members to be able
to see their account balance from the computer terminals as and when required
by them.
i)
All
employees as defined in Section 2(f) of the EPF & Misc. Provisions Act 1952
employed by the Corporation or in connection with the work of the Corporation
and who have been eligible to become members of the Provident Fund had the
establishment not been granted
exemption, shall be entitled and required to become members of the Fund
ii)
Where
an employee who is already a member of Employees’ Provident Fund or a provident
fund of any other exempted establishment is employed in his establishment, the
employer shall immediately enroll him as a member of the fund. The employer should also arrange to have the
accumulations in the provident fund account of such employee with his previous
employer transferred and credited into his account.
i)
Every
member shall subscribe to the Fund every month a sum which should not be less than 12% and more than
12½% of his monthly basic pay, DA (including cash value of food concessions)
and retaining allowance (if any) actually drawn during the whole month
whether paid on weekly, fortnightly or monthly basis. The amount of subscription shall be deducted from his
salary/wages for each month.
ii)
The
percentage of subscription once opted by the subscriber shall not be revised
retrospectively. However, the
percentage of subscription once opted by the subscriber may be permitted to be
revised on request in writing twice in a financial year ie. during April and October, every year (salary
month March and September respectively) subject to the minimum and maximum
percentage of subscription allowed.
iii)
The
employer will contribute each month to the Fund for credit to such subscriber
an amount equal to the amount subscribed by the subscriber subject to the limit
of 12½% of his salary (Pay + DA)
provided that from and out of the Employer’s contribution 8.33% of his salary
subject to limits prescribed in the proviso to sub-paragraph (2) of paragraph 3
of the Employees’ Pension Scheme, 1995 from time to time shall be paid as
contribution to Employees’ Pension Scheme 1995.
iv)
A
member may, however, at his option
subscribe more than the amount fixed under
sub-rule (i). But the contribution from the Corporation shall
remain as under sub-rule (i) notwithstanding sub-rule (iii). The rate of
additional subscription shall be given effect from the month of April or
October of a financial year and shall not be changed at any other interval.
v)
The
contribution to Employees’ Pension Fund shall be applicable only in case the
employee in question is a member of the Employees’ Pension Scheme, 1995 as laid
down in para 6 of the said Scheme and shall cease on the Employee attaining the
age of Superannuation as defined in The
Employees Pension Scheme, 1995.Provided further that if the employee continues
in service even after the date of superannuation the entire contribution
payable by the employer as per rule 7(iii) shall be credited to the member’s Account.
vi)
The
employer shall transfer to the Board of Trustees the contributions payable to
the Provident Fund by himself and employees at the rate prescribed under the
Act from time to time by the 15th of each month following the month for which the contributions are payable. The employer shall be liable to pay simple
interest in terms of the provisions of Section 7Q of the Act for any delay in
payment of any dues towards the Board of Trustees.
vii) The employer shall bear all the
expenses of the administration of the Provident Fund and also make good any
other loss that may be caused to the provident Fund due to theft, burglary,
defalcation, misappropriation or any other reason.
i)
a) The Board of Trustees shall invest the
monies of the Provident Fund as per the directions of the Government from time
to time. Failure to make investments
as per directions of the Government shall make the Board of Trustees separately
and jointly liable to surcharge as may be imposed by the Central Provident Fund Commissioner or his representative.
b)
The
Securities shall be obtained in the name of Trust. The securities so obtained should be in dematerialized (DEMAT)
form and in case the required facility is not available in the areas where the
trust operates, the Board of Trustees shall inform the Regional Provident Fund Commissioner concerned about the
same.
c)
The
Board of Trustees shall maintain a script wise register and ensure timely
realisation of interest.
d)
The
DEMAT Account should be opened through depository participants approved by
Reserve Bank of India and Central Government in accordance with the
instructions issued by the Central Government in this regard.
e)
The
cost of maintaining DEMAT account should be treated as incidental cost of
investment by the Trust. Also all types
of cost of investments like brokerage for purchase of securities etc. shall be
treated as incidental cost of investment by the Trust.
f)
All
such investments made, like purchase of securities and bonds, should be lodged
in the safe custody of depository participants, approved by Reserve Bank of
India and Central Government, who shall be the custodian of the same. On closure of establishment or liquidation
or cancellation of exemption from EPF Scheme, 1952, such custodian shall
transfer the investment obtained in the name of the Trust and standing in its
credit to the RPFC concerned directly on receipt of request from the RPFC
concerned to that effect.
