Policy Manual - Power Grid Corporation of Indiahr.powergridindia.com/HRWebSite/RTIInfo/EmplProvidentFundRules.pdf · Policy Manual EMPLOYEES PROVIDENT FUND RULES ... The fund shall

Policy Manual

EMPLOYEES PROVIDENT FUND RULES

Chapter -1

PRELIMINARY

1.0 NAME OF THE FUND

i) The fund shall be called “Power Grid corporation of India Limited EmployeesProvident Fund.”

ii) These Rule shall be deemed to have come into force on the 25th March, 1991.

2.0 DEFINITIONS

“Act” means the Employees Provident Funds & Miscellaneous Provisions Act, 1952;

a) ‘The Company’ means the Power Grid Corporation of India Limited, having itsRegistered office at B-9, Qutab Institutional Area, Katwaria Sarai,New Delhi-110016;

b) ‘Fund’ means the Power Grid Corporation of India Limited Employees ProvidentFund;

c) ‘Board’ means the Board of Trustees;

d) ‘Trustee’ means a member of the Board of Trustees of the Fund;

e) ‘Chairman’ means the Chairman of the Board of Trustees;

f) ‘Secretary’ means the Secretary of the Board of Trustees;

g) ‘Member’ means a member of the Fund;

h) ‘Continuous Service’ means uninterrupted service under the company and in-cludes service which is interrupted by sickness, accident, authorised leave,strike which is not illegal, or cessation of work not due to the employee’s fault;

i) ‘Basic Wages’ means all emoluments which are earned by an employee whileon duty or on leave or on holidays with wages in either case in accordance withthe terms of the contract of employment and which are paid or payable in cashto him, but does not include :-

a) the cash value of any food concession;

b) any dearness allowance (that is to say, all cash payments by whatevername called paid to an employee on account of a rise in the cost of living),house rent allowance, overtime allowance, bonus, commission or any othersimilar allowance payable to the employee in respect of his employmentor of work done in such employment;

c) any presents made by the employer;

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j) ‘Contribution’ means a contribution payable in respect of a member under ascheme or the contribution payable in respect of an employee to whom theinsurance scheme applies.

k) ‘Family’

i) In the case of a male member, the wife, children whether married or un-married and dependent parents of the member, and the widow and chil-dren of a deceased son of the member :

Provided that if a member proves that his wife has ceased, under thepersonal law governing him or the customary law of the Community towhich the spouses belong, to be entitled to maintenance, she shall nolonger be deemed to be a part of the member’s family for the purpose ofthese Rules, unless the member subsequently intimates by express no-tice in writing to the Secretary that she shall continue to be so regarded,and

ii) In the case of a female member, the husband and children of the memberwhether married or unmarried, the dependent parents of the member or ofthe husband and the widow and children of a deceased son of the mem-ber.

Provided that if a member by notice in writing to the Secretary expressesher desire to exclude her husband from the family, the husband and hisdependent parents shall no longer be deemed to be a part of the mem-ber’s family for the purpose of these Rule, unless the member subse-quently cancels in writing any such notice.

Explanation

In either of the above two cases, if the child of member or, as the case may be,the child of a deceased son of the member has been adopted by anotherperson and if, under the personal law of the adopter, adoption is legally recog-nised, such a child shall be considered as excluded from the family of the mem-ber.

I) “Excluded Employee” means:-

(i) an employee who, having been members of the fund, withdraws the fullamount of his accumulations in the fund under Clause (a) or (c) of sub-paragraph (1) of clause 52 of Rules.

ii) An employee whose pay at the time he is otherwise entitled to become amember of the fund, exceeds five thousand rupees per month;

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Explanation:

Pay includes basic wages with dearness allowance, retaining allowance (if any)and cash value of food concessions admissible thereon.

iii) An apprentice.

m) ‘Children’ means legitimate children and includes adopted children if the Trus-tees are satisfied that under the personal law of the member, adoption of achild is legally recognised;

n) ‘Financial Year’ means the year commencing on the first day of April;

o) An ‘Apprentice’ means a person who, according to the certified standing ordersapplicable to the POWERGRID is an apprentice or who is declared to be anapprentice by the authority specified in this behalf by the appropriate Govt.;

p) ‘Commissioner’ means a Commissioner for Employees’ Provident Fund ap-pointed under the Employees Provident Fund Scheme, 1952;

q) ‘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 an establishment(POWERGRID) and who gets his wages directly or indirectly from the employerand includes any person:-

i) Employed by or through a contractor in or in connection with the work ofthe establishment (POWERGRID).

ii) Engaged as an apprentice, not being an apprentice engaged under theApprenticeship Act, 1961 or under the Standing Orders of the Establish-ment (POWERGRID).

r) All other words and expressions not defined hereinabove shall have the mean-ing respectively assigned to them in the Employees’ Provident Funds and Misc.Provisions Act 1952, and the Employees, Provident Funds Scheme, 1952

3.0 FUND CONSTITUTED UNDER AN IRREVOCABLE TRUST

The Fund shall be constituted under a Trust which shall be irrevocable save withconsent of all the beneficiaries and save in the cases prescribed by Indian incomeTax Act. No money belonging to the Fund in the hands of the Trustees shall be recov-erable by the Company under any pretext whatever nor shall the Company have anylien or charge of any description on the same save as herein provided.


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Chapter-2

BOARD OF TRUSTEES

4.0 MANAGEMENT

1) The custody, control and management of the Fund shall be vested in a Board ofTrustees Constituted by the Company.

2) Each Board of Trustees shall consist of :-

a) Four representatives of the Company and

b) Four representatives of the employees of the Company.

3) Four trustees mentioned under sub-rule 2 (a) above, shall include Manager(Finance) and the Accounts Officer-in-charge of the Provident Fund Accountsof the unit of the Company, who shall be the Chairman and the Secretory re-spectively of the Board of Trustees.

5.0 PROCEDURE OF ELECTION OF EMPLOYEES, REPRESENTATIVE TO ACT ASTRUSTEES

For selection of employees’ representatives as Trustees, the under-noted procedureshall be followed :-

Election should be conducted by the employer for selection of nominees from amongstthe members of the Fund. The initial election will be held within one month of the fram-ing of these rules. There shall be single vote secret ballot and election will be held ona working day. The election of the trustees will be conducted according to the proce-dure prescribed by the Employees Provident Fund Organisation/Commissioner.

6.0 TERM OF OFFICE

1) The term of office of the trustees shall be three years commencing from the dateof their nomination :

Provided that any such trustee shall, notwithstanding the expiry of the said pe-riod of three years, continue to hold office until nomination of his successor ismade.

2) An outgoing trustee shall be eligible for re-nomination.

7.0 CHANGE OF TRUSTEES

In the event of a Trustee resigning his office, or a trustee being unable to continue inoffice, consequent to death, retirement, resignation from service, transfer, or other-wise, his vacancy shall be filled in the manner laid down in Rules 4 & 5 and anyTrustee appointed in such a vacancy shall hold office for the remainder of the term ofoffice of the Trustee in whose place he is appointed.


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8.0 RESIGNATION

A trustee may resign his office by letter in writing addressed to the Company and hisoffice shall fall vacant from date on which his resignation is accepted by the Com-pany.

9.0 CESSATION AND RESTORATION OF TRUSTEESHIP

If a trustee fails to attend three consecutive meetings of the Board without obtainingleave of absence from the Board of Trustees he shall cease to be a trustee.

Provided that the Board may restore him trusteeship, if the Board is satisfied thatthere were reasonable grounds for the absence.

10.0 DISQUALIFICATIONS FOR TRUSTEESHIP

1. A person shall be disqualified for being nominated as, or for being a trustee :

a) If he is declared to be of unsound mind by a competent court, or

b) If he is an discharged insolvent; or

c) If before or after the commencement of these Rules, he has been con-victed of an offence involving moral turpitude.

2. If any question arises whether any person is disqualified under sub-rule (1) itshall be referred to the Commissioner whose decision shall be final.

11.0 TRUSTEES’ POWER TO EMPLOY ANY PERSON FOR MANAGEMENT

The Board of Trustees shall have power to employ any person (s) (including any oneor more their members) to do any secretarial, legal, accountancy or other work whichthey may consider necessary or expedient in connection with the management of theFund or the funds thereof.

12.0 TRUSTEES’ POWER TO OPERATE BANK ACCOUNT

Any two trustees, including one representing the employees, acting jointly, shall onauthorisation by the Board of Trustees, operate on the accounts of the Fund withbanks and discharge, receive or otherwise dispose off, as may be necessary, Gov-ernment Promissory Notes, securities, interest warrants, etc. relating to the Fund andshall, on behalf of the Board, reassign to members in accordance with the Rulesmentioned hereinafter, life insurance policies which the members might assign to theBoard as security for payment of withdrawals from the Fund.

13.0 INVESTMENT

1. All the money belonging to the Fund shall be deposited in the Reserve Bank orthe State Bank of India or in such other scheduled Bank as may be approved bythe Central Govt. from time to time or shall be invested expeditiously subject tosuch directions as the Central Govt. may from time to time give in regard to the


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securities mentioned or referred in clauses (a) to (d) of Section 20 of the IndianTrust Act 1882 (II of 1882) provided that such securities are payable both inrespect of capital and in respect of interest in India.

