INDIA TRADE PROMOTION ORGANISATION
Employees Contributory Provident Fund Rules
CONTENTS
Rule No
Description
Page No.
Chapter1:Preliminary…..…....……………………………….…………………………… 02
1
Definitions:……………………..………………………………………………………… …. 02
Chapter II: Membership and Contributions…………………………… ……………
04
2
Membership……………………………………………………………………….…………
04
3A
Contributions…………………………………………………………………………………
05
3B
Payment of Contributions:……………………………...……………………..……………
05
Chapter III: Administration of the Fund:….………..……………………..….………
06
4
Member’s “A” and “B” Accounts
06
5
Register and Accounts…………………………………..………………………………….. 06
6
Accounting Period and Valuation……….…………………………………………………
07
7
Expenses of the Fund………………………………………………………………………
07
8
Auditors…………………………………………………………………………..................
07
9
Interest...……………………………………………………………………………………..
07
10
Interest Suspense Account……………………………….………………………………..
08
11
C.P.F. Reserve Account………………………………….………………………………..
08
12
Investments……………………………………………………………………..................
09
13
Restriction on the use of Fund……………………………..…….……………………….
09
AMENDMENT TO THE EX- TFAI CPF RULES CLAUSE 14.… ……………... ……..
09
………………………………………………………..
TO 18 AS PER INCOME TAX RULES
Chapter IV Circumstances in which with drawls may be permitted-14.…. ……..
09
14
Temporary Advances/withdrawls……………………………………………… ... ……..
09
15
Conditions for withdrawal for various purposes………………………… ………………
11
16
Second Withdrawal…………………………………………………………………. ……… 14
17
Repayment of Amounts Withdrawn………………………………………….................... 15
18
Miscellaneous Provisions: …………………………………………..……………………..
16
Chapter V: Transfer and payment of Accumulations:………………...…… ………. 17
19
Previous accumulations of members joining fund…………………………… … ………. 17
July 264Page 1 of 37
20
Transfer of accumulation where a member leaves the Organisation ………............. 18
21
Circumstances in which accumulations in the Fund are payable to a Member………. 18
22
Omitted ………………………………………………………………………………………
19
23
Accumulation of a deceased Member to whom payable……………………………….
20
24
Nominations…………………………………………………………………………..……
20
25
Deductions in case of dismissed Member………………………..................................
21
26
Terms and Payment………………………………………………………………………..
22
Chapter: VI: Miscellaneous:……………………………………………………………
22
27
Protection against attachment……………………………………..….............................
22
28
Information to Member…………………………………………………….... ……………
23
29
Saving right of the Employers…………………………………………………………..…
23
30
Settlement of difference………………………………………………………….. ……….
23
31
Alterations of Rules…………………………………………………………………...........
24
32
Termination of the Fund……………………………………………………….. .............
24
33
Omitted ……………………………………………………………………………………..
24
34
Board of Trustees……………………………………………………………………..........
24
35
Commencement.…………………………………………………………………………….. 27
July 264Page 2 of 37
INDIA TRADE PROMOTION ORGANISATION
Employees Contributory Provident Fund Rules
AMMENDED RULES
Chapter1: Preliminary
Title
These Rules shall be called the TFA of India now ITPO Employees
Contributory Provident Fund Rules.
1
Definitions:
In these Rules, unless the context otherwise requires:-
a)
“The Trust Deed” means the Deed dated the and made between the
Trustees of the one part and the TFAI now India Trade Promotion
Organization of other part and shall include all Deeds amending or
modifying the same in accordance with the provisions thereof.
b)
“The Rules” shall mean these Rules regulating the Fund.
c)
“The Fund” means the India Trade Promotion Organization Employees
Provident Fund.
d)
“The Trustees” means the members of the Board of Trustees of the Fund
for the time being.
e)
“The Authority” means Trade Fair Authority of India now Trade Promotion
Organization whether under its present name, or any new name, and shall
also include any other company with which the said India Trade Promotion
Organization, here after may amaligamate or into which it may hereafter be
reconstructed or to which the whole of its undertaking and business for the
time being may there after be sold or otherwise transferred.
f)
“The Member” means any person in the employment of this Organization
who has been admitted to membership of the Fund.
July 264Page 3 of 37
g)
“Employee” means any person who is employed for wages/salary in any
kind of work. Manual or otherwise, in or in connection with the work of the
Organization and who gets his wages directly or indirectly from the
Organization and includes any person employed by or through a contractor
in or/in connection with the work of the Organization.
h)
“Family” means the employees spouse, legitimate children, stepchildren
and dependent parents, sisters and minor brothers.
Provided that if a male subscriber proves that his wife has been judicially
separate from him or has ceased under the customary law of the
community to which she belongs to be entitled to maintenance, she shall
no longer be deemed to be a member of the subscriber’s family for the
purpose of these rules, unless the subscriber subsequently intimates in
writing to the Trustees that she shall continue to be so regarded.
Provided further that if a female subscriber by notice in writing to the
Trustees expresses her desire to exclude her husband from the family, the
husband shall no longer be deemed to be a member of the subscriber’s
family in matters to which these rules relate unless the subscribers
subsequently cancels such notice in writing.
Explanations:
I
In either of the above 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 from the family of the
Member.
II
An adopted child shall be considered to be a child when the trustees are
satisfied that under the personal law of a Member, adoption is legally
recognized as conferring this status of the natural child.
III
“Continues Service” means uninterrupted service and includes service
which is interrupted by sickness, accident, authorized leave, strike which is
not illegal or cessation of work not due to the employee’s fault.
July 264Page 4 of 37
i)
“ Contribution Salary” or emoluments means the pay, leave salary,
subsistence grant and includes special pay, personal pay and dearness
allowances including cash value of food concession, retaining allowance (if
any) and leave encashment but does not include any other allowance
overtime payment, bonus, commission, pensioner elements including
portion of pension commuted or to her remuneration or profit what ever,
derived by an employee by any means (outside his fixed ascertained basic
salary). The currency in which the contribution is to be fixed in Indian
Rupees.
Notes:- In case of re-employed pensioners the Organization Contribution
shall be based on the gross pay of the pensioners including pension.
j)
“The Act” shall mean the “ Employees Provident Fund Act 1952” as
amended and/or supplemented from time to time or any re-enactment of
that Act.
k)
“ The Statutory Scheme” shall mean the “Employee” Provident Fund
Scheme, 1952” as amended and/or supplemented from time to time.
l)
“Exempted Provident Fund” shall mean a provident Fund Exempted from
provisions of the statutory scheme pursuant to Section 17 of the Act.
m)
“Accounts Officer” means the Financial Adviser & Chief Accounts Officer of
the Authority now Organization on behalf of the Trustees.
n)
“Year” means the Financial year of the Organization ending 31st March.
