(1) “The question of making some provision for the future of the industrial worker after he retires or for his dependents in case of his early death, has been under consideration for some years. The ideal way would have been provision through old age and survivors pensions as has been done in the industrially advanced countries. But in the prevailing conditions in India the institution of a pension scheme cannot be visualised in the near future. Another alternative may be for provision of gratuities after a prescribed period of service. The main defect of a gratuity scheme, however, is that amount paid to a worker or his dependents would be small, as the worker would not himself be making any contribution to the fund. Taking into account the various difficulties, financial and administrative, the most appropriate course appears to be the institution compulsorily of contributory provident funds in which both the worker and the employer would contribute. Apart from other advantages, there is the obvious one of cultivating among the workers a spirit of saving something regularly. The institution of a provident fund of this type would also encourage the stabilisation of a steady labour force in industrial centres.

2. The subject of legislation for instituting compulsorily of contributory provident funds in industrial under-takings was discussed several times at tripartite meetings in which representatives of the Central and State Governments and employers and workers took part. A large measure of agreement was reached that there should be such legislation. Further, a non-official Bill on this subject was introduced in the Central Legislature in 1948 and was withdrawn only on an assurance given that Government itself would soon consider the introduction of a comprehensive Bill. The view that the proposed legislation should be undertaken was lastly endorsed by the Conference of Provincial Labour Ministers held in January, 1951. It may be added that a statutory Contributory Provident Fund already exists for workers in coalmines, covering about 300,000 persons. This has been in operation for about five years and is working very satisfactorily.

3. The Bill provides for institution, in the first instance, of contributory provident funds in the six major organised industries named in Sch. I, except undertakings owned by the Central or State Government or by a local authority. There is also a provision empowering the Central Government, by notification, to add other industries to the Schedule or to apply the Act to industrial undertakings employing less than fifty persons.

4. To avoid any hardship to new establishments, a provision has been made for exempting them for a period of three years and similar exemptions are given to other establishments which are less than three years old till they have been in operation for a period of three years in all the rate of contribution will be 61/4 per. cent. of the total emoluments of the worker, the worker and the employer each contributing these amounts. Further, the scheme could empower payment of a higher subscription by the workers at their option.

5. Where Provident Funds exist in private industry, contributions are usually a percentage of the basic wage. Unlike Government Departments, wages in private industry have not, however, been rationalised and there are very great variations in the level of basic wages in private industry, even in different units in the same industry. If contributions are reckoned on the basis of basic wage only, there will, therefore, be wide changes in the degree of benefit received. This will be unfair to the workers and may also penalise those employers who have brought the level of basic wags more in accord with current requirements. Government appreciate that dearness allowance is a variable factor depending on the cost of living. Nevertheless, for the reasons explained. Government is satisfied that contributions to the Provident Fund should be on the basics of basic pay plus dearness allowance. This should not be construed as in any way implying that dearness allowances on the existing rates are to be recognised as a permanent measure.

6. Most of the details relating to the Fund will be settled in accordance with a scheme, which, in the interest of uniformity, will be framed by the Central Government. The administration will, to a large extent, be decentralised in regard to undertakings falling within the sphere of State Governments.

7. Where provident funds offering equal or more advantageous terms are operating efficiently, provision has been made for them to continue subject to certain safeguards in the interest of the workers.

8. This Bill when enacted will repeal and re-enact all Ordinance promulgated on the same lines on the 15th November 1951”. ³

1. Subs. by Act 99 of 1976, Sec. 16, for the words “and Family Pension Fund” (w.e.f. 1^st August, 1976).

2. Subs. by Act No. 25 of 1996, Sec. 2, for the words, “family pension fund” (w.e.f. 16^th November, 1995).

3. Vide Gazette of India, Part II, sec. 2 dated 23^rd February, 1952, p. 67.

STATEMENTS OF OBJECTS AND REASONS OF ACT 37 OF 1953

“The working of the Employees Provident Funds Act has brought out certain defects.

The principal defect relates to the application of the Act and the Scheme. There are considerable doubts regarding the expressions used in Sch. I. No authority has been prescribed for removing doubts and difficulties. There is no power for applying the Scheme to a factory not covered by the Act even when the employer and the employees ask for such application.

At present the employees of exempted factories are not entitled to the benefits of nomination, protection against attachment or prior claim on the assets of an insolvent employer. It is not possible to grant exemption to any factory from the operation of the Scheme on economic grounds.

There are also certain administrative difficulties to be set right. There is no provision for inspection of exempted factories; nor is there any provision for the recovery of dues from such factories. An employer can Delay payment of provident fund dues without and additional financial liability. No punishment has been laid down for contraventions of some of the provisions of the Act.

The Bill seeks primarily to remedy these defects.”¹

1. Vide S.O.R, Gazette of India Extraordinary, 1953, Part.II, Sec.2, p.910.

STATEMENTS OF OBJECTS AND REASONS OFACT 16 OF 1971

The Coal Mines Provident Fund and Bonus Scheme Act, 1948 and the Employees Provident Funds Act, 1952 provide for the institution of provident funds for employees in Coal Mines, factories and other establishments. Provident Fund is an effective old-age and survivorship benefit, but when the employee happens to die prematurely, the accumulations in the Provident Fund are too small to render adequate and long-term protection to his family. With a view to providing long-term financial security to the families of industrial employees in the event of their premature death, it is proposed to introduce a Family Pension Scheme for the employees covered under the two Acts and to create a Family Pension Fund for this purpose by diverting a portion of the employer’s and employees’ contribution to the Provident Fund, to which will be added a contribution by the Central Government. Out of the Fund so set up, it is proposed to pay Family Pension at prescribed scales to the survivors of employees who die while in service before reaching the age of superannuation. Besides Family Pension, a compulsory life insurance benefit of Rs. 1000 will also be payable to the survivors of the employees in the event of death in service. In the case of retirement a lump sum payment up to a maximum of Rs. 4000 will be made to the employee depending upon the length of his service. The terms and conditions for the grant of family pension will generally be the same as those applicable to the Central Government employees. The benefits payable under the Family Pension Scheme will be in addition to the payments due to the employees from the Provident Fund.

2. The proposed scheme of Family Pension will be administered by the Board of Trustees. Coal Mines Provident Fund in respect of members of the Coal Mines Provident Fund, and by the Central Board of Trustees. Employees’ Provident Fund, in respect of the employees of establishments covered by the Employees’ Provident Funds Act, 1952. The cost of administration of the Family Pension Scheme in each case will be home by the Central Government.

3. The Bill seeks to amend suitably the Coal Mines Provident Fund and Bonus Scheme Act, 1948 and the Employees’ Provident Funds Act, 1952 in order to achieve these objectives.¹

1. Vide S.O.R., Gazette of India Extraordinary, Part. II, Sec. 2, dated 7th December 1970, p. 1029.

STATEMENTS OF OBJECTS AND REASONS OF ACT 40 OF 1973

The working of the Employees’ Provident Funds and Family Pension Fund Act, 1952 and the Employees’ Provident Fund Scheme has revealed that the present provisions of the Act and the Scheme are not effective in preventing defaults in payment of contributions to the Employees’ Provident Fund or in recovery of the dues on that account. The result is that the amount of Provident Fund arrears recoverable from the employers has been steadily increasing. In 1959-60, the arrears which amounted to Rs. 3.65 crores rose to Rs. 5.96 crores as on the 31st March, 1967. The arrears stood at Rs. 14.6 crores on 31st March 1970 and they have risen to Rs.20.65 crores as on the 31 st March 1972.

2. The National Commission on Labour has recommended that in order to check the growth of the arrears, penalties for defaults in payment of Provident Fund dues should be made more stringent and that the defaults should be made cognizable. In its 116th Report presented to Parliament in April, 1970 the Estimate Committee has endorsed the recommendation made by the National Commission on Labour and has further suggested that Government should consider the feasibility of providing compulsory imprisonment for certain offences under the Act. Accordingly, it is proposed to amend the Act so as to render the penal provisions more stringent and to make defaults cognizable offences. Provision is also being made for compulsory imprisonment in cases of non-payment of contributions and administration or inspection charges. As recommended by the Estimates Committee, a further provision is being made to enable levy of damages equal to the amount of arrears from a defaulting employer.

3. The National Commission on Labour has also recommended that arrears of Provident Fund should be made the first charge on the assets of an establishment at the time it is wound up. It is, therefore, proposed to amend Sec. 11 of the Act to provide that any amount due from an employer in respect of the employees’ contribution (deducted from the wages of an employee) for a period of more than six months shall be deemed to be the first charge on the assets of the establishment and shall be paid in priority to all other dues.

4. Further, in pursuance of the recommendations made by the National Commission on Labour and the Estimates Committee, it is proposed to empower the Employees’ Provident Fund Organisation to issue recovery certificates and to sanction prosecution under the Act.

5. Opportunity is also being taken to clarify that any contributions deducted from the employees’ wages by the employer under the Act shall be deemed to be entrusted to the employer within the meaning of Sec. 405 of the Indian Penal Code. Hence the Bill. ¹

1 . Vide S.O.R., Gazette of India, Extraordinary, Part II, Sec. 2, dated 7^th March, 1973, and p.115.

STATE MENT’S OF OBJECTS AND REASONS OF ACT 99 OF 1976

1. The Labour Provident Fund Laws (Amendment) Ordinance, 1976 was promulgated by the President to introduce a new social security scheme known as the Deposit-linked Insurance Scheme to provide Insurance cover to the members of the Coal Mines Provident Fund and the Employees’ Fund, without payment of any premium by such members.

2. The insurance cover provided by the scheme is linked to the amount lying in deposit in the provident fund to the credit of employee concerned. The salient feature of the Deposit-linked Insurance Scheme is that in the event of the death of an employee, his dependents would be entitled to receive an additional payment equivalent to three years’ average balance at the credit of the deceased employee in the provident fund account (provided that such balance is not less than one thousand rupees), subject to maximum of rupees ten thousand. For getting this facility, the employee will not be required to make any contribution to the Insurance Fund. Contribution to that fund will be made by the employers and the Central Government in the ratio of 2: 1. A similar Scheme is already in operation in respect of Central Government employees from the 8th January, 1975.

3. The Coal Mines Deposit-linked insurance Scheme will be administered by the Board of Trustees constituted under the Coal Mines Provident Fund Family Pension and Bonus Schemes Act, 1948 and the Employees Deposit linked Insurance Scheme will be administered by the Central Board of Trustees constituted under the Employees Provident Funds and Family Pension fund Act, 1952. The cost of administration of the Deposit-linked Insurance Scheme in both the cases will be borne by the employers and the Central Government in the ratio of 2:1.

4. Provision has also been made for granting exemption from the provisions of the two Deposit-linked Insurance Schemes in the case of such of the employees of the Coal Mine or, as the case may be, the establishments as are in enjoyment of more favourable benefits in the nature of life insurance.

5. Consequential amendments are also proposed to be made in the Wealth-tax Act, 1957, and the Income-tax Act, 1961, so that the Board of Trustees are not assessed to tax in respect of any property held, or income received, on behalf of the Deposit-linked Insurance Fund and to prevent employees being assessed under the Income-tax Act, 1961, in respect of the contributions made into the Deposit-linked Insurance Fund in relation to such employees.

6. The Bill seeks to replace the ordinance with the modification that the Deposit-linked Insurance Scheme would also apply to the employees of establishments, which were exempted from the operation of the Employees’ Provident Funds Scheme.¹

1. Vide S.O.R., Gazette of India. Extraordinary, Part II, Sec. 2, dated 25th August 1976, p. 1315.

STATEMENTS OF OBJECTS AND REASONS OF ACT 33 OF 1988

(1) The Employees Provident Funds and Miscellaneous Provisions Act, 1952 provides for the institution of Compulsory Provident Fund, Family Pension Fund and Deposit-Linked Insurance Fund, for the benefit of the employees in factories and other establishments. The Act is at present applicable to 173 industries and classes of establishments employing twenty or more persons. As on 31^st March 1987, about 1.66 lakh establishments with about 1.38 crore subscribers were hovered under the Act.

2. The Act was last amended in 1976. The Government had set up a high level Committee in April, 1980 to review the working of the Employees Provident Funds Organisation and to suggest improvements. The Committee had made a number of recommendations involving amendments of the Act. The Central Board of Trustees, Employees’ Provident Fund had also from time to time, made certain recommendations for amendment of the Act. The Standing Labour Committee had at its meeting held in September, 1986 considered inter alia the question of enhancement of the rate of provident fund contribution and recommended suitable enhancement.

3. Based on the above recommendations, it is proposed to carry out certain amendments in the Act. Some of the more important amendments are: -

(i) The number of representatives of the organisations of the employers and the employees on the Central Board of Trustees is being raised from 6 each to 10 each, so as to provide greater representation to the employers and employees on the Board. A provision is also being made for setting up an Executive Committee to assist the Board in the discharge of its functions;

(ii) The Central Board is being given enhanced powers in the matter of appointment of officer and staff, creation of posts, specifying methods of recruitment, salary and allowances, etc., of its officers and staff, for the smooth functioning of the Schemes administered by it;

(iii) The minimum rate of provident fund contribution is being enhanced from 6-1/4 to 8-1/3 per cent of basic wages. An enabling provision is also being made for raising the rate of contribution from 8-1/3 percent to 10 percent;

(iv) A provision is being made for setting up an independent machinery, for recovery of the outstanding amount of provident fund and other dues under the Act-,

(v) A provision is being made for setting up one or more single member Tribunals, for hearing of appeals filed against the order of provident fund authorities in the matter of applicability of the provisions of the Act, assessment of dues and levy of damages, etc.,

(vi) A provision is being made for treating the entire amount of arrears of provident fund dues as first charge on the assets of an establishment in the event of its liquidation;

(vii) The existing penal provisions are being made more stringent. A suitable provision is also being made for charging of simple interest on belated payment of any amount due under the Act;

(viii) The existing legal and penal provisions, as applicable to the unexempted establishments are being made applicable to exempted establishments, so as to check the default on their part,

(ix) The establishments belonging to or under the control of the Central Government or State Government and establishments set up under either an Act of Parliament or State Legislature, whose employees are entitled to the benefit of contributory provident fund or old age pension under any rule or scheme governing them are being excluded from the purview of the Act, so as to enable the Employees’ Provident Funds Organisation to concentrate on establishments whose employees are not entitled to the benefit of provident fund or pension under any other law or scheme;

(x) A provision is also being made for authorising the unexempted establishments employing 100 or more persons to maintain the provident fund accounts of the employees subject to certain conditions, so as to ensure prompt service to the members.

The Notes on clauses explain in detail the provisions of the Bill.

4. The Bill seeks to achieve the above objects.¹

1. Vide, Gazette of India, Extraordinary, Part II, Sec. 2, dated 25th April 1988, p. 22.

LIST OF AMENDING ACTS

1. Act No. 37 of 1953

2. Act No. 94 of 1956

3. Act No. 22 of 1958

4. Act No. 46 of 1960

5. Act No. 48 of 1962

6. Act No. 28 of 1963

7. Act No. 22 of 1965

8. Act No. 16 of 1971

9. Act No. 40 of 1973

10. Act No. 99 of 1976

11. Act No. 4 of 1986

12. Act No. 33 of 1988

13. Act No. 25 of 1996

14. Act No. 10 of 1998

1. SHORT TITLE, EXTENT AND APPLICATION . -

¹[(1) This Act may be called the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952.]

(2) It extends to the whole of India except the State of Jammu and Kashmir.

²[(3) Subject to the provisions contained in Sec. 16, it applies, -

(a) To every establishment which is a factory engaged in any industry specified in Sch.1 and in which ³[twenty] or more persons are employed, and

(b) To any other establishment employing ³[twenty] or more persons or class of such establishments which the Central Government may, by notification in the Official Gazette, specify in this behalf

PROVIDED that the Central Government may, after giving not less than two months’ notice of its intention so to do, by notification in the Official Gazette, apply the provisions of this Act to any establishment employing such number of persons less than ⁴ [twenty] as may be specified in the notification.)

⁵[(4) Notwithstanding anything contained in sub-section (3) of this section or sub-section (1) of Sec. 16, where it appears to the Central Provident Fund Commissioner, whether on an application made to him in this behalf or otherwise, that the employer and the majority of employees in relation to any establishment have agreed that the provisions of this Act should be made applicable to the establishment, he may, by notification in the Official Gazette, apply the provisions of this Act to that establishment on and from the date of such agreement or from any subsequent date specified in such agreement.]

⁶[(5) An establishment to which this Act applies shall continue to be governed by this Act notwithstanding that the number of persons employed therein at any time falls below twenty]:

⁷[* * * * * ]

1. Subs. by Act 99 of 1976, Sec. 17 (w.e.f. 1st August 1976).

2. Subs. by Act 94 of 1956, Sec. 2, for sub-section (3).

3. Subs. by Act 46 of 1960, Sec. 2, for the word “fifty” (w.e.f. 31st December, 1960).

4. Subs. by Act 46 of 1960, Sec. 2, for the word “fifty” (w.e.f. 31 st December, 1960.

5. Subs. by Act 33 of 1988, Sec. 2 (w.e.f. lst August, 1988), for the sub-section, inserted by Act 37 of 1953, Sec. 2 and subsequently amended by Act 94 of 1956, Sec. 3.

6. Ins. by Act 46 of 1960, See. 2 (w.e.f. 31st December, 1960).

7. Proviso deleted by Act 16 of 1971 (w.e.f. 23rd April, 1971).

2. DEFINITIONS. -In this Act, unless the context otherwise requires, -

¹[(a) “Appropriate Government” means-

(i) In relation to an establishment belonging to, or under the control of the Central Government or in relation to an establishment connected with a railway company, a major port, a mine or an oilfield or a controlled industry, ²[or in relation to an establishment having departments or branches in more than one State], the Central Government; and

(ii) In relation to any other establishment, the State Government.]

³[(aa) “Authorised officer” means the Central Provident Fund Commissioner, Additional Central Provident Fund Commissioner, Deputy. Provident Fund Commissioner, Regional Provident Fund Commissioner or such other officer as may be authorised by the Central Government, by notification in the Official Gazette.]

(b) “Basic wages” means all emoluments which are earned by an employee while on duty or ⁴[on leave or on holidays with wages in either case] in accordance with the terms of the contract of employment and which are paid or payable in cash to him, but does not include-

(i) The cash value of any food concession;

(ii) Any dearness allowance (that is to say, all cash payments by whatever name called paid to an employee on account of a rise in the cost of living), house-rent allowance, overtime allowance, bonus, commission or other similar allowance payable to the employee in respect of his employment or of work done in such employment;

(iii) Any presents made by the employer;

(c ) “Contribution Industry” means contribution payable in respect of a member under a scheme ⁵[or the contribution payable in respect of an employee to whom the Insurance Scheme applies];

(d) “Controlled industry” means any industry the control of which by the Union has been declared by a Central Act to be expedient in the public interest;

⁶[(e) “Employer” means, --

(i) In relation to an establishment which is a factory, the owner or occupier of the factory, including the agent of such owner or occupier, the legal representative of a deceased owner or occupier and , where a person has been named as manager of the factory under Cl.(f)of sub – section (1)of Sec.7 of the factories Act, 1948 (63of1948) , the person so named as ; and

(ii) In relation to any other establishment , the person who or the authority which, has the ultimate control over the affairs of the establishment , and were the said affairs are entrusted to a manager agents , such manager, managing director or managing agent;.

(f) “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 ⁷|[an establishment , and who gets his wages directly or in directly from the employer, ⁸[and includes any person , -

(i) Employed by or through a contractor in or in connection with the work of the establishment;

(ii) Engaged as an apprentice , not being an apprentice engaged under the Apprentices , not being an apprentice engaged under the Apprentices Act, 1962(52 of 1961), or under the standing orders of the establishment ;]

⁹[ff} “Exempted employee” means an employee to whom a scheme ¹⁰[or the Insurance Scheme , as the case may be,] would; but for the exemption granted under ¹¹[* * *] Sec. 17 have applied ;

(fff) “Exempted ¹²[an establishment] means ¹²[an establishment ] in respect of which an exemption has been granted under Sec. 17 from the operation of all or any of the provisions of any Scheme ¹⁰ [or the Insurance Scheme, as the case may be,] whether such exemption has been granted to the ¹²[establishment ] as such or to any person or class of persons employed therein;]

(g) “Factory” means any premises including the preceints thereof, in any part of which a manufacturing process is being carried on or is ordinarily so carried on, whether with the aid of power or without the aid of the power;]

¹³[(gg) ¹⁴[ * * * * * ]

¹³[(ggg) ¹⁴[ * * * * * ]

(h) “Fund” means the provident fund establishment under a scheme;

(i) “Industry” means any industry specified in Sch. I, and includes any other industry added to the schedule by notification under Sec. 4;

¹⁰[(i-a) “Insurance Scheme” means the Deposit-Linked Insurance Fund established under sub-section (2) of Sec.6-C;

(i-b) “Insurance Scheme” means the Employees’ Deposit-Linked Insurance Scheme framed under sub-section (1) of Sec. 6-C;]

¹⁵[ ¹⁶[(i-c) “Manufacture” or “manufacturing process” means any process for making altering, repairing, ornamenting, finishing, packing, oiling, washing, cleaning, breaking up, demolishing or otherwise treating or adapting any article or substance with a view to its use, sale/transport, delivery or disposal;]

(j) “Member” means a member of the Fund;

(k) “Occupier of factory” means the person who has ultimate control over the affairs of the factory, and, where the said affairs are entrusted to a managing agent, such agent shall be deemed to be occupier of the factory-,

¹⁷ [(kA) “Pension Fund” means the Employees’ Pension Fund established under sub-section (2) of Sec. 6-A.

(kB) “Pension Scheme” means the Employees’ Pension Scheme framed under sub-section (i) of Sec. 6-A;]

¹⁸[(ka) “Prescribed” means prescribed by rules made under this Act;

(kb) “Recovery Officer” means “any officer of the Central Government, State Government or the Board of Trustees constituted under Sec. 5-A, who may be authorised by the Central Government, by notification in the Official Gazette, to exercise the powers of a Recovery Officer under this Act;]

¹⁹[(l) “Scheme” means the Employees’ Provident Fund Scheme framed under Sec. 5;]

²⁰[(ll) “Superannuation”, in relation to an employee, who is the member of the Pension Scheme means the attainment, by the said employee, of the age of fifty-eight years.]

²¹[(m) “Tribunal” means the Employees’ Provident Funds Appellate Tribunal constituted under Sec. 7-D.]

1. Subs. By Act 22 of 1958, Sec. 2, for the former clause.

2. Ins. by Act 22 of 1965, Sec. 2 (w.e.f. 24^th November, 1964).

3. Ins. By Act 33 of 1988, Sec.3 (a) (w.e.f. 1^st August, 1988).

4. Subs by ibid; Sec. 3 (b) (w.e.f. 1^st August, 1988), for the words “on leave with wages”.

5. Ins. By Act 99 of 1976, Sec. 18 (w.e.f. 1^st August, 1976).

6. Subs. by Act 94 of 1956, Sec. 4, for Cl. (e).

7. Subs. by Act 94 of 1956, Sec.3 for the words “ a factory”.

8. Subs. by Act 33 of 1988, Sec. 3 (c), for the words “and includes any person employed by or through a contractor in or in connection with the work of the establishment” as amended by Act 94 of 1956, Sec. 3.

9. Ins. by Act 37 of 1953, Sec.3.

10. Ins. by Act 99 of 1976, Sec. 18 (w.e.f. 1^st August, 1976).

11. The words, brackets and figure “sub-section (1) of’ omitted by Act 28 of 1963, Sec. 2 (w.e.f 30^th November, 1993).

12. Subs by Act 94 of 1956, Sec. 3, for the words “a factory”

13. Ins. by act 16 of 1971, Sec. 14 (w.e.f 23^rd April, 1971 ).

14. Omitted by Act No. 25 of 1996, Sec. 3 (w.e.f 16^th November, 1995).

15. Subs. by Act 28 of 1963, Sec. 2, for Cl. (a) (w.e.f. 30th November, 1963), ins by Act 37 of 1953, Sec. 3.

16. Clause (i-a) was re-lettered as (i-c) by Act 99 of 1976, Sec. 18 (w.e.f. Ist August, 1976).

17. Ins. by Act No. 25 of 1996, Sec. 3 (w.e.f. 16th November, 1995).

18. Ins. by Act 33 of 1988, Sec. 3 (d) (w.e.f. 1 st August, 1988).

19. Subs. by Act 16 of 1971, Sec. 14 (w.e.f. 23rd April, 197 1).

20. Ins. by Act No. 25 of 1996. Sec. 3 (w.e.f. 16th November, 1995).

21. Ins. by Act 33 of 1988, Sec. 3 (e) (w.e.f 1st August, 1988).

¹[2-A. ESTABLISHMENT TO INCLUDE ALL DEPARTMENT AND BRANCES . - For the removal of doubts, it is hereby declared that where an establishment consists of different departments or has branches, whether situate in the same place or in different places, all such departments or branches shall be treated as parts of the same establishment.]

1. Ins. by Act 46 of 1960, Sec. 3 (w.e.f 31^st December, 1960).

¹ [3. POWER TO APPLY ACT TO AN ESTABLISHMENT WHICH HAS A COMMON PROVIDENT FUND WITH ANOTHER ESTABLISHMENT -Where immediately before this Act becomes applicable to an establishment there is in existence a provident fund which is common to the employees employed in that establishment and employees in any other establishment, the Central Government may, by notification in the Official Gazette, direct that the provisions of the Act, shall also apply to such other. establishment.]

1. Subs. by Act 94 of 1956, Sec. 5, for the former section.

4. POWFR TO ADD TO SCH. 1. –

(l) The Central Government may, by notification in the Official Gazette. add to Sch. I any other industry in respect of the employees whereof it is of opinion that a provident fund scheme should be framed under this Act, and thereupon the industry so added shall be deemed to be an industry specified in Sch.1 for the purposes of this Act.

(2) All notifications under sub-section (1) shall be laid before Parliament, as soon as may be, after they are issued.

5. EMPLOYEES’ PROVIDENT FUND SCHEME. –

¹[(l)] The Central Government may, by notification in the Official Gazette, frame a scheme to be called the Employees’ Provident Fund Scheme for the establishment of provident funds under this Act for employees or for any class of employees and specify the ²[establishments] or class of ²[establishments] to which the said Scheme shall apply ³[and there shall be established, as soon as may be, after the framing of the scheme, a fund in accordance with the provisions of this Act and the Scheme]:

⁴[(l -A) The Fund shall vest in, and be administered by, the Central Board constituted under Sec. 5-A.

(1-B) Subject to the provisions of this Act, a scheme framed under sub-section (1) may provide for all or any of the matters specified in Sch. II.]

⁵[(2) A scheme framed under sub-section (1) may provide that any of its provisions shall take effect either prospectively or retrospectively on such date as may be specified in this behalf in the Scheme.]