2. All expenses incurred in respect of, and loss, if any, arising from any investmentshall be charged to the fund.

14.0 POWER OF TRUSTEES FOR SALE AND HYPOTHECATION ETC. OF THE INVEST-MENTS

The Board of Trustees may from time to time, as and when necessary, raise suchsum or sums as may be required for the purposes of the Fund by sale, hypothecationor pledge of the investments held by them or of a sufficient part thereof subject to priorapproval of the Commissioner.

15.0 RECEIPT FOR MONEY RECEIVED BY TRUSTEES

Receipt for money received by the Trustees and endorsement on cheques, drafts andother documents, received by the Trustees shall be made by the Secretary for and onbehalf of the Board.

16.0 MEETINGS

1. The Board of Trustees shall meet at such place and time as may be appointedby the Secretary.

2. The Board of Trustees shall meet at least once in each quarter.

3. The Secretory may whenever he thinks fit, and shall within fifteen days of thereceipt of requisition in writing from equal number of employees and employer’srepresentatives of the Board call a meeting thereof.

17.0 NOTICE OF MEETING AND AGENDA OF BUSINESS

Notice of not less than 15 days, containing the date, time and place of every ordinarymeeting together with an agenda of business to be conducted at the meeting, shallbe sent to each trustee.

Provided that when the Secretary, with the approval of the Chairman, calls a meetingfor considering any matter which in his opinion is urgent, a shorter notice giving suchreasonable time as he may consider necessary shall be deemed as sufficient.

18.0 CHAIRMAN TO PRESIDE AT MEETINGS

The Chairman shall preside at every meeting of the Board at which he is present. Ifthe Chairman is absent at any meeting for half an hour, the trustees present shall electone of them to preside over the meeting and the trustee so elected shall exercise allthe power of the Chairman at the meeting.


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19.0 QUORUM

1. Four members of the Board i.e. two representative of the Company and tworepresentatives of the employees, shall form the quorum.

2. If at any meeting the number of trustees is less than the required quorum, theChairman of the Board shall adjourn the meeting to a date not later than sevendays from the date of the original meeting, informing the trustees of the date,time and place of the adjourned meeting and it shall thereupon be lawful to dis-pose off the business at such adjourned meeting irrespective of the number oftrustees present.

20.0 DISPOSAL OF BUSINESS

Every question considered at a meeting of the Board shall be decided by a majority ofthe votes of the Trustees present and voting. In the event of an equality of votes, theChairman shall have a casting vote.

Provided that the Chairman may, if he thinks fit, direct that any question shall bedecided by the circulation of necessary papers to any Trustees by securing their con-sent in writing. Any such question shall be decided in accordance with the consent ofthe majority of Trustees received within the time limit allowed and, if the votes areequally divided, the opinion of Chairman shall prevail.

Provided further that any trustee may request that the question referred to trustees forapproval through circulation be considered at a meeting of the Board and thereuponthe Chairman may, and if the request is made by not less than three Trustees, shalldirect that it be so considered.

Provided further that where a casting vote is exercised or where no casting vote isexercised by the Chairman but the opinion of trustees is equally divided, the mattershall be referred to the Commissioner whose decision shall be final.

21.0 MINUTES OF MEETING

1. The Secretary shall maintain records of the minutes of the Board.

2. The records of the minutes of each meeting shall be signed by the Chairman.Minutes of the previous meeting shall be placed for confirmation with such modi-fication, if any, as may be considered necessary at the next meeting of theBoard.

3. The Secretary shall take necessary steps for carrying out the decisions of theBoard.

22.0 ACTS OF THE BOARD OF TRUSTEES NOT INVALID BY REGION OF DEFECTIN ITS CONSTITUTION, ETC.

No act or proceeding of the Board shall be deemed to be invalid by reason merely ofany vacancy in, or any defect in the constitution of the Board.


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23.0 TRUSTEES’ INDEMNITY

No trustee shall be chargeable otherwise than in respect of money and securitiesactually received by him notwithstanding his signature to any receipt made for thesake of conformity and he shall be answerable and accountable only for his own acts,neglects or defaults and not for those of any other trustee (s) nor of any Banker,Broker or other person with whom any of the fund or the investments representing thesame may be deposited or upon whose advice or opinion the Trustees may act norshall he be answerable for the insufficiency or deficiencies of any securities not forany other loss howsoever arising save such as happens through his own willfull de-fault.


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Chapter-3

MEMBERSHIP

24.0 CLASSES OF EMPLOYEES ENTITLED AND REQUIRED TO JOIN THE FUND

a) Every employee employed in or in connection with the work of POWERGRID,shall be entitled and required to become a member of the Fund from the dateof joining POWERGRID.

b) Every employee in or in connection with the work of POWERGRID other thanan excluded employee shall also be entitled and required to become a memberof the Fund from the day this scheme comes into force in POWERGRID, if onthe date of such coming into force, such employee is subscriber to a providentfund maintained in respect of the factory or other establishment or in respect ofany other factory or establishment to which the act applied under the sameemployer i.e. POWERGRID.

1) Provided that where the scheme applies to POWERGRID on the expiryor cancellation of an order of exemption under Section 17 of the Act,every employee who but for the exemption would have become and con-tinued as a member of the Fund, shall become member of the fund forth-with.

2) After this paragraph comes into force in POWERGRID every employeeemployed in or in connection with the work of POWERGRID, other thanan excluded employee, who has not become a member already shall alsobe entitled and required to become a member of the fund from the date ofjoining POWERGRID.

3) An excluded employee employed in POWERGRID on ceasing to be suchemployee, is entitled and required to become member of the Fund fromthe date he ceased to be such employee.

4) On re-election of an employee or a class of employees exempted underpara 27 or 27 A of EPF Scheme 1952 to join the Fund or on the expiry orcancellation of an order under that paragraph, every employee, shall forth-with become a member thereof.

5) Every employee who is a member of private provident fund maintained inrespect of an exempted factory for other establishment and who but forexemption would have become and continued as a member of the Fundshall on joining POWERGRID become a member of the fund forthwith.

6) Notwithstanding anything contained in this paragraph, an office not belowthe rank of an Assistant Provident Fund Commissioner may, on the joint


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request in writing, of any employee of POWERGRID and his employer,enroll such employee as a member or allow him to contribute more thanfive thousand rupees (Rs. 5000/-) of his pay per month if he is already amember of the Fund and thereupon such employee shall be entitled to thebenefits and shall be subject to the conditions of the Fund, provided thatthe employer gives an undertaking in writing that he shall pay the adminis-trative charges payable and shall comply with all statutory provisions inrespect of such employee.

7) Government employees on deputation or lien basis to POWERGRID areeligible for membership of the CPF Scheme from the date their resignationfrom Government service takes effect and they are absorbed in the per-manent cadre of the POWERGRID. (This is irrespective of the fact thatthese employees may or may not get their GPF amount transferred fromprevious employers to POWERGRID Employees Provident Fund Trust).

25.0 RETENTION OF MEMBERSHIP

A member of the Fund shall continue to be a member until he withdraws, under Rule52, the amount standing to his credit in the Fund.

Explanation : In the case of claim for refund by member under sub rule 2 of rule 52,the memberships of the Fund shall be deemed to have been terminated from the datethe payment is authorised to him by the Secretary irrespective of the date of claim andpayment thereof.

26.0 DECLARATION BY EMPLOYEES

Every employee shall furnish, at the time of his appointment under the Company,particulars of his last employment and his membership of any contributory providentfund before joining the Company.

27.0 NOMINATION

1) Each member shall make, in his declaration in the prescribed form a nominationconferring the right to receive the amount that may stand to his credit in theFund in the event of his death before the amount standing to his credit hasbecome payable or where the amount has become payable before payment hasbeen made.

2) A member may in his nomination distribute the amount that may stand to hiscredit in the Fund amongst his nominees at his own discretion.

3) If a member has a family at the time of making a nomination, the nomination shallbe in favour of one or more persons belonging to his family. Any nominationmade by such member in favour of a person not belonging to his family shall beinvalid.


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4) If at the time of making a nomination the member has no family, the nominationmay be in favour of any person or persons but if the members subsequentlyacquires a family, such nomination shall forthwith be deemed to be invalid andthe member shall make a fresh nomination in favour of one or more personsbelonging to his family.

4A) Where the nominations is wholly or partly in favour of minor, the member may,for the purposes of this scheme appoint a major person of his family, as de-fined in clause (k) of paragraph 2, to be the guardian of the minor nominee in theevent of the member predeceasing the nominee and the guardian so appointed.

4B) Provided that where there is no major person in the family the member may, athis discretion, appoint any other person to be a guardian of the minor nominee.

5) A nomination made under sub-rule (1) may at any time be modified by a memberafter giving a written notice of his intention of doing so in the prescribed form. Ifthe nominee predeceases the member, the interest of the nominee shall revertto the member who may make a fresh nomination in respect of such interest.

6) A nomination or its modification shall take effect to the extent that it is valid onthe date on which it is received by the Secretary.

28.0 ALLOTMENT OF ACCOUNT NUMBERS

Each member of the Fund shall be allotted an Account Number which will be com-municated to him by the Secretary.