g)
The
exempted establishment shall intimate to the RPFC concerned the details of depository participants
(approved by Reserve Bank of India and Central Government), with whom and in
whose safe custody, the investments made in the name of Trust, viz.,
Investments made in securities, bonds, etc. have been lodged. However, the Board of Trustees may raise such
sum or sums of money as may be required for meeting obligatory expenses such as
settlement of claims, grant of advances as per rules and transfer of member’s
PF accumulations in the event of his/her leaving service of the employer and
any other receipts by sale of the securities or other investments standing in
the name of the fund subject to the
prior approval of the Regional Provident Fund Commissioner.
h)
Any commission, incentive, bonus or other
pecuniary rewards given by any financial or other institutions for the
investments made by the Trust should be credited to its account.
ii)
The
account of each subscriber shall be credited with interest calculated on
monthly running balance basis with effect from the last day in each year in the
following manner.
a)
The
rate of interest shall not be less than the interest declared by the Employees’
Provident Fund Organisaion to its members for the respective year.
b)
On
the amount at the credit of a member on the last day of the preceding year,
less any sum withdrawn during current years – interest for twelve months.
c)
On
sums withdrawn during the current year – interest from the beginning of the
current year upto the last day of the month preceding the month of withdrawal.
d)
On
all the sums credited to the members account after the last day of the
proceeding year – interest from the first day of the month succeeding the month
of credit to the end of the current year.
e)
The
total amount of interest shall be rounded to the nearest whole Rupee (50 paise
counting as the next higher rupee).
f)
In
the case of claim for final settlement under rule 15 of C.P.F. Rules interest shall be payable upto the end of
the month preceding the date on which the final payment is authorised
irrespective of the date of receipt of
the claim from the claimant concerned, provided that the rate of interest to be
allowed on claims for refund for the broken currency period shall be the rate
fixed for the financial year in which the refund is authorised.
iii)
Interest
for the broken period shall be allowed for the amount transferred from other
establishment from the first of the month following the month in which the
amount received to the credit of the organisation to the end of the financial
year. The rate of interest shall be at the rate fixed for
the financial year in which the amount is transferred to the Fund.
iv)
All
expenses involved in the administration of the Fund including the maintenance
of accounts, submission of accounts and returns, transfer of accumulation and
payment of inspection charges will be borne by the employer.
v)
Any
deficiency in the interest declared by the Board of Trustees is to be made good by the employer to bring it up
to the statutory limit.
1)
Withdrawals
of employees may be allowed by trustees of the Provident Fund in the
following circumstances:-
a)
To
pay expenses incurred in connection with the illness of the employee or a member of his family.
aa)
Meeting the cost of higher education,
including where necessary, the
travelling expenses of any child of the employee actually dependant on
him in the following cases, namely:-
i)
Education
outside India for academic technical, professional or vocational courses beyond
the High School stage, and
ii)
Any
medical, engineering or other technical or specialised course in India beyond
the High School stage, provided that the course of study is for not less than
three years.
b)
to
pay for the cost of passage to a place out of India of an employee or any
member of his family.
c)
To
pay expenses in connection with marriage of the member’s daughter, his/her own
marriage, the marriage of his dependant brother/sister/son and funerals or
ceremonies which by the religion of the employee it is incumbent upon him to
perform.
d) To meet expenditure(i) for purchasing a dwelling house/flat,
including a flat in a building owned jointly with others (outright or on hire
purchase basis), or for constructing a dwelling house including the acquisition of a suitable site for the
purpose from the Central Government, the State Government, a Co-operative Society, an institution, a trust, a local
body or a Housing Finance Corporation (hereinafter referred to as the
agency/agencies) or (ii) for purchasing a dwelling site for the purpose of
construction of a dwelling house or a
ready built dwelling house/flat from any individual or (iii) for the
construction of a dwelling house on a site owned by the member or the spouse of
the member or jointly by the member and the spouse or for completing/continuing
the construction of a dwelling house already commenced by the member or the
spouse on such site or for purchase of a house/flat in the joint name of the
member and the spouse under clause (i) and (ii) above provided that where the
withdrawal for the purchase of a dwelling house/flat or a dwelling site from an
agency, the payment of withdrawal shall not be made to the member but shall be
made direct to the agency, in one or more installments as may be authorised by
the member. Where the withdrawal is for
the acquisition of a dwelling site for the purpose of construction of a dwelling
house thereon from any individual or agency, the amount shall be paid in not
less than two equal installments , the first instalment at the time of
acquisition of the dwelling site and the remaining at his request at the time
of construction of a dwelling house on such dwelling site.