1. Re-numbered as subsection (1) of Sec. 5 by Act 37 of 1953, Sec. 4.

2. Ins. by act 28 of 1963, Sec. 3 (w.e.f. 30^th November, 1963).

3. Ins. by Act 37 of 1953, Sec. 4.

4. Ins. by Act 28 of 1963, Sec. 3 (w.e.f. 30^th November, 1963).

5. Gandem Mohangi v. Commissioner, R.P.F., 1995 Lab.I.C. 965 at p. 969 (Cal.).

¹[5-A. CENTRAL BOARD. –

(1) The Central Government may, by notification in the Official Gazette, constitute with effect from such date as may be specified therein, a Board of trustees for the Territories to which this Act extends (hereinafter in this Act referred to as the Central Board) consisting of the following ²[persons as members], namely, -

(a) ³[a Chairman and a Vice-Chairman] to be appointed by the Central Government;

⁴[(aa) The Central Provident Fund Commissioner, ex officio;]

(b) Not more than five persons appointed by the Central Government from amongst its officials;

(c) Not more than fifteen persons representing Governments of such States as the Central Government may specify in this behalf, appointed by the Central Government;

(d) ⁵[ten persons] representing employers of the establishment to which the Scheme applies, appointed by the Central Government after consultation with such organisations of employers as may be recognized by the Central Government in this behalf, and

(e) ⁷[ten persons] representing employees in the establishments to which the Scheme applies, appointed by the Central Government after consultation with such organisations of employees as may be recognized by the Central Government in this behalf.

(2) The terms and conditions subject to which a member of the Central Board may be appointed and the time, place and procedure of the meetings of the Central Board shall be such as may be provided for in the Scheme.

(3) The Central Board shall ⁶[subject to the provisions of Sec. 6-A] ⁷[and Sec. 6-C] administer the Fund vested in it in such manner as may be specified in the Scheme.

(4) The Central Board shall perform such other functions as it may be required to perform by or under any provisions of the Scheme ⁸[the Family Pension Scheme and the Insurance Scheme.]

⁹[(5) The Central Board shall maintain proper accounts of its income and expenditure in such form and in such manner as the Central Government may after consultation with the Comptroller and Auditor-General of India, specify In the Scheme.

(6) The accounts of the Central Board shall be audited annually by the Comptroller and Auditor-General of India and any expenditure incurred by him in connection with such audit shall be payable by the Central Board to the Comptroller and Auditor-General of India.

(7) The Comptroller and Auditor-General of India and any person appointed by him in connection with such audit of the accounts of the Central Board shall have the same rights and privileges and authority in connection with such audit as the Comptroller and Auditor-General has, in connection with the audit of the Government accounts and, in particular, shall have the right to demand the production of books, accounts, connected vouchers, documents and papers and inspect any of the offices of the Central Board.

(8) The accounts of the Central Board as certified by the Comptroller and Auditor-General of India or any other person appointed by him in this behalf together with audit report thereon shall be forwarded to the Central Board which shall forward the same to the Central Government along with its comments on the reports of the Comptroller and Auditor-General.

(9) It shall be the duty of the Central Board to submit also to the Central Government an annual report of its work and activities and the Central Government shall cause a copy of the annual report, the audited accounts together with the report of the Comptroller and Auditor-General of India and the comments of the Central Board thereon to be laid before each House of Parliament.)

1. Ins. by Act 28 of 1963, Sec. 4 (w.e.f. 30th November, 1963).

2. Subs. by Act 33 of 1988, Sec. 4 (a) (ii), for the words “persons” (w.e.f. 1st August, 1988).

3. Subs. by ibid., Sec. 4 (a), (ii), for the words “a Chairman” (w.e.f. 1st August, 1988).

4. Ins. by ibid, Sec. 4 (a) (iii) (w.e.f. 1st August, 1988).

5. Subs. by ibid, Sec. 4 (a) (iv), for the words “six persons” (w.e.f. 1st August, 1988).

6. Ins. by Act 16 of 1971, Sec. 15 (w.e.f. 23rd April, 1971).

7. Ins. by Act 99 of 1976, Sec. 19 (w.e.f. 1st August, 1976).

8. Subs. by Act 99 of 1976, Sec. 19 for the words “and the Family Pension Scheme” (w.e.f. lst August, 1976).

9. Ins. by Act 33 of 1988, Sec. 4 (b) (w.e.f. 1 st August, 1988).

¹[5-AA. EXECUTIVE COMMITEE. –

(l) The Central Government may, by notification in the Official Gazette, constitute, with effect from such date as may be specified therein, an Executive Committee to assist the Central Board in the performance of its functions.

(2) The Executive Committee shall consist of the following persons as members, namely:

1. Ins. by Act 33 of 1988, Sec. 5 (w.e.f. 1^st August, 1988).

(a) A Chairman appointed by the Central Government from amongst the members of the Central Board;

(b) Two persons appointed by the Central Government from amongst the persons referred to in Cl. (b) of sub- section (1) of Sec.5-A;

(c) Three persons appointed by the Central Government from amongst the persons referred to in Cl. (c) of sub-section (1) of Sec. 5-A;

(d) Three persons representing the employers elected by the Central Board from amongst the persons referred to in Cl. (d) of sub-section (1) of Sec. 5-A;

(e) Three persons representing the employees elected by the Central Board from amongst the persons referred to in Cl. (e) of sub-section (1) of Sec. 5-A;

(f) The Central Provident Fund Commissioner, ex officio.

(3) The terms and conditions subject to which a member of the Central Board may be appointed or elected is the Executive Committee and the time, place and procedure of the meetings of the Executive Committee shall be such as may be provided for in the Scheme.]

¹[5-B. STATE BOARD. –

(1) The Central Government may, after consultation with the Government of any State, by notification in the Official Gazette, constitute for that State a Board of Trustees (hereinafter in this Act referred to as the State Board) in such manner as may be provided for in the Scheme.

(2) A State Board shall exercise such powers and perform such duties as the Central Government may assign to it from time to time.

(3) The terms and conditions subject to which a member of a State Board may be appointed and the time, place and procedure of the meetings of a State-Board shall be such as may be provided for in the Scheme.

1. Ins. by Act 28 of 1963, Sec. 4 (w.e.f. 30th November, 1963).

5-C. BOARDOF TRUSTEES TO BE BODY CORPORATE. -Every Board of Trustees constituted under Sec. 5-A or Sec. 5-B shall be a body corporate under the name specified in the notification constituting it, having perpetual succession and a common seal ‘and shall by the said name sue and be sued.

5-D. APPOINTMENT OF OFFICERS. –

(1) The Central Government shall appoint a Central Provident Fund Commissioner who shall be the Chief Executive Officer of the Central Board and shall be subject to the general control and superintendence of that Board.

(2) The Central Government may also appoint ¹[a Financial Adviser and Chief Accounts Officer] to assist the Central Provident Fund Commissioner in the discharge of his duties.

(3) The Central Board may appoint ²[subject to the maximum scale of pay, as may be specified in the Scheme, as many Additional Central Provident Fund Commissioners, Deputy Provident Fund Commissioners, Regional Provident Fund Commissioners, Assistant Provident Fund Commissioner and] such other officers and employees as it mad consider necessary for the efficient administration of the Scheme, ³[the ⁴[Pension] and the Insurance Scheme].

(4) No appointment to ⁵[the post of the Central Provident Fund Commissioner or an Additional Central Provident Fund Commissioner or a Financial Adviser and Chief Accounts Officer or any other post under the Central Board carrying a scale of pay equivalent to the scale of pay of any Group ‘A’ or Group ‘B’ post under the Central Government) shall be made except after consultation with the Union Public Service Commission :

PROVIDED that no such consultation shall be necessary in regard to any such appointment. -

(a) For a period not exceeding one year; or

(b) If the person to be appointed is at the time of his appointment-

(i) A member of the Indian Administrative Service, or

(ii) In the service of the Central Government or a State Government or the Central Board in a ⁶[Group ‘A’ or Group ‘B’ post.]

(5) A State Board may, with the approval of the State Government concerned, appoint such staff as it may consider necessary.

(6) The method of recruitment, salary and allowances, discipline and there conditions of service of the Central Provident Fund Commissioner ⁷[and the Financial Adviser and the Chief Accounts Officer], shall be such as may be specified by the Central Government and such salary and allowances shall be paid out of the Fund.

⁸[(7) (a) The method of recruitment, salary and allowances, discipline and other conditions of service of the Additional Central Provident Fund Commissioner, Deputy Provident Fund Commissioner, Regional Provident Fund Commissioner, Assistant Provident Fund Commissioner and other officers and employees of the Central Board shall be such as may be specified by the Central Board in accordance with the rules and order applicable to the officers and employees of the Central Government drawing corresponding scales of pay:

PROVIDED that where the Central Board is of the opinion that it is necessary to make a departure from the said rules or orders in respect of any of the matters aforesaid, it shall obtain the prior approval of the Central Government.

1. Subs. by Act 33 of 1988, Sec. 6 (a) (w.e.f. Ist August, 1988), for the words “as many Deputy Provident Fund Commissioners, Regional Provident Fund Commissioners and other officers whose maximum monthly salary is not less than five hundred rupees as it may consider necessary”.

2. Ins. by Act 33 of 1988, Sec. 6 (b) (w.e.f. 1st August, 1988).

3. Subs. by act 99 of 1976, Sec. 10, for the words “and the Family Pension Scheme” (w.e.f 1st August, 1976).

4. Subs. by Act 25 of 1996, Sec. 4 (w.e.f. 16th November, 1995), for the words “Family Pension”.

5. Subs. by Act 33 of 1988, Sec. 6 (c) (i) (w.e.f. 1^st August. 1988), for the words “the post of the Central Provident Fund Commissioner or Deputy Provident Fund Commissioner, etc.”.

6. Subs. by ibid. Sec. 6 (c) (ii) (w.e.f 1st August, 1988), for the words and figures “Class I or Class II post”.

7. Subs. by Act ibid. Sec. 6 (d) (w.e.f. 1 st August, 1988),, for the words “Deputy Provident Fund Commissioner and Regional Provident Fund Commissioner”.

8. Subs. by Sec. 6 (e), ibid (w.e.f. 1^st August, 1988).

(b) In determining the corresponding scales of pay of officers and employees under Cl. (a), the Central Board shall have regard to the educational qualifications, method of recruitment, duties and responsibilities of such officers and employees under the Central Government and in case of any doubt, the Central Board shall refer the matter to the Central Government whose decision thereon shall be final.]

(8) The method of recruitment, salary and allowance, discipline and other conditions of service of officers and employees of a State Board, shall be such as may be specified by that Board, with the approval of the State Government concerned.

¹[5-DD. ACTS AND PROCEEDINGS OF TIIE CENTRAL BOARD OR ITS EXECUTIVE COMMITTEE OR THE STATE BOARD NOT TO BE INVALIDATED ON CERTAIN GROUNDS. -No act done or proceeding taken by the Central Board or the Executive Committee constituted under Sec. 5-AA or the State Board shall be questioned on the ground merely of the existence of any vacancy in, or any defect in the Constitution of the Central Board or the Executive Committee or the State Board, as the case may be.]

1. Ins. by Act 33 of 1988, Sec. 7 (w.e.f. lst August, 1988).

5-E. DELEGATION. - ¹[The Central Board may delegate to the Executive committee or to the Chair-man of the Board or to any of its officers, and a State Board may delegate to its Chairman or to any of its officers, subject to such conditions and limitations, if any, as it may specify, such of its powers and functions under this Act as it may deem necessary for efficient administration of the Scheme,²[the ³[Pension] Scheme and the Insurance Scheme.]

1. Subs. by ibid, See. 8 (w.e.f. 1st August, 1988) for certain words.

2. Subs. by Act 99 of 1976, Sec. 20, for the words “and Family Pension Scheme” (w.e.f. lst August, 1976).

3. Subs. by Act 25 of 1996, Sec. 4 (w.e.f. 16th November, 1995), for the words “Family Pension”.

6. CONTRZBUTIONS AND MATTERS WZHCHMAYBE PROVIDED FOR IN Schemes. - ¹[* * *] The contribution which shall be paid by the employer to the Fund shall be ²[ten percent] of the basic wages, ³[dearness allowance and retaining allowance (if any)] for the time being payable to each of the employees of ⁴[(whether employed by him directly or by or through a contractor)] and the employees’ contribution shall be equal to the contribution payable by the employer in respect of him and may, ⁵[if any employee so desires, be an amount exceeding ²[ten percent] of his basic wages, dearness allowance and retaining allowance (if any), subject to the condition that the employer shall not be under an obligation to pay any contribution over and above his contribution payable under this section: ]

⁶[PROVIDED that in its application to any establishment or class of establishments which the Central Government, after making such inquiry as it deems fit, may, by notification in the Official Gazette specify, this section shall be subject to the modification that for the words ⁷[ten percent], at both the places where they occur, the words ⁸[twelve percent] shall be substituted:]

PROVIDED further that where the amount of any contribution payable under this Act involves fraction of a rupee, the Scheme may provide for the rounding off of such fraction to the nearest rupee, half of a rupee or quarter of a rupee.

⁹[Explanation 1 ]. -For the purposes of this ¹⁰[section], dearness allowance shall be deemed to include also the cash value of any food concession allowed to the employee.

¹¹[Explanation 2 . -For the purposes of this ¹⁰[section], “retaining allowance” means an allowance payable for the time being to an employee of any factory or other establishment during any period in which the establishment is not working for retaining his services.

¹²[ * * * * * ]

1. Brackets and figure “(1)” omitted by Act 28 of 1963, Sec. 5 (w.e.f 30th November, 1963).

2. SUBS. BYACT 10 OF 1998, SEC. 2 (W.E.F. 22ND SEPREMBER, 1997), FORTHEWORDS “EIGHT AND ONE-THIRD PERCENT”

3. Subs. by act 46 of 1960, Sec. 4. for the words “and the dearness allowance” (w.e.f. 31st December, 1960).

4. Ins. by Act 28 of 1963, Sec. 5 (w.e.f. 30th November, 1963).

5. Subs. by Act 33 of 1988, Sec. 9 (a) (w.e.f. 1 st August, 1988).

6. Subs. by Act 33 of 1988, Sec. 9 (b) (w.e.f. 1^st August, 1988).

7. SUBS. BY ACT 10 OF 1998, SEC. 2, (W.E.F. 22ND SEMMMBER, 1997), FORTHE WORDS “EIGHT AND ONE-THIRD PER CENT”.

8. Subs. by ibid, (w.e.f 22nd September, 1997), for the words “Ten Percent”.

9. Original explanation re-numbered as Explanation 1 by act 46 of 1960, Sec. 4 (w.e.f. 31^st December, 1960).

10. Subs. by Act 28 of 1963, Sec. 5 for “sub-section” (w.e.f 30th November, 1963).

11. Ins. by Act 46 of 1960, See. 4 (w.e.f 31st December, 1960).

12. Sub-sections (2) and (3) omitted by ibid., (w.e.f. 30th November, 1963), sub-section (3) was ins. by Act 37 of 1953, Sec. 5.

¹[6-A. EMPLOYEFS PENSZON SCHEME . –

(1) The Central Government may, by notification in the Official Gazette, frame a scheme to be called the Employees’ Pension Scheme for the purpose of providing for-

(a) Superannuation pension, retiring pension or permanent total disablement pension to the employees of any establishment or class of establishments to which this Act applies; and

(b) Widow or widower’s pension, children pension or orphan pension payable to the beneficiaries of such employees.

1. Subs. by Act 25 of 1996. Sec. 5 (w.e.f 16th November, 1995) for Secs. 6-A and 6-B.

(2) Notwithstanding anything contained in Sec. 6, there shall be established, as soon as may be after framing of the Pension Scheme, a Pension Fund into which there shall be paid, from time to time, in respect of every employee who is a member of the Pension Scheme, -

(a) Such sums from the employer’s contribution under Sec. 6, not exceeding eight and one-third percent of the basic wages, dearness allowance and retaining allowance, if any, of the concerned employees, as may be specified in the Pension Scheme;

(b) Such sums as are payable by the employers of exempted establishments under sub-section (6) of Sec. 17;

(d) Such sums as the Central Government may, after due appropriation by Parliament by law in this behalf, specify.

(3) On the establishment of the Pension Fund, the Family Pension Scheme (hereinafter referred to as the ceased scheme) shall cease to operate and all assets of the ceased scheme shall vest in and shall be transferred to, and all liabilities under the ceased scheme shall be enforceable against, the Pension Fund and the beneficiaries under the ceased scheme shall be entitled to draw the benefits, not less than the benefits, they were entitled to under the ceased scheme, from the Pension Fund.

(4) The Pension Fund shall vest in and be administered by the Central Board in such manner as may be specified in the Pension Scheme.

(5) Subject to the provisions of this Act, the Pension Scheme may provide for all or any of the matters specified in Sch. III.

(6) The Pension Scheme may provide that all or any of its provisions shall take effect either prospectively or retrospectively on such date as may be specified in that behalf in that Scheme.

(7) A Pension Scheme, framed under sub-section (1), shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the Scheme or both Houses agree that the Scheme should not be made, the Scheme shall thereafter have effect only in such modified form or be of no effect, as the case may be; so however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that Scheme.]

¹[6-B * * * ]

1. Omitted by Act 25 of 1996, Sec. 5 (w.e.f. 16th November, 1996).

¹[6-C. EMPLOYEES’ DEPOSIT-LINKED INSURANCE SCHEME. –

(1) The Central Government may, by notification in the Official Gazette, frame a scheme to be called the Employees’ Deposit-linked Insurance Scheme for the purpose of providing life insurance benefits to the employees of any establishment or class of establishments to which this Act applies.

(2) There shall be established, as soon as may be after the framing of the Insurance Scheme, a Deposit-linked Insurance Fund into which shall be paid by the employer from time to time in respect of every such employee in relation to whom he is the employer, such amount, not being more than one per cent of the aggregate of the basic wages, dearness allowance and retaining allowance (if any) for the time being payable in relation to such employee as the Central Government may, by notification in the Official Gazette, specify.

Explanation. -For the purposes of this sub-section, the expression “dearness allowance” and “retaining allowance” have the same meanings as in Sec. 6.

(3) ²[ * * * * *]

(4) (a) The employer shall pay into the Insurance Fund such further sums of money, not exceeding one-fourth of the contribution which he is required to make under sub-section (2), as the Central Government may, from time to time determine to meet all the expenses in connection with the administration of the Insurance Scheme other than the expenses towards the cost of any benefits provided by or under that scheme.

(b) ²[ * * * * *]

(5) The Insurance Fund shall vest in the Central Board and be administered by it in such manner as may be specified in the Insurance Scheme.

(6) The Insurance Scheme may provide for all or any of the matters specified in Sch. IV.

(7) The Insurance Scheme may provide that any of its provisions shall take effect either prospectively or retrospectively on such date as may be specified in this behalf in that Scheme.]

1. Ins. by Act 99 of 1976, Sec. 21 (w.e.f. 1 st August, 1976).

2. Omitted by Act 25 of 1996, Sec. 6 (w.e.f. 16th November, 1995).

¹[6-D. LAYING OF SCHEMES BEFORE PARLIAMENT. -Every scheme framed under Sees. 5, 6-A and 6-C shall be laid, as soon as may be after it is framed, before each House of Parliament, while it is in session’ for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the scheme, or both Houses agree that the scheme should not be framed, the scheme shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that Scheme.]

1. Ins. by Act 4 of 1986, Sec. 2, the Schedule (w.e.f. 15th May, 1986).

7. MODLFICATION OF SCHEME

(1) The Central Government may, by notification in the Official Gazette, add to, ¹[amend or vary, either prospectively or retrospectively, the Scheme, the Family Pension Scheme or the Insurance Scheme as the case may be.]

²[(2) Every notification issued under sub-section (1) shall be laid, as soon as may be after it is issued, before each House of Parliament while it is in session for a total period of thirty days, which may be comprised in one session or in two or more successive sessions and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the notification, or both Houses agree, that the notification should not be issued, the notification shall thereafter have effect only in such modified form or be of no effect, as the case may be, so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that notification.]

1. Subs. by Act 99 of 1976, Sec. 22 (w.e.f. 1st August, 1976).

2. Subs. by Act 4 of 1986, Sec. 2, the Schedule.

¹[7-A. DETERMINATION OF MONEYS DUE FROM EMPLOYERS. –

²[(1) The Central Provident Fund Commissioner, any Additional Central Provident Fund Commissioner, any Deputy Provident Fund Commissioner, any Regional Provident Fund Commissioner, or any Assistant Provident Fund Commissioner may, by order, -

(a) In a case where a dispute arises regarding the applicability of this Act to an establishment, decide such dispute; and

(b) Determine the amount due from any employer under any provision of this Act, the Scheme of the ³[Pension] Scheme or the Insurance Scheme, as the case may be; and for any of the aforesaid purposes may conduct such inquiry as he may deem necessary.]

(2) The officer conducting the inquiry under sub-section (1) shall, for the purposes of such inquiry, have the same powers as are vested in a Court under the Code of Civil Procedure, 1908 (5 of 1908), for trying a suit in respect of the following matters, namely:

(a) Enforcing the attendance of any person or examining him on oath;

(b) Requiring the discovery and production of documents;

(d) Issuing commissions for the examination of witnesses;

And any such inquiry shall be deemed to be a judicial proceeding within the meaning of Secs. 193 and 228; and for the purpose of Sec. 196 of the Indian Penal Code (45 of 1860).

(3) No order ⁴[* * *] shall be made under sub- section (1), unless ⁵[the employer concerned] is given a reasonable opportunity of representing his case.

⁶[(3-A) Where the employer, employee or any other person required to attend the inquiry under sub-section (1) fails to attend such inquiry without assigning any valid reason or fails to produce any document or to file any report or return when called upon to do so, the officer, conducting the inquiry may decide the applicability of the Act or determine the amount due from any employer, as the case may be, on the basis of the evidence adduced during such inquiry and other documents available on record].

⁷[(4) Where an order under sub-section (1) is passed against an employer ex parte, he may, within three months from the date of communication of such order, apply to the officer for setting aside such order and if he satisfies the officer that the show-cause notice was not duly served or that he was prevented by any sufficient cause from appearing when the inquiry was held, the officer shall make an setting aside his earlier order and shall appoint a date for proceeding the inquiry:

PROVIDED that no such order shall be set aside merely on the ground that there has been an irregularity in the service of the show-cause notice if the officer is satisfied that the employer had notice of the date of hearing and had sufficient time to appear before the officer.

Explanation. – Where an appeal has been preferred under this Act against an order passed ex parte and such appeal has been served on the opposite party.]

1. Ins. by Act 28 of 1963, Sec. 6 (w.e.f.30th November, 1963).

2. Subs. by Act 33 of 1988, Sec. 10 (co (w.e.f. lst August, 1988), for sub-section (1) as amended by Act 16 of 1971, Sec. 20 (w.e.f. 23rd April, 1971) and Act 99 of 1976, Sec. 23 (w.e.f. lst August, 1976).

3. Subs. by Act No. 25 of 1996, Sec. 4 (w.e.f. 16th November, 1995), for the words “Family Pension”.

4. The words “determining the amount due from any employer” omitted by Act 33 of 1988, Sec. 10 (b) (i), (w.e.f. lst August, 1988).

5. Subs. by Sec. 10 (b) (ii) ibid. (w.e.f. lst August, 1988), for the words “the employer”.

6. Ins. by Sec. 10 (c), ibid. (w.e.f. 1 st August, 1988).

7. Subs. by Act 33 of 1988, sec 10 (d), (w.e.f. 1^st August, 1988).

¹[7-B. REVIEW OF ORDERS PASSED UNDER SEC. 7.A. –

(1) Any person against grieved by an order made under sub-section (1) of sec. 7A, but from which no appeal had been preferred under this Act, and who, from the discovery of new and important matter or evidence which, after the exercise of due diligence was not within his knowledge or could not be produced by him at the time when the order was made, or on account of some mistake or error apparent on the face of the record or for any other sufficient reason, desires to obtain a review to such order may apply for a review of that order, to the officer who passed the order:

PROVIDED that such officer may also on his own motion review his order if he is satisfied that it is necessary so to do on any such ground.

(2) Every application for review under sub-section (1) shall be filed in such form and manner and within such time as may be specified in the scheme.

(3) Where it appears to the officer receiving an application for review that there is no sufficient ground for a review, he shall reject the application.

(4) Where the officer is of opinion that the application for review should be granted, he shall grant the same:

PROVIDED that-

(a) No such application shall be granted without previous notice to all the parties before him to enable them to appear and be heard in support of the order in respect of which a review is applied for, and

(b) No such application shall be granted on the ground of discovery of new matter or evidence which the applicant alleges was not within his knowledge or could not be produced by him when the order was made, without proof of such allegation.

(5) No appeal shall lie against the order of the officer rejecting an application for review, but an appeal under this Act shall lie against m order under review as if the order passed under review were the original order passed by him under Sec. 7- A.

1. Section 7-B to 7-Q ins. by Act 33 of 1988, Sec. 11 (w.e.f. 1^st August, 1988).

7-C. DETERMINATION OF ESCAPED AMOUNT. -Where an order determining the amount due from an employer under Sec. 7-A or Sec. 7-B has been passed and if the officer who passed the order, -

(a) Has reason to believe that by reason of the omission or failure on the part of the employer to make any document or report available, or to disclose, fully and truly, all-material facts necessary for determining the correct amount due from the employer, any amount so due from such employer for any period has escaped his notice;

(b) Has, in consequence of information in his possession, reason to believe that any amount to be determined under Sec. 7-A or Sec. 7-B, has escaped from his determination for any period notwithstanding that there has been no omission or failure as mentioned in Cl. (a) on the part of the employer,

He may, within a period of five years from the date of communication of the order passed under Sec. 7-A or Sec. 7-B, re-open the case and pass appropriate orders re-determining the amount due from the employer in accordance with the provisions of this Act:

PROVIDED that no order re-determining the amount due from the employer shall be passed under this section unless the employer is given a reasonable opportunity of representing his case.

7-D. EMPLOYEES PROVIDENT FUNDS APPELLATE TRIBUNAL. –

(1) The Central Government may, by notification in the Official Gazette, constitute one or more Appellate Tribunals to be known as the Employees’ Provident Funds Appellate Tribunal to exercise the powers and discharge the functions conferred on such Tribunal by this Act and every such Tribunal shall have jurisdiction in respect of establishments situated in such area as may be specified in the notification constituting the Tribunal.

(2) A Tribunal shall consist of one person only to be appointed by the Central Government.

¹(3) A person shall not be qualified for appointment as a Presiding Officer of a Tribunal (hereinafter referred to as the Presiding Officer) unless he is, or has been or is qualified to be, -

(i) A Judge of a High Court; or

(ii) A District Judge].

1. SUBS. BY ACT 10 OF 1998, SEC. 3, FOR SUB-SECTION (3) (W.E.F. 22ND SEMEMBER, 1997)

7-E. TERM OF OFFICE. -The Presiding Officer of a Tribunal shall hold office for a term of five years from the date on which he enters upon his office or until he attains the age of sixty-two years, whichever is earlier.