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Chapter-4

CONTRIBUTIONS AND ACCOUNTS

29.0 CONTRIBUTIONS

1) The contribution payable by the Company to the Fund shall be at the rate of12% of the basic wages and the Dearness Allowance (including cash value ofany food concession) payable to each employee who is eligible for membershipof the Fund.

2) The contribution payable by an employee under these Rules shall be equal to ormore than the contribution payable by the Company in respect of such em-ployee subject to the limit laid down in the Income Tax Act.

Provided, that the member’s contribution shall be 12% of basic wages and thedearness allowance (including cash value of any food concession) unless themember intimates in writing the increased amount which he/she choose to con-tribute.

3) The contribution shall be calculated on the basis of the Basic Wages and Dear-ness Allowance (including the cash value of any food concession) actuallydrawn during the whole month whether paid on daily, weekly, fortnightly or monthlybasis.

4) Each contribution shall be calculated to the nearest rupee, 50 paise or more tobe counted as the next higher rupee and fraction of rupee less than 50 paise tobe ignored.

5) Notwithstanding any contract to the contrary, the company, shall not be entitledto deduct the Company’s contribution from the wage of a member or otherwiseto recover it from him.

Provided that in case of members eligible for retirement gratuity as per rulesframed by the Company in this regard from time to time, either by option exer-cised by them or by virtue of appointment on or after 20.01.67, contribution pay-able by the Company from the date of membership shall be at the rate of 12% ofthe basis wages and dearness allowance (including cash value of any foodconcession) payable to each member by the Company.

29A. 1. Contribution payable by member under these rules shall be 12% or more of thebasic wages and the dearness allowance (including cash value of any foodconcession) subject to the limit laid down in Income Tax Act.

Payment of Contribution : (1) The POWERGRID shall, in the first instance,pay both the contribution payable by himself (in these rules referred to as theemployer’s contribution) and also, on behalf of the member employed by himdirectly or through a contractor the contribution payable by such member (in therules referred to as the members contribution).

2) In respect of employees employed by or through contractor, the contractor shallrecover the contribution payable by such employee (in these rules referred toas the member’s contribution) and shall pay to the principal employer the amount


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of member’s contribution, so deducted together with an equal amount of contri-bution (in these rules referred to as the employer’s contribution and also admin-istrative charges).

3) It shall be the responsibility of the POWERGRID to pay both the contributionpayable by himself in respect of the employees directly employed by him andalso in respect of the employees employed by or through a contractor and alsoadministrative charges.

Explanation :

For the purpose of this paragraph the expression “administrative charges” meanssuch percentage of the pay (basic wages, dearness allowances, if any, andcash value of food concessions, admissible thereon) for the time being payableto the employees other than an excluded employee and in respect of whichProvident Fund contributions are payable as the Central Government may inconsultation with the Central Board and having regard to the resources of thefund for meeting its normal administrative expenses.

30.0 RECOVERY OF A MEMBER’S SHARE OF CONTRIBUTION

1) The amount of member’s contribution paid by the Company shall notwithstand-ing the provisions in these rule or any law for the time-being in force or anycontract to the contrary be recoverable by means of deduction from the wagesof member and not otherwise, provided that no such deduction may be madefrom any wages other than that which is paid in respect of the period or the partof the period in respect of which the contribution is payable.

Provided further that the employer shall be entitled to recover the employee’sshare from a wage other than that which is paid in respect of the period forwhich the contribution has been paid or is payable where the employee has inwriting given a false declaration regarding his last employment and member-ship of contributory provident funds in other establishment.

Provided further that where no such deduction has been made on account of anaccidental mistake or a clerical error, such deduction may be made from thesubsequent wages.

2) In respect of employees employed by or through a contractor, the contractorshall recover the contribution payable by such employee and shall pay to theprincipal employer the amount of member’s contribution so deducted togetherwith an equal amount of contribution (inclusive of administration charges). Itshall be the responsibility of the principal employer to pay the contribution pay-able by himself.

3) Deductions made from the wages of a member paid on daily, weekly or fort-nightly basis should be totalled up to indicate the monthly deductions.

4) Any sum deducted by the Company from the wages of an employee under theseRules shall be deemed to have been entrusted to it for purpose of paying thecontribution in respect of which it was deducted.


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31.0 MEMBERS RECALLED FOR DEFENCE DUTY AND MEMBERS VOLUNTEER-ING TO TAKE UP MILITARY SERVICE DURING EMERGENCY

The Company employees will be allowed to contribute towards the Provident Fundand their accounts will be credited with the Company’s contributions which wouldhave been admissible had they remained on duty with the company, the Company'scontributions towards Provident Fund during the period of Military Services will form acharge against the Defence Services Estimates and would be recovered by the Com-pany from the Defence Services.

1) A member may, at his option, continue to contribute to the Fund, after he iscalled up for training, muster or any services, but no contribution shall be cred-ited to his account and interest shall be allowed as per Rule 38. Such a membermay make withdrawals as per Rule 42 to 51-A. If any such member desires tohave his Provident Fund Account settled finally, it may be allowed in accord-ance with Rule 52 (2) and he shall cease to be a member of the Fund thereafter.

2) Where member cease to be employed in the Company and take up employmentin any other establishment to which the Employees Provident Fund & Misc.Provisions Act, 1952 does not apply, the balance in his account shall be trans-ferred to the credit of his account in the Provident Fund of the Establishment inwhich he is employed, if the member so desired and the Rules in relation to theProvident Fund permit such transfer.

32.0 PAYMENT OF CONTRIBUTION TO TRUST

The contributions of the employees collected by the Company as well as its owncontributions shall be paid by the Company to the Trust by fifteenth of each month.

33.0 MEMBER’S ACCOUNT

1. An account shall be opened in the office of the Fund in the name of each mem-ber in which shall be credited :

a) his contributions.

b) contributions made by the Company in respect of him; and

c) interest as provided in Rule 38.

2. All items of account shall be calculated to the nearest rupee. 50 paise or more tobe counted as the next higher rupee and fraction of a rupee less than 50 paise tobe ignored.

34.0 ANNUAL STATEMENT OF MEMBER’S ACCOUNT

1. As soon as possible after the close of each period of currency of contributioncard, the Secretary shall send to each member a statement of his account in theFund showing the opening balance at the beginning of the period, amount con-tributed during the year, the total amount of interest credited at the end of theperiod or debited in the period and the closing balance at the end of the period.


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2. Members should satisfy themselves as to the correctness of the annual state-ment and any error should be brought to the notice of the Secretary within sixmonths of the receipt of the statement.

35.0 TRUSTEES’ POWER TO ACCEPT TRANSFER OF ACCUMULATIONS FROMOTHER FUNDS

In the event of any employee who was previously in the service of another Govern-ment Company or State or local body or Government of India or Government of aState or was a member of any Provident Fund recognised under the Employees Provi-dent Fund & Misc. Provisions Act, 1952 or under the Income Tax Act, 1961, it shall belawful for the trustees to receive from such Company etc., the accumulated balancein his account of the Provident Fund.

Provided that in case of an employee who was member of a Provident Fund coveredunder the Act, it shall be obligatory for the trustees to accept for credit to the member’saccount his accumulations in such a fund, which shall be transferred on his joining theCompany.

36.0 TRANSFER OF MEMBER’S ACCOUNTS

Where a member ceases to be employed in the Company and takes up employmentin any other exempted establishment to which the Employees Provident Fund & Misc.Provisions Act, 1952 applies, the balance in his account shall be transferred to thetrustees of the Provident Fund in such establishments. In case of unexempted, theaccount shall be transferred to RPFC in whose jurisdiction it is covered.

37.0 INTEREST SUSPENSE ACCOUNT

All interest and other income realised or accrued shall be credited to an Accountcalled the “Interest Account”. Brokerage and commission on the Purchase or sale ofsecurities and other investments shall be included in the purchase or sale price, asthe case may be and not separately charged to the “Interest Suspense Account”.

38.0 INTEREST

1. Interest shall be credited to the account of each member at such rate as may bedetermined by the Board of Trustees subject to minimum to the extent as pre-scribed by the E.P.F. Organisation. Such interest shall be deemed to have beencredited immediately on close of the year. Provided that, when the amount stand-ing to the credit of the member becomes payable, interest shall thereupon becredited under this sub-rule only for the period from the beginning of the currentyear up to the end of month preceding the date of tender of payment.

Provided further that the rate of interest to be allowed on claims for refund forthe broken period shall be the rate fixed for the latest financial year for whichinterest has been determined by the Board.


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2. The amount of the interest to be credited to member’s account under sub-rule(1) shall be calculated to the nearest rupee. 50 paise or more to be counted asa next higher rupee and a fraction of a rupee less than 50 paise to be ignored.

3. The aggregate amount of interest credited to the accounts of the members shallbe debited to “interest Account”.

4. In determining the rate of interest, the Board shall satisfy itself that there is nooverdrawal on the Interest Account as a result of the debit thereto of the interestcredited to the accounts of members.

39.0 COST OF ADMINISTERING THE FUND

The costs, charges and expenses of administering the Fund including the inspectioncharges payable to the commissioner and of the determination of any question arisingunder these Rules or otherwise including all expenses incurred by Trustees in thedischarge of their duties, shall be paid by the Company. Bank charges are to be paidby the Company.