A further withdrawal
equivalent to the amount of difference between the amount of withdrawal admissible to a member under this
rule on the date of fresh application and the amount of withdrawal that was
drawn by a member under this rule any time during 6 years preceding 03.10.1981
may be granted to such a member (i) who had availed the earlier withdrawal for
purchase of a dwelling site and has now proposed to construct a dwelling house
on the land so purchased or (ii) who had availed the earlier advance for making
initial payment towards the allotment/purchase of a house/flat from an
agency as referred to in clause (a) of sub-rule (d) above and has now proposed
to avail a withdrawal for completing the transaction to get the sole ownership
of the house/flat so purchased or (iii) who had availed the earlier withdrawal
for construction of a house but could not complete the construction in time due
to lack of fund.
A second withdrawal equivalent to the amount of difference between
the amount of withdrawal
admissible to a member under this rule on the date of fresh application and the
amount of withdrawal that was drawn by a member under rule 9(1) d at any time
earlier may be granted to such a member, (1) who had availed the earlier withdrawal
for purchase of dwelling site and now propose to construct a dwelling house on
the land so purchased or (2) who had availed earlier withdrawal for
construction of a house but could not complete the construction due to lack of
funds (3) who had earlier availed non-refundable withdrawal and secured a ready
built house or completed house construction and now wish to make
addition/alteration/expansion to the existing house to provide more facilities to the family provided
that the second withdrawal shall be admissible only after a period of three
years from the date of first withdrawal under this rule.
An additional withdrawal up to 12 months’ basic wages and
dearness allowance or the member’s own share of contributions with interest
thereon in the amount standing to his credit in the Fund whichever is less may
be granted once and in one installment only for additions, substantial
alterations or improvements necessary to the dwelling house owned by the member
or by the spouse or jointly by the member and the spouse provided that the
advance shall be admissible only after a period of five years from the date of
completion of the dwelling house.
e)
To
pay premia on policies of insurance on the life of the employee or of his wife/husband provided that the policy
is assigned to the trustees of the Fund, or at their discretion, deposited with
them and that the receipts granted by the insurance company for the premia from
time to time handed over to the trustees for inspection by the Income Tax
Officer. Any payment made under this
rule shall be made out and debited to the member’s own contribution with
interest thereon standing to his credit in the Fund. No payment shall be made under this rule unless the members own contribution
in his PF account with interest thereon is sufficient to pay the premium and
where the payment is to be made on the 1st premium, sufficient to pay the
premium for two years.
No payment shall be made towards a policy unless it is
legally assignable by the member to the Fund and before making payment in
respect of existing policies, the Secretary of the Fund has to satisfy himself
by a reference to the LIC that no prior
assignment of the policy exists and the policy is free from all encumbrances.
The Fund can convert the insurance policy into a paid up one when the credit in his PF on account of his share becomes inadequate for the payment of any premium. The Fund may pay late fee and interest out of the members own contribution in his PF account, if any premium cannot be remitted to the LIC in time because of delay in sending to the Secretary, the policy duly assigned or any other reason for which the members may be responsible.
So long as the policy remains assigned to the Fund any bonus accruing on it may be drawn by the Fund and adjusted against the payment made on behalf of the member by the Fund. If a policy matures or otherwise falls due for payment during the currency of its assignment, the Fund shall realise the amount assured together with bonus,if any, accrued thereon, place to the credit of the member the amount so realised or the whole of the amount paid from the Fund in respect of the policy with interest thereon whichever is less, and refund the balance, if any, to the member.
f)
To
meet the cost of legal proceedings instituted by the employee for vindicating
his position in regard to any allegations made against him in respect of any
act done or purporting to be done by him in the discharge of his official duty
or to meet the cost of his defence when he is prosecuted by the employer in any
court of law in respect of any official misconduct on his part, provided that the advance
under this clause shall not be admissible to an employee who institutes legal
proceedings in any court of law either in respect of any matter unconnected
with his official duty or against the employer in respect of any conditions of
service or penalty imposed on him.
g)
To
meet the expenses of post matriculation education of children.
h)
For
the payment of wholly or partly of any outstanding principal and interest of
the loan obtained from a State Government, Co-operative Society, Housing Board,
HDFC Ltd., Municipal Corporation or a
body similar to the Delhi Development Authority for purchase of a dwelling
house or a dwelling site or for the construction of a dwelling house.