7-F. RESIGNATION. –

¹[(l)] The Presiding Officer may, by notice in writing under his hand addressed to the Central Government, resign his office:

PROVIDED that the Presiding Officer, shall, unless he is permitted by the Central Government to relinquish his office sooner, continue to hold office until the expiry of the three months from the date of receipt of such notice or until a person duly appointed as his successor enters upon his office or until the expiry of his term of office, whichever is the earliest.

²[(2) The Presiding Officer shall not be removed from his office except by an order made by the President on the ground of proved misbehaviour or incapacity after an inquiry made by a Judge of the High Court in which such Presiding Officer had been informed of the charges against him and given a reasonable opportunity of being heard in respect of those charges

1. RE-NUMBERED BY ACT 10 OF 1998, SEC. 4 (W. E. F. 22ND SEMEMBER, 1997).

2. INS. BY IBID.

(3) The Central Government may, by rules, regulate the procedure for the investigation of misbehaviour or incapacity of the Presiding Officer].

7-G. SALARY AND ALLOWANCES AND OTBER TERMS AND CONDITIONS OF SERVICE OF PRESIDING OFFICER. -The salary and allowances payable to, and the other terms and conditions of service (including pension, gratuity and other retirement benefits) of the Presiding Officer shall be such as may be prescribed:

PROVIDED that neither the salary and allowances nor the other terms and conditions of service of the Presiding Officer shall be varied to his disadvantage after his appointment.

7-H. STAFF OF TRIBUNAL. –

(1) The Central Government shall determine the nature and categories of the officers and other employees required to assist a Tribunal in the discharge of its functions and provide the Tribunal with such officers and other employees as it may think fit.

(2) The officers and other employees of a Tribunal shall discharge their functions under the general superintendence of the Presiding Officer.

(3) The salaries and allowances and other conditions of service of the officers and other employees of a Tribunal shall be such as may be prescribed.

7-I. APPEALS TO TRIBUNAL. –

(1) Any person aggrieved by a notification issued by the Central Government, or an order passed by the Central Government or any authority, under the proviso to sub-sections (3), or sub-section (4) of Sec. 1, or Sec. 3, or sub-section (1) of Sec. 7-A, or Sec. 7-B [except an order respecting an application for review referred to in sub-section (5) of thereof, or Sec. 7-C or Sec. 14-B, may prefer an appeal to a Tribunal against such notification or order.

(2) Every appeal under sub-section (1) shall be filed in such form and manner, within such time and be accompanied by such fees, as may be prescribed.

7-J. PROCEDURE OF TZUBUNAL. –

(1) A Tribunal shall have power to regulate its own procedure in all matters arising out of the exercise of its powers or, of the discharge of its functions including the places at which the Tribunal shall have its sittings.

(2) A Tribunal shall, for the purpose of discharging its functions, have all the powers which are vested in the officers referred to in Sec. 7-A and any proceeding before the Tribunal shall be deemed to be a judicial proceeding within the meaning of Sees. 193 and 228, and for the purpose of Sec. 196, of the Indian Penal Code (45 of 1860) and the Tribunal shall be deemed to be a Civil Court for all the purposes of Sec. 195 and Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974).

7-K. RIGHTS OFAPPELLANT TO TAKE ASSISTANCE OF LEGAL PRACTITIONER AND OF GOVERNMENT, ETC. TO APPOINT PRESENTING OFFICERS. –

(1) A person preferring an appeal to a Tribunal under this Act may either appear in person or take the assistance of a legal practitioner of his choice to present his case before the Tribunal.

(2) The Central Government or a State Government or any other authority under this Act may authorise one or more legal practitioners or any of its officers to act as presenting Officers and every person so authorised may present the case with respect to any appeal before a Tribunal.

7-L. ORDERS OF TRIBUNAL. –

(1) A Tribunal may after giving the parties to the appeal, an opportunity of being heard, pass such orders thereon as it thinks fit, confirm may refer the case back to the authority which passed such order with such directions as the Tribunal may think fit, for a fresh adjudication or order as the case may be, after taking the order appealed against or such order with such adjudication or order if necessary.

(2) A Tribunal may, at any time within five years from the date of its order, with a view to rectifying any mistake apparent from the record, amend any order passed by it under sub -section (1) and shall make such amendment in the order if the mistake is brought to its notice by the parties to the appeal:

PROVIDED that an amendment which has the effect of enhancing the amount due from, or otherwise increasing the liability of, the employer shall not be made under this sub -section, unless the Tribunal has given notice to him of its intention to do so and has allowed him a reasonable opportunity of being heard.

(3) ATribunal shall send a copy of every order passed under this section to the parties to the appeal.

(4) Any order made by a Tribunal finally disposing of an appeal shall not be questioned in any Court of law.

7-M. FILLING OF VACANCIES. -If, for any reason, a vacancy occurs in the office Of the Presiding Officer, the Central Government shall appoint another person in accordance with the provisions of this Act, to fill the vacancy and the proceedings may be continued before a Tribunal from the stage at which the vacancy is filled.

7-N FINALIY OFORDERS CONSTITUTING A TRIBUNAL. -No order of the Central Government appointing any person as the Presiding Officer shall be called in question In any manner, and no act or proceeding before a Tribunal shall be called in question in any manner on the ground merely of any defect in the constitution of such Tribunal.

7-O. DEPOSIT OF AMOUNT DUE, ON FILING APPEAL. -No appeal by the employer shall be entertained by a Tribunal unless he has deposited with it seventy-five per cent of the amount due from him as determined by an officer referred to in Sec. 7-A:

PROVIDED that the Tribunal may, for reasons to be recorded in Writing, waive or reduce the amount to be deposited under this section.

7-P TRANSFER OF CERTAIN APPLLICATIONS TO TRIBUNANAL. -All applications which are pending before the Central Government under Sec. 19-A, before Its repeal shall stand transferred to a Tribunal exercising jurisdiction in respect of establishments in relation to which such applications had been made as if such applications were appeals preferred to the Tribunal.

7-Q. INTEREST PAYABLE BY THE EMPLOYER. -The employer shall be liable to pay simple interest at the rate of twelve percent per annum or at such higher rate as may be specified in the Scheme on any amount due from him under this Act from the date on which the amount has become so due till the date of its actual payment:

PROVIDED that higher rate of interest specified in the Scheme shall not exceed the lending rate of interest charged by any scheduled bank.)

¹[8. MODE OF RECOVERY OF MONEYS DUE FROM EMPLOYERS. – Any amount due . –

(a) From the employer in relation to ²[an establishment] to which any ³ [Scheme or the Insurance Scheme] applies in respect of any contribution payable to ³ [the Fund or as the case may be, the Insurance Fund] damages recoverable under Sec. 14-B, accumulations required to be transferred under sub-section (2) of Sec. 15 ⁴[or under sub-section (5) of Sec. 17] or any charges payable by him under any other provision ³[Scheme or the Insurance Scheme]; or

(b) From the employer in relation to an exempted ²[establishment] in respect of any damages recoverable under Sec. 14-B or any charges payable by him to the appropriate Government under any provision of this Act or under any of conditions specified ⁵[under Sec. 17 or in respect of the contribution payable by him towards the ⁶[Pension] ⁷[Scheme or the insurance Scheme under the said Sec. 17],

May, if the amount is in arrear ⁸[be recovered ⁹[in the manner specified in Secs. 8-B to 8-G.].].

1. Subs. by Act 37 of 1953, Sec. 6, for the former section.

2. Subs. by Act 94 of 1956, Sec. 3, for the words “a factory”.

3. Subs. by Act 99 of 1976, Sec. 24 (w.e.f. Ist August, 1976).

4. Ins. by Act 28 of 1963, Sec. 7 (w.e.f. 30th November, 1963).

5. Subs. by Act 16 of 1971, Sec. 21 (w.e.f. 23rd April, 1971).

6. Subs. for the words “Family Pension” by 1996 Amendment Act (w.e.f. 16th November, 1995.

7. Subs. for “Scheme” by Amendment Act No. 99 of 1976 (w.e.f. lst August, 1976).

8. Subs. by Act 40 of 1973, Sec. 2, for the words “be recovered by the appropriate Government” (w.e.f. 11st November, 1973).

9. Subs. by Act 33 of 1988, Sec. 12 (w.e.f. 1 st July, 1990), for certain words.

¹[8-A. RECOVERY OF MONEYS BY EMPLOYERS AND CONTRACTORS. -

(1) ²[The amount of contribution (that is to say the employer’s contribution as well as the employer’s contribution in pursuance of any Scheme and the employer’s contribution in pursuance of the Insurance Scheme)], and any charges ³[* * *] for meeting the cost of administering the Fund paid or payable by an employer in respect of any employee employed by or through a contractor may be recovered by such employer from the contractor, either by deduction from any amount payable to the contractor under any contract or as a debt payable by the contractor.

(2) A contractor from whom the amounts mentioned in sub-section (1) may be recovered in respect of any employee employed by or through him, may recover from such employees the employers contribution ⁴ [under any Scheme] by deductions from the basic wages, dearness allowance and retaining allowance (if any) payable to such employee.

(3) Notwithstanding any contract to the contrary, no contractor shall be entitled to deduct the employer’s contribution or the charges referred to in sub-section (1) from the basic wages, dearness allowance, and retaining allowance (if any) payable to an employee, employed by or through him or otherwise to recover such contribution or charges from such employee.

Explanation. -In this section, the expression “dearness allowance” and “retaining allowance” shall have the same meaning as in Sec. 6.]

1. Ins. by Act 28 of 1963, Sec. 8 (w.e.f. 30th November, 1963).

2. Subs. by Act 99 of 1976, Sec. 25 (w.e.f. 1st August, 1976).

3. The words “on the basis of such contribution” omitted by Act 33 of 1988, Sec. 13 (w.e.f 1st August, 1988).

4 . Ins. by Act 99 of 1976, Sec. 25 (w.e.f. 1st August, 1976).

¹[8-B. ISSUE OF SERTIFICATE TO THE RECOVERY OFFICER. –

(1) Where any amount is in arrear under Sec. 8, the authorised officer may issue to the Recovery Officer, a certificate under his signature specifying the amount of arrears and the Recovery Officer, on receipt of such certificate, shall proceed to recover the amount specified therein from the establishment or, as the case may be, the employer by one or more of the modes mentioned below:

(a) Attachment and sale of the moveable or immoveable property of the establishment or, as the case may be, the employer-,

(b) Arrest of the employer and his detention in prison;

(c) Appointing a receiver for the management of the moveable or immoveable properties of the establishment or, as the case may be, the employer:

PROVIDED that the attachment and sale of any property under this section shall first be effected against the properties of the establishment and where such attachment and sale is insufficient for recovering the whole of the amount of arrears specified in the certificate, the Recovery Officer may take such proceedings against the property of the employer for recovery of the whole or any part of the such arrears.

(2) The authorised officer may issue a certificate under sub-section (1), notwithstanding that proceedings for recovery of the arrears by any other mode have been taken.

1. Sections 8-B to 8-G ins. by Act 33 of 1988, Sec. 14 (w.e.f 1st July, 1990).

8-C. RECOVERY OFFZCER TO WHOM CERTJFZCATE IS TO BE FORWAWED. –

(l) The authorised officer may forward the certificate referred to in Sec. 8-B to the Recovery Officer within whose jurisdiction the employer, -

(a) Carries on his business or profession or within whose jurisdiction the principal place of his establishment is situate; or

(b) Resides or any moveable or immoveable property of the establishment or the employer is situate.

(2) Where an establishment or the employer has property within the jurisdiction of more than one Recovery Officer and the Recovery Officer to whom a certificate is sent by the authorised officer-

(a) Is not able to recover the entire amount by the sale of property, moveable or in moveable, within his jurisdiction; or

(b) Is of the opinion that the purpose of expediting or securing the recovery of the whole or any part of the amount, it is necessary so to do,

He may send the certificate or, where only a part of the amount is to be recovered, a copy of the certificate certified in the prescribed manner and specifying the amount to be recovered to the Recovery Officer within whose jurisdiction the establishment or the employer has property or the employer resides, and thereupon that Recovery Officer shall also proceed to recover the amount due under this section as if the certificate or the copy thereof had been the certificate sent to him by the authorised officer.

8-D. VALIDITY OF CERTIFICATE AND AMENDMENT THEREOF. -

(l) When the authorised officer issues a certificate to a Recovery Officer under Sec. 8-B it shall not be open to the employer to dispute before the Recovery Officer the correctness of the amount and no objection to the certificate on any other ground shall also be entertained by the Recovery Officer.

(2) Notwithstanding the issue of a certificate to a Recovery Officer, the authorised officer shall have power to withdraw the certificate or correct any clerical or arithmetical mistake in the certificate by sending an intimation to the Recovery Officer.

(3) The authorised officer shall intimate to the Recovery Officer any orders withdrawing or cancelling a certificate or any correction made by him under sub-section (2) or any amendment made under sub-section (4) of Sec. 6-E.

8-E. STAY OF PROCEEDINGS UNDER CERTIFICATE AND AMENDMENT OR WITHDRAWAL THEREOF. –

(l) Notwithstanding that a certificate has been issued to the Recovery Officer for the recovery of any amount, the authorised officer may grant time for the payment of the amount, and thereupon the Recovery Officer shall stay the proceedings until the expiry of the time so granted.

(2) Where a certificate for the recovery of amount has been issued, the authorised officer shall keep the Recovery Officer informed of any amount paid or time granted for payment, subsequent to the issue of such certificate.

(3) Where the order giving rise to a demand of amount for which a certificate for recovery has been issued has been modified in appeal or other proceeding under this Act, and, as a consequence thereof, the demand is reduced but the order is the subject-matter of further proceeding under this Act, the authorised officer shall stay the recovery of such part of the amount of the certificate as pertains to the said reduction for the period for which the appeal or other proceeding remains pending.

(4) Where a certificate for the recovery of amount has been issued and subsequently the amount of the outstanding demand is reduced as a result of an appeal or other proceeding under this Act, the authorised officer shall, when the order which was the subject-matter of such appeal or other proceeding has become final and conclusive, amend the certificate or withdraw it, as the case may be.

8-F. OTHER MODE OF RECOVERY. –

(1) Notwithstanding the issue of a certificate to the Recovery Officer under Sec. 8-B, the Central Provident Fund Commissioner or any other officer authorised by the Central Board may recover the amount by any one or more of the modes provided in this section.

(2) If any amount is due from any person to any employer who is in arrears, the Central Provident Fund Commissioner or any other officer authorised by the Central Board in this behalf may require such person to deduct from the said amount the arrears due from such employer under this Act, and such person shall comply with any such requisition and shall pay the sum so deducted to the credit of the Central Provident Fund Commissioner or the officer so authorised, as the case may be:

PROVIDED that nothing in this sub-section shall apply to any part of the amount exempt from attachment in execution of a decree of a Civil Court under Sec. 60 of the Code of Civil Procedure, 1908 (5 of 1908).

(3) (i) The Central Provident Fund Commissioner or any other officer authorised by the Central Board in this behalf may, at any time or from time to time, by notice in writing, require any person from whom money is due or may become due to the employer or, as the case may be, establishment or any person who holds or may subsequently hold money for or on account of the employer or as the case may be the establishment, to pay to the Central Provident Fund Commissioner either forthwith upon the money becoming due or being held or at or within the time specified in the notice (not being before the money becomes due or is held) so much of the money as is sufficient to pay the amount due from the employer in respect of arrears or the whole of the money when it is equal to or less than that amount.

(ii) A notice under this sub-section may be issued to any person who holds or may subsequently hold any money for or on account of the employer jointly with any other person and for the purposes of this sub-section, the shares of the joint-holders in such account shall be presumed, until the contrary is proved, to be equal.

(iii) A copy of the notice shall be forwarded to the employer at his last address known to the Central Provident Fund Commissioner or, as the case may be, the officer so authorised and in the case of a joint account to all the joint holders at their last addresses known to the Central Provident Fund Commissioner or the officer so authorised.

(iv) Save as otherwise provided in this sub-section, every person to whom a notice is issued under this sub-section shall be bound to comply with such notice, and, in particular, where any such notice is issued to a post office, bank or any insurer, it shall not be necessary for any pass book, deposit receipt, policy or any other document to be produced for the purpose of any entry, endorsement or the like being made before payment is made notwithstanding any rule, practice or requirement to the contrary.

(v) Any claim respecting any property in relation to which a notice under this sub-section has been issued arising after the date of the notice shall be void as against any demand contained in the notice.

(vi) Where a person to whom a notice under this sub-section is sent objects to it by a statement on oath that the sum demanded or any part thereof is not due to the employer or that he does not hold any money for and on account of the employer, then, nothing contained in this sub-section shall be deemed to require such person to pay any such sum or part thereof, as the case may be, but if it is discovered that such statement was false in any material particular, such person shall be personally liable to the Central

Provident Fund Commissioner or the officer so authorised to the extent of his own liability to the employer on the date of the notice, or to the extent of employer’s liability for any sum due under this Act, whichever is less.

(vii) The Central Provident Fund Commissioner or the officer so authorised may, at any time or from time to time, amend or revoke any notice issued under this sub-section or extend the time for making any payment in pursuance of such notice.

(viii) The Central Provident Fund Commissioner or the officer so authorised shall grant a receipt for any amount paid in compliance with a notice issued under this sub-section, and the person so paying shall be fully discharged from his liability to the employer to the extent of the amount so paid.

(ix) Any person discharging any liability to the employer after the receipt of a notice under this sub-section shall be personally liable to the Central Provident Fund Commissioner or the officer so authorised to the extent of his own liability to the employer so discharged or to the extent of the employer’s liability for any sum due under this Act, whichever is less.

(x) If the person to whom a notice under this sub-section is sent fails to make payment in pursuance thereof to the Central Provident Fund Commissioner or the officer so authorised, he shall be deemed to be an employer in default in respect of the amount specified in the notice and further proceedings may be taken against him for the realisation of the amount as if it were an arrear due from him. In the manner provided in Secs. 8-B to 8- E and the notice have the same effect as an attachment of a debt by the Recovery Officer in exercise of the powers under Sec. 8-B.

(4) The Central Provident Fund Commissioner or the officer authorised by the Central Board in this behalf may apply to the Court in whose custody there is money belonging to the employer for payment to him of the entire amount of such money, or if it is more than the amount, due, an amount sufficient to discharge the amount due.

(5) The Central Provident Fund Commissioner or any officer not below the rank of Assistant Provident Fund Commissioner may, if so authorised by the Central Government by general or special order, recover any arrears of amount due from an employer or, as the case may be, from the establishment by distraint and sale of his or its movable property in the manner laid down in the Third Schedule to the Income-tax Act, 1961 (43 of 1961).

8-G. APPUCATION OF CERTAIN PROVISONS OF INCOME TAX ACT. - The provisions of the Second and Third Schedules to the Income-tax Act, 1961 (43 of 1961), and the Income-tax (Certificate Proceedings) Rules, 1962, as in force from time to time, shall apply with necessary modifications as if the said provisions and the rules referred to the arrears of the amount mentioned in Sec. 8 of this Act instead of to the Income-tax:

PROVIDED that any reference in the said provisions and the rules of the “assessee” shall be construed as a reference to an employer as defined in this Act.

9. FUND TO BE RECOGNIZED UNDER ACT 11 OF 1922. -For the purposes of the Income-tax Act, 1922 (11 of 1922),¹the, Fund shall be deemed to be a recognized provident fund within the meaning of Chapter IX-A of that Act:

²[PROVIDED that nothing contained in the said chapter shall operate to render ineffective any provision of the Scheme (under which the Fund is established) which is repugnant to any of the provisions of that chapter or of the rules made thereunder.]

1. See now the Income-tax Act, 1961 (43 of l961). Chapter XIII.

2. Ins. by Act 37 of 1953, Sec. 7.

10. PROTECTION AGAINST ATTACHMENT. -

(l) The amount standing to the credit of any member in the Fund ¹[or of any exempted employee in a provident 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 ² [or the exempted employee] and neither the Official assignee appointed under the Presidency towns Insolvency Act, 1909 (3 Of 1969), nor any receiver appointed under the Provincial Insolvency Act, 1920 (4 of 1920), shall be entitled to, or have any Claim on, any such amount.

³ (2) Any amount standing to the credit of a member in the Fund or of an exempted employee in a provident fund at the time of his death and payable to his nominee under the Scheme or the Rules of the provident fund shall subject to any deduction authorized by the said Scheme or 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 or of the exempted employee ⁴ [and shall also not be liable to attachment under any decree or order of any Court]

⁵[(3) The provisions of sub-section (1) and sub-section (2) shall, so far as may be, apply in relation to the family pension or any other amount payable under ⁵[Pension] Scheme ⁷[and also in relation to any amount payable under the Insurance Scheme] as they apply in relation to any amount of the Fund.]

1. Ins. by ibid. Sec. 8.

2. Ins. by Act 37 of 1953, Sec. 7.

3. Subs. by 37 of 1953, Sec. 7.

4. Added by Act 33 of 1988, Sec. 15 (w.e.f. 1^st August, 1988).

5. Ins. by Act 16 of 1971. Sec. 22 (w.e.f. 23^rd April, 1971).

6. Subs. by Act 25 of 1996, Sec. 4 (w.e.f. 16^th November, 1995), for the words “Family Pension”.

7. Ins. by Act 99 of 1976, Sec. 26 (w.e.f. 1 st August, 1976).

11. PRIORITY OF PAYMENT OF CONTRIBUTION OVER OTHER DEBTS . –

¹[(1)] ²Where any employer is adjudicated insolvent or, being a company, an order for winding-up is made, the amount due-

(a) From the employer in relation to ³[an establishment] to which any ⁴[Scheme or the Insurance Scheme] applies in respect of any contribution payable to the Fund ⁵[or as the case may be, the Insurance Fund] damages recoverable under Sec. 14-B, accumulations required to be transferred under sub-section (2) of Sec. 15 or any charges payable by him under any other provision of this Act or of any provision of the ⁴[Scheme or the Insurance Scheme]; or

(b) From the employer in relation to an exempted ⁶[establishment] in respect of any contribution to the ³[the provident fund or any insurance fund] (in so far as it relates to exempted employees), under the rules of ³[the provident fund or any insurance fund], ⁷[any contribution payable by him towards the ⁸[Pension] Fund under sub-section (6) of Sec. 17] damages recoverable under Sec. 14-B or any charges payable by him to the appropriate Government under any provision of this Act or under any of the conditions specified under Sec. 17, shall, where the liability therefor has accrued before the Order of adjudication or winding-up is made, be deemed to be included among the debts which under Sec. 49 of the Presidency-towns Insolvency Act, 1909 (3 of 1909), or under Sec. 61 of the Provincial Insolvency Act, 1920 (5 of 1920), or under ⁹[Sec. 530 of the Companies Act, 1956 (1 of 1956)] are to be paid in priority to all other debts in the distribution of the property of the insolvent or assets of the Company being wound-up, as the case may be.

⁵[Explanation. -In this sub-section and in Sec. 17, “insurance fund” means any fund established by an employer under any scheme for providing benefits in the nature of life insurance to employees, whether linked to their deposits in provident fund or not, without payment by the employees of any separate contribution or premium in that behalf.]

¹⁰[(2) Without prejudice to the -provisions of sub-section (1), if any amount is due from any employer ¹¹[whether in respect of the employee’s contribution (deducted from the wages of the employee) or the employer’s contribution], the amount so due shall be deemed to be the first charge on the assets of the establishment, and shall, notwithstanding anything contained in any other law for the time being in force, be paid in priority to all other debts.]

1. Section 11 re-numbered as sub-section(1)by Act 40 of 1973,Sec.3 (w.e.f. lst November, 1973).

2. Subs. by Act 37 of 1953, See. 9, for certain words.

3. Subs. by Act 94 of 1956, Sec. 3. for the words “a factory” (w.e.f. lst August, 1956).

4. Subs. by Act 99 of 1976, Sec. 27 (w.e.f. lst August, 1976), for the word “Scheme”.

5. Ins. by ibid.

6. Subs. by Act 94 of 1956, Sec. 3 (w.e.f Ist August, 1956).

7. Ins. by Act 16 of 1971, Sec. 23 (w.e.f. 23rd April, 1971).

8. Subs. by Act No. 25 of 1996, Sec. 4 (w.e.f. 16th November, 1995), for the words “Family Pension”.

9. Subs. by Act 40 of 1973, Sec. 3 (w.e.f I st November, 1973).

10. Ins. by ibid, Sec. 3.

11. Subs. by Act 33 of 1988, Sec. 16 (w.e.f. Ist August, 1988), for the words and brackets “in respect of the employees’ contribution (deducted from the wages of the employees) for a period of more than six months”.

¹[12. EMPLOYER NOT TO REDUCE WAGFS, ETC. -No employer in relation to ²[an establishment] to which any ³[Scheme or the Insurance Scheme] applies shall, by reason only of his liability for the payment of any contribution to ⁴[the Fund, or the Insurance Fund] or any charges under this Act or the ³[Scheme or the Insurance Scheme], reduce, whether directly or indirectly, the wages of any employee to whom the ³[Scheme or the Insurance Scheme], applies or the total quantum of benefits in the nature of old-age pension, gratuity, ⁵[Provident Fund or Life Insurance] to which the employee is entitled under the terms of his employment, express or implied.]

1. Subs. by Act 37 of 1953, Sec. 10, for the former section.

2. Subs. by Act 94 of 1956, Sec. 3, for the word “factory” (w.e.f. 1st August, 1956).

3. Subs. by Act 99 of 1976, Sec. 28, for the word “scheme” (w.e.f 1st August, 1976).

4. Subs. by ibid., for the words “the Fund”.

5. Subs. by ibid., for the words “or provident fund”.

13. INSPECTOR. –

(1) The appropriate Government may, by notification in the Official Gazette, appoint such persons as it thinks fit to be Inspectors for the purposes of this Act ¹[the Scheme, ²[the ³[Pension] Scheme or the Insurance Scheme]], and may define their jurisdiction.

(2) Any Inspector appointed under sub-section (1) may, for the purpose of inquiring into the correctness of any information furnished in connection with this Act or with any ⁷[Scheme or the Insurance Scheme] or for the there any of the provisions of this Act or of any e Scheme] have been complied with ⁴[in respect of ⁵[ an establishment] to which any ⁶[Scheme or the Insurance Scheme]

applies, or for the purpose of ascertaining whether the provisions of this Act or any ⁹[Scheme or the Insurance Scheme] are applicable to any ⁸[establishment] to which ⁹[Scheme or the Insurance Scheme] has not been applied or for the purpose of determining whether the conditions subject to which exemption was granted under Sec. 17 are being complied with by the employer in relation to an exempted ⁸[establishment]-

(a) Require an employer ⁸[or any contractor from whom any amount is recoverable under Sec. 8-Al to furnish such information as he may consider necessary ⁹ [* * *];

(b) At any reasonable time ¹⁰[and with such assistance, if any, as he may think fit, enter and search] any ⁸[establishment] or any premises connected therewith and require any one found in charge thereof to produce before him for examination any accounts, books, registers and other documents relating to the employment of persons or the payment of wages in the ⁸[establishment];

(c) Examine, with respect to any matter relevant to any of the purposes aforesaid, the employer ¹⁰[or any contractor from whom any amount is recoverable under Sec. 8-A], his agent or servant or any other person found in charge of the ⁸[establishment] or any premises connected therewith or whom the Inspector has reasonable cause to believe to be or to have been an employee in the ⁸[establishment];

¹¹[(d) Make copies of, or take extracts from, any book, register or other documents maintained in relation to the establishment and where he has reason to believe that any offence under this Act has been committed by an employer, seize with such assistance as he may think fit, such book, register or other document or portions thereof as he may consider relevant in respect of that offence;]

(e) Exercise such other powers as the ¹²[Scheme or the Insurance Scheme] may provide.