40.0 ACCOUNTS AND AUDIT

1. The secretary shall cause the accounts of the fund to be maintained in such amanner as the Board and the Commissioner may, from time to time, decide. TheCompany or the Secretary shall furnish to the Commissioner such accountsrelating to the Fund as the commissioner may prescribe from time to time.

2.At the end of each financial year an Income and Expenditure Account togetherwith a Balance Sheet of the funds, assets and liabilities along with Audit Reportshall be laid before the Board, at a meeting to be held within six months of theclose of the financial year.

3. Every year the Board appoints a Chartered Accountant or a firm of CharteredAccountants in practice as auditors and fix the remuneration for audit which willbe borne by the Company. A copy of the Audit Report will be forwarded to RPFCconcerned in respect of Provident Fund Account.

4. In case if any deficiency is found in audit report as well as in the Balance Sheetthe RPFC will be empowered to reaudit the same and the expenditure incurredfor this shall be borne by the Company.

41.0 INSPECTION OF CARDS BY MEMBERS

Any member making a written request in this behalf to the Secretary shall be permit-ted to inspect his account cards himself or to have the same inspected by any personduly authorised by him in writing to do so, within 72 hours of making such requestprovided that no such request shall be entertained more than once in every two calen-dar months.


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CHAPTER -5

TEMPORARY WITHDRAWALS

42.0 CIRCUMSTANCES IN WHICH WITHDRAWALS MAY BE PERMITTED

Temporary withdrawals may be allowed by the Secretary in the following circum-stances:-

(a) to pay expenses in connection with serious or prolonged illness or a disability,including where necessary, the travelling expenses of the member or any per-son actually dependent on him.

(b) to meet the cost of higher education, including where necessary, the travellingexpenses of the member or any person actually dependent on him in any way ofthe following cases, namely

(i) for education outside India for an academic, technical, professional orvocational course beyond the High School stage;

(ii) for any medical, engineering or other technical or specialised course inIndia beyond the high school stage, provided that the course of study isfor not less than three years; and

(iii) the high school stage, provided that the course of study is, for not lessthan 3 years.

(c) to meet the expenses the member has to incur in connection with the marriage,or other ceremonies of himself or of his children or of his dependent parents,sisters and brothers. The condition of actual dependence shall not apply in thecase of the children of the member.

(d) to pay obligatory expenses which by customary usage the member has to incurin connection with marriages of his relatives like sisters, brothers, nephews,nieces etc. The nephew, niece means, son/daughter of members or member’sspouse’s brother/sister.

(e) to pay for the cost of passage to a place out of India, of the member or anymember of his family for education/medical treatment.

(f) in any other case wherein the Chairman is satisfied that considering the pecu-liar circumstances withdrawals may be permitted.

43.0 CONDITIONS FOR WITHDRAWAL FOR VARIOUS PURPOSES

1. The withdrawals in connection with the expenses on marriages as specified inclause (c) of Rule 42 shall not exceed six months basic wages and dearnessallowance or the member’s total contributions with interest thereon whichever isless. The advance for other ceremonies will be permissible for an amount equalto 3 months wages or his own contribution whichever is less.


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2. The withdrawal for any of the other purposes specified in Rule 42 (a, b, d, e & f)shall not exceed three months basic wages and dearness allowance or half ofthe members total contributions with interest thereon.

3. For the purpose of this rule “basic wages” means the basic wages to which theemployee is entitled at the time when the withdrawal is granted or in the case ofan employee referred to in Rule 31, the “basic wages’ and dearness allowanceon which the Company’s contribution is calculated.

4. The amount withdrawn shall be repaid in not more than twenty four equal monthlyinstallments in whole rupee. Provided that the repayment up to twenty five equalmonthly installments in whole rupees may be allowed if the sum withdrawn ex-ceeds three months basic wages and dearness allowance of the member.

5. (a) Interest shall be charged on the amount withdrawn at existing rate of inter-est and 2% p.a. over and above the rate determined by the Board for thepreceding Financial Year in accordance with Rule 38 (1), whichever ishigher.

(b) After the principal of the advance has been fully repaid, interest at the rateprovided in clause (a) shall be paid on the amount outstanding from monthto month.

(c) Interest shall be paid in instalments equal to the installment for repaymentof principal commencing from the month after complete repayment of theprincipal.

6. The Company shall recover the installment of advance and interest from themember’s wages and pay them to the Fund. The recovery of advance shallcommence on the first occasion after the advance is made on which the mem-ber’s pay for a full month is drawn irrespective of whether the balance is or is notclaimed by him.

7. A withdrawal under the Rule 42 shall be treated as a temporary reduction in themember’s balance and recoveries made under sub-rule (4) shall be credited tothe member’s account. The recoveries made under sub-rule 5, i.e. interest onrefundable advances shall be credited to the interest on advances to members.

44.0 SECOND WITHDRAWAL

Second withdrawal shall not be permitted before complete repayment of the first with-drawal together with interest.

45.0 UTILISATION OF AMOUNT WITHDRAWN

1. In respect of any amount withdrawn under Rule 42, if the Secretary is not satis-fied that the amount withdrawn was actually spent for the specified purpose, theSecretary shall, with prior approval of the Chairman, order recovery of the amountwithdrawn in one or more installments with interest at 2% p.a. over and above


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the existing rate from the pay of the member, to be credited to the member’saccount.

2. In case of default in repayment of installment due under Rule 43, or where theamount withdrawn is not utilised for the purpose for which it is withdrawn, theCommissioner of Income Tax or RPFC may, at his discretion, order that theamount of the withdrawal or the amount outstanding shall be added to the totalincome of the employee for the year in which the default occurs or the with-drawn amount is finally held not to have been utilised for the purpose for whichit was withdrawn, and the Income Tax officer or PF Officer shall assess theemployee accordingly.


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CHAPTER 6

NON-REFUNDABLE ADVANCES

46.0 WITHDRAWALS FROM THE FUND FOR PAYMENT TOWARDS INSURANCEPOLICIES

1. Financing of Member’s Life Insurance Policies

(a) Where a member desired that premium due on a policy of Life Insurance takenby him on his own life should be financed from his Provident Fund Account, hemay apply in such form and in such manner as may be prescribed by the Sec-retary.

(b) On receipt of such application, the Secretary may make payment on behalf ofthe member to the Life Insurance Corporation of India towards premium due onthis policy.

Provided that no such payment shall be made unless the premium is payableyearly.

(c) Any payment made under sub-paragraph (b) shall be made out of and debited tothe member’s own contribution with interest thereon standing to his credit in theFund.

(d) No payment shall be made under sub-paragraph (b) unless the member’s owncontribution in his Provident Fund Account with interest thereon is sufficient topay the premium; and where the payment is to be made on the first premium,sufficient to pay the premium for two years.

(e) No payment shall be made towards a policy unless it is legally assignable bythe member to the Trust.

(f) The Secretary shall, before making payment in respect of existing policies, sat-isfy himself by reference to the Life Insurance Corporation that no prior assign-ment of the policy exists and the policy is free from all encumbrances.

(g) No educational endowment policy or marriage endowment policy shall be fi-nanced from the Fund, if such policy is due for payment in whole or in partbefore the member attains the age of 55 years.

2. Conversion of policy into a paid up one and payment of late fee, etc.

Where a policy of Life Insurance of a member is financed from his Provident FundAccount, the Secretary may :

a) convert the Insurance Policy into a paid-up one when the credit in his ProvidentFund on account of his share becomes inadequate for the payment of any pre-mium.


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b) pay late fee and interest out of the member’s own contribution in his ProvidentFund Account, if any premium cannot be remitted to the Life Insurance Corpora-tion in time because of delay in sending to the Secretary the policy duly as-signed to the Trust or any other reasons for which the member or his employermay be responsible.

3. Assignment of Policy to the Fund

a) The policy shall, within six months of the first payment under Rule 46 (1), beassigned by endorsement thereon, to the Trust and shall be delivered to theSecretary.

b) Notice of the assignment of the policy shall be given by the member to the LifeInsurance Corporation and the acknowledgement of the said notice by the Cor-poration shall be sent to the Secretary within three months of the date of assign-ment.

c) The terms of the policy shall not be altered nor shall the policy be exchanged foranother policy without the prior consent of the Secretary to whom the details ofthe alteration or of the new policy shall be furnished in such form as he mayspecify.

d) If the policy is not assigned and delivered as required under sub-paragraph (a),or is assigned otherwise than to the Trust, or is changed or encumbered orlapses, any amount paid from the Fund in respect of such policy shall, withinterest thereon at the rate provided under Rule 38, be repaid by the memberforthwith to the Fund. In the event of default, the employer shall, on receipt ofsuch directions as may be issued by the Secretary in this behalf, deduct theamount in lump-sum or in such instalments, as the Secretary may determine,from the emoluments of the member and pay it to the Fund within such time andin such manner as may be specified by the Secretary. The amount so repaid orrecovered shall be credited to the member’s account in the Fund.

4. Bonus on policy to be adjusted against payments made from the Fund

So long as the policy remains assigned to the Trust, any bonus accruing on it may bedrawn by the Trust or where authorised by the Trust by the Secretary, and adjustedagainst the payment made on behalf of the member under Rule 46 (1).