In the Rules, where the context so admits the masculine gender shall
singular the feminine and the singular number shall include the plural and
vice versa.
Chapter II: Membership and Contributions:
Membership
2
i)
Membership of the Fund shall be available to persons who, by their terms
of service with the Organization or pursuant to the provisions of the Act are
required to become Members of the Fund.
July 264Page 5 of 37
Membership of the Fund shall commence from : the beginning of the
month following the date on which the employee
ii)
a)
The date of joining the establishment as an employeeHas joined as an
employee or actual date of permanent absorption of the employee, by the
Organization whichever is earliest.
b)
Being a deputation from a Govt. Department, has been absorbed
permanently in the service of the Organization provided that persons who,
at the time of becoming employees of the Organization and/or have
become members of the Statutory Scheme or of Exempted Provident Fund
shall become Members of the Fund iImmediately.
iii)
Re-employed employees shall also be eligible to become members of the
fund from the date of re-employment and may be permitted to contribute
from such date, provided that when the term of their re-employment is
initially for a period of one year or less but is later extended as to exceed
one year Organization contribution with interest shall be payable for the
entire period for which such officers are allowed to contribute to the Fund. If
the period exceeds one year.
iv)
If a member is transferred to foreign service or sent on deputation out of
India, he shall remain subject to the Rule of that Fund in the same manner
as if he was not so transferred or sent on deputation.
v)
A member of the Fund shall continue to be a Member until he with draws
the amount standing to his credit in the Fund provided that a former
employee who participates in the Fund but whose accounts has not been
settled shall continue to be a member.
If any question arises whether an employee is entitled or required to
become or continue as a Member or as regard the date from which he is so
entitled or required to become a members, the decision thereon of the
Regional Commissioner appointed under the Act shall be final, provided
that no decision shall be given unless both the Organisation and the
employee have been heard.
July 264Page 6 of 37
Contributions
3A
i)
The contribution payable to the fund both by a Mmember and by the
Authority now organization shall be 12% of contribution salary as defined in
rule1 (ij)
Note
1
No contribution shall be payable during a period of suspension or during a
period of leave without pay, or after death, retirement, resignation, or
dismissal.
2
Contributions both of the subscriber and Employer should be rounded to
the nearest rupee (50 pause or more being rounded to the nearest higher
rupee).
Payment of Contributions:
3B
i)
The employer shall in the first instance pay both the contribution payable
by himself employer’s contribution and also on behalf of the member
employed by him directly or by or through a contractor, the contribution
payable by such member (members contribution).
ii)
In respect of employees employed by or through a contractor, the
contractor shall recover the contribution payable by such employee and
shall pay to the principal employee the amount of members’ contribution so
deducted together with an equal amount of contribution so deducted
(employees contribution) and also administrative charges/inspection
charges.
iii)
It shall be the responsibility of the principal employer to pay both the
contribution payable by himself in respect of the employees directly
employed by him and also in respect of the employees employed by/or
through a contractor and also administrative charges/inspection charges.
Explanation
For the purpose of this paragraph the expression “Administrative charges”
means such percentage of the pay Basic wage, Dearness allowances etc.
July 264Page 7 of 37
for the time being payable to the employees other than an excluded
employee, and in respect of which P.F. Contribution are payable, as the
Central Govt., may, in consultation with the Central Board and having
regard to the resources of the fund for the meeting its normal administrative
expenses fix.
iv)
The amount of member’s contribution and installments on accounts of
principal and interest on withdrawal from the Fund shall, notwithstanding
any provision to the contrary in the Rules or any contract or any law for the
time being in force, be recovered by means of deduction from the salary of
the Member. The recovery shall be supported by a schedule in the
prescribed form.
v)
Such deduction shall be made only from the salary paid in respect of the
period or part of the period for which the contribution is payable. Provided
that the Organization shall be initialed to recovered number contributions
from a salary paid in respect of another period where the Member at the
time of joining service with Authority/Organization has in writing given a
false declaration concealing that he was already a member of t he
Statutory Scheme, and provided further that where no deduction has been
made on account of accident mistake or a clerical error., s Such deduction
may, with the consent in writing of the Inspector under Section 13 of the
Act, be made from the subsequent salary.
vi)
Any sum deducted by the Organization from the salary of a Member under
this Rule shall be deemed to have been entrust ed to the Organization for
the purpose of paying the contribution in respect of which it was deducted.
vii)
Not with standing any contract to the contrary the Organization shall not be
entitled to deduct the Organization contribution from the wage of a member
or otherwise to recover it from him.
Chapter III: Administration of the Fund:
4
Member’s “A” and “B” Accounts
The Accounts Officer on behalf of the Trustees shall keep an “A Account
(Member Account) and a “B” Account (Organizations Account) in respect of
each Member. There shall be entered in the “A” Account the Member’s
contribution and in the “B” Account” the Organization contribution, and
interest as provided under these Rules shall be entered pro-rate in both “A”
July 264Page 8 of 37
and “B” Accounts. All the accounts of the Members shall be maintained at
the Head Quarter of the Authority/Organization at New Delhi.
Persons who shall become members of the Fund up to 1.3.77, after having
been members of a statutory scheme or of an exempted provident fund
shall have the option to have the amount standing to their credit in the
previous fund transferred to the Fund and credited separately to the
Member’s “A” account and ‘B’ account, However, they will be allowed
continuity of membership of the fund from the date of joining of the fund.
Register and Accounts
5
The trustees shall cause to be kept a Register of Members of the Fund in
which shall be entered the name of every Member and particulars of the
date of his joining and leaving the service of the Organization and other
necessary particulars.
The Trustees shall cause to be kept full Books and Accounts of the Fund.
The Register and Accounts and Records of the Fund may be kept at the
Head Quarter of the Authority (Organization) The Register and the
Accounts shall at all times during office hours be opened to the inspection
of the Trustees and Provident Fund Authorities or anyone appointed by
them for the purpose.
Accounting Period and Valuation
6
The accounts of the Fund shall be closed on the 31st day of March of each
year or (if they deem it necessary) at such intermediate dates as the
Trustees shall decide. At the end of each Accounts period a Balance Sheet
shall be drawn up. For this purpose the investment shall be valued at cost
prices adjusted at the discretion of the Trustees in the case of remember
securities in accordance with the redemption value. Any appreciation or
depreciation disclosed by such valuation shall be carried to the “C.P.F.
Reserve Amount” mentioned in rule 11.