¹³[(2-A) Any inspector appointed under sub-section (1) may, for the purpose of inquiring into the correctness of any information furnished in connection with the Family Pension Scheme or for the purpose of ascertaining whether any of the provisions of this Act or of the ¹⁴[Pension] Scheme have been complied with in respect of an establishment to which the ⁸[Pension] Scheme applies, exercise all or any of the powers conferred on him under Cls. (a), (b), (c), (d) of sub-section (2)].

¹⁵[ ¹⁶[2-B)] The provisions of the Code of Criminal Procedure, 1898 (5 of 1898)¹⁷, shall, so far as may be, apply to any search or seizure under

sub-section (2) ¹⁸[or under sub-section (2-A), as the case may be,] as they apply to any search or seizure made under the authority of a warrant issued under Sec. 98¹⁹ of the said Code.]

(3) ²⁰[ * * * * * ]

1. Subs. by Act 16 of 1971, Sec. 24 (w.e.f. 23rd April, 1971).

2. Subs. by Act 99 of 1976, Sec. 29, for the words “or the Family Pension Scheme” (w.e.f 1st August, 1976).

3. Subs. by Act 25 of 1996, Sec. 4 (w.e.f 16th November, 1995), for the words “Family Pension”.

4. Ins. by Act 37 of 1953, Sec. 11.

5. Subs. by Act 94 of 1956, Sec. 3, for “a factory” (w.e.f. 1^st August, 1956).

6. Subs. by Act 99 of 1976, Sec. 28, for the word “scheme”.

7. Subs. by Act 99 of 1976, Sec. 28, for the word “scheme” (w.e.f 1st August, 1976).

8. Ins. by Act 28 of 1963, Sec. 9 (w.e.f. 30th November, 1963).

9. The words “in relation to the Scheme” omitted by Act 37 of 1953, Sec. 11.

10. Subs. by Act 28 of 1963, Sec. 9, for “enter”(w.e.f. 30th November, 1963).

11. Subs. by this, for Cl. (d) (w.e.f. 30th November, 1963).

12. Subs. by Act 99 of 1976, Sec. 18 (w.e.f 7th September, 1976).

13. Ins. by Act 16 of 1971, Sec. 24 (w.e.f. 23rd April, 1971).

14. Subs. by Act 25 of 1996, Sec. 4 (w.e.f. 16th November, 1995), for the words “Family Pension”.

15. Ins. by Act 28 of 1963, Sec. 9.

16. Re-numbered as sub-section (2-B) by Act 16 of 1971, Sec. 24, (w.e.f 23^rd April, 1971).

17. See now the Code of Criminal Procedure, 1973 (2 of 1974).

18. Ins. by Act 16 of 197 1, Sec. 24 (w.e.f. 23rd April, 1971).

19. See now Sec. 94, Cr.P.C. of 1973.

20. Sub-section (3) omitted by Act 33 of 1988, Sec. 17 (w.e.f Ist August. 1988).

14. PENALTIES. -

(1) Whoever, for the purpose of avoiding any payment to be made by himself under this Act ¹[the ²[Pension] Scheme or the Insurance Scheme]] or of enabling any other person to avoid such payment knowingly makes or causes to be made any false statement or false representation shall be punishable with imprisonment for a term which may extend to ³[one year or with fine of five thousand rupees, or with both.]

⁴[(1 -A) An employer who contravenes, or makes default in complying with, the provisions Sec. 6 or Cl. (a) of sub- section (3) of Sec. 17 in so far as it relates to the payment of inspection charges, or para. 38 of the scheme, in so far as it relates to the payment of administrative charges, shall be punishable with imprisonment for a term which may extend to ⁵[[three years] but. -

(a) Which shall not be less than ⁶[one year and a fine of ten thousand rupees], in case of default in payment of the employees’ contribution which has been deducted by the employer from the employees wages;

(b) ⁷[which shall not be less than six months and a fine of five thousand rupees, in any other case; ⁸[* * *]

PROVIDED that the Court may, for any adequate and special reasons to be recorded in the Judgment, impose a sentence of imprisonment for a lesser term ⁹[* * *]

¹⁰[(1 -B) An employer who contravenes, or makes default in complying with, the provisions of Sec. 6-C, or Cl. (a) of sub-section (3-A) of Sec. 17 in so far as it relates to the payment of inspection charges, shall be punishable with imprisonment for a term which may extend to ¹¹[one year], but which shall not be less than ¹²[six months] and shall also be liable to fine which may extend to ¹³[five thousand rupees]:

PROVIDED that the Court may, for any adequate and special reasons to be recorded in the judgment, impose a sentence of imprisonment for a lesser term ¹⁴[* * *].

(2) ¹⁵[Subject to the provisions of this Act, the Scheme] ¹⁶[the ¹⁷[Pension] Scheme or the Insurance Scheme] may provide that any person who contravenes or makes default in complying with any of the provisions thereof shall be punishable with imprisonment for a term which may extend to ¹⁸[one year, or with fine which may extend to four thousand rupees, or, with both].

¹⁹[(2-A) Whoever contravenes or makes default in complying with any provision of this Act or of any condition subject to which exemption was granted under Sec. 17 shall, if no other penalty is elsewhere provided by or under this Act for such contravention or n-compliance, be punishable with imprisonment which may extend to ²⁰[[six months, but which shall not be less than one month, and shall also be liable to fine which may extend to five thousand rupees.]

²¹ [* * * * *]

1. Subs. by Act 99 of 1976. Sec. 30, for the word “or the Family Pension Scheme” (w.e.f. 7th September, 1976).

2. Subs. by Act 25 of 1996, Sec. 4 (w.e.f 16th November, 1995), for the words “Family Pension”.

3. Subs. by Act 33 of 1988, Sec. 18 (a) (w.e.f 1st August, 1988), for the words “six months or with fine which may extend to one thousand rupees, or with both”.

4. Ins. by Act 40 of 1973, Sec. 4 (w.e.f. lst November, 1973).

5. Subs. by act 33 of 1988, Sec. 18 (b) (o (w.e.f. 1stAugust, 1988), for the words “six months’.

6. Subs. by ibid, Sec. 18 (b) (ii) (w.e.f. lst August, 1988), for the words “three months”.

7. Subs. by ibid., Sec. 18 (b) (ii) (w.e.f. Ist August, 1988).

8. The words “and” shall also be liable to fine which may extend to two thousand rupees’ omitted by ibid., Sec. 18 (b) (iv) (w.e.f. 1st August, 1988).

9. The words “or of fine only in lieu of imprisonment”, omitted by ibid, Sec. 18 (b) (v) (w.e.f 1 st August, 1988).

10. Ins. by Act 99 of 1976, Sec. 30 (w.e.f. 7th September, 1976).

11. Subs. by act 33 of 1988, Sec. 18 (c) (i) (w.e.f Ist August, 1988), for the words “six months”.

12. Subs. by ibid., Sec. 18 (c) (ii) (w.e.f 1st August, 1988), for the words “one month”.

13. Subs. by ibid., Sec. 18 (c) (iii) (w.e.f. 1st August, 1988), for the words “two thousand rupees”.

14. The words “or of fine only in lieu of imprisonment” omitted by ibid., Sec. 18 (c) (iv).

15. Subs. by Act 40 of 1973, Sec. 4 (w.e.f. 1st November, 1973).

16. Subs. by Act 99 of 1976, Sec. 30, for the words “or the Family Pension Scheme” (w.e.f. 7th September, 1976).

17. Subs. by Act 25 of 1996, Sec. 4 (w.e.f 16th November, 1995) for the words “Family Pension”.

18. Subs. by act 33 of 1988, Sec. 18 (d) (w.e.f lst August, 1988), for the words “six months”. or with fine which may extend to one thousand rupees, or with both”.

19. Ins. by Act 37 of 1953, Sec. 12.

20. Subs. by Act 33 of 1988, Sec. 18 (c) (w.e.f 1st August, 1988), for the words “three months or with fine which may extend to one thousand rupees, or with both”.

21. Sub-section (3) omitted by Act 40 of 1973, Sec. 24 (w.e.f 1st November, 1973).

¹[14-A. OFFENCE BY COMPANIES . –

(l) If the person committing an offence under this Act ²[the scheme or ³[the ⁴[Pension] Scheme or the Insurance Scheme]] is a Company, every person who at the time the offence was committed was in charge of, and was responsible to, the Company for the conduct of the business of the Company, as well as the Company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:

PROVIDED that nothing contained in this sub-section shall render any such person liable to any punishment, if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.

(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act ⁵[the Scheme or of ⁶[the ⁷[Pension] Scheme or the Insurance Scheme]] has been committed by a Company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to, any neglect on the part of, any director or manager, secretary or other officer of the Company, such director, manager, secretary or other officer shall be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.

Explanation. -For the purposes of this section, -

(a) “ Company” means any body corporate and includes a firm and other association of individuals; and

(b) “Director” in relation to a firm, means a partner in the firm.]

1. Ins. by Act 37 of 1953, Sec. 13.

2. Subs. by Act 16 of 197 1, Sec. 26 (w.e. f. 23rd April, 1971).

3. Subs. by Act 99 of 1976, Sec. 3 1, for the words, “the Family Pension Scheme” (w.e.f. 7th September, 1976).

4. Subs. by Act 25 of 1996, Sec. 4 (w.e.f. 16th November, 1995) for the words “Family Pension”.

5. Subs. by Act 16 of 1971, Sec. 26 (w.e.f. 23^rd April, 1971).

6. Subs. by Act 99 of 1976, Sec.31, for the words “the Family Pension Scheme” (w.e.f. 7^th September, 1976).

7. Subs. by Act 25 of 1996, Sec. 4 (w.e.f. 16^th November, 1995), for the words “Family Pension”.

¹[14-AA. ENHANCED PUNISHMENT IN CERTAIN AFTER PREVIOUS CONVICTION . -Whoever, having been convicted by a Court of an offence punishable under this Act, the Scheme or ²[the ³[Pension] Scheme or the Insurance Scheme] commits the same offence shall be subject for every subsequent offence to imprisonment for a term which may extend to ⁴[five years, but which shall not be less than two years and shall also be liable to a fine of twenty-five thousand rupees.]

1 . Ins. by Act 40 of 1973, Sec. 5 (w.e.f. 1^st November, 1973).

2. Subs. by Act 99 of 1976, Sec. 31, for the words, “the Family Pension Scheme” (w.e.f. 7^th September, 1976).

3. Subs. by Act 25 of 1996, Sec. 4 (w.e.f. 16th November, 1995, for the words “Family Pension”.

4. Subs. by Act 33 of 1988, Sec. 19 (w.e.f. lst August, 1988), for the words “one year but which shall not be less than three months and shall also be liable to fine which may extend four thousand rupees”.

14-AB. CERTAIN OFFENCES TO BE COGNIZABLE. -Notwithstanding anything contained in the Code of Criminal Procedure, 1898 (5 of 1898),¹and offence relating to default in payment of contribution by the employer punishable under this Act shall be cognizable.

1. The Code of Criminal Procedure, 1973 (2 of 1974).

14-AC. COGNIZABLE AND TRLAL OF OFFENCES. –

(1) No Court shall take cognizance of any offence punishable under this Act, the Scheme or ¹[the ²[Pension] Scheme or the Insurance Scheme] except on a report in writing of the facts constituting such offence made with the previous sanction of the Central Provident Fund Commissioner or such other officer as may be authorized by the Central Government, by notification in the Official Gazette, in this behalf, by an inspector appointed under Sec. 13.

(2) No Court inferior to that of a Presidency Magistrate or a Magistrate of the first class shall try any offence under this Act or the Scheme or ³[the ²[Pension] Scheme or the Insurance Scheme].

1. Subs. by Act 99 of 1976, Sec. 31, for the words, “the Family Pension Scheme” (w.e.f. 7^th September, 1976).

2. Subs. by Act 25 of 1996, Sec. 4 (w.e.f. 16th November, 1995, for the words “Family Pension”.

14-B. POWER TO RECOVER DAMAGES. -Where an employer makes default in the payment of any contribution to the Fund, ¹[Pension] Fund or the Insurance Fund] or in the transfer of accumulations required to be transferred by him under sub-section (2) of Sec. 15 ²[or sub-section (5) of Sec. 17] or in the payment of any charges payable under any other provision of this Act or of ³[any Scheme or Insurance Scheme] or under any of the conditions specified under Sec. 17 ⁴[the Central Provident Fund Commissioner or such other officer as may be authorised by the Central Government

By notification in the Official Gazette, in this behalf] may recover ⁵[ from employer by way of penalty such damages, not exceeding the amount of arrears, as may be specified in the Scheme: ]

⁶[PROVIDED that before levying and recovering such damages, the employer shall be given a reasonable opportunity of being heard.]

⁷[PROVIDED further that the Central Board may reduce or waive the damages levied under this section in relation to an establishment which is a sick industrial company and in respect of which a scheme for rehabilitation has been sanctioned by the Board for Industrial and Financial Reconstruction established under Sec. 4 of the Sick Industrial Companies (Special Provisions) Act, 1985 (1 of 1986), subject to such terms and conditions as may be specified in the Scheme.]

1. Subs. by Act 25 of 1996, Sec. 4 (w.e.f. 16th November, 1995, for the words “Family Pension”.

2. Ins. by Act 28 of 1963, Sec. 10 (w.e.f. 30^th November, 1963).

3. Subs. by Act 99 of 1976, Sec. 32, for the words “or the Family Pension Fund” (w.e.f. 7^th September, 1976).

4. Subs. by Act 40 of 1973, Sec. 6 (w.e.f 1^st November, 1973).

5. Subs. by Act 33 of 1988, Sec. 20 (a) (w.e.f. 1^st August, 1988), for certain words as amended by Act 40 of 1973, Sec. 6.

6. Ins. by ibid., for the proviso.

7. Ins. by Act 33 of 1988, Sec. 20 (b) (w.e.f. 1^st August, 1988).

¹[14-C. POWER OF COURT TO MAKE ORDERS. –

(1) Where an employer is convicted of an offence of making default in the payment of any contribution to the fund ²[the ³[Pension] Fund or the Insurance Fund] or in the transfer of accumulations required to be transferred by him under sub-section (2) of Sec. 15 or sub-section (5) of Sec. 17 the Court may, in addition to awarding any punishment, by order in writing require him within a period specified in the order (which the Court may, if it thinks fit and on application in that behalf, from time to time, extend), to pay the amount of contribution or transfer the accumulations, as the case may be, in respect of which the offence was committed.

(2) Where an order is made under sub-section (1), the employer shall not be liable under this Act in respect of the continuation of the offence during the period or extended period, if any allowed by the Court, but if, on the expiry of such period or extended period, as the case may be, the order of the Court has not been fully complied with, the employer shall be deemed to have committed a further offence and shall be Punished with the imprisonment in respect thereof under sec.14 and shall also be liable to pay fine pay fine which may extend to one hundred rupees for every day after such expiry on which the order has not been compiled with. ]

1. Ins. by Act 40 of 1973. Sec. 7, for Sec. 14 (w.e.f. 1^st November, 1973).

2. Subs. by Act 99 of 1976, Sec.33, for the words “or the family Pension Fund”, (w.e.f. 1^st August, 1976).

3. Subs. by Act 25 of 1996, Sec. 4 (w.e.f. 16th November, 1995), for the words “Family Pension”.

15. SPECIAL PROVISIONS RELATING TO EXISTING PROVIDENT FUNDS. –

(1) ¹[Subject to the provisions of Sec. 17, every employee who is subscriber to any provident fund of ²[an establishment] to which this Act applies shall, pending the application of a scheme to] the ³[establishment] in which he is employed, continue to be entitled to the benefits accruing to him under the provident fund, and the provident fund shall continue to be maintained in the same manner, and subject to the same condition as it would have been if this Act has not been passed,

(2) ¹[On the application of any Scheme to ²[an establishment] the accumulations in any provident fund of the ³[establishment], standing to the credit of the employees who become members of the fund established under the scheme shall, notwithstanding anything to the contrary contained in any law for the time being in force or any deed or other instrument establishing the provident fund but subject to the provisions, if any, contained in the scheme, be transferred to the fund established under the scheme, and shall be credited to the accounts of the employees entitled thereto in the fund.

1. Subs. by Act 37 of 1953, Sec. 14, for certain words.

2. Subs. by Act 94 of 1956, Sec. 3, for the words “a factory” (w.e.f. 1st August, 1956).

3. Subs. by ibid., Sec. 3, for the word “factory”.

16. ACT NOT TO APPLY TO CERTAIN ESTABLISHMENT . -

¹[(l) This Act shall not apply. -

(a) To any establishment registered under the Co-operative Societies Act, 1912 (2 of 1912), under any other law for the time being in force in any State relating to co-operative societies, employing less than fifty persons and working without the aid of power; or

²[(b) To any other establishment belonging to or under the control of the Central Government or a State Government and whose employees are entitled to the benefit of contributory provident fund or old-age pension in accordance with any scheme or rule framed by the Central Government or the State Government governing such benefits; or

(c) To any other establishment set up under any Central, Provincial or State Act and whose employees are entitled to the benefits of

contributory provident fund or old-age pension in accordance with any scheme or rule framed under that Act governing such benefits; ³ [* * *]

(d) ³ [ * * * * *]

⁴[(2) If the Central Government is of opinion that having regard to the financial position of any class of ⁵[establishments], or other circumstances of the case, it is necessary or expedient so to do, it may, by notification in the Official Gazette, and subject to such conditions as may be specified in the notification exempt ⁶[whether prospectively or retrospectively] that class of ⁵[establishments] from the operation of this Act for such period as may be specified in the notification.]000

1. Subs. by Act 46 of 1960, Sec. 15. for the former sub-section (1) (w.e.f. 31st December, 1960). Section 16 was re-numbered as sub-section (1) of that section by Act 37 of 1953, Sec. 15.

2. Subs. by act 33 of 1988, Sec. 21 (Q (w.e.f lst august, 1988), for Cl. (b).

3. OMINED BY ACT 10 OF 1998, SEC. 5 (W.E.F. 22ND SEMEMBER, 1997).

4. Ins. by Act 37 of 1953, Sec. 15.

5. Subs. by Act 94 of 1956, Sec. 3 for the word “factory”.

6. Ins. by Act 33 of 1988, Sec. 21 (ii) (w.e.f 1^st August, 1988).

¹[16-A. AUTHORISING CERTAIN EMPLOYERS TO MAINTAIN PROVIDENT FUND ACCOUNTS. -

(1) The Central Government may, on an application made to it in this behalf by the employer and the majority of employees in relation to an establishment employing one hundred or more persons, authorise the employer by an order in writing, to maintain a provident fund account in relation to the establishment, subject to such terms and conditions as may be specified in the scheme:

PROVIDED that no authorisation shall be made under this subsection if the employer of such establishment had committed any default in the payment of provident fund contribution or had committed any other offence under this Act during the three years immediately preceding the date of such authorisation.

(2) Where an establishment is authorised to maintain a provident fund account under sub-section (1), the employer in relation to such establishment shall maintain such account, submit such return, deposit the contribution in such manner, provide for such facilities for inspection, pay such administrative charges and abide by such other terms and conditions, as may be specified in the scheme.

(3) Any authorisation made under this section may be cancelled by the Central Government by order in writing if the employer fails to comply with any of the terms and conditions of the authorisation or where he commits any offence under any provision of this Act:

PROVIDED that before cancelling the authorisation, the Central Government shall give the employer a reasonable opportunity of being heard.]

1. Ins. by Act 33 of 1988, See. 22.

¹[17. POWER TO EXEMPT . -The appropriate Government may, by notification in the Official Gazette, and subject to such conditions as may be specified in the notification,²[exempt whether prospectively or retrospectively, from the operation] of all or any of the provisions of any scheme-

(a) Any ³establishment] to which this Act applies if, in the opinion of the appropriate Government, the rules of its provident fund with respect to the rates of contribution are not less favourable than those specified in Sec. 6 and the employees are also in enjoyment of other provident fund benefits which on 0the whole are not less favourable to the employees than the benefits provided under this Act or any scheme in relation to the employees in any other ³[establishment] of a similar character.

(b) Any ³[establishment] if the employees of such ³[establishment] are in enjoyment of benefits in the nature of provident fund, pension or gratuity, and the appropriate Government is of opinion that such benefits separately or jointly, are on the whole not less favourable to such employees than the benefits provided under this Act or any scheme in relation to employees in any other ³[establishment] of a similar character.

⁴[* * * * *]

⁵[PROVIDED that no such exemption shall be made except after consultation with the Central Board which on such consultation shall forward its view on exemption to the appropriate Government within such time-limit as may be specified in the Scheme].

⁶[(1 -A) Where an exemption has been granted to an establishment under Cl. (a) of sub-section (1), -

(a) The provisions of Secs. 6, 7-A, 8 and 14-B shall, so far as may be, apply to the employer of the exempted establishment in addition to such other conditions as may be specified in the notification granting such exemption, and where such employer contravenes or makes default in complying with any of the said provisions or conditions or any other provisions of this Act, he shall be punishable under Sec. 14 as if the said establishment had not been exempted under the said Cl. (a);

(b) The employer shall establish a Board of Trustees for the administration of the provident fund consisting of such number of members as may be specified in the Scheme;

(d) The Board of Trustees constituted under Cl. (b) shall, -

(i) Maintain detailed accounts to show the contributions credited, withdrawals made and interest accrued in respect of each employee,

(ii) Submit such returns to the Regional Provident Fund Commissioner or any other officer as the Central Government may direct from time to time;

(iii) Invest the provident funds monies in accordance with the directions issued by the Central Government from time to time;

(iv) Transfer, where necessary, the provident fund account of any employee; and

(v) Perform such duties as may be specified in the Scheme.

(1 -B) Where the Board of Trustees established under Cl. (b) of sub-section (1 -A) contravenes, or makes default in complying with any provisions of Cl. (d) of that sub-section, the Trustees of the said Board shall be deemed to have committed an offence under sub-section (2-A) of Sec. 14 and shall be punishable with the penalties provided in that sub-section.

⁷[(1 -C) The appropriate Government may, by notification in the Official Gazette, and subject to the condition on the pattern of investment of pension fund and such other conditions as may be specified therein, exempt any establishment or class of establishments from the operation of the Pension Scheme if the employees of such establishment or class of establishments are either members of any other pension scheme or propose to be members of such pension scheme, where the pensionary benefits are at par or more favourable than the Pension Scheme under this Act.]

(2) Any scheme may make provision for exemption of any person or class of persons employed in any ⁸[establishment] to which the scheme applies from the operation of all or any of the provisions of the Scheme, if such person or class of persons is entitled to benefits in the nature of provident fund, gratuity or old-age pension and such benefits, separately or jointly, are on the whole not less favourable than the benefits provided under this Act or the Scheme:

PROVIDED that no such exemption shall be granted in respect of a class of persons unless the appropriate Government is of opinion that the majority of persons constituting such class desire to continue to be entitled to such benefits.

⁹ [(2-A) ¹⁰[The Central Provident Fund Commissioner may, if requested so to do by the employer, by notification in. the Official Gazette, and subject to such conditions as may be specified in the notification, exempt, whether prospectively or retrospectively any establishment from the operation of all or any of the provisions of the Insurance Scheme, if he is satisfied] that the employees of such establishment are, without making any separate contribution or payment of premium, in enjoyment of benefits in the nature of life insurance, whether linked to their deposits in provident fund or not, and such benefits are more favourable to such employees than the benefits admissible under the insurance Scheme.

(2-B) Without prejudice to the provisions of sub-section (2-A), the Insurance Scheme may provide for the exemption of any person or class of persons employed in any establishment and covered by that Scheme from the operation of all or any of the provisions thereof, if the benefits in the nature of life insurance admissible to such person or class of persons are more favourable than the benefits provided under the Insurance Scheme.]

¹¹[(3) Where in respect of any person or class of persons employed in an establishment an exemption is granted under this section from the operation of all or any of the provisions of any scheme (whether such exemption has been granted to the establishment wherein such person or class of persons is employed or to the person or class of persons as such), the employer in relation to such establishment-

(a) Shall, in relation to the provident fund, pension and gratuity to which any such person or class of persons is entitled, maintain such accounts, submit such returns, make such investment, provide for such facilities for inspection and pay such inspection charges, as the Central Government may direct;

(b) Shall not, at any time after the exemption, without the leave of the Central Government, reduce the total quantum of benefits in the nature of pension, gratuity or provident fund to which any such person or class of persons was entitled at the time of the exemption; and

(c) Shall, where any such person leaves his employment and obtains re-employment in another establishment to which this Act applies, transfer within such time as may be specified in this behalf by the Central Government, the amount of accumulations to the credit of that person in the provident fund of the establishment left by him to the credit of that person’s account in the provident fund of the establishment in which he is re-employed or, as the case may be, in the fund established under the scheme applicable to the establishment.]

¹²[(3-A) Where, in respect of any person or class of persons employed in any establishment, an exemption is granted under sub- section (2-A) or sub-section (2-B) from the operation of all or any of the provisions of the Insurance Scheme (whether such exemption is granted to the establishment wherein such person or class of persons is employed or to the person or classes of persons as such), the employer in relation to such establishment-

(a) Shall, in relation to the benefits in the nature of life insurance to which any such person or class of persons is entitled, or any insurance fund, maintain such accounts, submit such returns, make such investments, provide for such facilities for inspection and pay such inspection charges, as the Central Government may direct;

(b) Shall not, at any time after the exemption without the leave of the Central Government, reduce the total quantum of benefits in the nature of life insurance to which any such person or class of persons was entitled immediately before the date of the exemption;

¹³[* * * * * ]

¹⁴[(4) Any exemption granted under this section may be cancelled by the authority which granted it, b order in writing, if an employer fails to comply, -

(a) In the case of an exemption granted under sub-section (1), with any of the conditions imposed under that sub-section ¹⁵[or sub-section (1 -A) or with any of the provisions of sub-section (3) ¹⁶[***];

¹⁵[(aa) In the case of an exemption granted under sub-section ¹⁷[(I-C)], with any of the conditions imposed under that sub- section; and]

(b) In the case of an exemption granted under sub-section (2), with any of the provisions of sub-section (3);

¹⁸[(c) In the case of an exemption granted under sub-section (2-A) with any of the conditions imposed under that sub-section or with any of the provisions of sub-section (3-A);

(d) In the case of an exemption granted under sub- section (2-B) with any of the provisions of sub-section (3-A)].