The amount of advance shall not exceed the member’s basic
wages and dearness allowance for thirtysix months or his own share of
contributions together with the employer’s share of contributions with interest
thereon in the member’s account in the Fund or the amount of outstanding
principal and interest of the said loan whichever is less.
i)
Grant of advance in special cases
a)
In
case the factory has been locked up or closed down for more than fifteen
days and its employees are rendered unemployed without any compensation or in
case an employee does not receive his wages for a continuous period of two
months or more, these being for reasons other than a strike, the Secretary of
the Fund may on an application from an employee, who is a member of the Fund,
in such form as may be prescribed authorise payment to him, of one or more
non-recoverable advances from his Provident Fund account not exceeding his own total contribution including
interest thereon up to the date the payment has been authorised.
1.a) In case a Provident Fund member is
discharged or dismissed or
retrenched by the employer and such discharge or dismissal or
retrenchment is challenged by the member and the cases are pending in a Court
of Law, the Secretary of the Fund may on an application from the member in such
form as may be prescribed authorise payment to him of one or more
non-recoverable advances from his Provident Fund account not exceeding fifty
percent of his own share of contribution with interest thereon standing to his
credit in the Fund on the date of such authorisation
2.a) In case the factory
continues to remain locked up or closed down for more than six months, the
Secretary of the Fund, on being satisfied that a member who has already been
granted one or more non-recoverable advances from his Provident Fund account
under sub-paragraph (1) still continues to be un-employed and no compensation
is likely to be paid to him at an early date, may, on receipt of an application
therefor in such form as may be prescribed in this behalf, authorise payment to
the member of one or more recoverable advances from his Provident Fund account upto the extent of
100% of the employer’s total contribution including interest thereon upto the
date on which the payment has been authorised.
Provided that if the factory or establishment in which the member is
employed remains closed for more than five years for reasons other than strike,
recoverable advance may be converted into non-recoverable advance on receipt of
a request in writing from the member concerned.
b)
The advance granted under clause (a) shall
be interest-free.
c)
The advance granted under clause (a) shall
be recovered by deductions from the
wages of the member in such installments (subject to a maximum of thirtysix
instalments) as may be determined by the Secretary of the Fund. The recovery shall commence from the first
wages paid to the member immediately after the re-start of the factory.
d)
The employer shall remit the amount so
deducted to the Fund within such time in such manner as may be specified by the
Secretary of the Fund. The amount, on
receipt, shall be credited to the member’s account in the Fund.
(Explanation – for the purpose of grant of advance under this
paragraph, the establishment may be closed legally, illegally, with permission
or without permission, so long as the establishment is closed).
j)
Grant
of advances in abnormal conditions
1.
The
Secretary of the Fund may on an application from a member whose property,
movable or immovable, has been damaged by a calamity of exceptional nature,
such as floods, earthquakes or riots, authorise payment to him from the
Provident Fund account, a non-refundable advance, of (rupees five thousand) or
fifty percent of his own total contributions including interest thereon
standing to his credit on the date of such authorisation, whichever is less, to
meet any unforeseen expenditure.
2.
No
advance under sub-paragraph (1) shall be paid unless –
i.
the
State Government has declared that the calamity has affected the general public in the area;
ii.
the member produces a certificate from an
appropriate authority to the effect that his property (movable or immovable)
has been damaged as a result of the calamity and
iii.
the
application for advance is made within a period of 4 months from the date of
declaration referred to in sub-para (i).
k)
Grant of advance to members affected by
cut in the supply of electricity.
A member may be allowed a non-refundable advance from his
account in the Fund, if there is a cut in the supply of electricity to a
factory or establishment in which he is employed on the following conditions,
namely:-
a)
The advance may be granted only to a member
whose total wages for any one month commencing from the month of January, 1973
were three-fourths or less than three-fourths of wages for a month.
b)
The advance shall be restricted to the
amount of wages for a month or Rs.300/- or the amount standing to the credit of
the member in the Fund as his own share of contribution with interest thereon,
whichever is less;
c)
No advance shall be paid unless the State
Government certify that the cut in the supply of electricity was enforced in
the area in which the factory is located and the employer certifies that the
fall in the member’s pay was due to cut in the supply of electricity.
d)
Only one advance shall be admissible under
the paragraph.