Expenses of the Fund
7
i)
The Organization shall bear all the expenses relating to the administration
of the Fund including fees and allowances of the Trustees if any, traveling
July 264Page 9 of 37
and compensatory allowance, if any clerical assistance, cost of books and
stationary, auditors and other incidental charges.
ii)
The Organization shall also contribute the difference if any, between the
amounts of interest credited to the accounts of the members under rule 9
and the amount accrued as interest on investment reduced by any surplus
in previous years.
Auditors
8
The accounts of the Fund shall be examined and the correctness of the
Revenue Accounts and Balance Sheets ascertained by the Auditors
appointed by the Trustees. A copy of the audited Balance sheet shall be
forwarded to the Regional Provident Fund Commissioner.
Interest
9
i)
The Trustees shall credit to the Accounts of each Member interest at such
rate as, be determined by the Trustees, which shall however not be lower
than that declared by the Central Government for the members of the
Statutory Scheme.
ii)
Interest shall be credited with effect from 31st March of each year in the
member’s account in the following manner;
a)
On the amount to the credit of a subscriber on the 31st March of the
preceding year, less any sums withdrawn during the current year of interest
for 12 months.
b)
On sums withdrawn during the current year interest from 1st April of the
current year up to the last date of the month preceding the month of
withdrawal.
c)
On all sums credited to the Member’s account after the 31st March of the
preceding year interest from the month of credit up to the march of the
current year. In the case of cash deposit by a member towards repayment
of advance, interest will be allowed from the month following that in which
the deposit is made.
July 264Page 10 of 37
iii)
Total amount of interest shall be rounded to the nearest rupee , 50 paiuse
or above being rounded to the nearest higher rupee and any sum less than
50 paiuse being ignored.
iv)
In addition to the amount payable under Rule 26, interest there on up to the
end of the month preceding that in which the payment is made up to the
end of the sixth month after the month in which such amount become
payable, whichever of these period be less, shall be payable to the person
to whom such amount is to be paid.
Interest Suspense Account
10
All interest, rent and other income realized by the Fund including net profits
or losses, if any from the sale of investments shall be credited or debited,
as the case may be to an Account called the “Interest Suspense Account”.
C.P.F. Reserve Account
11
A.C.P.F. Reserve Account shall be maintained to which shall be credited
the entire amount for-feited from the individual accounts under the Rules,
The amount at the credit of C.P.F. Reserve Account shall be available for
the following purposes at the discretion of the Board of
Trustees:-
i)
aAd-hoc payment of RS. 30.00 to the heirs of a deceased member as an
aid for procuring a succession of a guardianship certificate for getting the
provident fund dues if such a certificate is necessary.
ii)
payment of a sum of the nominee/heirs of a deceased member provided
that the total amount including the sum proposed to be paid does not
exceed Rs. 1000.00 ( The intention that a sum of Rs. 1000.00 should be
assured to such nominees/heirs).
iii)
For meeting money order commission on remittances from the provident
Fund to outgoing members/their heirs.
Formatted: Bullets and Numbering
1.3.
July 264Page 11 of 37
iv)
For declaring the rate of interest so that it is not lower than fixed under the
Employees Provident Fund Scheme.
v)
For making good the capital loss on the conversion of securities and other
instruments. This should however, be limited to cases of absolute
necessity.
Investments
12
All moneys contributed to the Fund (whether by the employer or by the
employees) or transferred from the individual account of an employee in
any recognized provident fund maintained by his former employer or
accruing by way of interest or other wise to the Fund may be deposited in a
current account with any scheduled Bank and to the extent such moneys
as are not so deposited (such moneys as are not so deposited being here
after in this Rule referred to as investible moneys) shall be invested in
Govt. Securities as per pattern of investment laid down by Govt. of
India(Ministry of Labour ) from time to time.
Restriction on the use of Fund
13
Subject to the provisions of the Act and the Rules the Fund shall not,
except with the previous sanction of the Central Government, be
expended for any purpose other than for the payment of sums
standing to the credit of individual. Members or to their nominees or
heirs or legal representatives in accordance with the provisions of
the Rules.
Chapter IV :. Circumstances in which advances/ with drawals
may be permitted-14.
Temporary Advances / WithdrawlsWithdrawals
14
Advances/ Withdrawals by a Member may be allowed by the The
Trustees may at their discretion and subject to limitationsed laid
down in the Indian Income Tax (P.F. in force allows withdrawals by a
Member for in the following purpose: circumstances :
a)
tTo pay expenses incurred including hospitalization in connection with the
illness of the employee or a member of his family including hospitalization
and where necessary, traveling expenses.
illness including any hospitalization resulting from such an illness of the
employee or a member of his family actually dependent on him. The
traveling expenses arising as a result of such an illness or hospitalization
July 264Page 12 of 37
shall also be covered.
aa)
to pay expenses in connection with the serious or prolonged illness or a
disability, including where necessary, the traveling expenses of the
member or any person actually dependent on him as a temporary advance.
b)
Meeting the cost of higher education, including where necessary, the
travelling expenses of any child of the employee actually dependent on him
in the following cases, namely:-
i)
eEducation outside India for academic technical, professional or vocational
courses beyond the matriculation stage, and
ii)
aAny medical, engineering or other technical or specialized course in India
of an employee or any member of his family.
c)
tTo pay for the cost of passage to a place out of India of an employee or
any member of his family as a temporary advance..
d)
tTo pay expenses in connection with marriage of self, daughter, son,
sister or brother, funerals or ceremonies which by the religion of the
employee it is incumbent upon him to perform.
e)
tTo pay premium on policies of insurance on the life of the employee or of
his wife provided that the policy is assigned to the trustees of the funds or
at their discretion deposited with them and that the receipts granted by the
insurance company for the premium are from time to time handed over to
the trustees for inspection.
f)
f)
tTo meet the coast of the legal proceedings instituted by the employee for
vindication of his position in regard to any allegations made against him in
respect off any Act done or [purporting to be done by him in the discharge
of his official duty or to meet the coast of his deference when he is
prosecuted by the employer in any court of law in respect of any official
misconduct on his part.
July 264Page 13 of 37
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 condition of service on penalty imposed on him;
g)1
to meet the expenditure on building a house, or purchasing a site or a
house or a house and site.