¹⁸[(5) Where any exemption granted under sub-section (1), sub-section ¹⁹ [(l-C)], ²⁵[sub-section (2), sub-section (2-A) or sub-section (2-B)] is cancelled, the amount of accumulations to the credit of every employee to whom such exemption applied, in the provident fund, ²⁰[the ²¹[Pension] Fund or the Insurance Fund] of the establishment in which he is employed ²²[together with any amount forfeited from the employer’s share of contribution to the credit of the employee who leaves the employment before the completion of the full period of services] shall be transferred within such time and in such manner as may be specified in the scheme or the ¹⁹[Pension] Scheme ²⁰[or the Insurance Scheme] to the credit of his account in the Fund, the ¹⁹[Pension] Fund ²⁰[or the Insurance Fund] as the case may be.

²³[(6) Subject to the provisions of sub-section ²⁴[[(l-C)], the employer of an exempted establishment or of an exempted employee of an establishment to which the provisions of the ¹⁹ [Pension] Scheme apply, shall notwithstanding any exemption granted under sub-section (1) or sub-section (2), pay to the ¹⁹ [Pension] Fund such portion of the employer’s contribution ²⁵[* * *] to its provident fund within such time and in such manner as may be specified in the ¹⁹ [Pension] Scheme].

1. Subs. by Act 37 of 1953, Sec. 16, for the former section.

2. Subs. by, Act 33 of 1988, Sec. 23 (a) (i) (w.e.f. lst October, 1988), for the words “exempt from the operation”.

3. Subs. by Act 94 of 1956, Sec. 3, for the word “factory” (w.e.f. 1^st August, 1956).

4. Explanation omitted by Act 28 of 1963, Sec. 11 (w.e.f. 30^th November, 1963).

5. Ins. by Act 33 of 1988, Sec. 23 (a) (ii), (w.e.f. lst October, 1988).

6. Subs. by ibid., Sec. 23 (b) (w.e.f. 1^st October, 1988), for sub-section (1-A), ins. by Act 16 of 1971, Sec. 27.

7. Subs. by Act 25 of 1996, See. 7 (w.e.f 16^th November, 1995), for sub-section (1-C).

8. Subs. by Act 94 of 1956, Sec. 3 for the word “factory” (w.e.f. 1^st August, 1956).

9. Ins. by Act 99 of 1976, Sec. 34 (w.e.f. 1^st August, 1976).

10. Subs. by Act 33 of 1988, Sec. 23 (c) (w.e.f. 1st October, 1988), for certain words.

11. Subs. by Act 28 of 1963, Sec. 11, for sub-section (3) (w.e.f 30th November, 1963).

12. Ins. by Act 99 of 1976, Sec. 34 (w.e.f. 1^st August, 1976).

13. The word “and” occurring at the end of Cl. (b) and Cl. (c) omitted by Act 33 of 1988, Sec. 23 (d) (w. e. f. 1^st October 1988).

14. Ins. by Act 20 of 1963, Sec. 11 (w. e.f. 30th November, 1963).

15. Ins. by Act 33 of 1988, Sec. 23 (e) (w.e.f. 1^st October 1988).

16. The word “and” omitted by Act 16 of 1971, Sec. 27.

17. Subs. by Act 33 of 1988, Sec. 23, (w.e.f. 1st October, 1988), for the brackets, figures and letter “(1-A)”.

18. Subs. by Act 16 of 197 1, Sec. 27.

19. Subs. by Act 99 of 1976, Sec. 34, for the words and figure “or sub-section (2)” (w.e.f. lst August, 1976).

20. Subs. by Act 99 of 1976, Sec. 34, for the words “or the Family Pension Fund”.

21. Subs. by Act 25 of 1996, Sec. 4 (w.e.f 16th November, 1995), for the words “Family Pension”.

22. Ins. by Act 33 of 1988, Sec. 23 (p (ii), (w.e.f. 1^st October 1988).

23. Ins. by Act 28 of 1963, Sec. 12 (w.e.f. 30^th December, 1963).

24. Subs. by Act 33 of 1988, Sec. 23, (w.e.f 1^st October, 1988), for the brackets, figures and letter “(1-A)”.

25. Omitted by Act 25 of 1996, Sec. 7 (w.e.f 16th November, 1995), for the words “as the employees’ contribution”.

¹[17-A. TRANSFER OF ACCOUNTS. -

(1) Where an employee employed in an establishment to which this Act applies leaves his employment and obtains re-employment in another establishment to which this Act does not apply, the amount of accumulations to the credit of such employee, in the Fund or as the case may be, in the provident fund of the establishment left by him shall be transferred, within such time as may be specified by the Central Government in this behalf to the credit of his account in the provident fund of the establishment in which he is re-employed, if the employee so desires and the rules in relation to that provident fund permit such transfer.

(2) Where an employee employed in an establishment to which this Act does not apply leaves his employment and obtains re-employment in another establishment to which this Act applies the amount of accumulation to the credit of such employee in the provident fund of the establishment left by him may, if the employee so desires and the rules in relation to such provident fund permit, be transferred, to the credit of his account in the Fund or, as the case may be, in the provident fund of the establishment in which he is re-employed.]

1. Ins. by Act 28 of 1963, Sec. 12 (w.e.f. 30th December, 1963).

¹[17-AA. ACT TOHAVE EFFECT NOT WITH STANDING ANYTHING CONTAINED IN ACT 31 OF 1956. -The provisions of this Act shall have effect notwithstanding anything inconsistent therewith contained in the Life Insurance Corporation Act, 1956.]

1. Ins. by Act 99 of 1976, Sec. 35 (w.e.f lst August, 1976).

¹[17-B.CASE OF TRANSFER OF ESTABLISHMENT. -Where an employer, in relation to an establishment, transfers that establishment in whole or in part, by sale, gift, lease or licence or in any other manner whatsoever, the employer and the person to whom the establishment is so transferred shall jointly and severally be liable to pay the contribution and other sums due from the employer under any provision of this Act or the Scheme or ²[the ³[Pension] Scheme or the Insurance Scheme] as the case may be, in respect of the period up to the date of such transfer:

PROVIDED that the liability of the transferee shall be limited to the value of the assets obtained by him by such transfer.]

1. Ins. by Act 40 of 1973, Sec. 8.

2. Subs. by Act 99 of 1976, Sec. 31, for the words “the Family Pension Scheme” (w.e.f. 7^th September, 1976).

3. Subs. by Act 25 of 1996, Sec. 4 (w.e.f. 16th November, 1995), for the words “Family Pension”.

¹[18. PROTECTION OF ACTION TAKEN WHEN IN GOOD FAITH. -No suit, prosecution, or other legal proceeding shall lie against the Central Government, a State Government, the Presiding Officer of a Tribunal, any authority referred to in Sec. 7-A, an Inspector or any other person for anything which is in good faith done or intended to be done in pursuance of this Act, the Scheme, the ²[Pension] Scheme or the Insurance Scheme.

1. Subs. by Act 33 of 1988, Sec. 24 (w.e.f. 1^st August 1988), for Sec. 18.

2. Subs. by Act 25 of 1996, Sec. 4 (w.e.f. 16th November, 1995). For the words “Family Pension”.

18-A. PRESIDING OFFICER AND OTHER OFFICER TO BE PUBLIC SERVANTS. -The Presiding Officer of a Tribunal, its officers and other employees, the authorities referred to in Sec. 7-A and every Inspector shall be deemed to be public servants within the meaning of Sec. 21 of the Indian Penal Code (45 of 1860)].

¹[19. DELEGATION OF POWERS. -The appropriate Government may direct that any power or authority or jurisdiction exercisable by it under this Act ²[the Scheme, ³[the ⁴[Pension] Scheme or the Insurance Scheme] shall, in relation to such matters and subject to such conditions, if any, as may be specified in the direction be exercisable also-

(a) Where the appropriate Government is the Central Government by such officer or authority subordinate to the Central Government or by the State Government or by such officer or authority subordinate to the State Government, as may be specified in the notification; and

(b) Where the appropriate Government is State Government, by such officer or authority subordinate to the State Government as may be specified in the notification.]

1. Subs. by Act 37 of 1953, Sec. 17, for Sec. 19.5.

2. Ins. by Act 16 of 1971, Sec.29.

3. Subs. by Act 99 of 1976, Sec. 37, for the words “or the Family Pension Scheme”.

4. Subs. by Act 25 of 1996, Sec. 4 (w.e.f. 16th November, 1995), for the words “Family Pension”.

¹[19-A. POWER TO REMOVE DIFFICULTIES. -If any difficulty arises in giving effect to the provisions of this Act, and in particular, if any doubt arises as to, -

² [(i) Whether an establishment which is a factory, is engaged in any industry specified in Sch. I];

³[(ii) Whether any particular establishment is an establishment falling within the cases of establishments to which this Act applies by virtue of a notification under Cl. (b) of sub-section (3) of Sec. I;] or

¹[(iii) The number of persons employed in an establishment; or

² [(iv) The number of years which have elapsed from the date on which an establishment has been set up; or]

(v) Whether the total quantum of benefit to which an employee is entitled has been reduced by the employer,

The Central Government may, by orders, make such provision or give such direction, not inconsistent with the provisions of this Act, as appear to it to be necessary or expedient for the removal of the doubt or difficulty; and the order of the Central Government, in such cases, shall be final.]

1. Section 19-A shall be subs. by Secs. 20, 21 and 22 on enforcement of See. 25 of Act 33 of 1988.

2. Subs. by Act 94 of 1956, Sec. 6.

3. Re-numbered by Act 46 of 1960, Sec. 6 (w.e.f. 31st December, 1960).

¹[20. POWER OF CENTRAL GOVERNMENT TO GIVE DIRECTION. – The Central Government may, from time to time, give such directions to the Central Board as it may think fit for the efficient administration of this Act and when any such direction is given, the Central Board shall comply with such direction.

1. Secs. 20, 21 and 22 subs. for Sec. 19-A by Act 33 of 1988, Sec. 25. On enforcement of this provision Sec. 19-A stand repealed.

21. POWER TO MAKE RULES. -

(l) The Central Government may, by notification in the Official Gazette, make rules to carry out the provisions of this Act.

(2) Without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:

(a) The salary and allowances and other terms and conditions of service of the Presiding Officer and the employees of a Tribunal;

(b) The form and the manner in which, and the time within which, an appeal shall be filed before a Tribunal and the fees payable for filing such appeal;

(c) The manner of certifying the copy of the certificate to be forwarded to the Recovery Officer under sub-section (2) of Sec. 8-C; and

(d) Any other matter which has to be, or may be, prescribed by rules under this Act.

(3) Every rule made under this Act shall be laid as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or to be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.

22. POWER TO REMOVE DIFFICULTIES. -

(1) If any difficulty arises in giving effect to the provisions of the Act, as amended by the Employees’ Provident Funds and Miscellaneous Provisions (Amendment) Act, 1988, the Central Government, may by order published in the Official Gazette, make such provisions, not inconsistent with the provisions of the Act, as appear to it to be necessary or expedient for the removal of the difficulty:

PROVIDED that no such order shall be made after the expiry of a period of three years from the date on which the said amendment Act receives the assent of the President.

(2) Every order made under this section shall, as soon as may be after it is made, be laid before each House of Parliament.]

23. [REPEAL OF ORDINANCES 8 OF 1951]. -Rep. by the Repealing and Amending Act, 195 7 (36 of 195 7), Sec. and Sch. I.]

SCHEDULE I

[See Secs. 2 (i) and 4]

Any industry engaged into the manufacture ¹ [* namely:

Cement.

Cigarettes.

Electrical, mechanical or general engineering products.

Iron and steel.

Paper.

Textiles (made wholly or in part of cotton or wool or jute or silk, whether natural or artificial).

²[1. Matches.

2. Edible oils and fats.

3. Sugar.

4. Rubber and rubber products.

5. Electricity including the generation, transmission and distribution thereof

6. Tea.

7. Printing (other than printing industry relating to newspaper establishments as defined in the Working Journalists (Conditions of Service) and Miscellaneous Provisions) Act, 1955 (45 of 1955), including the process of composing types for printing, printing ,by letterpress, lithography, photogravure or other similar process or book-binding.

8. Glass.

9. Stoneware pipes.

10. Sanitary wares.

11. Electrical porcelain insulators of high and low tension.

12. Refractories.

13. Tiles.]

³1. Heavy and fine chemicals, including. -

(i) Fertilizers;

(ii) Turpentine;

(iii) Rosin;

(iv) Medical and pharmaceutical preparations;

(v) Toilet preparations;

(vi) Soaps;

(vii) Inks;

(viii) Intermediates, dyes, colour lacs and toners;

(ix) Fatty acids, and

⁴(x) Oxygen, acetylene, and carbon dioxide gases industry.]

2. Indigo.

3. Lac including shellac.

4. Non-edible vegetable and animal oils and fats.)

⁵[Mineral oil refining industry.]

⁶[(i) Industrial and Power Alcohol industry; and

(ii) Asbestos Cement Sheets industry.]

⁷[Biscuit-making industry including composite units making biscuits and products, such as, bread, confectionery, milk and milk powder.]

⁸[Mica industry.]

⁹[Plywood industry.]

¹⁰[Automobile repairing and servicing industry.]

¹¹[Rice milling.

Flour milling.

Dal milling.]

¹²[Starch Industry.]

¹³[1. Petroleum or natural gas exploration, prospecting drilling or production.

2. Petroleum or natural gas refining.]

¹⁴[Leather and leather products industry.

¹⁵[1. Stoneware jars.

2. Crockery.]

¹⁶[The fruit and vegetable preservation industry, that is to say, any industry which is engaged in the preparation or production of any of the following articles, namely:

(i) Canned and bottled fruits, juices and pulps;

(ii) Canned and bottled vegetables;

(iii) Frozen fruits and vegetables;

(iv) Jams, jellies and marmalades;

(v) Tomato products, ketchups and sauces;

(vi) Squashes, crushes, cordials and ready-to-serve beverages or any other beverages containing fruit juice or fruit pulp;

(vii) Preserved, candied and crystallized fruits and peals;

(viii) Chutneys;

(ix) Any other unspecified item relating to the preservation or canning of fruits and vegetables.]

¹⁷ [Cashewnut Industry.]

¹⁸[Confectionery Industry.]

¹⁹[1. Buttons.

2. Brushes.

3. Plastic and Plastic products.

4. Stationery products.]

²⁰[The aerated water industry, that is to say, any industry engaged in the manufacture of aerated water, soft drinks or carbonated water.]

²¹[The distilling and rectifying of spirits (not falling under industrial and power alcohol) and blending of spirits industry.]

²²[Plant and varnish industry.]

²³[Bone-crushing industry.]

²⁴[Pickers industry

²⁵[Milk and Milk products industry.]

²⁶[Non-ferrous metals and alloys in the form of Ingots industry.]

²⁷[Bread industry.]

²⁸[Stemming or redrying of tobacco leaf industry (i.e. any industry engaged in the stemming, re-drying, handling, sorting, grading, or packing of tobacco leaf].

²⁹[Agarbattee (including dhoop and dhoop battee) industry.]

³⁰[Coir (excluding spinning sector) industry-]

³¹[Tobacco industry, that is to say, any industry engaged in the manufacture of cigars, zarda, snuff, quivum and gudakhu from tobacco

³²[Paper products industry

³³[Linoleum industry and lndoleum industry.]

³⁴[Explosives industry.]

³⁵[Jute baling or pressing industry.]

³⁶[Licensed salt industry (i.e. any industry engaged in the manufacture of salt for which a license is necessary and which has not less than 4.05 hectares.]

³⁷[Fireworks and percussion cap works industry.]

³⁸[Tent-making industry.]

³⁹[Ferro-manganese industry]

⁴⁰[Ice or ice-cream industry.]

⁴¹[Winding of thread and yarn-reeling industry.]

⁴²[Cotton ginning, baling and pressing industry.]

⁴³[Kattha-making industry.]

⁴⁴[Beer-manufacturing industry, that is to say, any industry engaged in the manufacture of the product of alcoholic fermentation of a mash in potable water of malted barley and hops, or of hops concentrated with or without the addition of other malted or unmalted cereals or other carbohydrate preparation.]

⁴⁵[Beedi industry, that is to say, any industry engaged in the manufacture of beedies.]

⁴⁶[Ferro-crome industry]

⁴⁷ [The brick industry, that is to say, any industry engaged in the manufacture of bricks.]

⁴⁸[Myrobalan extract powder, Myrobalan extract solid and vegetable tannin blended extract industry.]

⁴⁹[The diamond-cutting industry, that is to say, industry engaged in the cutting of diamond.]

⁵⁰[All industries based on asbestos as principal raw material.]

⁵¹[Industries, manufacturing iron ore pellets.]

⁵²[Explanation. -In this Schedule, without prejudice to the ordinary meaning of the expressions used therein, -

(a) The expression “electrical, mechanical or general engineering products” includes-

(1) Machinery and equipment for the generation, transmission, distribution or measurement of electrical energy and motors including cables and wires,

(2) Telephones, telegraph and wireless communication apparatus,

(3) Electric lamps (not including glass bulbs),

(4) Electric fans and electrical domestic appliances,

(5) Storage and dry batteries,

(6) Radio receivers and sound-reproducing instruments,

(7) Machinery used in industry (including textile machinery), other than electrical machinery and machine tools,

(8) Boilers and prime-movers, including internal combustion engines, marine engines and locomotives,

(9) Machine tools, that is to say, metal and woodworking machinery,

(10) Grinding wheels,

(11) Ships,

(12) Automobiles and tractors,

(13) Bolts, nuts and rivets,

(14) Power-driven pumps,

(15) Bicycles,

(16) Hurricane lanterns,

(17) Sewing and knitting machines,

(18) Mathematical and scientific instruments,

(19) Products of metal rolling and re-rolling,

(20) Wires, pipes, tubes and fittings,

(21) Ferrous and non-ferrous castings,

(22) Safes, vaults and furniture made of iron or steel or steel alloys,

(23) Cutlery and surgical instruments,

(24) Drums and containers,

(25) Parts and accessories of products specified in items 1 to 24.]

(b) The expression “iron and steel” includes pig iron, ingots, blooms, billets and rolled or re-rolled products into basic forms and tools and alloy steel;

(d) The expression “textile” includes the products of carding, spinning, weaving, finishing and dyeing yarn and fabrics, printing, knitting and embroidering.]

1. The words “or production” omitted by Act 37 of 1953, Sec. 18.

2. Added by S.R.O. 1566, dated 14^th July 1956, see Gazette of lndia, Pt. II, Sec. 3. p. 1192 (w.e.f. 31^st July. 1956).

3. Added by S.R.O. 2026, dated 3rd September. 1956 see Gazette of India, Pt. II, and Sec. 3. p. 1533 (w.e.f. 30^th September, 1956).

4. Added by S.R.O. 1976, dated 8th June, 1957, see Gazette of India, Pt. II, Sec. 3, p. 1242 (w.e.f. 31st July, 1957).

5. Added by S.R.O. 218, dated 12^th January 1957, see Gazette of India, Pt. II, Sec. 3, p. 175 (w.e.f. 3 1^st January, 1957).

6. Added by S.R.O. 3067, dated 19^th September 1957, see Gazette of India, Pt. II. Sec. 3, p. 1053 (w.e.f 30th November, 1957).

7. Added by G.S.R. 170, dated 12^th March 1958, see Gazette of India4 Pt. II, Sec. 3 (i). p. 131 (w.e.f. 30th April, 1957).

8. Added by G.S.R. 312, dated 5^th March 1960, see Gazette of India, Pt. II Sec. 3 (i), p. 569 (w.e.f. 31st May, 1960).

9. Added by G.S.R. 632, dated 30^th May 1960, see Gazette of India, Pt. II, Sec. 3 (i), p. 853 (w.e.f. 30th June, 1960).

10. Added by G.S.R. 683, dated 9^th June 1960, see Gazette of India, Pt. II, Sec. 3 (i), p. 951 (w.e.f. 30th June, 1960).

11. Added by G.S.R. 1443, dated 24^th November 1960, see Gazette of India. Pt. II, Sec. 3 (i), p. 1819 (w.e.f. 31^st December, 1960).

12. Added by G.S.R. 535, dated 10th April, 1961. See Gazette of India, Pt. II, Sec. 3 (i), p. 654 (w.e.f. 31^st May, 196 1).

13. Added by G.S.R. 705, dated 16^th May, 1961, see Gazette of India, Pt. II, Sec. 3 (i), p. 798 (w.e.f 30th June, 196 1).

14. Added by G.S.R. 993, dated 29th July, 1961, see Gazette of India Pt. II, Sec. 3 (i), p. 1694 (w.e.f. 31stAugust, 1961).

15. Added by G.S.R. 1382. Dated 4^th November, 1961, see Gazette of Indic. Pt. II, Sec. 3 (i), p. 1694 (w.e.f. 30th November, 1961).

16. Added by G.S.R. 786, dated 6^th June 1962, see Gazette of India. Pt. II. Sec. 3 (i), p. 706 (w.e.f. 30^th June, 1962), as amended by G.S. R. 1461, dated 9^th August 1963.

17. Added by G.S.R. 1125, dated 18^th August 1962, see Gazette of India, Pt. II, Sec. 3 (i). p. 1233 (w.e.f. 30^th September, 1962).

18. Added by G.S.R. 424, dated 28^th February 1963, see Gazette of India, Pt. II. Sec. 3 (i), p. 390 (w.e.f. 31^st March, 1963).

19. Added by G.S.R. 591. Dated 27^th March 1963, see Gazette of India, Pt. II, Sec. 3 (i), p. 629 (w.e.f. 30th April, 1963).

20. Added by G.S.R. 1432, dated 23rd August 1963, see Gazette of India, Extraordinary, Pt. II, Sec. 3 (i), p. 693 (w.e.f 31^st August 1963).

21. Added by G.S.R. 1605 dated 26^th September 1963. See Gazette of India, Pt. II, Sec. 3 (i), p. 1880 (w.e.f. 31st October, 1963).

22. Added by G.S.R. 1983, dated 2 1 st December 1963.

23. Added by G.S.R. 67, dated 3 1^st December 1963.

24. Added by G.S. R. 822, dated 22^nd May 1964.

25. Added by G.S.R. 1723 dated 27^th November. 1964.

26. Added by G.S.R. 1795 dated 9^th December 1964.

27. Added by G.S.R. 402, dated 2^nd March 1965.

28. Added by G.S.R. 768, dated 18^th May 1965.

29. Added by G.S.I. 910, dated 23^rd June 1965.

30. Added by G.S.R. 952, dated 3^rd July, 1965

31. Added by G.S.R. 895, dated 1^st June 1966.

32. Added by G.S.R. 1119 dated 11^th July 1966.

33. Added by G.S.R. 437, dated 27^th March 1967.

34. Added by G.S.R. 10 19, dated 1^st July 1967.

35. Added by G.S.R. 1226 dated 5^th August 1967.

36. Added by G.S.R. 1362 dated 30^th August 1966.

37. Added by G.S.R. 1530 dated 5^th October 1967.

38. Added by G.S.R. 1716 dated 3^rd November 1967.

39. Added by G.S.R. 1018 dated 26^th April 1969.

40. Added by G.S.R. 1506 dated 11^th June 1969.

41. Added by G.S.R. 1988, dated, 22^nd November 1971.

42. Ins. by G.S.R. 1231 dated 23^rd September 1972.

43. Added by G.S.R. 503, dated 2^nd May 1975 (w.e.f. 31^st May, 1975).

44. Added by G.S.R. 428, dated 15^th April 1974 (w.e.f. 30^th April, 1974).

45. Added by G.S.R. 660, dated 17^th May, 1977 (w.e.f. 31^st May, 1977)

46. Added by G.S.R. 938, dated 25^th June 1978 (w.e.f. 31^st July, 1978).

47. Added by G.S.R. 662 (E), dated 27^th November, 1980 (w.e.f. 30^th November, 19801, published in the Gazette of India, Extraordinary, Pt. 11. Sec. 3 (0, dated 27th November, 1980.

48. Ins. by G.S.P, 631 (E), dated 30^th October 1980.

49. Added by G.S.R. 564, dated 5^th May 1980 (w.e.f 31^st May, 1980), published in the Gazette of India Pt. II, Sec. 3 (i), dated 17^th May 1980.

50. Ins. by S.O. 2459 dated 20th May 1983.

51. Added by S.O. 2276, dated 30^th August 1989.

52. Ins. by Act 37 of 1953, Sec. 18.

SCHEDULE II

²[See Sec. 5 (I -B)]

MATTERS FOR WHICH PROVISIONS MAY BE MADE IN A SCHEME

1. The employees or class of employees who shall join the Fund and the conditions under which employees may be exempted from joining the Fund or from making any contribution.

2. The time and manner in which contribution shall be made to the fund by the employers and by, or on behalf of employees ³[whether employed by him directly or by or through a contractors, the desires, make under ⁴[* * *] Sec. and a the manner in which such contribution may be recovered.

⁵[2-A. The manner in which employees’ contributions may be recovered by contractors from employees employed by or through such contractors].

3. The payment by the employer of such sums of money as may be necessary to meet the cost of administering the Fund and the rate at which and the manner in which the payment shall be made.

⁶[4. The Constitution of any committee for assisting any Board of Trustees.

5. The opening of regional and other offices of any Board of Trustee.]

6. The manner in which accounts shall be kept, the investment of moneys belonging to the Fund in accordance with any directions issued or conditions specified by the Central Government, the preparation of the budget, the audit of accounts and the submission of reports to the Central Government or to any specified State Government.

7. The conditions under which withdrawals from the Fund may be permitted and any deduction or forfeiture may be made and the maximum amount of such deduction or forfeiture.

8. The fixation by the Central Government in consultation with the Board of Trustees concerned of the rate of interest payable to members.

9. The form in which an employee shall furnish particulars about himself and his family whenever required.

10. The nomination of a person to receive the amount standing to the credit of a member after his death and the cancellation or variation of such nomination.

11. The registers and records to be maintained with respect to employees and the ret urns to be furnished by employers ¹[or contractors].

12. The form or design of any identity card, token or disc for the purpose of identifying any employee, and for the issue, custody and replacement thereof.

13. The fees to be levied for any of the purposes specified in this Schedule.

14. The contraventions or defaults, which shall be punishable tion (2) of See. 14.

15. The further powers, if any, which may be exercised by inspector.

16. The manner in which accumulations in any existing provident Fund shall be transferred to the Fund under Sec. 15, and the mode of valuation. which may be transferred by the employers in this behalf.

17. The conditions under which a member may be permitted to pay premia on insurance from the Fund.

18. Any other matter ⁷[which is to be provided for in the Scheme or], which may be necessary or proper for the purpose of implementing the Scheme.

1. Ess Dee Carpet Enterprises v. Union of India, (1990) 1 C.L.R. 1 at p. 2 (S.C.): 1990 L.L.R. 66: (1990) 60 F. (S.C.) 1490:(1990) 1 L.L.N. (S.C.) 308.

