Lok Sabha Question No. 2632 (UNSTARRED), answered on 2016-03-14
Subject: Private PF Trusts
Ministry: LABOUR AND EMPLOYMENT
Asked by: P.R. SUNDARAM

## GOVERNMENT OF INDIA

## MINISTRY OF LABOUR AND EMPLOYMENT

## LOK SABHA UNSTARRED QUESTION NO. 2632 TO BE ANSWERED ON 14.03.2016

## PRIVATE PF TRUSTS

## 2632. SHRI P.R. SUNDARAM:

Will  the  Minister  of  LABOUR  AND  EMPLOYMENT  be  pleased  to state:

- (a)the  details  of  private  Provident  Fund  Trusts  functioning  in  the country, State-wise;
- (b)the  manner  in  which  the  Government  has  been  monitoring  the functioning  of  these  Trusts  and  ensuring  that  provident  fund  of employees are being maintained in a transparent manner;
- (c)whether  any  complaint  has  been  received  by  the  Government against any private provident fund trusts during the last three years and the current year;
- (d)if so, the details thereof, year-wise; and
- (e)the  policy  guidelines  in  existence  regarding  companies,  who  have been allowed to maintain private provident fund of their employees,
- merge with other companies or are bought by other big companies?

## ANSWER

## MINISTER OF STATE (IC) FOR LABOUR AND EMPLOYMENT (SHRI BANDARU DATTATREYA)

- (a):  Statistics  pertaining  to  private  Provident  Fund  Trusts  is  not maintained  Centrally.  However,  State-wise  details  of  establishments which have been granted exemption under the Employees' Provident Funds & Miscellaneous Provisions (EPF & MP) Act, 1952 to maintain their own Provident Fund Trusts are at Annex.
- (b):    Establishments which have been granted exemption to maintain their  own  Provident Fund Trusts are subject to terms and conditions laid down  in Appendix - 'A' to Para 27AA of the Employees' Provident Funds (EPF) Scheme, 1952.

Functioning of Provident Fund Trusts is monitored by Regional Provident Fund Commissioners through compliance audit by Squad of Inspectors conducted annually.

Third  Party  Audit  of  Provident  Fund  Trusts  can  also  be  done  by Regional Provident Fund Commissioners, if felt necessary.

Online  filing  of  returns  by  Provident  Fund  Trusts  has  also  been introduced to facilitate monitoring the functioning of these Trusts.

- (c)  &  (d):  Grievances  regarding  settlement  of  Provident  Fund  claims are received by Employees' Provident Fund Organization (EPFO) from members which are redressed suitably  as per provisions of the EPF & MP Act, 1952 and Schemes framed thereunder.

Complaints of serious nature, viz., fraud, embezzlement of funds etc. have not come to the notice of EPFO during the last three years and the current year.

- (e): The policy guidelines in this regard are regulated in accordance with the  Condition No. 29 of Appendix - 'A' to Para 27AA of the EPF Scheme, 1952 which is as under:

'In  case  of  any  change  of  legal  status  of  the  establishment which has been granted exemption, as a result of merger, demerger, acquisition,  sale,  amalgamation,  formation  of  a  subsidiary,  whether wholly owned or not, etc., the exemption granted shall stand revoked and the establishment should promptly report the matter to the RPFC concerned for grant of fresh exemption.'

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## ANNEX

ANNEX  REFERRED  TO  IN  REPLY  TO  PART  (a)  OF  LOK  SABHA  UNSTARRED QUESTION NO. 2632 TO BE ANSWERED ON 14.03.2016 BY SHRI P.R. SUNDARAM REGARDING PRIVATE PF TRUSTS.

## STATE-WISE DETAILS OF ESTABLISHMENTS MAINTAINING PRIVATE PROVIDENT FUND TRUSTS.

| Sl. No.   | STATE           |   NUMBER |
|-----------|-----------------|----------|
| 1         | ANDHRA PRADESH  |       69 |
| 2         | ASSAM           |        4 |
| 3         | BIHAR           |       13 |
| 4         | CHHATTISGARH    |        5 |
| 5         | DELHI           |      151 |
| 6         | GOA             |        8 |
| 7         | GUJARAT         |       76 |
| 8         | HARYANA         |       48 |
| 9         | HIMCHAL PRADESH |        6 |
| 10        | JHARKHAND       |       31 |
| 11        | KARNATAKA       |      117 |
| 12        | KERALA          |       36 |
| 13        | MADHYA PRADESH  |       16 |
| 14        | MAHARASHTRA     |      373 |
| 15        | MEGHALYA        |        7 |
| 16        | ODISHA          |       22 |
| 17        | PUNJAB          |       16 |
| 18        | RAJASTHAN       |       35 |
| 19        | TAMIL NADU      |      126 |
| 20        | UTTAR PRADESH   |      109 |
| 21        | UTTARAKHAND     |       13 |
| 22        | WEST BENGAL     |      294 |
|           | TOTAL           |     1575 |

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