Provided that the employee furnishes an undertaking to the trustees not to
encumber or alienate such house or site or house and site or as the case
may be,
Provided that the employee furnishes an undertaking to the trustees not to
encumber or alienable such house or site such house and site or as the
case may be,
Provided further such house or site or such house and site shall not be
deemed to be an encumbered property merely because such house or site
or such house and site is:
i)
mortgaged, solely for having obtained funds for the purchase of the said
house or site or the said house and site or for the building of such house to
any of the following agencies, namely (a) the Central Government, (b) a
State Government (c) a cooperative societies, being a society registered or
deemed to be registered under the cooperative Societies Act, 1912, or
under any other law for the time being in force in any State relating to
cooperative societies, (d) an institution (e) trust, (f) a local body, or (g) a
housing finance corp., or Mortgaged, solely for having obtained fund for the
purchase of the said house or site or the said house and site or for the
building of such house to any of the following ageneses, namely (a) the
Central Government, (b) a State Government (c) a Cooperative Societies,
being a society registered or deemed to be registered under the
cooperative society, 1912,or under any other law for the time being in
force in any state relating to cooperative societies, (d) an institution (e)
trust, (f) a local body, or (g) a housing finance corp., or (h) ITPO or under
any other
ii)
hHeld in the name of any of the aforesaid agencies and the employee is
precluded from transferring or otherwise disposing of that house orn site or
that house and site without the prior approval of such agency.
July 264Page 14 of 37
iii)
Land acquired on a perpetual lease or on lease for a period of not less than
30 years for constructing a dwelling house/flat or a house/flat built on such
a leased land, shall also not be deemed to be an encumbered property.
for not less than thirty years of Property lease
g)1A
To meet the expenditure on any additions, substantial alterations or
improvements necessary to a house.
g)2
For payment of loan previously raised for the purpose of construction
or purchase of a house,.
Explanation:
For the purpose of this clause, “pay” shall have the meaning assigned to it
in the explanation to Rule 15.7(1) & 15.7(2).
In the case of an employee who needs:
h)
i)
tTo meet his household expenses if a factory or their establishment, when
he is working is locked up or closed down for more than fifteen days for
reasons other than a strike rendering him unemployed without any
compensation or if he is not in receipt of wages for a continuous period or
two months or more..
ii)
tTo meet his house hold expenses if he factory or other establishment
where in he is working, suffers cut in supply of electricity resulting in a loss
of one-forth or more of the total wages of the employee.
iii)
tTo meet the cost of purchasing an equipment required by a physically
handicapped employee which will minimize his hardship on account of the
handicap.
iv)
tTo meet his house hold expenses where the employee is discharged or
dismissed or retrenched by the employer and such discharge, dismissal, or
retrenchment as the case may be, isn challenged by the employee in any
court or tribunal and the case is pending in that court or tribunal.
July 264Page 15 of 37
v)
tTo meet the expenses of the damage caused to the movable or
immovable property of the employee as a direct result of-:
ia)
fFlood, cyclone, earthquake other convulsion of nature, or
iib)
rRiots.
Explanation :EXPLANATIONS:
For the purpose of this clause, “ pay” shall have the meaning assigned to it
in the explanation to sub-rules 2(i) and 2(ii) of 15.
For the purpose of this clause, “ Pay” shall have the meaning assigned to it
in the explanation to sub-rules 2(i) and 2(ii) of 15.
i)
In any other case wherein the Chairman of Board of Trustees is satisfied
that considering the peculiar circumstances temporary advance withdrawal
is justified.
Conditions for withdrawal for various purposes
15
The withdrawals below may be refundable or non refundable as per the
request of the employee unless specified in the Rules.: except for passage
abroad as specified in clause ( c) of rule 14 and any other case as
specified clause ( i) of rule 14 which shall only be refundable advances.
15.1
The withdrawal in connection with expenses on illness as specified in
clause (a) of rule 14 shall not exceed the member’s basic wages and the
dearness allowance for six months or his own share of contribution with
interest in the Fund, which ever is less.
15.2
The withdrawal in connection with the cost of higher education as specified
in clause (b)(i) & (b)(ii) of rule 14, by an employeer.
(i)
Non-refundable advance shall not exceed 50% of the employee’s share of
contribution to the Fund with interest thereon, standing to his/her credit on
the date of such authorization.
(ii)
Refundable advance shall not exceed three months Basic pay and
July 264Page 16 of 37
Dearness Allowance or half of the member’s total contribution with interest
thereon whichever is less
15.3
The withdrawal for purpose of passage abroad as referred to in clause (c)
of rule 14 shall not exceed three month’s pay or the total of the
accumulation of exempted contributions and of exempted interest lying to
the credit of the employee, which ever is less.
15.4
The withdrawal for purpose of marriage, funeral or religious ceremonies as
referred to in clause (d) of rule 14, from his or her Provident Fund account,
shall not exceed six months pay or the total of the accumulation of
exempted contributions and exempted interest lying to the credit of the
employee, which ever is less.
15.5
The withdrawal for purpose of LIC premium as referred to in clause (e) of
rule 14 shall not exceed three month’s pay or the total of the accumulation
of exempted contributions and of exempted interest lying to the credit of the
employee, which ever is less.
15.6
The withdrawal for the purpose of legal proceedings specified in clause (f)
of rule 14, shall not exceed three months pay or Rs. 500/- whichever is
greater, but shall in no case exceed half the amount to the credit of the
employee.
15.7
1
The withdrawal for the purpose of dwelling house as specified in clause
(g.1) and clause (g.2) of rule 14 by any employee shall be subject to the
following conditions:-
i)
The amount of withdrawal shall not exceed the member’s basic wages and
dearness allowance for thirty six months or the member’s own share of
contributions, together with the employer’s share of contributions with
interest thereon in his account in the Fund or the actual cost towards the
acquisition of the dwelling site (together with the cost of construction
thereon) or the purchase of the dwelling house/flat or the construction of
the dwelling house, whichever is the least.
Explanation: The actual cost towards the acquisition of the dwelling site or
the purchase of the dwelling house/flat shall include the charges payable
July 264Page 17 of 37
towards registration of such site, house or flat.The amount of withdrawal
shall not exceed member’s basic wages and dearness allowance for thirty
six months or the member’s own share of contributions, together with the
employer’s share of contributions with interest thereon in his account in the
Fund thirty-six months pay including basic salary and dearness allowance,
of the employee or the actual cost of the house and/ or of the site,
whichever is less.
ii)
The employee shall have completed five years of service or in is due to
retire within the next ten years.
iii)
The construction of the house should be commenced within six months of
the withdrawal and should be completed within one year from the date of ht
the commencement of the construction.
iv)
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.
v)
If the withdrawal is made for the repayment of loan previously raised for the
purpose of construction or purchase of a house, the repayment of the loan
should be made within three months of the withdrawal
vi)
Where the withdrawal is for the construction of a house it shall be permitted
in two or more equal installments (not exceeding four), a later installment
being permitted only after verification by the trustees about the actual
utilization 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.