2. Subs. by Act 28 of 1963, Sec. 13, for “[See Sec. 6 (2) 1” (w.e.f. 30th November, 1963).

3. Ins. by ibid. For certain words.

4. The words, brackets and figure sub-section (1) of omitted by ibid.

5. Ins. by Act 28 of 1963, Sec. 13.

6. Subs. by Sec. 13 ibid. For items 4 and 5 (w.e.f. 30^th November, 1963).

7. Subs. by Act 28 of 1963, Sec. 13 (w.e.f. 30th November, 1963).

¹[SCHEDULE III

[See Sec. 6-A (5)]

MATRERS FOR WHICH PROVISIONS MAY BE MADE IN THE PENSION SCHEME

1. The employer or class of employees to whom the Pension Scheme shall apply.

2. The time within which the employees who are not members of the Family Pension Scheme under Sec. 6-A as it stood before the commencement of the Employees’ Provident Funds and Miscellaneous Provisions (Amendment) Act, 1996 (hereinafter, in this Schedule, referred to as the amending Act) shall opt for the Pension Scheme.

3. The portion of employers’ contribution to the Provident Fund, which shall be credited to the Pension Fund and the manner in which it is credited.

4. The minimum qualifying service for being eligible for pension and the manner in which the employees may be granted the benefits of their past service under Sec. 6-A as it stood before the commencement of the amending Act.

5. The regulation of the manner in which, and the period of service for which, no contribution is received.

6. The manner in which employees’ interest will be protected against default in payment of contribution by the employer.

7. The manner in which the accounts of the Pension Fund shall be kept and investment of moneys belonging to Pension Fund to be made subject to such pattern of investment as may be determined by the Central Government.

8. The form in which an employee shall furnish particulars about himself and the members of his family whenever required.

9. The forms, registers and records to be maintained in respect of employees, required for the administration of the Pension Scheme.

10. The scale of pension and pensionary benefits and the conditions relating to grant of such benefits to the employees.

11. The manner in which the exempted establishments have to pay contribution towards the Pension Scheme and the submission of returns relating thereto.

12. The mode of disbursement of pension and arrangements to be entered into with such disbursing agencies as may be specified for the purpose.

13. The manner in which the expenses for administering the Pension Scheme win be met from the income of the Pension Fund.

14. Any other matter which is to be provided for in the Pension Scheme or which may be necessary or proper for the purpose of implementation of the Pension Scheme.]

1. Subs. by Act 25 of 1996, Sec. 8 (w.e.f. 16th November, 1995), for Sch. III.

¹ [SCHEDULE IV

[see Sec. 6-C)]

MATTERS TO BE PROVIDED FOR IN THE EMPLOYEES’ DEPOSIT-LINKED INSURANCE SCHEME

1. The employees or class of employees who shall be covered by the Insurance Scheme.

2. The manner in which the accounts of the Insurance Fund shall be kept and the investment of moneys belonging to the Insurance Fund subject to such pattern of investment as may be determined by order, by the Central Government.

3. The form in which an employee shall furnish particulars about himself and the members of his family whenever required.

4. The nomination of a person to receive the insurance amount due to the employee after his death and the cancellation or variation of such nomination.

5. The registers and records to be maintained in respect of employees; the form or design of any identity card, token or disc for the purpose of identifying any employee or his nominee or member of his family entitled to receive the insurance amount.

²[6. The scales of insurance benefits and conditions relating to the grant of such benefits to the employees.]

³ [7. * * * * *]

8. The manner in which the amount due to the nominee or the member of the family of the employee under the Scheme is to be paid including a provision that the amount shall not be paid otherwise than in the form of a deposit in a savings bank account, in the name of such nominee or member of family, in any corresponding new bank specified in the First Schedule to the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970).

9. Any other matter which is to be provided for in the Employees’ Deposit Linked Insurance Scheme or which may bib necessary or proper for the purpose of implementing that Scheme.]

1. Ins. by Act 99 of 1976, Sec. 38(w.e.f. 1^st August, 1976).

2. Subs. by Act 33 of 1988, Sec. 26 (w.e.f. 1^st August, 1988), for items 6 and 7.

3. Omitted by ibid.

APPENDIX I

LIST OF CLASSES OF ESTABLISHMENTS TO WHICH THE EMPLOYEES’ PROVIDENT FUND ACT HAS BEEN MADE APPLICABLE UNDER SEC. 1(3) (B)

S.No.

Name of cases of establishments

Notification number and date.

Date of application

Tea plantations (other than the tea plantations in the State of Assam).

S.R.O. 529 dated

13.2.1957

30.4.1957

Coffee plantation

-Do-

Rubber plantations

-Do-

Cardamom plantations

-Do-

Pepper plantations

-Do-

Iron ore mines

-Do-

Lime stone mines

S.R.O. 2705 Dated

30.11.1957

Manganese mines

-Do-

Gold mines

-Do-

10.

Coffee-curing establishments

S.R.O. 3411 Dated

16.10.1957

30.11.1957

11.

Road motor transport establishments

G.S.R. 399 Dated

24.3.1959

30.4.1959

12.

Mica mines

G.S.R. 313 Dated

5.3.1960

31.5.1960

13.

(a) Cane farm owned by a sugar factory.

(b) Every cane farm owned by the owner or occupier of a sugar factory or cultibated by such owner or occupier or any person on his bahalf.

G.S.R. 1274 Dated

21.10.1960

G.S.R. 1458 Dated

2.12.1961

30.11.1960

30.12.1961

14.

Hotels

G.S.R. 704 Dated

16.5.1961

30.6.1961

15.

Restaurant

-Do-

Establishments engaged in storage or transport or distribution of petroleum or natural gas.

G.S.R. 706 Dated

16.5.1961

30.6.1961

17.

Cinemas including preview theatres.

G.S.R. 827 Dated

16.6.1961

31.7.1961

18.

Film Studios

-Do-

19.

Film Production concerns

-Do-

20.

Distribution concerns dealing with exposed films.

-Do-

20-A.

(i) Plantation of tea (other than those in the State of Assam), and plantation of coffee, rubber, cardomom and mica mines.

G.S.R. 1013 Dated

29^th July, 1961

31.7.1961

(ii) Iron ore, lime stone, manganese, gold and mica mines.

-Do-

(iii) Coffee curing establishments.

-Do-

(iv) Road motor transport establishment.

-Do-

(v) Every cane farm owned by a sugar factory.

-Do-

21.

Film-processing laboratories

G.S.R. 827 Dated

19.6.1961

31.7.1961

22.

Trading and commercial establishments engaged in the purchase, sale or storage of any goods including establishments of exporters, advertisers, commission agents and brokers and commodity and stock exchanges, but not including banks or warehouses established under any Central or State Act.

G.S.R. 346 Dated

87.3.1962

30.4.1962

23.

Establishments engaged in the processing or treatment of wood including manufacturing of. –

(i) Hard board or chip board;

(ii)Jute or textile wooden accessories;

(iii)Cork products;

(iv)Wooden furniture;

(v)Wooden sports goods;

(vi)Cane or bamboo;

(vii)Wooden battery separators.

G.S.R. 1232 Dated

7.9.1962

-Do-

31.10.1962

-Do-

31.10.1962

-Do-

24.

Saw-mills

-Do-

25.

Wood-seasoning kilns

-Do-

26.

Wood-preservation plants

-Do-

27.

Wood work-shops

-Do-

28.

Bauxite mines

G.S.R. 1625 Dated

23.11.1962

31.12.1962

29.

Establishment engaged in laundry and laundry services.

G.S.R. 561 Dated

23.3.1963

30.4.1963

30.

Theatres where dramatic performance or other forms of entertainments are held and where for admission as audience or spectators.

-Do-

31.5.1963

31.

Societies, clubs or associations, which provide boarding or lodging or both or facility for amusement or any other service to any or their guests on payment.

-Do-

31.5.1963

32.

Companies, societies, associations, clubs or troupes which give any exhibition or acrobatic or other performances or both, in any arena, circus or otherwise or perform or permit any other form of entertainment in any place, other than a theatre and require payment for admission into such exhibition as spectators or audience.

-Do-

31.5.1963

33.

Canteens

G.S.R. 1285 Dated

29.7.1963

31.81963

34.

“Newspaper establishments”

S.R.O. 2981 Dated

4.12.1956

31.12.1956

35.

Confectionery industry

G.S.R. 424 Dated

28.2.1963

31.3.1963

36.

(1) Buttons.

(2) Brushes.

(3) Plastic and Plastic products.

(4) Stationery products.

G.S.R. 591 Dated

27^th March, 1963

-Do-

30.4.1963

-Do-

30.4.1963

-Do-

37.

China-clay mine

G.S.R. 823 Dated

22^nd May, 1964

30.6.1964

38.

Pickers Industry

G.S.R. 820 Dated

22^nd May, 1964

30.6.1964

39.

Every establishment of, -

G.S.R. 1398 Dated

17^th September, 1964

31.10.1964

(i) Attorneys, as defined in the Advocates Act, 1961 (25 of 1961).

-Do-

(ii) Charted or registered accountants, as defined in the Chartered Accountants Act, 1949 (31 of 1949).

-Do-

(iii) Cost and works accountants within the meaning of the cost and Works Accountants Act, 1959 (23 of 1959).

-Do-

(iv) Engineers and engineering contractors, not being exclusively engaged in building and construction industry.

-Do-

(v) Architects.

-Do-

(vi) Medical practitioners and medical specialists, in which twenty or more persons are employed.

40.

Travel agencies engaged in. –

G.S.R. 1796 Dated

19^th December, 1964

31.1.1965

(i) Booking of International Air and Sea passenger and other travel arrangements.

-Do-

(ii) Booking of international air and mail passages and other travel arrangements; and

-Do-

(iii) Forwarding and clearing of cargo from and to overseas and within India.

-Do-

41.

Forwarding agencies engaged in the collection, packing, forwarding or delibering any goods including carloading, break-bulk service and foreign freight service.

G.S.R. 1796 Dated

19^th December, 1964

3.1.1965

42.

Magnesite mines.

G.S.R. 1166 Dated

9^th August, 1965

31.8.1965

43.

Every stone quarry producing foof and floor slabs dimension stones, monumental stones and mosaic chips.

G.S.R. 1779 Dated

27^th November, 1965

31.12.1965

44.

Every establishment of . –

G.S.R. 107 Dated

6^th january, 1965

1.2.1965

(i) Tea plantations (other than the tea plantations in the State of Assam).

(ii) Rubber plantations.

(iii) Cardamom plantations.

-Do-

(iv) Pepper plantations and

-Do-

(v) Lime stone mines.

-Do-

45.

Every blank doing business in one State or Union Territory and Having no departments or branches outside that state that State or Union Territory.

G.S.R. 2 Dated

18^th December, 1965

31.1.1966

46.

Linoleum Industry and Induleum Industry.

G.S.R. 437 Dated

27^th March, 1967

30.4.1967

47.

Employees of Fire Works and percussion cap works industry

G.S.R. 1530 Dated

5^th October, 1967

31.10.1967

48.

Every establishment of, -

(i) Barytes mines.

(ii) Dolomite mines

(iii) Fireclay mines

(iv) Gypsum mines

(v) Kyanite mines

(vi) Silliminite mines

(vii) Steatite mines

G.S.R. 1560 Dated

7^th August, 1968

-Do-

31.8.1968

-Do-

49.

Every cinchona plantation

G.S.R. 2084 Dated

22^nd November, 1968

31.12.1968

50.

Diamond mine

G.S.R. 1508 Dated

28^th May, 1969

30.6.1969

51.

Every establishment of Paper (hand made paper)

G.S.R. 96 Dated

10^th January, 1970

1.2.1970

52.

Establishment which are exclusively or principally engaged in general insurance business.

G.S.R. 14 Dated

23^rd December, 1969

31.1.1970

53.

Establishments rendering expert services.

G.S.R. 805 Dated

17^th May, 1971

31.5.1971

54.

Railway booking agency run by the contractors or by other private establishments on commission bases.

G.S.R. 505 Dated

17^th March , 1972

31.3.1972

55.

Every mess. Not being military mess.

G.S.R. 299 Dated

15^th March, 1973

31.3.1973

56.

Hospital run by any individual, association or institution other than the establishment covered by Cl. (vi) of Notifn. No. G.S.R. 1398, dated 17^th September, 1964.

G.S.R. 1082 Dated

15^th September, 1973

31.8.1973

57.

Every establishment engaged in storing, cleaning and testing of cotton waste industry.

G.S.R. 1094 Dated

26^th September, 1974

30.9.1974

58.

All societies, clubs and associations, which render service to their members, without charging any fee over and above the subscription fee over and above the subscription fee for membership fee.

G.S.R. 1294 Dated

16^th November, 1974

30.11.1974

59.

Every garments making factory

G.S.R. 1295 Dated

23^rd November, 1974

30.11.1974

60.

(i) Agricultural Farms

(ii) Fruits Orchards

(iii) Botanical Gardens

(iv) Zoological Gardens

G.S.R. 1315 Dated

27^th November, 1974

-Do-

30.12.1974

-Do-

61.

Apatite mines, Asbestos mines Calcite mine; Ball clay mines, Corundum mines; Emerald mines; Feldspar mines; Silica (sand) mines; Quartz mines; Ochre mines; Chromite mines; Graphite mines and Gluorite mines.

G.S.R. 1102 Dated

6^th July, 1976

31.7.1976

62.

(i) Establishments which are factories engaged in the manufacture of glue and gelatine.

G.S.R. 204 Dated

31^st January, 1977

28.1.1977

(ii) Stone quarries producing stone ships, stone sets, stone boulders and ballasts.

-Do-

(iii) Establishments engaged in fish processing and non-vegetable food preservation industry including bacon factories and pork processing plants.

-Do-

63.

Any industry engaged in the manufacture of beedis

G.S.R. 660 Dated

17^th May, 1977

31.5.1977

64.

All financial Establishments (other than banks) engaged in the activities of borrowing, lending, advancing of money and dealing with other monetary transactions with a view to earn interest not being the Unit Trust of India established under the Unit Trust of India Act, 1963 (52 of 1963), the Agricultural refinance Corporation Act, 1963 (10 of 1963). The Industrial Development Bank of India established under the Industrial Development Bank of India Act, 1964 (18 of 1964), the Industrial Finance Corporation act, 1948 (15 of 1948), and State Finance Corporation established under the State Finance Corporation Act.

G.S.R. 1458 Dated

18^th November, 1978

31.12.1978

65.

Lignite mines.

G.S.R. 31 Dated

16^th December, 1978

6.1.1979

66.

Quartzite Mines.

G.S.R. 563, Dated

5^th May, 1980

31.5.1980

67.

All Inland Water Transport Establishments.

G.S.R. 565 Dated

5^th May, 1980

31.5.1980

68.

Building and Construction Industry.

G.S.R. 1069 Dated

23^rd September, 1980

31.10.1980

69.

Brick Industry.

G.S.R. 662 (E) Dated

27^th November, 1980

30.11.1980

70.

Establishment engaged in stevedoring loading and unloading of ships

G.S.R. 611 Dated

23^rd November, 1981

23.11.1981

71.

Poultry Farming

G.S.R. 643 Dated

7^th December, 1981

7.12.1981

72.

(i) Any University;

S.O. 986 Dated

19^th February, 1982

6.3.1982

(ii) Any College, whether or not affiliated to a University ;

-Do-

(iii) Any school, whether or not recognised or aided by Central or State Government.

-Do-

(iv) Any scientific institution;

-Do-

(v) Any institution in which research or any matter is carried on;

S.O. 986 Dated

19^th February, 1980

6.3.1982

(vi) Any other institution in which the activity of imparting knowledge or training is systematically carried on.

-Do-

73.

(i) Guar Gum Factories;

(ii) Marble mines; and

(iii)Diamond Saw Mills

G.S.R. 170 Dated

25^th March, 1992

-Do-

1.4.1992

-Do-

APPENDIX II

LIST OF INDUSTRIES/CLASSES OF ESTABLISHMENT IN RESPECT OF WHICH THE STATUTORY RATE HAS BEEN ENHANCED TO 10 PERCENT UNDER THE FIRST PROVISO TO SEC. 6

[NOTE. -This enhanced rate is applicable to factories/establishments employing 50 or more persons.]

¹From 31^st October 1962, -

(a) Establishments engaged in the processing or treatment of wood including manufacture of: -

(1) Hard Board or chip-board:

(2) Jute or textile wooden accessories;

(3) Cork products;

(4) Wooden furniture;

(5) Wooden sports goods;

(6) Cane or bamboo products;

(7) Wooden battery separators.

(b) Saw Mills

(d) Wood-preservation plants.

(e) Wood workshops

²From 1^st January, 1963:

Cigarettes;

Electrical, Mechanical or general

Engineering products;

Iron and steel;

Paper other than hand-made paper;

³From 1^st April, 1963:

Cement;

⁴From 1^st November, 1963:

Textiles (made wholly or in part of artificial silk and wool);

Matches;

Edible oils and fats, other than vanaspati;

Rubber and rubber products;

Electricity including the generation, transmission and distribution thereof;

Tea;

Printing (other than printing industry relating to newspaper establishments as defined in the Working Journalists (Conditions of Service and Miscellaneous Provisions) Act, 1955, including the process of composing types for printing, printing by letterpress;

Lithography, photogravure or other similar process or book-binding;

Glass;

Stonewares pipes;

Sanitary wares;

Electrical porcelain insulators of high and low tension;

Refractories;

Titles;

Heavy and fine chemicals, excluding fertilizers but including the following:

(1) Turpentine.

(2) Rosin.

(3)Medicinal and pharmaceutical preparations.

(4)Toilet preparations.

(5)Soaps.

(6)Inks.

(7)Intermediates, dyes colour lac and toners.

(8)Fatty acids, and

(9)Oxygen, acetylene and carbon dioxide gases;

⁵From 1^st December, 1963:

Indigo;

Non-edible vegetable and animals oils and fats;

Mineral oil refining;

⁶From 1^st January, 19865:

Newspaper establishments;

Textiles (made wholly or in part of cotton)

Industrial and power alcohol industry;

Tea plantations (other than the one in the State of Assam).

Rubber plantations;

Cardamom plantation;

Pepper plantations;

Lime-stone mines;

⁷From 1^st June, 1965:

Coffee plantations;

⁸From 1^st April, 1966;

Textiles made wholly or in part of natural silk;

⁹From 1^st June, 1966;

Road motor transport;

Automobile repairing and servicing industry;

Biscuit, bread, confectionery and milk, milk powder industries;

Plywood industry;

Rice/dal/flour milling industries.

¹⁰From 1^st August, 1966:

Sugar:

¹¹From 1^st January, 1967:

Hotels, Restaurants, Establishments engaged in storage or transport of petroleum or natural gas products, cinemas, film studios, film products/distribution concerns, film processing laboratories, starch, leather its products, stone-ware jars, crockery.

¹²From 1^st July, 1967:

Saw mills, wood seasoning kilns, wood preservation plants, wood workshops, trading and commercial establishment engaged in the purchase, sale, storage of goods, exporters, importers, advertisers, commission agents but not including banks, warehouses etc., bauxite, mines, laundry, theaters where dramatic performances, etc., are held, societies, clugs, associations which provide boarding/loading; troups, companies which give any exhibitioner entertainment to spectators or audience; confectionery; buttons; brushes; plastic and its products, stationery products, fruit and vegetable preservation industry engaged in the preparation industry/production of any of the following articles, namely :

(a) Canned and bottled fruits, juices, pulp.

(b) Canned and bottled vegetables.

(d) Jams, jellies, marmalades, etc.

(e) Tomato product ketchups, sauces, etc.,

(f) Squashes, beverages of fruit juice and fruit pulp.

(g) Chutneys.

¹³From 1^st January, 1969;

(a) Attorneys, as per Advocates Act, 1961, Chartered Accountants as per Chartered Accountants Act, 1949, Costs and Works Accountants as per Costs and Works Accountants Act, 1959, Engineers, Architects.

(b) Aerated water, soft drinks; distilling and rectifying of spirits, etc, blending of spirits paints and a varnishes.

¹⁴From 1^st March, 1970;

(a) Paper, edible oils, vanaspati.

(b) Establishments engaged in manufacture of textiles from jute.

¹⁵From 1^st May, 1970:

(i) Travel agencies engaged in. -

(a) Booking of national (internal) or international air, sea or mail passages, and other travel arrangements;

(b) Forwarding and clearing of cargo from and to overseas and within India;

(ii) Agencies engaged in collection, packing, forwarding or delivery of goods including break-bulk service and foreign freight service;

(iii) Magnesite mines;

(iv) Stone quarry producing roof and floor slabs, dimension and monumental slabs and mosaic chips;

(v) Non-ferrous metals and alloys in the form of ingots;

(vi) Agarbattee, Dhoop and Dhoopbattee.

¹⁶From 28^th February, 1973:

Mica Factory and Mica mines.

¹⁷From 7^th August, 1981:

Stemming, redrying, sorting, grading or packing of tabacco leaf.

¹⁸From 1^st September, 1983:

Banks doing business in one State/Union territory with no branches outside the State/Union territory, tobacco industry, paper products, explosives, jute bailing, fireworks, tent making and bone-crushing industries licensed salt, china clay mines, canteens, fertilisers, and medical practitioners, medical specialists.

¹⁹From 1^st July, 1984:

Iron ore, Manganese, Dolomite, Diomond Chromite and Graphite mines.

²⁰From 1^st May, 1985:

Iron ore, Manganese, Dolomite, Diamond Chromite and Graphite mines.

(a) Lac including shellac,

(b) Industries. –

(i) Linoleum,

(ii) Indoleum.

(iii) Ferro Manganese.

(iv) Ice and Ice cream.

(v) Winding of thread and yarn.

(vi) Cotton ginning, bailing and pressing.

(vii) Beer manufacturing.

(viii) Sorting, clearing and testing of cotton waste.

(ix) Ferro-chrome.

(x) Diamond-cutting.

(d) Garments making factories.

(e) Lignite mines.

(f) Establishments engaged in. –

(i) Manufacture of glue and gelatine.

(ii) Fish processing and non-vegetable food preservation.

(iii) Activities of borrowing, lending advancing of money, etc., with a view of earning interest.

NOTIFICATIONS UNDER EMPLOYEES’PROVIDENT PUND AND

MISCELLANEOUS PROVISIONS ACT, 1952

(19 of 1952)

G.S.R. 140, DATED 29^TH JANUARY, 1973¹. -In exercise of the powers conferred by the first proviso to Sec. 6 of the Employees’ Provident Funds and Family Pension Fund Act, 1952 (19 of 1952), the Central Government, after making necessary enquiry into the matter hereby, specifies every Mica Factory and Mica Mine in which fifty or more persons are employed, as an establishment to which the said proviso shall apply with effect from the 28th February, 1973.

1. Published in the Gazette of India, Pt. II, Sec. 3 (i), dated 29th January 1973.

S.O. 549 (E), DATED 16TH OCTOBER, 1973¹. -In exercise of the powers conferred by Sec. 14-AC of the Employees’ Provident Funds and Family Pension Fund Act, 1952 and in supersession of all previous notifications on the subject, the Central Government hereby authorises that the powers vested in the Central Provident Fund Commissioner under the provisions of the above said section shall also be exercisable in each of the regions specified in the Schedule by the respective Regional Provident Fund Commissioners in whose region the establishment is covered or has its Head Office.

This notification shall come into force on the first day of November, 1973.

1. Published in the Gazette of India, Pt. II, Sec. 3 (U), dated 16^th October 1973.

SCHEDULE

1. The State of Andhra Pradesh and Yanam area.

2. The States of Assam, Nagaland, Manipur, Tripura, and Meghalaya and Union territories of Mizoram and Arunachal Pradesh.

3. The State of Bihar.

4. The Union Territory of Delhi.

5. The State of Gujarat.

6. The State of Kerala and Union Territory of Laccadive, Minicoy and Amindivi Islands.

7. The State of Madhya Pradesh.

8. The State of Maharashtra and Union Territory of Goa, Daman and Diu.

9. The State of Mysore.

10. The State of Orissa.

11. The States of Punjab, Haryana and Himachal Pradesh and Union Territory of Chandigarh.

12. The State of Rajasthan.

13. The State of Tamil Nadu and the Union Territory of Pondicherry.

14. The State of Uttar Pradesh.

15. The State of West Bengal and the Union Territory of Andamans and Nicobar Islands.

S.O. 550 (E), DATED 16TH OCTOBER 1973. -In exercise of the powers conferred by Sec. 8 of the Employees’ Provident Funds and Family Pension Fund Act, 1952, Shri V.S. Desikachari, the Central Provident Fund Commissioner, hereby authorises the Regional Provident Fund Commissioners to exercise the powers vested in the Central Provident Fund Commissioner under the provisions of the above said section within each of the regions specified in the Schedule by the respective Regional Commissioners in whose region the establishment is covered or has its Head Office.

2. This notification shall come into force on the first day of November, 1973.

SCHEDULE

1. The State of Andhra Pradesh and Yanam area.

2. The States of Assam, Nagaland, Manipur, Tripura and Meghalaya and Union territories of Mizoram and Arunachal Pradesh.

3. The State of Bihar.

4. The Union Territory of Delhi.

5. The State of Gujarat.

6. The State of Kerala and Union Territory of Laccadive, Minicoy and Amindivi Islands.

7. The State of Madhya Pradesh.

8. The State of Maharashtra and Union Territory of Goa, Daman and Diu.

9. The State of Mysore.

10. The State of Orissa.

11. The States of Punjab, Haryana and Himachal Pradesh and Union Territory of Chandigarh.

12. The State of Rajasthan.

13. The State of Tamil Nadu and the Union Territory of Pondicherry.

14. The State of Uttar Pradesh.

15. The State of West Bengal and Union Territory of Andamans and Nicobar Islands.

G.S.R. 702, DATED 8^TH JULY, 1981¹. -In pursuance of Cl. (a) of sub-section (3) of Sec. 17 of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952), the Central Government hereby directs that the employers’ relation to establishments that have been granted exemption under sub-section (2-A) of Sec. 17 thereof, shall submit a monthly return to the Regional Provident Fund Commissioner by the 25th of the month following that to which it relates in the proforma set out in Schedule hereto annexed.

1. Published in the Gazette of India Pt. II, Sec. 3 (0, dated 25th July 1981.

SCHEDULE

Monthly return to be made by establishments exempted under Sec. 17 (2-A) of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, for the amount of…………………………….

Name of the establishment……………………………..

Code No……………………………………………….

Name of the private scheme sanction under which exemption granted.

1. Subscribers.

(i) Number of employees covered under the scheme on the last date of the previous month.

(ii) Number of employees covered during the month.

(iii) Number of employees left service during the month on account of cessation of employment.

(iv) Number of covered employees on the last day of the month.

(v) Total No. of employees in the establishment on the last day of the month.

2. Initial accumulations:

(i) Accumulations prior to the commencement of the Act.

(a) Total amount of accumulations prior to the commencement of the Employees’ Deposit-Linked Insurance Scheme, 1976.

(b) Amount invested out of (a).