(Explanation – ‘Wages’ means for the purpose of
this paragraph, basic wages and dearness allowance excluding lay-off compensation,
if any).
l)
Grant
of advance to members who are physically handicapped.
1.
A
member, who is physically handicapped, may be allowed a non-refundable advance
from his account in the Fund, for purchasing an equipment required to minimise
the hardship on account of handicap.
2.
No
advance under sub-paragraph(1) shall be paid unless the member produces a
medical certificate from a competent medical practitioner to the satisfaction
of the Secretary of the Fund in this behalf to the effect that he is physically
handicapped.
3.
The
amount advanced under this paragraph shall not exceed the member’s basic wages and dearness allowance for six
months or his own share of contributions with interest thereon or the cost of
the equipment, whichever is the least.
No second advance under this paragraph shall be allowed within a
period of three years from the date of
payment of an advance allowed under this paragraph.
1)
The
withdrawals in connection with expenses on marriages as specified in clause (c)
of sub-rule (1) of rule 9 shall not exceed six months basic wages or the total
of the accumulation of exempted contributions and exempted interest lying to
the credit of the employee whichever is less.
2) The withdrawal for the purpose specified in clause (d) of
sub-rule (1) of rule 9 shall be subject
to the following conditions.
a)
The
purpose of purchase of a site for construction of house thereon the amount of
advance shall not exceed 24 months’ Pay + DA or the share of contributions
with interest thereon or the actual cost towards the acquisition of dwelling
site, whichever is the least.
b)
For
the purpose of acquisition of ready built house/flat or for construction of a house/flat the withdrawal
shall not exceed the member’s basic wages and dearness allowance for thirtysix
month or the member’s own share of contribution together with the employer’s
share of contribution with interest thereon or the total cost of construction
whichever is the least.
i.
The employee
shall have completed five years
of service or is
due to retire within the next ten years.
ii.
The
construction of the house should be commenced within six mon the
withdrawal and should be completed within one year from the date of commencement of the construction.
iii.
If the withdrawal is made for the purchase of a house
and/or a site for a house, the purchase should be made within
six months of the withdrawal.
iv.
If the withdrawal is made for the re-payment of loan
previously raised
v.
for the purpose of construction or purchase of a house, the repaymentof the loan should be made
within three months of withdrawal.
vi.
Where
the withdrawal is for
the construction of a house, it
shall be transmitted in two or
more equal installments (not exceeding
four), a latter instalment being permitted only after verification by
the trustees about the actual
utilisation of the earlier withdrawal.
vii.
The withdrawal shall be permitted only if
the house and/or site is free from encumbrances and no withdrawal shall be
permitted for purchasing a share in a joint property or building or house or
land whose ownership is divided.
viii.
If the
amount withdrawn exceeds the actual cost of the purchase or construction of the house and/or site, or
if the amount is not utilised for the purpose for which it is withdrawn, the
excess or the whole amount, as the case may be
shall be refunded to the trustees forthwith in one lumpsum together with
interest from the month of such withdrawal at the rate prescribed in sub-rule (3) of Rule 12. The amount so
refunded excluding the penal interest shall be credited to the employer’s share
of contribution in the member’s account in the Fund to the extent of advance
granted out of the said share, and the balance, if any, shall be credited to
the member’s own share of contribution in his account. The amount of penal interest shall, however,
be credited to the Interest Suspense Account.
3) a. Where any advance granted under this rule has been misused by the member no further advance shall be granted to him within a period of three years from the date of grant of the said advance or till the full recovery of the amount of the said advance with penal interest thereon, The withdrawal for the purpose specified in clause (g) of sub rule (1) of rule 9 shall be subject to the following conditions:-
i) The
member should have completed 7 years membership in the
Fund.
ii) The
amount of his total
contribution with interest
thereon to his
credit in the fund is Rs.1000/-
or more.
iii) Advance shall
be limited to the actual number
of children under-
going studies.
b. No advance
shall be sanctioned under rule 9(1)(h) unless;
i.
The
member has completed ten years membership of the Fund and;
ii.
The
member’s own share of contribution with interest thereon in the amount standing
to his credit in the Fund is one thousand rupees or more; and
iii.