5. Reassignment of policies

(a) Where the accumulations standing to the credit of the member are withdrawnunder Rule 52 or when the member repays to the Fund the amounts of premiumpaid by the Trust with interest thereon at the rate provided in Rule 38 the Secre-tary shall reassign, by endorsement thereon, the policy to the member togetherwith a signed notice of reassignment addressed to the Life Insurance Corpora-tion.


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(b) If the member dies before the policy has been reassigned under sub-rule (a),the trust or, where authorised by the Trust, the Secretary shall reassign by theendorsement thereon, the policy to the nominee of the member if a valid nomina-tion subsists and if there be no such nominee, to such person as may be legallyentitled to receive it together with a signed notice of reassignment addressed tothe Life Insurance Corporation.

6. Recovery of amounts paid towards Insurance Policies

If a policy matures or otherwise falls due for payment during the currency of its as-signment, the Trust, or where so authorised by the Trust, the Secretary shall realisethe amount assured together with bonus, if any, accrued thereon, place to the credit ofthe member the amount so realised, or the whole of the amount paid from the Fund inrespect of the policy with interest thereon, whichever is less, and refund the balance,if any, to the member.

47.0 ADVANCE FROM THE FUND FOR THE PURPOSE OF A DWELLING HOUSEOR A DWELLING SITE OR FOR CONSTRUCTION OF A DWELLING HOUSEOR EXTENSION OF AN EXISTING DWELLING HOUSE

1. The Secretary may on an application from a member in such form as may beprescribed and subject to the conditions prescribed in this clause, sanction fromthe amount standing to the credit of the member in the fund an advance for thefollowing :

a) for purchasing a dwelling house/flat including a flat in a building ownedjointly with others (on outright or hire-purchase basis) or for constructingdwelling house including the acquisition of a suitable site for the purposefrom Central Government, the State Government Co-op. Society, an insti-tution or trust, a local body or a Housing Finance Corporation (hereinafterreferred to as agency/agencies).

b) for purchasing a dwelling site for the purpose of construction of a dwellinghouse or a ready built dwelling house/flat from any individual.

bb) for purchasing dwelling house, flat on ownership basis from a promotergoverned by the provisions of any Flats or Apartments Ownership Act orby another analogous or similar law of the Central Government or theState Government as may be in force in any State or area for the time-being and who intends to construct or constructs dwelling house or blockof flats and the member is required to pay to the said promoter in advancefor finance and said construction of the house/flat.

Provided that the member has entered into an agreement with the pro-moter as may be required under the Flats or Apartments Ownership Actor any other analogous or similar law of the Central Government or State


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Government which may be in force in any State or any area and the saidagreement is registered under the Indian Registration Act, 1908.

c) for the construction of a dwelling house on site owned by the member orthe spouse of the member or jointly by the member and the spouse, or forcompleting/continuing the construction of a dwelling house already com-menced by the member or the spouse on such site or for purchase of ahouse/flat in the joint name of the member and the spouse under clauses(a) and (b) above.

Explanation

In this paragraph, the expression “cooperative society” means a societyregistered or deemed to be registered under the Cooperative SocietiesAct, 1912 (2 of 1912) or under any other law for the time being in force inany State relating to Cooperative Societies Act, 1912 (2 of 1912) or underany other law for the time-being in force in any State relating to Coopera-tive Societies.

2. The amount of advance shall not exceed the member’s basic wages and dear-ness allowances for "thirty six months" or the member’s own share of contribu-tions, together with the amount of the employer’s share of contribution admissi-ble under sub clause (2) of clause 52 had the member been allowed to withdrawhis accumulations on the date of authorisation of payment, with interest thereon,or the actual cost towards the acquisition of the dwelling site together with thecost of construction thereon or the purchase of dwelling house, whichever isthe least.

The actual cost towards the acquisition of the dwelling site or the purchase ofdwelling house/flat shall include charges payable towards registration of suchsite house or flat.

3. a) No advance under this paragraph should be granted unless :

i) the member has completed five years membership of the fund;

ii) the member’s share of contribution with interest thereon in the amountstanding to his credit in the fund is not less than one thousand ru-pees;

iii) the dwelling site or the dwelling house/flat or the house under con-struction is free from encumbrances;

Provided that where a dwelling site or a dwelling house/flat is mort-gaged to any of the agencies, referred to in clause (a) of sub-para-graph (1), solely for having obtained funds for the purchase of a


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dwelling house/flat or for construction of a dwelling house, includingthe acquisition of a suitable site for the purpose, such a dwelling siteor a dwelling house/flat, as the case may be, shall not be deemed tobe encumbered property.

Provided further that a land acquired by a member on a perpetuallease or on lease for a period of not less than 30 years for construct-ing a dwelling house/flat or a house/flat built on such a leased land,shall also not be deemed to be encumbered property.

Provided also that where the site of a dwelling house/flat is held inthe name of any agency, referred to in clause (a) of sub-paragraph(1), and the allottee is precluded from transferring or otherwise dis-posing of the house/flat without the prior approval of such agency,the mere fact that the allottee does not have absolute right of owner-ship of the house/flat and the site is held in the name of the agencyshall not be a bar to the giving of an advance under clause (a) ofsub-paragraph (1), if other conditions mentioned in the paragraphare satisfied.

b) No advance shall be granted for purchasing a share in a joint property orfor constructing a house on a site jointly owned, except on a site ownedjointly with a spouse.

4. Subject to the limitation prescribed in sub-paragraph (2) :

a) Where that advance is for the purchase of a dwelling house/flat or a dwell-ing site from an agency, referred to in clause (a) of sub-paragraph (1), thepayment of advance shall not be made to the member but shall be madedirectly to the agency, in one or more installments, as may be authorisedby the member.

b) Where the advance is for the construction of a dwelling house, it may besanctioned in such number of installments as the Secretary thinks fit.

c) Where the advance is for acquisition of a dwelling site for the purpose ofconstruction of a dwelling house thereon from any individual or any agency,the amount shall be paid in not less than two equal installments, the firstinstallment at the time of acquisition of the dwelling site and the remainingat his request at the time of the construction of a dwelling house on suchdwelling site.

d) Where the withdrawal is for purchasing a dwelling house/flat on owner-ship basis from a promoter as referred to in clause (bb) of sub-paragraph(1) the payment of withdrawal shall be made to the member in one or moreinstallments as may be required to be paid by the said promoter and asauthorised by the member.


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Explanation

Promoter includes a person who constructs or causes to be constructeda block or building of flats or apartments for the purpose of selling some orall of them to other persons or to a Company, Co-operative Society orother association of persons and his assignees and where the personwho builds and the person who sells are different persons, the term pro-moter includes both.

5. Where an advance is sanctioned for the construction of a dwelling house, theconstruction shall commence within six months of the withdrawal of the firstinstallment and shall be completed within twelve months of the withdrawal of thefinal installment. Where the advance is sanctioned for the purchase of a dwell-ing house/flat or for the acquisition of a dwelling site, the purchase of the acqui-sition, as the case may be, shall be completed within six months of the with-drawal of the amount.

Provided that this provision shall not be applicable in case of purchase of adwelling house/flat on hire-purchase basis and in cases where a dwelling site isto be acquired or houses are to be constructed by a cooperative society onbehalf of its members with a view to their allotment to the members.

6. Except in the cases specified in sub-paragraph (7) & (7A), no further advanceshall be admissible to a member under this paragraph.

7. An additional advance up to twelve months’ basic wages and dearness allow-ance or the member’s own share of contribution with interest thereon in the amountstanding to his credit in the Fund, whichever is less, may be granted once and inone installment only for additions, substantial alterations, or improvements nec-essary to the dwelling house owned by the member or by the spouse or jointlyby the member and the spouse;

Provided that the advance shall be admissible only after a period of five yearsfrom the date of completion of the dwelling house.

7A. A further withdrawal equivalent to the amount of difference between the amountof withdrawal admissible to a member under sub-paragraph (2) above as on thedate of fresh application and the amount of withdrawal that was drawn by amember under this paragraph any time during 6 years preceding 3-10-1981 maybe granted to such a member (i) who had availed the earlier withdrawal for pur-chase of a dwelling site and has not proposed to construct a dwelling house onthe land so purchased, or (ii) who had availed the earlier withdrawal for makinginitial payment towards the allotment/purchase of a house/flat from any agencyas referred to in clause (a) of sub-paragraph (1) above and has now proposedto avail a withdrawal for completing the transaction to get the sole ownership of


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the house/flat so purchased or (iii) who had availed the earlier withdrawal forconstruction of a house but could not complete the construction in the time dueto lack of funds.

8. The member shall produce the title deed and such other documents as may berequired for inspection which shall be returned to the member after the grant ofadvance.