(d) Amount transferred in securities and cash to the Board of Trustees and the date of transfer.

(e) Balance (a-d) Rs……………………..

Dated…………………

(ii) (a) Employer’s contributions from the date of the Employees’ Deposit-Linked Insurance Scheme, 1976, to the

preceding month:

(b) Amount transferred to the Board of trustees and the date of transfer.

Dated………………………

NOTE -Item 2 is required to be filled in when the return is made for the first time.

3. Wages and current contributions:

(i) Total amount of gross wages liable to Employees’ Deposit-Linked Insurance Scheme contributions (basic wages, dearness allowance, and retaining allowance) if any and cash value of food concessions admissible thereon.

(ii) (a) Current employers contribution during the month of Rs……..

Dated…………

(b) Amount of contributions transferred to the Board of Trustees and the date of transfer.

Dated…………

(d) Total balance indicating total arrears of Deposit-Linked Insurance dues transferable to the Board. Rs……………..

2 (i) (c) + 2 (ii) (c) + 3 (ii) (c) Rs……………..

4. Other income during months (interest on investments) Total.Rs…………….

5. Payments:

(a) Total amount of premium payable for the month of by the establishment in respect of employees covered under the scheme.

(b) Total amount paid as premium for the month with dates of payments.

(d) Total amounts paid as assurance benefits during the month:

(i) Number of cases involved.

(ii) Dates Of payments.

(e) Date of expiry of Insurance policies, if any, with details.

6. Amount available for investment:

(i) Uninvested amount brought forward from the preceding month.

(ii) Amount specified against item 3(ii)(a)

(iii) Amount specified against item 4.

(iv) Total of (i), (ii) and (iii).

(v) Less amount specified against item 5.

(vi) Less amount available for investment (iv-v)

(vii) Amount invested during the month and date of investment.

(viii) Amount lying uninvested at the end of month (vi-vii).

7. Investment during the month

(a) Central Government securities Rs……….

(b) State Government securities Rs………..

(d) Post Office Time Deposit Rs………….

(e) Special deposit Rs……………

Total (a+b+c+d) Rs……………

NOTE. - The aggregate of (a), (b), (c), (d), and (e) should tally with the amount specified against item 6 (vii).

8. Inspection charges:

(i) Past dues, if any Rs………………..

(ii) Dues for the month Rs…………………

(iii) Amount paid and the date of payment Rs……………….

(iv) Balance to be paid Rs…………………

Date……………………………

NOTE. -Details in item Nos. 2, 3, 4, 6 and 7 are not required to be filled in by establishments having General Insurance Scheme of the Life Insurance Corporation of India.

NO. F. 16 (I)-PD/75, DATED 30^TH JUNE, 1975¹. -The Government of India has introduced a Special Deposit Scheme for the benefit of non-Government provident, superannuation and gratuity funds. The scheme shall come into force from 1^st of July 1975.

1. Published in the Gazette of India Extraordinary, Pt. II, Sec. 1, dated 30^th June, 1975

2. BLIGLBLEJTY. -The following categories of funds, hereafter referred to as eligible funds, will be permitted to invest, to the extent laid down in para.3 below their current accretions, that is to say, moneys contributed or received to the credit of the eligible funds on transfer, maturity or realization of any security or deposit belonging to the funds including interest earned thereon and sundry receipts, as reduced by obligatory outgoing therefrom;

(i) Provident funds established under the Employees’ Provident Funds and Family Pension Fund Act, 1952 (19 of 1952)-both of exempted establishments, administered by the Boards of Trustees of those funds and the Employees’ Provident Fund or unexempted establishments administered by the Central Board of Trustees through the Central Provident Fund Commissioner;

(ii) Provident funds recognized by the Commissioner of Income-tax in accordance with the rules contained in Part A of the Fourth Schedule to the Income-tax Act, 1961 (43 of 1961), and superannuation and gratuity funds approved under rules contained in Part B or Part C, as the case may be, of the Fourth Schedule to the Income-tax Act, 1961;

(iii) Non-Government provident funds to which the Provident Funds Act, 1952 (19 of 1952), applies or which are established by any other Central Act and whose moneys are invested in accordance with the scheme laid down in the notification of the Government of India in the Ministry of Finance, Department of Economic Affairs No. F. 12 (7)-PD/71, dated 29th October, 1974, read with Notification No. F. 12 (14- PD/75), dated 30th June, 1975.

3. LIMIT ON INVESTMENTS. -The aforesaid eligible funds may invest up to twenty percent of their monthly accretions, as defined earlier, in the form of interest-bearing deposits under the Special Deposit Scheme. If investment by an eligible fund in a month is less than the prescribed limit, for whatever reason, the fund will be eligible to make up that short investment in the following month. Investments in all cases shall be in multiples of Rs. 100 in cash or by cheque or bank draft in favour of one of the deposit offices mentioned in para. 4 below.

4. DEPOSIT OFFICFS. -Deposit will be accepted at-

(i) Offices of the Reserve Bank of India at Ahmedabad, Bangalore, Bombay, Calcutta, Hyderabad, Kanpur, Madras, Nagpur, New’ Delhi Patna; and

(ii) All branches of the State Bank of India, subsidiaries of the State Bank of India and corresponding new banks constituted by the Banking C (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970).

5. Applications for opening an account may be made at any of the deposit offices mentioned in para. 4 above by the authority controlling the eligible fund in Form A together with a challan in Form B, in duplicate, for the amount of the initial deposit. Subsequent deposits will be made at the same deposit office along with the challan in Form B.

6. Interest. -Interest will be allowed on the summations of monthly balance of the deposit at the rate of 10 percent per annum. For this purpose, the minimum balance between the tenth and the last date of the month shall be taken into account. Interest will be paid on the 31^st December each year, provided that in case of refunds of a deposit before the termination of the scheme, stipulated in para.9 below, interest for any remaining period will be paid along with the amount of the deposit:

PROVIDED, however, the rate of interest specified above is liable to be changed and may be altered by the Central Government at any time without previous notice, if in the opinion of the Government of India, such a modification becomes necessary. Any alteration in the rate of Interest will, however, be applicable prospectively as from the date to be announced by the Central Government in this behalf.

7. Payment of interest will be made by the deposit office by means of a cheque of payment order marked “Account Payee only” drawn in favour of the authority administering the eligible fund.

8. Interest and deposits will be free of income-tax under the Income-tax Act, 1961.

9. REFUNDS OF DEPOSIT. -Refund of deposits, before their payment becomes due as per para. 11 below, will be allowed, on application, made in this behalf, by the trustees or administrator of an eligible fund to the deposit office at which the deposit is held, in the event of-

(a) The winding up of the related establishment followed by the disposal and realization of the fund’s investments for settlement of the claims on the fund by the employees; or

(b) Obligatory payments by an eligible fund in any month exceeding the accretions to the fund in that month.

Refunds will be permitted to the extent of the amount standing to the credit of the eligible fund If it is being wound up or to the extent of the excess of the obligatory payments over the accretions to the fund, as the case may be.

10. PERIOD OF DEPOSIT. -The scheme will remain in force till the 30th June, 1985, but may be continued for a further period till such later date as may be specified in this behalf by the Central Government. In the event of the extension of the scheme beyond the period aforesaid, the eligible funds having deposit accounts under the scheme will have the option to claim repayment of the deposits or keep them invested under the scheme:

PROVIDED that the Central Government reserves to itself the right to terminate the scheme at its option after giving three months’ notice, if at any time In the future this is considered necessary or desirable so to do in the public interest.

11. REPAYMENT. -In the event of the amount standing to the credit of any eligible fund becoming repayable after the 30th June, 1985, or on the expiry of such attended period, if any, as may be announced in this behalf by the Central Government or on the expiry of the period of notice, the amount outstanding shall be repaid in five equal annual instalments starting from the date on which the repayments becomes due, interest being payable on the amounts outstanding from time to time thereafter at the rate and in the manner specified in para. 6.

12. TRANSFERABILITY. -Transfer of the deposit account from one deposit office to the another deposit office will not be permissible, except in case of-

(a) The grant or withdrawal of exemption to an establishment under the provisions of Employees’ Provident Funds and Family Pension Fund Act, 1952, or

(b) The reconstruction of an establishment or amalgamation with another establishment in circumstances necessitating the transfer of the entire fund balance to another fund maintained at another office of the same or another depositee bank. Applications for transfer in the aforesaid circumstances may be made by a fund to the deposit office, which holds the deposit of that fund.

13. PASS BOOKS. -Pass Books will be issued by each deposit office to the authority administering an eligible fund for which an account has been opened by that office under the scheme. The passbook will have to be presented whenever any subsequent deposit is made. For collection of interest or refund of any portion or whole of the deposit, the passbook will be lodged with the deposit office a week in advance of the due date.

In the event of loss or destruction of a passbook issued by the deposit office the deposit office may, on application made to it in this behalf and on payment of two rupees, issue a duplicate thereof.

14. CFRTIFICATE OF BALANCE. -At the end of each financial year ending 31st March, each deposit office will furnish to the authority administering an eligible fund or which it holds a deposit, a certificate (in duplicate) of the balance at the credit of that fund at the end of the year. The authority administering the eligible fund will return one copy to the deposit office after verification, either accepting the entries in the statement or pointing out discrepancies, if any, in those entries for rectification, as the case may be.

15. The scheme, which is applicable only to eligible funds as defined in para. 2 above, is intended to enable the subscribers to these funds to get the benefit of higher interest rates on their subscription to these funds, having regard to the rates allowed on comparable funds which are directly administered by the Central and State Governments. Provision has been made for the administration of the scheme in a decentralized manner through the agency of the commercial banks with which accounts are already being maintained by the trustees or administrators of the funds concerned. Further details may be obtained from the deposit offices or any Regional Provident Fund Commissioner.

FORM A

APPLICATION FOR OPENING AN ACCOUNT UNDER

THE SPECIAL DEPOSIT SCHEME

..............................................

(Name of Deposit office)

..............................................

(Station)

Specific Deposit Scheme-Opening of Account

* * * * * * *

Provident/Superannuation/Gratuity Fund

Dear Sir,

I/We, as the controlling authority of the under-mentioned fund, tender herewith Rs................ (In words and figures) in **cash/by cheque/bank d initial deposit for opening account at your office/branch, under tile Special Deposit Scheme:

1. Name of the fund and address.

2. Name of the controlling authority, by designation.

***3., Code No., if any.

2. A copy of the Resolution of the Board of Trustees/Articles of Association relevant to the administration of the fund is enclosed.

Yours faithfully,

Signature and seal of Controlling

Authority of the Fund.

Station……………………….

Date………………………….

ACKNOWLEDGMENT

Received an application for opening of Special Account in the name of…………………(fund’s name) along with an Initial deposit of Rs………..In cash/by cheque/bank draft.

Date Stamp

Signature

Branch Manager

Seal

To be submitted in duplicate.

FORM B

CHALLAN CENTRAL

SPECLIL DEPOSIT SCHEME

Deposit made with

..............................

(Name of the Bank)

At………………….

(Station)

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Part I – (To be filled by th remitter)

1. Name and Designation of Trustee/Administrative of eligible fund:

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2. Amount*

(In figures) Rs.

(In words) Rupees.

Paid in cash

-----------------------------------------

By cheque/Demand Draft No…………………………..drawn on……………….

*To be multiples of rupees one hundred.

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3. Head of Account: 812 – Special Deposits Account -

Special Deposit by provident.

Superannuation and gratuity funds.

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4. *Certified that the amount tendered for deposit is within the prescribed limit for investment under the Special Deposit Scheme of fund’s accretions (Rs…………….) during the month of………………….

*Certified that the amount tendered exceeds the prescribed limit for investment under the Special Deposit Scheme of fund’s accretion (Rs………) during the month of ………….to the extent of short investment made in the previous month.

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*Delete not applicable

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5. Signature of authority administering the fund………………………………………

Seal

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6. Paid by……………………………

(Name and Signature)

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Part II - To be filled in by the Deposit Office

Received payment:

(In words)

In cash/by cheque/Demand Draft.

Date Stamp

Signature

Branch Manager

Seal

NO. F. 12 (14)-PDI 75. -In the notification of the Government of India in the Ministry of Finance, Department of Economic Affairs No. F. 12 (7)-PD-71, 29th October, 1974, the pattern of investment to be followed by provident I superannuation funds and gratuity funds, in order to be eligible to invest money. in Post Office Time Deposits, had been prescribed.

2. In so far as any non-Government provident fund to which the Provident Fund Act, 1952 (19 of 1652), applies or which is established by a Central Act, other than the Employees’ Provident Fund and Family Pension Fund Act, 1952 (19 1952), the investment, pattern prescribed in the aforementioned notification she with effect from I st July, 1975, be substituted by the following:

INVESTMENT PATTERN

(i) Government securities as defined in Sec. 2 of the Public Debt Act, 1944 (18 of 1944), created and issued by the Central Government

Not less than 25 percent

(ii) Government securities as defined in Sec. 2 of the Public Debt Act, 1944 (18 of 1944), created and issued by any State Government

Not less than 5 percent

(iii) Any other negotiable securities, the principal whereof and interest whereon is fully and unconditionally guaranteed by the Central Government or any State Government

Not less than 20 percent

(iv) Seven-year National Savings Certificates (Second Issue and Third Issue) or Post Office Time Deposits

Not exceeding 30 percent

(v) Special Deposit Scheme introduced by notification of the Government of India in the Ministry of Finance, Department of Economic Affairs, No. F. 16(l)-PD/75, dated 30th June, 1975

Not exceeding 20 percent

At the time of making an investment in Post Office Time Deposits or under the Special Deposit Scheme, the authority administering the fund will furnish a certificate to the post office or the deposit office, as the case may be, that the investment pattern prescribed by the Government has been followed.

S.O. 334 (E), DATED 30^TH APRIL, 1976¹. -In exercise of the powers conferred by Cl. (a) of sub-section (3) of Sec. 17 of the Employees’ Provident Funds and Family Pension Fund Act, 1952 (19 of 1952), and in continuation of the notification of the Government of India, in the Ministry of Labour No. S.O. 264 (E), dated 31st March, 1976, the Central Government hereby directs that every employer in relation to an establishment exempted under Cl. (a) or Cl. (b) of sub-section (1) of Sec. 17 of the said Act or in relation to any employee or class of employees exempted under para. 27, or as the case may be, para 27-A of the Employees’ Provident Fund Scheme, 1952, shall transfer the monthly provident fund contributions in respect of the establishment, or as the case may be, of the employee or class of employees within fifteen days of the close of the month, to the Board of Trustees, duly constituted in respect of that establishment, and that the said Board of Trustees shall invest every month, within a period of two weeks from the date of receipt of the said contributions from the employer, the provident fund accumulations in respect of the establishment, as the case may be, of the employee, or class of employees, that is to say, the contributions, interest and other receipts as reduced by any obligatory outgoings in accordance with the following pattern, namely

(i) Government securities as defined in Cl. (2) of Sec. 2 of the Public Debt Act, 1944 (18 of 1944), created and issued by the Central Government.

Not less than 25 percent

(ii) Government securities as defined in Cl. (2) of Sec. 2 of the Public Debt Act, 1944 (18 of 1944), created and issued by the State Government

Not less than 25 percent

(iii) Any other negotiable securities or bonds, the principal whereof and interest whereon is fully and unconditionally guaranteed by the Central Government or any State Government

Not less than 25 percent

(iv) Seven-year National Savings Certificates (Second Issue and Third Issue) or Post Office name Deposits

Not exceeding 30 percent

(v) Special Deposit Scheme introduced by notification of the Government of India in the ministry of Finance, Department of Economic Affairs, No. F. 16(l)-PD/75, dated 30th June 1976.

Not exceeding 20 percent

The above pattern will be in force for the period from 1st May 1976 to 30th June 1976.

2. All re-investments of provident fund accumulations shall also be made Wording to the pattern mentioned in para. I above.

3. The Board of Trustees shall formulate proper procedure for prompt investment or re-investment of accumulations in accordance with the aforesaid direction.

1. Published in the Gazette of India, Extraordinary, Pt. 11, Sec. 3 (i), dated 30^th April 1976.

S.O. 335 (E), DATED 30TH APRIL, 1976¹. -In exercise of the powers conferred by i-paragraph (1) of para. 52 of the Employees’ Provident Funds Scheme, 1952, in continuation of the notification of the Government of India, in the Ministry of Labour S.O. 265 (E), dated 31st March, 1976, the Central Government hereby directs I all monies belonging to the fund shall be invested in accordance with the following pattern, namely:

(i) Government securities as defined in Cl. (2) of Sec. 2 of the public Debt Act, 1944 (18 of 1944), created and issued by the Central Government

Not less than 25 percent

(ii) Government securities as defined in Cl. (2) of Sec. 2 of the Public Debt Act, 1944 (18 of 1944)” created and issued by the State Government

Not less than 25 percent

(iii) Any other negotiable securities or bonds, the principal whereof and interest whereon is fully teed by the Central and unconditionally guaranted by the Central Government or any State Government

Not less than 25 percent

(iv) Seven-year National Savings Certificates (second Issue and Third Issue) or Post Office Time Deposits.

Not exceeding 30 percent

(v) Special Deposit Scheme introduced by notification of the Government of India in the Ministry Of Finance, Department of Economic Affairs, No. F. 16(1)-PD/75, dated 30th June, 1975

Not exceeding 20 percent

The above pattern will be in force for the period from 1^st May 1976 to 30^th June 1976.

2. All re-investment of provident fund accumulations shall also be made according to the pattern mention, in para 1 above.

1. Published in the Gazette of India, Extraordinary, Pt. 11, Sec. 3 (i), dated 30^th April 1976.

G.S.R. 479 (E), DATED 7^TH AUGUST 1981¹. –In exercise of the powers conferred by the first proviso to Sec. 6 of the employees Provident Funds and Miscellaneous Provisions Act, 1952), the Central Government, after making necessary enquiry into the matter, hereby specifies with effect from the date of publication of this notification, every establishment, which is engaged in the stemming or redrying of tobacco leaf industry, that is to say, any industry engaged in the stemming, redrying, handling, sorting, grading or packing of tobacco leaf and in which fifty or more persons are employed, as an establishment to which the said proviso shall apply.

1. Published in the Gazette of India, Extraordinary, Pt.II Sec.3 (i), dated 7^th August 1986.

S.O. 749, DATED FEBRUARY, 1986¹. – In pursuance of paragraph 28-A of the Employees Family Pension Scheme, 1971, the Central Government hereby makes the following amendment in the notification of the Government of India in the Ministry Labour S.O. No. 1607, dated the 28^th March, 1985, namely:

1. Published in the Gazette of India, Pt.II Sec.3 (i), dated 22nd February, 1981.

“In paragraph 2, the words “subject to the condition that the total amount of pension (including supplementary additions) shall in no case exceed last pay drawn” shall be omitted.”

S.O. 753, DATED 12^TH FEBRUARY 1986¹. –In exercise of the powers conferred by sub-section (2) of Sec.16 of the Employees Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952), the Central Government hereby exempts all departmental undertakings under the State Governments of Himachal Pradesh and Punjab whose employees are in receipt of provident fund and pension benefits as admissible under the Government as a class, from the operation of the provisions of the Act for a period of three years with effect from the March 1986.

1. Published in the Gazette of India, Pt.II Sec.3 (i) dated 22nd February, 1986.

S.O. 868 DATED 12^TH FEBRUARY 1986¹. – In exercise of the powers conferred by sub-section (2) of Sec.16 of the Employees provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952), and in continuation of the notification of the late Ministry of Labour and Rehabilitation (Department of Labour) No. S.O. 34 (E), dated the 20^th January,1983, the Central Government hereby exempts all departmental undertakings under the Central Government whose employees are in receipt of provident fund and pension benefits as admissible under the Government rules as a class from the operation of the provisions of the said Act for a further period of three years with effect from the 20th January, 1986.

1. Published in the Gazette of India, Pt.II Sec.3 (i) dated 22nd February, 1986.

S.O. 111 (E), DATED 24TH MARCH, 1986¹. -In exercise of the powers conferred by sub-paragraph (1) of para. 52 of the Employees’ Provident Funds Scheme, 1952 and in supersession of the notification of the Government of India in the Ministry of Labour No. S.O. 929 (E), dated the 31st December, 1985, the Central Government hereby directs that all moneys belonging to the funds shall be, invested in accordance with the following pattern, namely:

(i) (a) Government securities as defined in Sec. 2 of the Public Debt Act, 1944 (18 of 1944), created and issued by the

Central Government.

Not less than fifteen percent

(b) Any other negotiable securities the principal whereof and interest whereon is fully and unconditionally guaranteed by the Central Government or any State Government.

(ii) Special Deposit Scheme introduced by the notification of Government of India in the Ministry of Finance, Department of Economic Affairs No. F. 16 (I)-PD/75, dated the 30^th June, 1975, as extended by Notification No. F. 16 (8)-PD/84, dated 12^th June 1985.

Not exceeding 85 percent

2. At the time of making an investment in the Special Deposit Scheme, the authority administering the fund shall furnish a certificate to the deposit office, that the investment pattern prescribed by the Government has been followed.

3. Where any moneys are received on the maturity of earlier investments, made under the pattern in force upto 31^st March 1986, such moneys reduced by obligatory outgoings shall be reinvested in accordance with the new pattern of investment prescribed in this notification.

4. The above pattern of investment shall come into force with effect from the lst April 1986.

1. Published in the Gazette of lndia, Extraordinary, Pt. II, Sec. 3(ii), dated 24^th March 1986.

S.O. 112 (E), DATED 24TH MARCH, 1986¹. -In exercise of the powers conferred by Cl. (a) of sub-section (3) of Sec. 17 of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952), and in supersession of the Notification of the Government of India, Ministry of Labour No. S.O. 928 (E), dated 31-12.1985, the Central Government hereby directs that every employer in relation to an establishment exempted under Cl. (a) or (b) of sub-section (1) of Sec. 17 of the said Act or in relation to any employee or class of employees exempted under paragraph 27, or as the case may be, paragraph 27-A of the Employees’ Provident Funds Scheme, 1952, shall transfer the monthly provident fund contributions in respect of the establishment or as the case may be of the employee or class of employees within fifteen days of the close of the month to the Board of Trustees, duly constituted, in respect of the establishment, and that the said Boards of Trustees shall invest every month within a period of two weeks from the date of receipt of the said contributions from the employer, the provident fund accumulation in respect of the establishment or as the case may be, of the employee, or class of employees, that is to say, the contributions, interest and other receipts as reduced by any obligatory outgoings, in accordance with the following pattern, namely. -

1. Published in the Gazette of India, Extraordinary, Pt. II, Sec. 3(ii), dated 24^th March 1986.

(i) (a) Government securities as defined in Sec. 2 of the Public Debt Act, 1944 (18 of 1944), created and issued by any State Government.

(b) Any other negotiable securities the principal whereof and interest whereon is fully and unconditionally guaranteed by the Central Government or any State Government.

(ii) Special Deposit Scheme introduced by the notification of Government of India in the Ministry of Finance, Department of Economic Affairs No. F. 16 (l)-PD/75, dated the 30th. June, 1975, as extended by Notification No. F. 16 (8)-PD/84,

3. Where any moneys are received on the maturity of earlier investments made under the pattern in force upto 31st March, 1986 such moneys reduced by obligatory outgoings shall be reinvested in accordance with the new investment pattern prescribed in this notification.

4. The above pattern of investment shall come into force with effect from the lst April, 1986.

S.0. 105 1, DATED 2^ND APRIL, 1987¹. -In pursuance of Cl. (a) of sub-section (3) of Sec. 17 of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952), the Central Government hereby makes the following amendment in the notification of the Government of India in the Ministry of Labour (Department of Labour) No. S.O. 3469, dated the 22^nd August 1983, published in the Gazette of India, Part 11, Sec. 3, sub-section (i), dated 3^rd September 1983, namely:

In the said notification,-

1. In Item 7 in Cl. (b), -

(a) In sub-clause (i), for the words “Central Government securities the words “State/Central Government securities” shall be substituted;

(b) In sub-clause (i), for the words “State Government/Government guaranteed securities”, the words “State Government/Central Government guaranteed securities” shall be substituted;

(c) After sub-clause (v), and before the bracket and words “(Nature of securities and deposits to be specified)” the following shall be inserted, namely.

(vi) “Others Rs………”

2. For item 1 0 the following shall be substituted, namely:

“ 10 Investments”

(a) Net amount available for Investment (8-9) (C) Rs……………..

(b) Amount shown against (a) allocated for Investment according to the prescribed pattern of investment

(i) State Government/securities Rs…………….

(ii) State Government/Central Government guaranteed securities Rs……………..

(iii) Special Deposit Scheme Rs……………..

(iv) Others Rs……………..

3. In Item II, -

(a) In Cl. (i), for the words “Central Government securities”, the words “State Government/Central Government securities” shall be substituted;

(b) In Cl. (i), for the words “State Government/Government guaranteed securities”, the words “State Government/Central Government guaranteed securities” shall be substituted:

4. In Item 14, in Cl. (a), after the words “name of other than the”, the word ‘Trust” shall be inserted.

1. Published in Gazette of India, Pt. II. Sec. 3(i), dated 18th April 1987.

S.O. 875 (E), DATED IST OCTOBER, 1987¹. -In exercise of the powers conferred by Cl. (a) of sub-section (4), of Sec. 6-C of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952), and in supersession of the notification of the Government of India in the Ministry of Labour No. S.O. 503 (E), dated the 28th July, 1976, the Central Government hereby specifies 0.01 percent of the aggregate of the basic wages, dearness allowance (including the cash value of any food concession) and retaining allowances, if any, payable for the time being by the employer in relation to his employee as the further sum payable by the employer every month to the Deposit Linked Insurance Fund for meeting the expenses in connection with the administration of the Insurance Scheme other than the expenses towards the cost of any benefits provided by or under that scheme.

2. This notification shall come into force with effect from Ist October, 1987.

S.O. 360 (E), DA7ED 17TH MAY, 1989. -In exercise of the powers conferred by the ftrst proviso to Sec. 6 of the Employees’ Provident Funds and Miscellaneous Provisions, Act, 1952 (19 of 1952), the Central Government hereby specifies, with effect from the 1^st day of June, 1989, every establishment in the industries specified in the Schedule annexed hereto and the classes of establishments specified in the said Schedule, as the establishments and classes of establishments to which the said proviso shall apply:

PROVIDED that nothing contained in this notification shall apply to:

(i) Any establishment In which less than 50 persons are employed;

² [(ii) Any sick industrial company, as defined in Cl. (o) of sub- section (1) of Sec. 3 of the Sick Industrial Companies (Special Provisions) Act, 1985 (1 of 1986) and declared as such by the Board for Industrial and Financial Reconstruction established under Sec. 4 of the Act, for the period commencing on and from the date of registration of the reference in the Board and ending either on the date by which the net worth of the said company becomes positive in terms of the orders passed under sub-section (2) of Sec. 17 or on the last date of implementation of the scheme sanctioned under Sec. 18 of the Act as the case may;]

²[(iii) Any other establishment which has at the end of any financial year of accumulated losses equal to or exceeding its entire net worth, that is, the sum total of paid-up capital and free reserves and has also suffered cash losses in such financial year and the financial year immediately preceding such financial year.]