However, the The withdrawal shall be permitted for purchasing a flat or
house and/ or site whose ownership is in the name of the employee or the
spouse or is jointly owned by the employee and the spouse.
July 264Page 18 of 37
viii
)
15.7
2
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 utilized
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 lump sum together with interest from the month of
such withdrawal at the rate prescribed in sub-rule (4) of rule 17. The
amount refunded shall be credited to the employers account in the
Provident Fund.
A withdrawal for additions, substantial alternations or improvements
necessary as specified in clause (g.1A) of Rule 14 to the house owned by
the employee or spouse or spouse or jointly owned by the employee and
the spouse, may be granted once and in one installment only upto and
shall not exceed twelve months basic wages and dearness allowance: or
the employeers own contribution with interest thereon or the amount
standing to his credit in the Fund, whichever is less:
Provided that the said withdrawal shall be admissible only after a period of
five years from the date of purchase or completion of the house:
Provided that a further second withdrawal shall be admissible only after a
period of ten years from the date of first repair advanced and not exceed
twelve months basic wages and dearness allowanceProvided that aA
further withdrawal up to twelve months basic wages and dearness
allowance or member's own share of contribution with interest thereon in
his account, whichever is the least may be granted for addition, alteration,
improvement or repair of the dwelling house owned by the member or by
the spouse or jointly by the member and the spouse, after ten years of
withdrawal, mentioned above.
Provided further that where the amount withdrawn is not utilized in whole or
in part for the purpose for which it was withdrawn, the excess or the whole
amount, as the case may be, shall be refunded to the trustees forthwith in
one lump sum together with interest from the month of such withdrawal at
the rate prescribed in sub-rule (4) of rule17 and the amount so refunded
shall be credit ed to the employees account in the fund.
Explanation:
For the purpose of sub-rules 15.7(1) and 15.7 (2) “Pay” includes basic
July 264Page 19 of 37
wages with dearness allowance, retaining allowance (if any), cash value of
food concession admissible there onto which the employee is entitled at
the time when the withdrawal is granted
15.8
The withdrawal for any other purpose referred to in clause (h) of rule 14
shall not exceed three month’s pay or the total of the accumulation of
exempted contributions and of exempted interest lying to the credit of the
employee, which ever is less.
For the purpose of physical handicap as referred to in clause (h)(iii) of rule
14 :
(i)
No advance shall be paid unless the member produces a medical
certificate from a competent medical practitioner to the satisfaction of
the Board of Trustees to the effect that he is physically handicapped.
(ii)
The amount advanced under this rule 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 least
ExplanationFor the purpose of this rule except sub-rule 15.7 “Pay” means
the pay to which the employee is entitled at the time when the withdrawals
is granted.
15.9
Second With Drawl
16
1
Save as in sub-rule (2) and sub-rule (3) a second temporary advance/
withdrawal shall not be permitted until the temporary advance first
withdrawn has been fully repaid.
2
A withdrawal may be permitted:-
a)
For a non refundable withdrawal specified in rule 14 not withstanding that
the sum withdrawn earlier for any purpose has not been repaid;
b)
For any other purpose specified in rule 14 not with standing that any sum
withdrawn earlier as a non refundable withdrawal specified in rule 14 has
not been repaid.
July 264Page 20 of 37
3
A withdrawal referred to in clause (a) of sub-rule (2) of an amount equal to
the difference between the amount of withdrawal admissible under sub-rule
15.7 (1) of Rule 15 as on the date of application and the amount actually
withdrawn by the employee for the purpose specified in clause (g)(1) and
(g)(2) of rule 14 any time during six years preceding the 3rd day of October
1981 may be permitted to the employee, subject to the following conditions,
namely:-
i)
The employee had availed of the first withdrawal for purchase of a site and
now proposes to construct a house on the so purchased: or
ii)
The employee had availed the first withdrawal foro making initial payment
towards allotment or purchase of a house from any of the agencies referred
to in the second provision to clause (g) (1)of rule 14 and now proposes to
withdraw the amount for completing the transaction and for acquiring
ownership of the house so purchased : or
iii)
The employee had availed of the first withdrawal for construction of a
house but the said construction could not be completed due to shortage of
funds.
Repayment of Amounts Withdrawn
17
1
Where a withdrawal is allowed as `other than refundable advance,
the amount withdrawn need not be repaid.
2
Where a refundable withdrawal advance is allowed in connection with
marriage as specified in clause (d) of rule 14, the amount withdrawn shall
be repaid ins not more than forty-eight equal installments.
3
Where a withdrawal refundable advance is allowed for any other purpose,
the amount withdrawn shall be repaid in not more than twenty-four equal
monthly installments
4
In respect of temporary advance / withdrawals :
a) referred to in clause (viii) of sub-rule 15.7 ; or
b) where amount withdrawn is not utilized for the intended purpose ; or
July 264Page 21 of 37
c) whole of the amount is not utilized for the said purpose
Interest shall be paid in accordance with the following table:-
TABLE
Where the amount is repaid in not One additional installments of 4%
more than 12 monthly installments
on the amount withdrawn.
Where the amount is repaid in more Two additional installments of 4%
than 12 monthly installments but not on the amount withdrawn.
more than 24 monthly installments.
Where the amount is repaid in more Three additional installments of
than 24 monthly installments but not 4% on the amount withdrawn
more than 36 monthly installments
Where the amount is repaid in more
than 36 monthly installments but not
more than 48 monthly installments
Where the amount is refunded under
clause(viii) of sub-rule (2) of rule 15.
ThreeFour additional installments
of 4% on the amount withdrawn.
4% of the
refundable.
amount
which
is
Provided that at the description 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 per cent above the rate which is payable for the time
being on the balance in the fund at the credit of the employee.
July 264Page 22 of 37
The employer shall deduct the installments aforesaid from the employer’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 with
drawal or, in the case of an employee on leave without pay, from the
second monthly payment, of salary made after his return to Duty.
Miscellaneous Provisions:
18
a)
Amount withdrawn but not repaid may be deemed as income
In case of default of repayment of installments due under sub-rule (2) or
sub-rule (3) on sub-rule (4) of rule 17 or where the amount withdrawn is not
uutilised litired for the purpose for which it is with drawn , the Chief
Commissioner or Commissioner may at its discretion order that the amount
of the 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 have been utilized for the purpose for
which it is withdrawn, and Assessing officer shall assess the employee
accourdingly.
b)
With drawl on leave preparatory to retirement. Withdrawal within one
year before the retirement:
The Board of Trustees may on an application from a member in such
form as may be prescribed, permit withdrawal of upto 90 percent 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.