The
member produces a certificate or such other documents as may be prescribed by
the Board of Trustees or whereso authorised by the Board of Trustees, any
officer subordinate, from such agency indicating the particulars of the member,
the loan granted, the outstanding principal and interest of the loan and such
other particulars as may be required.
c. The payment of the advance under
9(i) h shall be made direct to such agency on
receipt of an authorisation from the member in such manner as may be
specified by the Board
of Trustees, or whereso authorised
by the Trustees, any
officer subordinate to them, and in no
event the payment shall be made to the member.
4)
The
withdrawal for the purpose
specified in clause (f) of sub-rule (1) of rule 9 shall not exceed 3 months basic wages
or Rs.500/- whichever is greater but
shall in no case exceed half the amount
to the credit of the employee.
5)
a. The
withdrawal for the
purpose specified in clause (a) of sub-rule (1) of rule 9 shall not
exceed 6 months basic wages and dearness allowance or the total of
the accumulation of exempted contribution and exempted interest lying to the
credit of the employee, whichever is
less.
b. The withdrawal for
any other purpose referred to in sub-rule (1) of rule shall not exceed 3 months
basic wages or the total of the accumulation of exempted contribution and
exempted interest lying to the credit of the employee, whichever is less.
6)
For
the purpose of this rule ‘Basic wages’ means the pay to which the employee
is entitled at the time when the
withdrawal is granted and in case of employees on consolidated wages, daily
rates and/or monthly paid 32% of such wages or in the case of an employee who
retains his employment while serving in the armed forces of the Union or when
taken into or employed in the National Service under any law for the time being in force, the pay (including
increments, if any) which he would have received had he not entered the armed
forces of the Union or been taken into or employed in the national service.
7)
All
claims for withdrawals, advances and transfers should be settled expeditiously,
within the maximum time frame prescribed by the Employees’ Provident Fund
Organisation.
1.
Save as in sub rule (2), a second withdrawal
shall not be permitted until the sum
first withdrawn has been fully repaid.
2.
A withdrawal may be permitted for the
purpose specified in clauses (a), (c), (d), (e), (g) and (h) of sub-rule (1) of
rule 9 notwithstanding that the sum withdrawn for any other purpose has not
been repaid. A withdrawal may be
permitted for any other purpose notwithstanding that the sum withdrawn for the
purpose specified in clauses (a), (c), (d), (e), (g) or (h) of sub rule (1) of
rule 9 has not been repaid.
1.
Subject
to the provisions of clause (viii) of
sub-rule (2) of rule 10 where a withdrawal is allowed for a purpose specified
in clause (a),(c),(d),(e),(g) or (h) of
sub rule (1) of rule 9, the amount withdrawn need not be repaid.
2.
Where
a withdrawal is allowed in connection
with marriage as specified in clause (c) or illness as specified in clause (a)
of sub-rule (1) of Rule 9 and the member indent to refund the amount in monthly
installments, the amount withdrawn shall be repaid in not more than fortyeight
equal monthly installments.
3.
In
respect of withdrawal referred to in sub-rule (2) and the amount referred to in
clause (viii) of sub-rule (2) of Rule 10, interest shall be paid at one percent
above the rate which is payable for the time
being on the balance in the Fund at the credit of the employees. The amount of interest under clause (viii)
of sub-rule (2) of rule 10 is refundable.
The interest shall be
recovered in additional installments as below:-
Monthly instalment
not more than 12 : 1 additional instalment.
Monthly instalment 13 to 24
: 2 -do-
Monthly
instalment 25 to
36 : 3 -do-
Monthly
instalment 37 to
48 : 4 -do-
Provided
that at the
discretion of the trustees of the Fund, interest may be recovered on the amount aforesaid or the balance thereof
outstanding from time to
time at one percent above the rate, which is payable for the time being on the balance in the Fund at the credit of the
employee.
4.
The employer shall deduct the installments
aforesaid from the employee’s salary, and pay them to the trustees of the
Fund. These deductions shall commence
from the second monthly payment of salary made after the withdrawal or, in the
case of an employee on leave without pay, from the second monthly payment of
salary made after his return to duty.