9. a) If the advance granted under this paragraph exceeds the amount actuallyspent for the purpose for which it was sanctioned, the excess amountshall be refunded by the member to the Fund in one lump-sum within thirtydays of the finalisation of the purchase or the completion of the construc-tion of, or necessary additions, alterations or improvements to, a dwellinghouse, as the case may be. The amount so refunded shall be credited tothe employer’s share of contributions in the member’s account in the fund,to the extent of advance granted out of the said share and the balance, ifany, shall be credited to the member’s share of contributions in his ac-count.

b) In the event of the member not having been allotted a dwelling site/dwell-ing house/flat or in the event of the cancellation of an allotment made to themember and of the refund of the amount by the agency referred to in clause(a) of sub-paragraph (1), or in the event of the member not being able toacquire the dwelling site or to purchase the dwelling house/flat from anyindividual or to construct the dwelling house, the member shall be liable torefund to the fund in one lump-sum and in such manner as may be speci-fied by the Secretary, the amount of advance remitted under this para-graph to him or as the case may be to the agency referred to in clause (a)of sub-paragraph (1).

The amount so refunded shall be credited to the employer’s share of con-tribution in the member’s account in the Fund to the extent of advancegranted out of the said share, and the balance if any, shall be credited tothe member’s own share of contribution in his account.

10. If the Secretary is satisfied that the advance granted under this paragraph hasbeen utilised for a purpose other than that for which it was granted or that themember refused to accept an allotment or to acquire a dwelling site or that theconditions of advances have not been fulfilled or that there is reasonable appre-hension that they will not be fulfilled, wholly or partly, or that the excess amountwill not be refunded in terms of clause (a) of sub-paragraph (9) or that the amountremitted back to the member by an agency referred to in clause (a) of sub-paragraph will not be refunded in term of clause (b) of sub-paragraph (9), theSecretary shall forthwith take steps to recover the amount due, with penal inter-est thereon at the rate of two percent per annum over and above the existingrate, from the wages of the member in such number of installments as the Sec-


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retary may determine for the purpose of such recovery, the Secretary may askthe employer to deduct such installment from the wages of the member and onreceipt of such direction, the employer will deduct accordingly. The amount sodeducted shall be remitted by the employer to the Secretary within such timeand in such manner as may be specified in the direction. The amount so re-funded excluding penal interest shall be credited to the employer’s share of con-tributions in the member’s account in the Fund to the extent of advance grantedout of the said share, and the balance, if any, shall be credited to the member’sown share of contribution in his account. The amount of penal interest to becredited to the Interest Suspense Account.

Provided that the recovery of withdrawal under sub-paragraph (10) shall be re-stricted to cases where the recovery has been ordered by the sanctioning au-thority while the member is in service.

11. Where any advance granted under the paragraph has been misused by themember, no further advance shall be granted to him under this paragraph withina period of three years from the date of grant of the said advance or till the fullrecovery of the amount of the said advance, with penal interest thereon, which-ever is later.

48.0 COMPUTATION OF PERIOD OF MEMBERSHIP

In computing the period of membership of the Fund of a member under Rule 47, histotal service under the Company exclusive of periods of breaks as well as the periodof his membership of the Fund, including the periods of his membership of a providentfund in any Government or private establishment prior to joining the Company, thebalance of contribution of which has been transferred to the Fund in accordance withRule 36, shall be included provided that the member has not severed his membershipby withdrawal of his provident fund during such period.

49.0 * Deleted *

50.0 ADVANCE TO RESERVISTS RECALLED FOR DEFENCE DUTY

An advance may be given to a Reservist, who is a member of the Fund, to the extentof his own share of contribution together with interest thereon when he is called backby the Army authorities. Such payments may be made as far as possible before themember concerned is relieved, for reporting on duty to the Army authorities.

51.0 WITHDRAWALS FOR OTHER PURPOSES

1. Advance from the fund for marriages or post matriculation education of children

i) The Secretary may, on an application from a member, authorise paymentto him or her of a non-refundable advance, from his or her provident fundaccount, not exceeding fifty per cent of his or her own share of contribu-


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tion with interest thereon standing to his or her credit in the Fund on thedate of such authorisation, for his or her own marriage, the marriage of hisor her daughter, son, sister or brother or for the post-matriculation educa-tion of his or her son or daughter.

ii) No advance under this paragraph shall be sanctioned to a member un-less:

a) he has completed seven years membership of the Fund; and

b) the amount of his own share of contributions with interest thereonstanding to his credit in the Fund is rupees one thousand or more.

iii) Not more than three advances shall be admissible to a member under thisparagraph.

2. Grant of Advance in Abnormal Conditions

a) The Secretary may, on an application from a member whose property,movable or immovable, has been damaged by a calamity of exceptionalnature, such as floods, earthquakes or riots, authorise payment to himfrom the provident fund account, a non-refundable advance of rupees fivehundred or fifty per cent of his own total contributions including interestthereon standing to his credit on the date of such authorisation, whicheveris less, to meet any unforeseen expenditure.

b) No advance under sub-paragraph (a) shall be paid unless;

i) the State Government has declared that the calamity has affectedthe general public in the area.

ii) the member produces a certificate from an appropriate authority tothe effect that his property (movable or immovable) has been dam-aged as a result of the calamity; and

iii) the application for advance is made within a period of 4 months fromthe date of declaration referred to in sub-para (i).

3. Grant of Advance to members who are physically handicapped

(1) A member who is physically handicapped may be allowed a refundableadvance from his account in the Fund, for purchasing an equipment re-quired to minimise the hardship on account of handicap.

(2) No advance under sub-paragraph (1) shall be paid unless the memberproduces a medical certificate from a competent medical practitioner tothe satisfaction of the Secretary to the effect that he is physically handi-capped.

(3) The amount advanced under this paragraph shall not exceed the mem-ber’s basic wages and dearness allowance for six months of his own share


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of contributions with interest thereon or the cost of the equipment, which-ever is the least.

(4) No second advance under this paragraph shall be allowed within a periodof three years from the date of payment of advance allowed under thisparagraph.

51.0 A. ADVANCE IN CASE OF ILLNESS OF A MEMBER

(1) A member may be allowed a non-refundable advance in case of himself ormember of his family for :

(a) hospitalization lasting for one month or more; or

(b) a major surgical operation in a hospital; or

(c) suffering from T.B., Leprosy, Paralysis, Cancer, mental derangementor heart ailment and having been granted leave by the Company fortreatment of the said illness.

(2) The advance shall be granted if the Authorised Medical Attendant or doc-tor of a hospital certifies that a surgical operation was necessary or thathospitalisation for one month or more was considered necessary.

(3) A member may be allowed non-refundable advance from his account inthe fund for the treatment of a member of his family who has been hospi-talised or requires hospitalisation, for one month or more

a) for a major surgical operation, or

b) for the treatment of T.B., leprosy, paralysis, cancer, mental derange-ment or heart ailment.

(4) The advance shall not exceed the amount considered reasonable by theauthorised medical attendant for meeting the expenses in connection withthe illness and it shall in no case exceed three months basic wages andDA or the member’s total contribution with interest thereon, whichever isless.

51.0 B. WITHDRAWAL FROM THE FUND FOR REPAYMENT OF LOANS IN SPE-CIAL CASES

1. a) The Secretary may on an application from a member, sanction theamount standing to the credit of the member in the fund withdrawalfor the repayment, wholly or partly, of any outstanding principal andinterest of a loan obtained from a State Government CooperativeSociety, Housing Board, Municipal Corporation or body similar tothe Delhi Development Authority solely for the purposes specified insub-paragraph (1) of clause 47.


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b) The amount of withdrawal shall not exceed the member’s basic wagesand dearness allowance for thirty six months of his own share ofcontribution, together with the employer’s share of contribution andinterest thereon, in the member’s account in the Fund of the employ-ees outstanding principal and interest of the said loans, whicheveris least.

2. No withdrawal shall be sanctioned under this paragraph unless :

a) the member has completed ten years membership of the fund.

b) the member’s own share of contribution with interest thereon, if theamount standing to his credit in the Fund is one thousand rupees ormore; and

c) the member produces a certificate or such other documents as maybe prescribed by the Secretary from such agency indicating theparticulars of the member the loan granted, the outstanding princi-pal and interest of the loan and such other particulars as may berequired.

3. The payment of the withdrawal under this paragraph shall be made directto such agency on receipt of an authorisation from the member in suchmanner as may be specified by the Secretary and in no event the pay-ment shall be made to the member.

4. Grant of advance in special cases

a) In case of lay-off in POWERGRID establishment is closed down formore than fifteen days and its employees are rendered unemployedwithout any compensation or in case an employee does not receivehis wages for a continuous period of two months or more, thesebeing for reasons other than a strike, the Secretary or where soauthorised by the Secretary, any officer subordinate to him may onan application from an employee, who is a member of the Fund, insuch form as may be prescribed, authorise payment to him, oneor more non-recoverable advances from his provident fund accountnot exceeding his own total contributions including interest thereonupto the date the payment has been authorised.

b) In case a Provident Fund member is discharged or dismissed orretrenched by POWERGRID and such discharge or dismissal orretrenchment is challenged by the member and the cases are pend-ing in a Court of Law, an officer not below the rank of Secretary may,on an application from the member in such form as may be pre-scribed, authorise payment to him, of one or more non-recoverableadvances from his Provident Fund Account not exceeding fifty per


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cent of his own share of contribution with interest thereon standingto his credit in the Fund on the date of such authorisation.

c) In case lay off in POWERGRID continues to remain or its factory orestablishment is closed down for more than six months, the Secre-tary or where so authorised by the Secretary any officer subordi-nate to him on being satisfied that a member who has already beengranted one or more non-recoverable advances from his providentfund account under sub-paragraph (1) still continues to be unem-ployed and no compensation is likely to be paid to him at an earlydate, may, on receipt of an application therefor, in such form as maybe prescribed in this behalf, authorise payment to the member ofone or more recoverable advances from the Provident Fund ac-count upto the extent 100% of the employee’s total contribution in-cluding interest thereon upto the date on which the payment hasbeen authorised.

d) The advance granted under clause (a) shall be recovered by de-ductions from the wages of the member in such installments as maybe determined by the Secretary or any officer subordinate to him.The recovery shall commence from the first wages paid to the mem-ber immediately after the re-start of the factory or establishment.

e) The employer shall remit the amount so deducted to the Fund withinsuch time and in such manner as may be specified by the Secre-tary, or by any officer subordinate to him. The amount on receiptshall be credited to the member’s account in the Fund.