Not with standing anything contained in rules 14 to 17 , it shall be
open to the trustee s of a
provident fund to permit the withdrawal it shall be open to the
trustees of a provident fund to permit
the withdrawal of ninety percent of the amount standing at the credit
of any employee if the
employee takes leave preparatory to retirement provided that if he
rejoins duty on the expiry of his
leave he shall refund the amount drawn together with interest at the rate
allowed by the fund
July 264Page 23 of 37
c)
In computing the period of membership of the Fund of a Member Rule 15 ,
his total service with the authority now organization (exclusive of periods of
breaks) as well as the periods . Oof his membership of any private
provident Funds of exempted Corporation of other establishments of
exempted provident Fund immediately preceding the current membership
of the Fund shall be included , provided that the member has not severed
his memberships by withdrawal of his provident fund during such period.
Chapter V: Transfer and payment of Accumulations:
19
Previous accumulations of members joining fund
In the event of a transfer of the service of an employee (otherwise
qualified for the membership under Rule2) without any break in
service who is either a member of the Provident Fund established
under the provisions of the employees Provident Fund Act 1952, or
whose services are transferred to the Organization from any other
Corporation Company or association of persons which maintains a
Provident Fund recognized under the Indian Income Tax Act,1922,
1922(XI of 1922) or to which the Provident Fund Act, 1925(XIV) OF
1925) applies the entire amount standing to the credit of such
employee in the Provident Fund with such other Corporation,
Company or Association or persons (including the employers
contributions and interest t hereon) shall be accepted by the trustees
for credit to the provident Fund established under these rules and the
employee shall be become a member of this Fund from the date of
his joining this Organization after Transfer. In such case his previous
membership of the Provident Fund falling within the purview of the
E.P.F. Act shall be taken into account for paying him employees
share under Rule 22. Nothing in this rule shall, however, be deemed
to provide that thethat the amount of such transferred balance shall
be taken into account in enter mining the contributions to be made by
the Organization to the Fund under Rules (3)_ here of so that the
Organization shall be under no liability what so ever when such
payment or transfer is made to this provident Fund to make
equivalent contribution to the fund. Subject as aforesaid any such
transferred balance She has credited to the account of such joining
member and be subject to the provisions of the rules for the time
being in force.
20
Transfer of accumulation where a member leaves the Organisation
July 264Page 24 of 37
When a Member leaves the service of the Organization and joins another
establishment covered by the Act, or recognized under Indian Income Tax
Act, 1922 (XI of 1922) or to which the Provident Fund Act 1925 (XIV of
1925) applies he may apply ,apply, for the transfer of his accounts. The
amount standing to the credit of the members’ “ A” And “B” Accounts
together with interest thereon up to the end of the month proceeding the
month of transfer of such balance, shall thereupon be transferred direct to
the new establishment (if the said establishment is an exempted one) or if
the new establishment is an un exempted one to the Regional Provident
Fund Commissioner in whose jurisdiction the new establishment is located
,located, or to the new Provident Fund Account in the Govt. Department .
Provided such transfer is otherwise permissible under the C.P.F. Rules of
such undertakings or Govt. departments etc.
Explanation
So far as transfer from and to Central Government/ State Govt. corporate
bodies owned by the government is concerned the transfer shall include
cases of resignation from service in order to take up appointment under a
body corporate owned or controlled by Government without any break and
with proper permission of the Government and the Corporation as the case
may be. The time taken to join the new post shall not be treated as a break
in service if it does not exceed the joining time admissible to a Government
servant on transfer from one post to another. Resignation from service in
order to take up appointment in another Department of the Central
Government or under the State Government or under a body corporate
owned or controlled by Govt. without any break and with proper permission
of the Govt. Corporate/Organization concerned shall not be treated as
resignation form Govt. service /Corporation
Circumstances in which accumulations in the Fund are payable to a
Member
21
I
a)
Subject to the provisions of paragraph 69(i) of the Statutory Scheme, a
Member may withdraw the full amount standing to him credit in the Fund.
On retirement from service on Superannuating
July 264Page 25 of 37
b)
On retirement on account of permanent and total incapacity for work due to
bodily or mental infirmity duly certified by a Medical Officer designated by
the Organization(Organization (A memberA member suffering from tuber
closes or leprosy even if contracted after leaving the service of the
Organization grounds of illness but before the payment has been
authorized, shall be deemed to have been permanently and totally in
capacity for work)
c)
On termination of the service in the case of mass or individual retirement
as the result of reduction by the Organization of its establishments provided
that in the case of mass retrenchment the payment shall be made
immediately and in the case of individual retrenchment payment shall be
made if the member has not been employed in any other establishment to
which the act applies continuousapplies continuous period of not less than
six months immediately proceeding the date on which the member makes
the application for the date on which the
Member makes the application for withdrawal, Provided further that in the
case of an individual retrenchment pending final withdrawal, the member
may at his option, be paid for the period during which we member is out of
employment monthly withdrawal not exceeding six, of a non refundable
advance from the Fund of an amount equal to:
i)
The pay (including dearness allowance, cash value of any food concession
and retaining allowance) drawn by him in the month immediately preceding
the month in which he was retrenched, or
ii)
One–sixth of the amount standing to his credit (including interest) in the
Fund whichever is less and on the expiry of the period of six months
referred to in the foregoing proviso the balance amount, if any shall:
1
In any case where the members secures employment in any establishment
to which the Act applies, be transferred to the new provident fund account
of that establishment.
July 264Page 26 of 37
II
2
In any case where the Member secures employment in an establishment
not covered by the Act, be paid in cash to him after the expiration of the
said period of six months or be transferred under Section 17-A to the credit
of the account of such Member in the provident Fund of the establishment
in which he is re-employed provided that it shall be so done only if the
Member so desires and such transfer is permissible under the rules of that
provident fund:
3
In any case where the member does not secure employment be paid in
cash.
On the death of the member while in the service of Organization (before
the amount standing to his credit has become payable) the Full amount
standing to the credit of his account shall be paid in accordance with Rule
23.
22
Omitted
23
Accumulation of a deceased Member to whom payable
On the death of member before the amount standing to his credit has
become payable or where the amount has become payable, before
payment has been made, the amount due vide Rules 21 and 22 shall be
paid to the claimants in accordance with the following provisions
a)
If a nomination made by the member in accordance with Rule 24 subsist,
the amount or the part thereof to which the nomination relates shall
become payable to his nominee or nominees in accordance with such
nominations or.
b)
If a nomination made by the member in accordance relates only to a part of
the amount the whole amount or the part thereof to which nomination does
not relate, as the case may be shall become.