Explanation.-For the purposes of Cl. (iii) “cash loss” means loss as computed without providing for depreciation.

1. Published in Gazette of India, Pt. II, Sec. 3 (i), dated 1^st October 1987.

2. Subs. by S.O. 1837 dated 29th June 1990.

SCHEDULE

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Sl. No. Name of industry engaged in the manufacture of thefollowing products or class of establishments

1. Cement

2. Cigarettes

3. Electrical, mechanical or general engineering products

4. Iron and steel

5. Matches ¹[other than hand-made matches)

6. Edible oils and fats, including vanaspati

7. Sugar

8. Rubber and rubber products

9. Electricity including the generation, transmission and distribution thereof.

10. Tea

11. Printing including the process of composing types for printing by letterpress, lithography, photogravure or other similar process of book-binding.

12. Glass

13. Stoneware pipes

14. Sanitary wares

15. Electrical porcelain insulators of high and low tension

16. Refractories

17. Tiles.

18. Heavy and fine chemicals including the following:

(a) Fertilizers;

(b) Turpentine;

(d) Medical and pharmaceutical preparations;

(e) Toilet preparations; Soaps;

(g) Inks;

(h) Intermediates, dyes, colour lacs and toners

(i) Fatty acids; and

(j) Oxygen, Acetylene and Carbon-di-oxide gases.

19. Indigo

20. Lac including shellac

21. Non-edible vegetable and animal oils and facts

22. Mineral oil refining

23. Industrial and power alcohol

24. ²[Asbestos Cement] sheets

25. Biscuit-making industry, including composite units making biscuits and products, such as, bread, confectionery and milk powder

26. Mica

27. Plywood

28. Automobile repairing and servicing

29. Rice Milling

30. Flour milling

33. Petroleum r natural gas exploration, prospecting, drilling, production or refining

34. Leather and leather products

35. Stoneware jars.

36. Crockery

37. Fruit and vegetable Preservation industry, that is to Say, any industry that is engaged in the preparation or production of any of the following articles, namely:

(i) Canned and bottled vegetables;

(ii) Canned and bottled fruits and pulps;

(iii) Frozen fruits and vegetables;

(iv) Jams, jellies and marmalades:

(v) Tomato products, ketchups and sauces;

(vi) Squashes, crushes, cordials and ready-to-serve beverages or any other beverages containing fruit juice or fruit pulp;

(vii) Preserved, candied and crystallised fruits and peals;

(viii) Chutneys;

(ix) Any other unspecified item relating to the preservation or canning of fruits and vegetables.

38. Confectionery

39. Buttons

40. Brushes

41. Plastic and plastic products

42. Stationery products

43. Aerated water, soft drinks or carbonated water.

44. Distilling and rectifying of spirits (not falling under industrial and power alcohol) and blending of spirits

45. Paint and varnish

46. Bone crushing

47. Pickers

48. Milk and milk products.

49. Non-ferrous metals and alloys in the form of ingots.

50. Stemming, re-drying, handling, sorting, grading or packing of tobacco leaf.

51. Agarbattee (including dhoop and dhoopbattee)

52. Tobacco Industry, that is, any industry engaged in the manufacturing of cigars, zarda, snuff, quivam and guraku from tobacco

53. Paper including hand-made paper and other paper products

54. Licensed salt

55. Linoleum and Indolcum

56. Explosives

57. Fire works and percussion cap works

58. Tent making

59. Ferro manganese

60. Ice and ice cream

61. Winding of threads and yarn reeling

62. Beer manufacturing

63. Ferro Chrome

64. Diamond cutting

65. Myrobalan extracts powder, myrobalan extract solid and vegetable tenninblended extract.

66. Plantations :

(a) Tea (other than tea plantations in the State of Assam)

(b) Coffee;

(d) Pepper; and

(e) Rubber.

67. Mines:

(a) Bauxite,

(b) China Clay;

(d) Diamond;

(e) Dolomite;

(p Graphite;

(g) Iron Ore;

(h) Lignite;

(i) Lime stone;

(j) Magnesite;

(k) Manganese; and

(k) Mica.

68. Coffee-curing establishments

69. Newspaper establishments, as defined in the Working Journalists (Conditions of Service and Miscellaneous Provisions) Act, 1955.

70. Road Motor transport establishments

71. Cane farms, owned by the owner or occupier of a sugar factory or cultivated by. such owner or occupier or any person on his behalf.

72. Hotels

73. Restaurants

74. Establishments engaged in the storage, transport, or distribution of petroleum or natural gas or products of either petroleum or natural gas.

75. Cinemas including preview theatres, film studios, film production concerns, distribution concerns dealing with exposed films and film-processing laboratories.

76. Trading and commercial establishments engaged in the purchase, sale, or storage of any goods, including establishments of exporters, importers, advertisers, commission agents and brokers and commodity and stock exchanges, but not including banks or warehouses established under any Central or State Act.

77. Establishments engaged in the processing or treatment of wood including manufacture of hardboard or chipboard jute or textile wooden accessories, cork products, wooden furniture, wooden sports goods, cane or bamboo products, wooden battery separators.

78. Saw Mills, wood seasoning kilns, wood preservation plants and wood workshops.

79. Laundry and laundry services

80. Theatres where dramatic performances, or other forms of entertainments are held and where payment is required to be made for admission as audience or spectators

81. Societies, clubs and associations which provide boarding or lodging or both or facility for amusement or any other service to any of their members or to any of their guests on payment.

82. Companies, Societies, Associations, Clubs or troupes which give any exhibition of acrobatic or other performances or both, in any arena circus or otherwise or performed or permit any other form of entertainment in any place, other than a theatre, and require payment for admission into such exhibition or entertainment as spectators or audience

83. Canteens

84. Attorneys, as defined in the Advocates Act, 1961 (25 of 1961)

85. Chartered or registered accountants, as defined in Chartered Accountants Act, 1949 (38 of 1949)

86. Cost and Works Accountants within the meaning of the Cost and Works Accountants Act, 1959 (23 of 1959)

87. Engineer and engineering contractors, not being exclusively engaged in building and construction industry

88. Architects

89. Medical practitioners and medical specialists

90. Travel agencies engaged in (i) booking of international air and sea passages and other travel arrangements, (ii) booking of internal air and mail passages and other travel arrangements, and (iii) forwarding and clearing of cargo from and to overseas and within India.

91. Forwarding agencies engaged in the collection, packing, forwarding or delivery of any goods including carloading break-bulk service and foreign freight service.

92. Stone quarries producing roof and floor slabs dimension stones, monumental stones and mosaic chips

93. Banks doing business in one State or Union Territory and having no branches or departments outside the State 6r Union Territory.

94. Establishments engaged in sorting, clearing and testing of cotton waste industry.

95. Garments making factories

96. Establishments, which are factories, engaged in the manufacture of glue and gelatine

97. Establishments engaged in fish processing and non-vegetable food preservation industry including bacon factories and pork processing plants.

98. Financial establishments (other than banks, doing business In more than one State or Union Territory, Unit Trust of India, Agricultural Refinance Corporation, Industrial Development Bank of India, Industrial Finance Corporation of India and State Finance Corporations) engaged in the activities of borrowing, lending, advancing of money and dealing with other monetary transactions with a view to. earn interest.

³ [99. Textiles (made wholly or in part of cotton or wool or silk whether natural or artificial).]

1. Ins. by S. O. 1837, dated 29th June 1990.

2. Subs. by ibid.

3. Subs. by S.O. 126 (E), dated I st March. 1995 (w.e.f. 1^st March, 1995).

S.0. 2432, DATED THE 26TH AUGUST, 1987¹. -In exercise of the powers conferred by sub-section (2) of Sec. 16 of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952), and in continuation of the notification of the Government of India in the late Ministry of Labour and Rehabilitation (Department of Labour), S.O. No. 2911, dated the 2lst August, 1984, the Central Government after having regard to the circumstances of the case, is of the opinion that it is expedient so to do, hereby exempts the following classes of establishments from the operation of the Act for a further period of three years with effect from 1st November, 1987, subject to the conditions specified therein, namely

1. Published in the Gazette of India. Pt. 11, Sec. 3 (ii) dated 12th September 1987.

THE SCHEDULE

PARTICULARS OF ESTABLISHMENTS

1. All establishments (including universities) which have been set up under either an Act of Parliament or of State Legislature and whose employees are in receipt of contributory provident fund, family pensions and deposit-linked insurance or non- contributory provident fund, pension and deposit-linked insurance in accordance with the rules or regulations framed under the respective Acts.

2. All educational institutions, whose employees are in receipt of contributory provident fund, pension and deposit-linked insurance or non-contributory provident fund, pension and deposit-linked insurance at par with State/Central Government employees.

3. All establishments, which are registered as “Society” under the Societies Registration Act, 1960, and whose employees are in receipt of contributory provident fund, pension and deposit-linked insurance at par with State/Central Government employees.

S.O. 2276, DATED THE 30TH AUGUST, 1989¹. -Whereas the Central Government is of the opinion that ‘provident funds scheme should be framed under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952) in respect of the employees employed in the industries manufacturing iron-ore pellets;

Now, therefore, in exercise of the powers conferred by sub-section (1) of Sec. 4 of Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952), the Central Government hereby adds with effect from I st day of September, 1989 the said industry to Sch. I to the said Act.

1. Published in Gazette of India Pt. II, Sec. 3 (i), dated 16th September 1989.

S.O. DATED 30TH MARCH 1993. -In exercise of the powers conferred by Cl. (a) of sub-section (3) of Sec. 17 of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952), and in supersession of the notification of the Government of India, Ministry of Labour No. S.O. 112 (E), dated 24th March, 1986, the Central Government hereby directs that every employer in relation to an establishment exempted under Cl. (a) or Cl. (b) of sub-section (i) of Sec. 17 of the said Act or in relation to any employee or class of employees exempted under para. 27, or as the case may be, para. 27-A of the Employees’ Provident Fund Scheme, 1952, shall transfer the monthly provident fund contribution in respect of the establishment or, as the case may be, of the employee or class of employees within fifteen days of the close of the month to the Board of Trustees, duly constituted in respect of that establishment, and that the said Boards of Trustees shall invest every month within a period of two weeks from the date of receipt of the said contributions from the employer, the provident fund accumulations in respect Of the establishment, or as the case may be, of the employee, or class of employed that is to say, the contributions, interest and other receipts as reduced by any obligatory outgoings, in accordance with the following pattern, namely

(i) (a) Government Securities as defined in Sec. 2 of the Public Debt Act, 1944 (18 of 1944) created and issued by any State Government, Fifteen percent

(b) Any other negotiable securities, the principal whereof and interest whereon is fully and unconditionally guaranteed by the Central Government or any State Government.

(ii) Special Deposit Scheme introduced by the notification of Government of India in the Ministry of Finance, Department of Economic Affairs No. F 16 (I)-PD/76, dated the 30th June 1976, as extended by Notification No. F.16 (8)-PD/84 dated the 12^th June 1985. Seventy percent

(iii) Bonds/Securities of Public Sector financial institutions including banks. Fifteen percent

3. Where any moneys are received on the maturity of earlier investments made under the pattern in force upto 31st March, 1993 such moneys reduced by obligatory outgoings shall be reinvested in accordance with the new investment pattern prescribed in this notification.

S.O. 734, DATF-D 19TH MARCH 1993. -In exercise of the powers conferred by sub-section (2) of Sec. 16 of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952), and in partial modification of the Ministry of Labour S.O. No. 1957, dated the 24th June, 1991, the Central Government, after having regard to the circumstances of the case, Is of the opinion that it is expedient so to do, hereby exempt the classes of establishments specified in the Schedule annexed hereto from the operation of the Act for a period of three years with effect from the date of publication of this notification, subject to the following conditions, namely:-

(i) The employer shall constitute a Trust and establish a Board of Trustees for the management of provident fund. The provident fund shall vest in the Board of Trustees who will be responsible for proper accounts of the receipts into and payments from the provident fund and the balance in their custody;

(ii) The accounts of the provident fund maintained by the Board shall be subject to audit by a qualified independent Chartered Accountant annually;

(iii) A copy of the audited annual provident fund accounts together with the audited balance-sheet of the establishment for each accounting year shall be submitted to the concerned Regional Provident Fund Commissioner within six months after the close of the financial year,

(iv) The investment of the provident fund contribution shall be made as per the pattern prescribed by the Central Government from time to time’; and

(v) The exemption is liable to be cancelled for violation of any of the conditions specified in this Notification.

THE SCHEDULE

(i) All educational institutions, which are registered as “Society” under the societies Registration Act, 1860 or as “Trust” under Indian Trusts Act, 1882 and whose employees are in receipt of non-contributory provident fund pension at par with the employees of Central Government or with the employees of State Government in such State where the educational institution is located.

(ii) All educational institutions which are registered as “Society” under the societies Registration Act, 1860 or as “Trust” under the Indian Trusts Act 1882 and whose er family pension are under the Scheme framed under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, as amended from time to time.

S.O. 1895, DATED 21^ST JUNE 1995¹. -In exercise of the powers conferred by subparagraph (1) of paragraph 52 of the Employees Provident Funds Scheme, 1952 and in supersession of the notification of the Government of India in the Ministry of Labour-No. S.O. 1346, dated the 19th May 1994, the Central Government hereby directs that all moneys belonging to the funds shall be invested in accordance with the following pattern namely:

1. Published in the Gazette of India, Part II, Sec. 3 (ii), dated 8th July, 1995.

Investment Pattern

Percentage of Amount to be Invested

(i) Central Government Securities

Twenty-five percent

(ii) (a) Government Securities as defined in Sec. 2 of the Public Debt Act, 1944 (18 of 1944) created and issued by any State Government; and/or

(b) Any other negotiable securities the principal whereof and interest whereon is fully and unconditionally guaranteed by the Central Government or any State Government except those covered under (iv) (a) below.

Fifteen percent

(iii) Special Deposits Scheme introduced by the Notification of Government of India in the Ministry of Finance, Department of Economic Affairs, No. F. 16 (l)-PD/85, dated 30th June 1975, as extended by Notification No. F 16 (8)-PD/85, dated 12th June, 1985.

Thirty percent

(iv)(a) Bonds/Securities of Public Financial Institutions’ as specified under Sec. 4 (a) of the Companies Act, “Public Sector Companies” as defined in Sec. 2(36-A) of the Income Tax Act, 1961;and/or

Thirty percent

(b) Certificates of deposits issued by a Public Sector Bank

2. Where any moneys are received on the maturity of earlier investment under (i), (ii) and (iv) of para. 1 above such moneys, reduced by obligatory outgoings, shall be invested in accordance with the new investment pattern prescribed in this Notification.

3. Where moneys are received on maturity of deposits under the Special Deposits Scheme and interest thereon, such moneys can be invested under the Special Deposits Scheme. Similarly, interest received under categories (i), (ii) and (iv) of para. I above may be reinvested in the same category.

4. The investment pattern as envisaged in the above paragraphs may be achieved by the end of a financial year and is effective from Ist April 1995.

S.O. 1896, DATED 21 STJUNE 1995¹. -In exercise of the powers conferred by Cl. (co of sub-section (3) of Sec. 17 of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952) and in supersession of the notification of the Government of India, Ministry of Labour No. S.O. 1872, dated 14th July, 1994 the Central Government hereby directs that every employer in relation to establishment exempted under Cl. (a) or Cl. (b) of sub-section (1) of Sec. 17 of the said Act or in relation to any employee or class of employees exempted under Paragraph 27, or as the case may be, Paragraph 27-A of the Employees’ Provident Funds Scheme, 1952, shall transfer the monthly provident fund contribution in respect of the establishment or, as the case may be of the employee or class of employees within fifteen days of the close of the month to the Board of Trustees duly constituted in respect of that establishment, and the said Boards of Trustees shall invest every month within a period of two weeks from the date of receipt of the said contributions from the employee, the provident fund accumulations in respect of the establishment or as the case may be, of the employee, or class of employees, that is to say, contributions, interest and other receipts as reduced by any obligatory outgoings, in accordance with the following pattern, namely :

Investment Pattern

Percentage of Amount to be invested

(i) Central Government Securities

Twenty-five Percent

(ii) Government Security as defined in Sec. 2 of the Public Debt Act, 1944 (18 of 1944) created and issued by any State Government-

Fifteen percent

(iii) Special Deposits Scheme introduced by the Notification of Government of India in the Ministry of Finance, Department of Economic Affairs, No. F. 16 (I)-PD/75, dated 30th June 1975, as extended by Notification No. F 16 (8)-PD/85, dated 12th June, 1985.

Thirty percent

(iv) (a) Bonds/Securities of Public Financial Institutions’ as specified under Sec. 4 (a) of the Companies Act, “Public Sector Companies” as defined in Sec. 2(36-A) of the Income Tax Act, 1961:and/or

Thirty percent

(b) Certificates of deposits issued by a Public Sector Bank

3. Where moneys are received on maturity of deposits under the Special Deposits Scheme and interest thereon, such moneys can be invested under the Special Deposits Scheme. Similarly, interest received under categories (i), and (iv) of para. 1 above may be reinvested in the same category.

4. The investment pattern as envisaged in the above paragraphs may be achieved by the end of a financial year and is effective from Ist April, 1995.

1. Published in the Gazette of India Part II, Sec. 3 (U), dated 8th July, l995.

NOTIFICATION F. NO. G-20015/2/93-SS.II, DATED 21ST MARCH, 1997. -In exercise of the powers conferred by sub- paragraph (1) of Paragraph 52 of the Government of India in the Ministry of Labour No. S.O. 2825, dated the 20th September, 1996 the Central Government hereby directs that all incremental accretions belonging to the Fund shall be invested in accordance with the following pattern namely: -

Investment Pattern

Percentage of Amount to be invested

(i)Central Government Securities

Twenty-five percent

(ii) (a) Government Securities as defined in Sec. 2 of the Public Debt Act, 1944 (18 of 1944) created and issued by any State Government; and/or

Fifteen percent

Forty percent

(iii) (a) Bonds/Securities of Public Financial Institutions’ as specified under Sec. 4 (a) of the Companies Act, “Public Sector Companies” as defined in Sec. 2(36-A) of the Income Tax Act, 1961, including public sector banks and/or

(b) Certificates of deposits issued by a Public Sector Bank

(iv) To be invested any of the above three categories as decided by the Board of Trustees

Twenty percent

2. Any moneys received on the maturity of earlier investments reduced by obligatory outgoings, shall be invested in accordance with the investment pattern prescribed in this Notification.

3. Interest received on the Special Deposit Scheme shall be invested in the Special Deposit Scheme itself. Similarly, interest received under other categories shall be re- invested in the same category.

4. The investment pattern as envisaged in the preceding paragraphs may be achieved by the end of a financial year and is effective from lst April, 1997.

NOTIFICATION NO. G-20015/2/93-SS.II, DATED 27TH MARCH, 1997. -In exercise of the powers conferred by Cl. (a) of sub-section (3) of Sec. 17 of the Employees Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952) and in supersession of the notification of the Government of India Ministry of Labour No. S.O. 2826, dated the 20th September, 1996 the Central Government hereby directs that every employer in relation to an establishment exempted under Cl. (a) or Cl. (b) f sub-section (i) of Sec. 17 of the said Act or in relation to any employee or class of employees exempted under Paragraph 27, or as the case may be, paragraph 27-A of the Employees’ Provident Funds Scheme, 1952, shall transfer the monthly provident fund contributions in respect of the establishment or, as the case may be of the employee or class of employees within fifteen days of the close of the month to the Board of Trustees duly constituted in respect of that establishment, and that the said Board of Trustees shall invest every month within a period of two weeks from the date of receipt of the said contributions from the employee, the provident fund accumulations in respect of the establishment or as the case may be, of the employee, or class of employees that is to say, the contributions, interest and other receipts as reduced by any obligatory outgoings, in accordance with the following pattern, namely:-

Investment Pattern

Percentage of Amount to be invested

(i)Central Government Securities

Twenty-five percent

(ii) (a) Government Securities as defined in Sec. 2 of the Public Debt Act, 1944 (18 of 1944) created and issued by any State Government; and/or

Fifteen percent

Forty percent

(b) Certificates of deposits issued by a Public Sector Bank

(iv) To be invested any of the above three categories as decided by the Board of Trustees

Twenty percent

2. Any moneys received on the maturity of earlier investments reduced by obligatory outgoings, shall be invested in accordance with the investment pattern prescribed in this Notification.

4. The investment pattern as envisaged in the preceding paragraphs may be achieved by the end of a financial year and is effective from lst April, 1997.

NOTIFICATION NO. S-35019/1/97-SS. II, DATED THE 9TH APRIL, 1997. -In exercise of the powers conferred by the first proviso to Sec. 6 of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952) and in supersession of the notifications specified in Sch. I to this notification except as respects things done or omitted to be done before such supersession, the Central Government after making necessary inquiry into the matter hereby specifies with effect from the first day of May, 1997 every establishment and class of establishments other than those specified in Sch. II, to which the said proviso shall apply. The words “eight and one-third per cent” at both the places where they occur, the words “ten percent” shall be substituted.

SCHEDULE I

(i) S.O. No. 360, dated the 17th May, 1989

(ii) S.O. No. 1837, dated the 29th June, 1990

(iii) S. 0. No. 627 (E), dated the 3 1 st August, 1994

(iv) S.O. No. 126 (E), dated the Ist March, 1995

SCHEDULE II

Establishments to which the first proviso to Sec. 6 shall not apply:

(i) Any establishment in which less than twenty persons are employed;

(ii) Any sick industrial company as defined in Cl. (o) of sub-section (1) of See. 3 of the Sick Industrial Companies (Special Provisions) Act. 1985 (1 of 1986) and which has been declared as such by the Board for Industrial and Financial Reconstruction establishment under Sec. 4 of the Act, for the period commencing on and from the date of registration of the reference in the Board and ending either on the date by which the net worth of the said company becomes positive in terms of the orders passed under sub-section (2) of Sec. 17 of that Act or on the last date of implementation of the scheme sanctioned under Sec. 18 of that Act;

(iii) Any establishment which has at the end of any financial year accumulated losses equal to or exceeding its entire net worth that is, the sum total of paid-up capital and free reserves and has also suffered cash losses in such financial year and the financial year immediately preceding such financial year.

Explanation-For the purposes of Cl. (iii) “cash loss” means loss as computed without providing for depreciation.

(iv) Any establishment in the, -

(A) Jute Industry;

(B) Beedi Industry;

(D) Coir Industry other than the spinning sector, and

(E) Gaur gum factories.

S.O. 491 (E), DATED THE 30TH JUNE, 1997. -In exercise of the powers, conferred by sub-section (1) of Sec. 7-D of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952) the Central Government hereby constitutes the Employees’ Provident Funds Appellate Tribunal with effect from 1 st July, 1997 to exercise the powers and discharge the functions conferred on it by the said Act in respect of establishments situated within the territories of India.

2. The Employees’ Provident Funds Appellate Tribunal shall sit in Delhi.

S.0. 492 (E). DATED 30TH JUNE, 1997¹. -In exercise of the powers conferred by sub-section (2) of Sec. I of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1988 (33 of 1988) the Central Government hereby appoints the lst July, 1997 as the date on which provisions of Secs. II and 25 of the said Act shall come into force.

1. Published in the Gazette of India, Extraordinary, Part II, Sec. 3 (ii), dated 7th July, 1997

NOTIFN. NO. F.NO. G-20015/2/93-SS II, DATED 9TH JUNE, 1998. -In exercise of the powers conferred by sub- paragraph (1) of paragraph 52 of the Employees Provident Funds Scheme, 1952 and in supersession of the notification of the Government of India, in the Ministry of Labour S.O. No. 909, dated the 21st March, 1997, the Central Government hereby directs that all incremental accretions belonging to the Fund shall be invested in accordance with the following pattern, namely: -

Investment Pattern

Percentage of Amount to be invested

(i)Central Government Securities

Twenty-five percent

(ii) (a) Government Securities as defined in Sec. 2 of the Public Debt Act, 1944 (18 of 1944) created and issued by any State Government; and/or

Fifteen percent

Forty percent

(b) Certificates of deposits issued by a Public Sector Bank

(iv) To be invested any of the above three categories as decided by the Board of Trustees

Twenty percent

(v) The Board of Trustees, subject to their assessment of the risk-return prospects, may invest up to 10% out of (iv) above, in private sector bonds/securities, which have an investment grade rating from at least two credit rating agencies.

2. Any moneys received on the maturity of earlier investments reduced by obligatory outgoings, shall be invested in accordance with the investment pattern prescribed in this Notification.

4. The investment pattern as envisaged in the preceding paragraphs may be achieved by the end of a financial year and is effective from lst April, 1997.

NOTIFN. DATED THE 9TH JULY, 1998¹. -In exercise of the powers conferred by the Explanation to paragraph 30, and by paragraph 39 of the Employees’ Provident Funds Scheme, 1952 and in supersession of the notification of the Government of India, in the Ministry of Labour S.O. 3247, dated the 5th September, 1986, the Central Government, after consulting the Central Board and having regard to the resources of the Employees’ Provident Fund available for meeting its normal administrative expenses, hereby fixes the administrative charges for the purpose of paragraph 30 and sub-paragraph (1) of paragraph 38 of the said Scheme, with effect from the I st August, 1998 at 1. 10 percent (One point zero percent) of the pay as referred to in the said paragraphs.

2. For the removal of doubts, it is hereby notified that nothing contained in this notification shall affect the administrative charges payable in respect of the period upto and inclusive of the 31 st July, 1998 in respect of which the notification referred to in paragraph 1 herein shall continue to apply as if the same had not been superseded.

1. Published in the Gazette of India, Part II, Sec. 3, sub-section (ii).

NOTIFN. DATED THE 9TH JULY, 1998¹. -In pursuance of Cl. (a) of sub-section (3) of Sec. 17 of the Employees’ Provident Funds & Miscellaneous Provisions Act, 1952 (19 of 1952) and in supersession of the notification of the Government of India in the Ministry of Labour No. S.O. 3450, dated the 17th September, 1964 the Central Government hereby directs that the employers in relation to an establishment or any person or class of persons exempted under Sec. 17 of the said Act, shall be required to pay to the Employees’ Provident Funds with effect from the 1st August, 1998, inspection charges at the rate of zero point one eight percent (0. 18 percent) of the pay (basic wages, dearness allowance, retaining allowance, if any, and cash value of food concession admissible thereon) for the time being payable to the employees of the establishment or receivable by the person or class of persons, as the case may be, in respect of which contributions would have been payable but for such exemption, within fifteen days of the close of every month.

2. For the removal of doubts, it is hereby notified that nothing contained in this notification shall affect the inspection charges already accrued in accordance with the notification S.O. 3450 referred to in paragraph 1 and for the said purpose the notification S.O. 3450 shall continue to apply as if the same had not been superseded.

1. Published in the Gazette of India, Part II, Sec. 3, sub-section (ii).