Private PF Trusts with closed establishments since long. Funds are not safe with such Trust running illegally and vulnerable to frauds-EPFO

Private PF Trusts with closed establishments since long. Funds are not safe with such Trust running illegally and vulnerable to frauds-EPFO

Employees’  Provident  Fund Organisation
Bhavishya Nidhi Bhawan,14- Bhikaji Cama Place, New Delhi -110066

No. C-Ex/32(1)/15/BR/SRO/MUZ/CE/EZ/10249                                                                                dated 05/09/2016

To
All Addl. Central P.F. Commissioners (Zones) ,
All Regional P. F. Commissioners ,
Regional Offices/Sub-Regional Offices.

Subject Verification of Closed Exempted/Relaxed Establishments- Regarding.

Sir,

Please refer to the subject cited above . Recently a reference was received from a field office seeking approval of Head Office for taking over of Trust fund of an exempted establishment reported to be lying closed for more than 14 years. The establishment was also reported to have undergone merger/acquisition in the past. The Trust had been running illegally all these years .

2. Funds lying with a private Provident Fund Trust where the establishment which was granted exemption/ relaxation , but is lying closed since long and the Trust is running illegally cannot be said to be safe and in the interests of the employees . Neither it is the intention of the legislation behind grant of exemption to the establishments . Such Trust funds may be vulnerable to potential frauds .  In the interest of the workers and the public, it is desirable that accumulations of the members lying in such private Provident Fund Trusts is transferred to the statutory fund alongwith past accumulation Due procedure laid down for transfer of Trust funds may be followed scrupulously . It also needs to be ensured by the RPFC that liability should not arise on EPFO.

3. Therefore RPFCs of the field offices are directed to take stock of the situation in their respective jurisdictions and initiate suitable action if any such case comes to notice. An action taken report in this regard may please be furnished to the Head Office with status note in detail in respect of each establishment latest by 30.09.2016.

Yours faithfully

(K. L. Goyal)
Addl. Central P. F. Commissioner-I(Exemption)
Ph: 011-26170928