July 264Page 27 of 37
Payable to the Members of his family in equal shares: PROVIDED that no
share shall be payable to:
a) Sons who have attained majority
b) Sons of a deceased son who have attained majority:
c) Married daughters whose husbands are alive:
d) Married daughters of a deceased son whose husbands are alive
As long as there is any member of the family other than those specified
under (A), (b) ,), (C) and (d) above and PROVIDED further that the widow
or widows and the child or children of a deceased son shall receive
between them in equal parts only the share which that son would have
received if he had survived the Member and had not attained the age of
majority at the time of the Member’s death.
c)
in any case to which the provisions of paragraphs (a) (b) do not apply the
whole amount shall be payable to the person legally entitled to receive it on
production of probate or letters of administration to the estate of the
deceased or a succession certificate. The Trustees may, if the amount
payable does not exceed Rs. 5000/- and if they are satisfied after enquiry
about the title and bonafidre ofe of the claimant, waive the production of
probate or letters of administration or succession certificate
For the purpose of this Rule a Member’s posthumous child if born alive,
shall be treated in the same way as a surviving child born before the
Member’s death.
24
Nominations
Each Member shall immediately after having been admitted to membership
of the Fund, sign a declaration (in such form as may from time to time be
prescribed by the Trustees) nominating) nominating the person or persons
who will in the event of his death be entitled to receive payment of the
amount standing to his credit in the fund.
July 264Page 28 of 37
A member may, in his nomination, distribute the available amount amongst
his nominees at his own desecration, in which case he will have to specify
the share payable to each one of the nominees.
If a member has a family at the time of making the nomination, the
nomination shall be in favour of one or more persons belonging to his
family. Any nomination made previously by such a Member in favour of a
person not belonging to his family shall be void.
If at the time of making nomination the Member has no family, the
nomination may be in favour of any person or persons but if the Member
subsequently acquires 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 persons belonging to his family.
A nomination made under this Rule may at any time be modified by
the Member by making a fresh nomination canceling the previous
one. If the nominee predeceases the Member, the interest of the
nominee shall revert to the Member, who shall make a fresh
nomination in respect of such interest.
A nomination or its modification or notice, of cancellation shall take effect,
to the extent that it is valid, on the date of its receipt by the Accounts
Officer on behalf of the Trustees.
25
Deductions in case of dismissed Member
Not with standing anything contained in Rule 22 if a Member is
dismissed by the Organization for serious and willful misconduct, the
Organization may send intimation thereof to the Trustees and the
Trustees shall have thehave the power to forfeit the Organization
contribution up to a maximum of the Organization contribution in the
last two complete years and that of the present period.
Before exercising the power of forfeiture conferred by the Rule, the
Member concerned shall be called upon by notice in writing to show cause
why the forfeiture should not be made and Trustees shall decide the
amount of forfeiture should not be made and Trustees shall decide the
amount of forfeiture after taking into account any representation made by
the Member.
July 264Page 29 of 37
A forfeiture made under this rule may be reviewed by the Trustees either of
their own notion or at the request of the Organization of the Member.
Any amount forfeited from the “B Account of a member under this rule shall
not be returned to the Organization but shall be credited to the C.P.F.
reserve account of the Fund.
26
Terms and Payment.
When the amount standing to the credit of Member or the balance there of
after any deduction under Rules 21, 22, and 25 becomes payable, it shall
be the duty of the Trustees to make prompt payment as provided in the
Rules, They shall close the accounts of the Member and give notice in
writing to the person to whom the amount is payable, specifying the
amount and tendering payment
If any portion of the amount which has become payable is in dispute or
doubt, the Trustees shall make prompt payment of that portion which is not
in dispute or doubt, the balance being adjusted as soon as possible.
If the person to whom any amount is to be paid under the Rules as a minor
or lunatic for whose estate a guardian under the Guardians and Wards Act,
1990(8 of 1990) or a manager under the Indian Lunacy ActLunacy Act
1912 (4 of 1912) as the case may be has been appointed, the payment
shall be made to such guardian or manager. In case no such payment or
manager has been appointed and the amount does not exceed Rs. 2000/the payment shall be made to such person as the Trustees consider to be
the proper person representing the minor or lunatic and the receipt of such
person for the amount paid shall be a sufficient discharge there of. In any
other case the amount shall be paid to the person authorized by law to
receive the payment on behalf of the minor or the lunatic
July 264Page 30 of 37
If it is brought to the notice of the Trustees that a posthumous child is to be
born to the deceased Member they shall retain the amount which will be
due to the child in the event of its being born alive, and distribute the
balance. If subsequently no child is born or the child is still born, the
amount retained shall be distributed in accordance with the provisions of
Rule 23.
Chapter: VI: Miscellaneous:
Protection against attachment
27
(1)
The amount standing to the credit of any member in the Fund shall not in
any way be capable of being assigned or charged and shall not be liable to
attachment under any decree or order of any court in respect of any debt or
liability incurred by the member and neither the Official Assignees
appointed under the Presidency Towns Insolvency Act, 1909 nor any
Receiver appointed under the Provincial Insolvency Act, 1920 shall be
entitled to, or have any claim on any such amount;
The amount standing to the credit of any member in the Fund shall not in
any way be capable of being assigned or charged and shall not be liable to
attachment under anyunder any decree or order of any court in respect of
any debt or liability incurred by the deceased or the nominee before the
death of the member.
(2)
28
Any amount standing to the credit of a member in the Fund at the time of
his death and payable to his nominee under these rules shall, subject to
any deduction authorized by the said rules, vest in the nominee and shall
be free from any debt or other liability incurred by the deceased or the
nominee before the death of the member and shall also not be liable to
attachment under any decree or order of any court.
Information to Member
July 264Page 31 of 37
Each Member shall receive a copy of the Rules and any alteration there in,
a copy of the Annual Report, Annual Balance sheet and Revenue Account
of the Fund and a statement of his “A” & “B” Accounts in thein the Fund
showing the opening balances at the beginning of the period ,period, the
amount contributed during the year, the total amount of interest credited at
the end of the period or debited in the period or debited in the period and
the closing balance at the end of the period. The member shall be deemed
to have accepted the statement as correct unless be sends written
objection to the Trustees within 6 months of the statement being issued
In all cases where in a certificate shall be required of the amount of
the balance standing to the credit of a deceased Member in the
books of the Fund for the purpose of obtaining free of duty a grant of
probate or letters of Administration or Succession Certificate or for
any other purpose such a certificate shall be in such form as may
from time to time be prescribed by the trustees
29
Saving right of the Employers
Nothing in the Trust Deed or in the Rules shall in any way restrict the right
of the Organization of terminate the employment of a Member
The benefits to which a Member may claim to be entitled under the
provisions of the Trust deed and the Rules shall not be used as a ground
for increasing damages in any action brought by a member against the
Organization in respect of dismissal.