In case of default of repayment of
installments due under sub-rule (2) or sub-rule (3) or sub-rule(4) of rule 12 or
where the amount withdrawn is
not utilised for the purpose for which it is withdrawn, the Commissioner of
Income Tax may at his discretion order that the amount of withdrawal or the
amount outstanding shall be added to the total income of the employee for the
year in which the default occurs or the withdrawn amount is finally held not to
have been utilised for the purpose for which it is withdrawn, and the Income
Tax Officer shall assess the employee accordingly.
The Board of Trustees may on an
application from the member in such form as may be prescribed permit withdrawal
of upto 90% of the amount standing at his credit at any time after attainment
of the age of 54 years by the member or within one year before his actual
retirement on superannuation, whichever is later.
On a subscriber leaving the
service of the Corporation the amount standing to his credit including interest
upto previous month on which the amount has been authorised for payment shall
be paid within 60 days of his ceasing to be an employee of the Corporation.
a) On the death of a member the minimum amount payable to the nominee should be
Rs.2000/-.
i)
Every
member shall as soon as may be after joining the Fund make a nomination in the
term set out conferring the right to receive the amount that may stand to his
credit in the Fund in the event of his death before the amount standing to his
credit has become payable or where the amount has become payable before payment
has been made.
ii)
A member may in his nomination distribute the
amount that may stand to his credit
in the Fund amongst his nominees at his own discretion. If a member has a family at the time of
making nomination, the nomination shall be in favour of one or more persons
belonging to his family. Any nomination
made by such member in favour of a person not belonging to his family shall be
invalid.
Provided that a fresh nomination shall be made by the
member on his marriage and any
nomination made before such marriage shall be deemed to be invalid.
iii)
If
at the time of making a nomination, the member has no family, the nomination
may be in favour of any person or persons but if the member subsequently
acquired a family, such nomination shall forthwith be deemed to be invalid and
the member shall make a fresh nomination in favour of one or more person
belonging to his family.
iv)
A nomination may at any time be modified by
a member after giving a written notice of his intention of doing so, in the
prescribed form. If the nominee
predeceases the member, the interest of the nominee shall revert to the member,
who may make a fresh nomination in respect of such interest.
v)
Where
the nomination is wholly or partly in favour of a minor, the member may, for
the purposes of this rule appoint a major person of his family, as defined in
clause (g) of rule 2, to be the guardian of the minor nominee in the event of
the member predeceasing the nominee and the guardian so appointed.
Provided that where there
is no major person in the family, the
member may,
at his discretion, appoint any
other person to be a guardian of the
minor nominee.
vi)
A
nomination or its modification shall take
effect to the extent that it is valid on the date on which it is received by the Board of
Trustees.
vii)
On
the death of a subscriber who has made nomination, the amount payable to him
shall be paid to his nominee.
viii)
No
person or persons claiming under or through a subscriber, other than a nominee,
shall be entitled to claim any payment of money which may be standing to the
credit of the subscriber in the books of the Fund.
ix)
Save
as herein provided with regard to
nomination, no subscriber shall be entitled in any way to deal with
or transfer by way of security or otherwise his interest or
any part thereof in the Fund and any such transaction or transfer shall be
invalid and the trustees shall not
recognise or be bound by any notice to them of any such transactions.
The decision of the Trustees shall
be final and binding upon all subscribers and persons claiming under them in
all respects and upon all matters. All
questions and disputes relating to or connected with these schemes or with the
Fund or on the administration thereof or the rights or obligations of the
subscriber including all disputes and differences which may arise between any
member or his executors and administrators, nominees or representatives and the
Trustees as to the meaning or effect of any of these provisions or to any
matter relating to or arising out of these shall be referred to the Regional
P.F. Commissioner and his decision shall be final.
No trustees shall be liable or chargeable for any act done
by him in good faith or any omission otherwise than willfully and with
intention to defraud.
The Employees’ Pension Scheme 1995
shall apply to the employees of this Corporaiton. The declaration form prescribed under the Scheme shall be
obtained from all concerned and communicated to the Regional Commissioner
appointed by the Government under the Scheme.
(1) Subject to the approval of the Regional Provident Fund Commissioner and the Commissioner of Income Tax, the Board of Trustees may at any time add to, delete or amend any of the provisions of this scheme, but the main purpose of the Fund shall not, thereby, be affected. With the consent of the beneficiaries as also the Regional P.F. Commissioner, the Board of Trustees may also dissolve the Fund at any time, in which event the balance remaining to the credit of each subscriber after realisation of the investments made out of this Fund and adjusting the gain or loss on such realisation, shall be paid to the subscribers. The members shall have a right to appeal to the Regional P.F. Commissioner in case the Regional P.F. Commissioner approves any amendment to their disadvantage. In case of any dispute regarding any amendment to these rules, the decision of the Regional P.F. Commissioner shall be final. Provided further that any amendment suggested by the Provident Fund Commissioner from time to time in conformity with The EPF & Misc. Provisions Act, 1952 and the scheme framed thereunder shall always be effected.