Explanation

For the purpose of grant of advance under this paragraph, the es-tablishment may be closed down whether legally, illegally, with per-mission or without permission, so long as the establishment ofPOWERGRID is lying closed.


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CHAPTER -7

FINAL WITHDRAWALS

52.0 CIRCUMSTANCES IN WHICH ACCUMULATIONS IN THE FUND ARE PAYABLETO A MEMBER

1. A member may withdraw the full amount standing to his credit in the Fund :

(a) on retirement from service after attaining the age of 55 years. Retired re-employed pensioners and other members, who attain the age of 55 yearsirrespective of the period of the service rendered by them in this Companyare to be paid full company’s contribution. Provided that a member, whohas not attained the age of 55 years at the time of termination of his serv-ice, shall also be entitled to withdraw the full amount standing to his creditin the fund if he attains the age of 55 years before the payment is author-ised.

(b) on retirement on account of permanent and total incapacity for work dueto bodily or mental infirmity duly certified by the medical officer of the Com-pany.

Explanation

A member suffering from tuberculosis or leprosy, even if contacted afterleaving the service of the Company on grounds of illness but before pay-ment has been authorised shall be deemed to have been permanently andtotally incapacitated for work.

(c) immediately before migration from India for permanent settlement abroador for taking employment abroad.

(d) on termination of service in the case of mass or individual retrenchment.

(e) on termination of service under a voluntary scheme of retirement framedby the employer and the employees under a mutual agreement specify-ing, inter-alia, that notwithstanding the provisions contained in sub-clause(a) of clause (00) of Section 2 of the Industrial Disputes Act, 1947 exclud-ing voluntary retirements from the scope of definition of “retrenchment”,such voluntary retirements shall, for the purpose, be treated as retrench-ments by mutual consent of the parties.

(f) in any of the following contingencies, provided the actual payment shall bemade only after completing a continuous period of not less than two monthsimmediately preceding the date on which a member makes the applicationfor withdrawal.

i) where POWERGRID is closed but certain employees who are notretrenched, are transferred by the employer to other factory or es-tablishment, not covered under the Act;


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ii) where a member is transferred from a covered factory or other es-tablishment to another factory or other establishment not coveredunder the Act but is under the same employer; and

iii) where a member is discharged and is given retrenchment compen-sation under the Industrial Disputes Act, 1947.

2. In case other than those specified in sub-paragraph (1) the Secretary may per-mit a member to withdraw the full amount standing to his credit in the fund onceasing to be an employee provided that he has not been employed in anyfactory or other establishment to which the Act applies for a continuous periodof not less than two months immediately preceding the date on which he makesan application for withdrawal. The requirement of two months waiting period shallnot, however, apply in cases of female members resigning from the services ofthe establishment for the purpose of getting married.

53.0 ACCUMULATION OF A DECEASED MEMBER - TO WHOM PAYABLE

On the death of a member before the amount standing to his credit has become pay-able or where the amount has become payable on death before payment has beenmade :

a) if a nomination made by the member in accordance with Rule 27 subsists theamount standing to his credit in the Fund or the part thereof to which the nomi-nation relates shall become payable to his nominees in accordance with suchnomination;

or

b) if no nomination subsists or if the nomination related only to a part of the amountstanding to his credit in the Fund, the whole amount or the part thereof to whichthe nomination does not relate, as the case may be, shall be become payable tothe member of his family in equal shares.

Provided that no share shall be payable to

i) sons who have attained majority;

ii) sons of deceased son who have attained majority;

iii) married daughter(s) whose husband(s) is alive;

iv) married daughter(s) of a deceased son whose husband(s) is alive;

If there is any member of the family other than those specified in clauses (i) (ii)(iii) & (iv).

Provided further that the widow and the child or children of a deceased son shallreceive between them in equal parts only the share which that son would have re-ceived if he had survived the member and had not attained the age of majority at thetime of the member’s death.


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c) In any case to which the provisions of clauses (a) and (b) do not apply, thewhole amount shall be payable to the person legally entitled to it.

Explanation

For the purpose of this Rule a member’s posthumous child, if born alive, shall betreated in the same way as a surviving child born before the member’s death.

54.0 PAYMENT OF PROVIDENT FUND

1. When the amount standing to the credit of a member becomes payable, it shallbe the duty of the Secretary to make prompt payment as provided in theseRules. He shall close the account of the member and give notice in writing to theperson to whom the amount is payable specifying the amount and tenderingpayment thereof. In case there is no nominee in accordance with the Rules, theChairman may, if the amount to the credit of the Fund does not exceed Rs.10,000 and if satisfied after the enquiry about the title of the claimant, pay suchamount to the claimant.

2. If any portion of the amount which has become payable is in dispute or doubt,the Secretary shall make prompt payment of that portion of the amount in regardto which there is no dispute or doubt, the balance being adjusted as soon asmay be possible.

3. If the person to whom any amount is to be paid under these Rules is a minor ora lunatic for whose estate a guardian under the Guardians and Wards Act, 1890(VIII of 1890) or a manager under the Indian Lunacy Act, 1912 (iv of 1912), asthe case may be, has been appointed, the payment shall be made to such guard-ian or manager. In case no such guardian or manager has been appointed, thepayment shall be made to natural guardian and in the absence of natural guard-ian to such person as the Chairman, where the amount does not exceeds Rs.20,000 or the Board if the amount exceeds Rs. 20,000, considers to be theproper person representing the minor or lunatic after due enquiry and on execu-tion of appropriate documents and the receipt of such person for the amountpaid shall be a sufficient discharge thereof.

4. If it is brought to the notice of the Secretary that a posthumous child is to be bornto the deceased member, he shall retain the amount which will be due to thechild in the event of its being born alive, and distribute the balance. If subse-quently no child is born or the child is still-born the amount retained shall bedistributed in accordance with the provisions of Rule 54.

5. Any person who desires to claim payment under this Rule shall send a writtenapplication to the Chairman, who may at the option of the person to whom thepayment is to be made, make the payment.

i) by postal money order at the cost of the payee;

ii) by crossed cheque and send through post; or

iii) by deposit in the payee’s bank account, if any.


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55.0 EX-MEMBER’S UNCLAIMED ACCOUNT

Any amount becoming due to a member as a result of : (i) supplementary contributionfrom the employer in respect of leave wages/arrears of pay, installment of arrearscontribution received in respect of a member whose claim has been settled on ac-count but which could not be remitted for want of latest addresses, or (ii) accumulationin respect of any member who has either ceased to be employed or dies, but no claimhas been preferred within a period of three years from the date it becomes payable, orif any amount remitted to a person is received back undelivered, and it is not claimedagain within a period of three years from the date it becomes payable shall be trans-ferred to an account to be called ‘Unclaimed Deposits Account’.

Provided that in the case of a claim for the payment of the said balance, the amountshall be paid by debiting the ‘Unclaimed Deposits Account’.


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CHAPTER 8

MISCELLANEOUS

56.0 CAPITAL RESERVE ACCOUNT

The profit arising from the sale of securities is not to be credited to Reserve Account.It is to be reinvested in Govt. Securities as per prescribed pattern.

57.0 UTILISATION OF CAPITAL RESERVE ACCOUNT

The Capital Reserve Account shall be utilised as per the instructions issued by theRPFC regarding utilisation of the Capital Reserve Account from time to time. A sum ofRs. 750/- is assured to the heirs/nominees of a deceased member in case his PFaccumulations do not exceed Rs. 750/-.

58.0 PROTECTION AGAINST ATTACHMENT

(i) The amount standing to the credit of any member in the Fund shall not in anyway be capable of being assigned or charged and shall not be liable to attach-ment under any decree or order of any court in respect of any debt or liabilityincurred by the member, and neither the official assignee appointed under thePresidency Towns Insolvency Act, 1909 (3 of 1909) nor any Receiver appointedunder the Provincial Insolvency Act, 1902 (5 of 1902) shall be entitled to or haveany claim on any such amount.

(ii) Any amount standing to the credit of a member in the Fund at the time of hisdeath and payable to his nominee under the Rules of the Fund shall, subject toany deduction authorised by the Rules, vest in the nominee and shall be freefrom any debt or other liability incurred by the deceased or the nominee beforethe death of the member.