No member or any other person entitled to any payment shall have any
claim to such payment except out of the Fund and he shall not in any case
have any claim against the Trustees personally or against the Organization
30
Settlement of difference
July 264Page 32 of 37
Not withstanding the provisions of the Act and of the Stationary Scheme, all
questions not provided for under the Rules and/or differences arising in
regard to the meaning or application of the Rules and/or rights and
obligations by the parties concerned will be decided by the Trustees and
their decision shall ( subject(subject to the powers and discretion of the
competent Courts and subject further if such a decision should amount to
an alteration of the Rules both to the approval from the competent
Provident Fund Commissioner and from the competent Commissioner of
Income- Tax, (New-Delhi) be conclusive and binding on all concerned.
31
Alterations of Rules
The Trustees shall have the right at any time with the written consent of the
Organization to alter, cancel or add to the Rules or any of them with effect
from the date of the Resolution by the Trustee (or such other date, the
Resolution shall determine) PROVIDED that previous intimation of the
proposed change shall have been given to and the approval there of
obtained from both the competent Provident Fund Commissioner appointed
under the Statutory Scheme of the competent Commissioner of Income
Tax PROVIDED also that any such change shall not have the effect of
diminishing the right of member accrued up to the time of the change,
Particulars of every such change shall be notified to the Member forthwith
after the making there of.
32
Termination of the Fund
The fund shall not be revocable save with the consent of all the
beneficiaries.
33
Omitted
34
Board of Trustees
The Board of Trustees shall be constituted in the manner here in after
provided:
July 264Page 33 of 37
1
Number of members: The Board shall consist of an equal number of
representatives of the employees and the employees. The number of
trustees on the Board shall be so fixed as to afford as far as possible
representation to workers in various branches/departments of the
establishments.
Provided that the number of trustees on the Board shall neither be less
than six nor more than twelve (2) in the case of common Provident Fund
for a group of two or more establishments under the same employer one
Board may be constituted for all such establishments.
Provided that the employees of each such establishment shall be entitled
to elect a trustee on the Board.
2
Employers representatives: The employer shall nominate his
representatives from amongst the officers employed in managerial or
administrative capacity y in the establishment.
3
Election of Employees representatives: The representatives of the
employees shall be elected by the members of the Fund in an election to
be held for the purpose on any working day
Provided that whenever there is a recognized Unionrecognized Union
under the code of Discipline or under any State Act, Union shall nominate
the employees representative
Provided further that wherever there is no recognized Union, the
representative Union, if any existing under any law regulating the
recognition of workers Union shall nominate the employers representatives.
July 264Page 34 of 37
Provided also that wherever there is neither a recognized Union nor a
representative Union of workers, any union existing in the establishment
and qualified for recognition by the employer, shall nominate the
employees, representative. Where there is more than one such Union, the
procedure laid down in the Industrial Dispute (Central) Rules, 1957, for the
elections of the workers representative on the works committee shall be
followed with such modifications if any as may be considered necessary by
the Regional State Provident Fund Commissioner
Qualifications of candidates for elections:
4
i)
Any member of the Fund who is not less than 21 years of age, may if
nominated as here in after provided, be a candidate for election as
employees’ representative.
ii)
An outgoing trustee shall be eligible for re-election re-nomination as the
case may be.
5
Procedure for election: The employer shall fix a date for receiving the
nomination from candidates for election as employee’s representative. He
shall also fix a date for the withdrawal of nomination and the date of
election whichelection, which shall not be earlier than three days or later
than ten days after the closing date for withdrawal of nominations. The
dates so fixed shall be notified to the members least seven days in
advance. The notice shall be affixed on the notice Board of the
establishment. A copy of such notice shall also be sent to the recognized
trade union or the UNIONS concerned, in the establishment and o the
Regional/State Provident Fund Commissioner.
6
Nomination of candidates for election: Every nomination shall be made
in the form annexed to these rules, catch nomination paper shall be signed
by the candidate to whom it relates and attested by at least two members
of the Fund other than the proposer and shall be delivered to the employer
before or on the closing date fixed for receiving the nomination:
July 264Page 35 of 37
7
Scrutiny of Nomination papers: The employer shall scrutinize the
nomination papers received under rule 6 on the days, following the last
date fixed for withdrawing the nomination papers. The candidate or his
nominee, the proposer of the attesting members may be present, if they so
desire. The invalid nominations papers shall be rejected.
8
Voting in election:
i)
If the number of candidates who have be4en validly nominated is equal to
the number of seats the candidates shall forthwith be declared duly
elected.
ii)
If the number of candidates is more than the number of seats, voting shall
take place on the date fixed for election.
iii)
The election shall be conducted by the employer.
iv)
Every member of the Fund shall have as many votes as there are seats to
be filed on the Board
Provided that each such member shall be entitled to cast only one vote in
favour of any one candidate
v)
The voting shall be by secret Ballot.
Disqualification of a Trustee: A person shall be disqualified for being a
Trustee of the Board
9
If he is declared to be of unsound mind by a Competent Authority :or
i)
If the is an is charged insolvent, or
July 264Page 36 of 37
ii)
35
Do not has been convicted of an offense-involving moral purported.
10
Chairman of the Board: The employer shall nominate one of his
representatives on the Board to be Chairman thereof. In the event of an
equality of votes, the Chairman shall exercise casting vote.
11
Filling of causal vacancies: In the event of a trustee elected or nominated
ceasing to be trustee during the tenure of the Board, his successor shall be
elected or nominated, as the case may be, in the manner here before
provided for election or nomination. The person elected or nominated to a
casual vacancy shall be a trustee for the due of the term for which the
person whose place he fills would have been trustee. The funds shall ipso
facto vast and continue to be vested in the new trustee or trustees.
12
Meeting of Trustees and Quorum: At any meeting of the trustees, two
trustees shall constituted a quorum provided one of them is a
representative of the employee. Any decision of a meeting of the trustees
and shall be final and binding on them. The chairman of the Board of
Trustees shall have a casting vote in addition to and not instead of his won
vote as a Trustee. The Decision of the majority shall be final and binding .
binding. In case of dispute ,dispute, the matter shall be referred to the
Regional Provident Fund Commissioner whose decision in the matter shall
be final and binding.
Commencement
These rules shall come into force with effect from the 1st March ,March,
1977.
July 264Page 37 of 37