(2) Any amendment to the Scheme, which is more beneficial to the employees than the existing rules of the establishment, shall be made applicable to them automatically pending formal amendment of the Rules of the Trust.
(3)
No
amendment in the rules shall be made by the employer without the prior approval
of the Regional Provident Fund Commissioner (referred to as RPFC
hereafter). The RPFC shall before
giving his approval give a reasonable opportunity to the employees to explain
their point of view.
i) In the absence of any specific provisions in these rules or if
any provision of these rules is less beneficial than the corresponding
provisions of The EPF & Misc. Provisions Act, 1952 and The Employees’ Provident
Fund Scheme, 1952 framed thereunder, the latter provisions shall prevail,
mutatis mutandis.
ii) Where any provisions of these rules conflicts with any
provisions of the EPFScheme 1952, the
latter shall always be deemed to prevail.
iii) Question
whether any rule is beneficial or not shall be decided by the Regional
Provident Fund Commissioner whose decision shall be
final.
a)
The
employer shall display on the notice board of the establishment, a copy of the
rules of the Fund as approved by the appropriate authority and as and when
amended thereto along with a translation in the language of the majority of the
employees.
b)
The
rate of contributions payable, the conditions and quantum of advances and other
matters laid down under these rules and
the interest credited to the account of each member, calculated on the monthly
running balance of the member and declared by the Board of Trustees shall not
be lower than those declared by the Central
Government under the various
provisions prescribed in the Act and the Scheme framed thereunder.
c)
The
Board of Trustees and the employer shall file such returns monthly/annually as
may be prescribed by the Employees’ Provident Fund Organisaiton within the
specified time-limit, failing which it will be deemed as a default and the
Board of Trustees and employer will jointly
and separately be liable for suitable penal action by the Employees’
Provident Fund Organisation.
d)
The
employer and the members of the Board of Trustees, at the time of grant of
exemption, shall furnish a written undertaking to the RPFC in such format as may be prescribed from
time to time, inter alia, agreeing to abide by the conditions which are
specified and this shall be legally binding on the employer and the Board of
Trustees, including their successors, and assignees, or such conditions as may
be specified later for continuation of exemption.
e)
The
employer and the Board of Trustees shall also give an undertaking to transfer
the funds promptly within the time
limit prescribed by the concerned RPFC
in the event of cancellation of exemption. This shall be legally binding on
them and will make them liable for prosecution in the event of any delay in the
transfer of funds.
f)
If
the company is reporting loss for three consecutive financial years or if there
is erosion in the capital base of the Company, the EPFO will have the power to
withdraw the exemption granted, with effect from the first day of the
next/succeeding financial year.
g)
The
employer in relation to the exempted establishment shall provide for such
facilities for inspection and pay such inspection charges as the Central
Government may from time to time direct under clause (a) of sub section (3) of
Section 17 of the Act within 15 days from the close of every month.
h)
In
the event of any violation of the conditions for grant of exemption, by the
employer or the Board of Trustees, the exemption granted may be cancelled after
issuing a show cause notice in this regard to the concerned person.
i)
In
the event of any loss to the trust as a result of any fraud, defalcation, wrong
investment decisions etc., the employer shall
be liable to make
good the loss.
j)
In
case of any change of legal status of the establishment, which has been granted
exemption, as a result of merger, demerger, acquisition, sale amalgamation,
formation of a subsidiary, whether wholly owned or not etc., the exemption
granted shall stand revoked and the establishment should promptly report the
matter to the RPFC concerned for grant of fresh exemption.
k)
In
case, there are more than one unit/establishment participating in the common
Provident Fund Trust which has
been granted exemption, all the trustees shall be jointly and separately
liable/responsible for any default
committed by any of the trustees/employer of any of the participating
units and the RPFC shall take suitable legal action against all the trustees of
the common Provident Fund Trust.
l)
The
Central Government may lay down any
further conditions for continuation of
exemption of the establishments.