59.0 TRUSTEES POWER TO AMEND THE RULES

With the prior approval of the RPFC the Trustees may in their discretion, with consentof the Company in writing, add to, alter, or repeal any of the provisions of these presentsbut so that no such additions or alterations shall adversely affect the rights of anymember of the Fund in respect of any fund then in the hands of the Trustees or resultin the Company acquiring any beneficial interest whatsoever in the funds of the Fund.All such additions or alterations shall during such time as the Fund shall continue to berecognised as a recognised Fund within the meaning of the Income Tax Act and Em-ployees Provident Fund and Misc. Provisions Act, 1952 be subject to the prior ap-proval of the Commissioner of Income Tax and the Commissioner of Provident Fund.


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60.0 INSPECTION OF CARDS AND RECORDS BY THE COMMISSIONER

The Secretary shall, whenever the Commissioner or any officer authorised by him inthis behalf or an Inspector appointed under Section 13 of the Employees ProvidentFund and Misc. Provisions Act, 1952, so requests either in person or by notice inwriting, produce before the Commissioner, Officer or Inspector, as the case may be,any account books or records of the Fund, and if so required by the said Commis-sioner, Officer or Inspector who may, if he thinks fit, retain the records provided thathe shall grant a receipt of every record retained by him.

61.0 DISPOSAL OF THE FUND

Subject to the provisions of the Employees Provident Fund & Misc. Provisions Act,1952 and of these Rules, the Fund shall not, except with the previous sanction of theCommissioner, be expended for any purpose other than for the payment of sumsstanding to the credit of individual members of the Fund or to their nominees or heirsor legal representatives in accordance with the provisions of these Rules.

62.0 WINDING UP

It shall be lawful for the Trustees at any time on giving a month’s notice in writing to allmembers of the Fund to wind up the Fund, in which case the Trustees shall on expiryof the period of such notice realise all securities and make up the books and afterpayment of all costs and expenses of winding up and otherwise, the moneys of theFund shall be transferred to RPFC for distribution amongst the persons who shall bethe members at the time of commencement of such winding up in proportion to thebalances at the time of making of the books standing to their credit therein. In case ofthe Fund being wound up on account of Company going into liquidation, the employ-ees’ contribution of the Provident Fund will have top priority over all other dues ofcreditors of the Company.

Provided that the winding up of the Fund will not be made without the prior approval ofthe Commissioner. Provided further that when the Fund is wound up or exemption ofthe company under Section 17 (1) of Employees Provident Fund & Misc. ProvisionsAct, 1952 is cancelled, accumulations standing to the credit of the employees whoconstituted under Section 5 (1) of the Employees Provident Fund & Misc. ProvisionsAct, 1952, shall be transferred to that Fund as soon as possible, and in any case notlater than 30 days in the case of securities and not later than 10 days in the case ofcash in hand or bank, together with a statement or statements as may be required bythe Commissioner.


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63.0 EMPLOYEES FAMILY PENSION SCHEME 1971

The Company is responsible to comply with the statutory provisions of the FamilyPension Scheme 1971 with RPFC.

64.0 EMPLOYEES DEPOSIT LINKED INSURANCE SCHEME 1976

The Company will comply with the conditions of Employees Deposit Linked Insur-ance Scheme 1976 with the RPFC.

Whenever any provision of the POWERGRID Rules are found silent, the provision ofEmployees Provident Fund & Misc. Provision Act, 1952 shall apply.

65.0 For any provision or point of law not covered by these rules, the Employees ProvidentFund and Misc. Provisions Act, 1952 and the scheme made thereunder shall be ap-plied.


Policy Manual

POWERGRID CORPORATION OF INDIA LTD.

FORM 2Account No. .........

THE EMPLOYEES PROVIDENT FUNDS Scheme, 1952

Declaration and Nomination Form [Paragraph 33 and 61 (1)]

1. Name ......................................................................... Surname ................................... (in block capitals)

2. Sex ............................................................................................................................

3. Religion ..........................................................................................................................

4. Father’s Name ...............................................................................................................

5. Husband’s Name ........................................................................................................... (for married women only)

6. Marital status .................................................................................................................. (whether unmarried, married, widow or widower)

7. Date of Birth : Day .............................. Month ........................ Year ..........................

(Where exact particulars are not available, approximate age may be indicated inconsultation with the Medical Officer of POWERGRID)

8. Permanent Address .......................................................................................................

Village ......................................................... Thana .......................................................

Taluk/Sub-Division ..........................................................................................................

Post Office ......................................... District ........................... State .........................

I declare that I have not previously been a member of the Employees Provident Fund and I herebynominate the person(s) mentioned below to receive the amount standing to my credit in the Fundin the event of my death before that amount has become payable, or having become payable hasnot been paid, and direct that the said amount shall be distributed among the said persons in themanner shown against their names :


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Name & Address Nominee’s Age of nominee Amount of shareof the nominee or relationship with of accumulations in

nominees the member funds to be paidto each nominee*

(1) (2) (3) (4)

I hereby direct that in the event of my death during the minority of my above named nominee, theperson whose particulars are given below shall be deemed to be guardian of the minor nomineefor the purpose of the Employees Provident Funds Scheme, 1952.

Name and address Age of the guardian Relationship of theof the guardian guardian with the member

(1) (2) (3)

Delete if not necessary.

1. Certified that I have no family as defined in 2 (g) of E.P.F. Scheme 1952 and should I acquirea family hereafter, the above nomination should be deemed as cancelled.

2. Certified that my father/mother is dependent upon me.

Signature/Thumb impression

This column should be filled in so as to cover the whole amount that may stand to the credit of themember in the Fund at any time.

Certified that the above declaration has been signed/thumb impressed by Shri/Smt....................................................... employed in my office/establishment before me after he/shehas read the entries. The entries have been read over to him/her by me.

Signature of Authorised Officer

Designation...........................................

Power Grid Corp. of India Ltd.B-9, Qutab Institutional Area,Katwaria Sarai, New Delhi-110016


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Declaration by witnesses

Nomination signed/thumb Impressed before me.

Name & Address in full Signature of witnesses

1. 1.

2. 2.

Place ...........................

Date ............................

—————————————————————————————————————————

Certificate by the Controlling Officer

Certified that the particulars of the above nomination have been verified.

Date .......................

Place .......................

Signature of the Controlling Officer—————————————————————————————————————————

Acknowledgement by the Secretary

The above nomination has been recorded.

Date .......................

Place ....................... Signature of the Secretary

—————————————————————————————————————————

Note :

i) Strike out the words and/or paragraphs not applicable.

ii) Secretary will send the duplicate copy of this form duly acknowledged to the employee.


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Explanation

For the purpose of this clause, family, in relation to the employee shall be deemed to consist of:

i) in the case of a male employee, himself, his wife, his children, whether married or unmar-ried, his dependent parents and the widow and children of her predeceased son, if any.

ii) in the case of a female employee, herself, her husband, her children whether married orunmarried, her dependent parents and the dependent parents of her husband and the widowand children of her predeceased son, if any.

Provided that if a female employee, by notice in writing to the Secretary, expresses her desire toexclude her husband from her family, the husband and his dependent parents shall no longer bedeemed to be included in the family of such female employee unless the said notice is subse-quently withdrawn by such female employee.


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FORM C

POWERGRID EMPLOYEES PROVIDENT FUND TRUST

APPLICATION FOR FINAL SETTLEMENT OF PROVIDENT FUND ACCOUNT

1. Name (in block letters) : ..........................................................

2. Father’s/Husband’s Name : ..........................................................

3. Employee No./PF A/c No. : ..........................................................

4. Designation : ..........................................................

5. Department : ..........................................................

6. Basic Pay & D.A. (last drawn) : ..........................................................

7. Date of Joining POWERGRID : ..........................................................

8. Designation on joining POWERGRID &Station/Project where posted : ..........................................................

9. Date of membership of EPF : ..........................................................

10. Whether P.F. A/c was transferred fromprevious employers/Sub-station of POWERGRID.If so, name of previous employers/Sub-station : ..........................................................

11. Date of Retirement/Resignation/Termination/Death : ..........................................................

12. Reasons of Termination & Resignation(Supported with Office Order or DeathCertificate) : ..........................................................

13. Whether employed in any organisationcovered under the EPF Act, if so nameof the employer & date of employment : ..........................................................

(Signature of Applicant)


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DECLARATION OF THE EMPLOYEE :

1. I declare that I have not been employed in any Factory/Establishment, to which the Actapplies, for a continuous period of not less than 2 months immediately preceding the date ofmy application for final withdrawal of my Provident Fund money.

2. I clearly understand that remittance is made at sole risk and that POWERGRID accepts nofurther responsibility for the money and I agree to the receipt granted by the Postal/Bankauthorities, being treated as a valid discharge for payment.

(Please indicate name of the bank, branch & SB A/c No., if payment is to be deposited in abank)

(Signature of the Applicant)

SB A/c No. ................................... Name of the Bank ................................................................

Address .................................................. Branch ...............................................................

Dated : ............................


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Policy Manual - Power Grid Corporation of Indiahr.powergridindia.com/HRWebSite/RTIInfo/EmplProvidentFundRules.pdf · Policy Manual EMPLOYEES PROVIDENT FUND RULES ... The fund shall