Lok Sabha Question No. 2500 (UNSTARRED), answered on 2016-05-09
Subject: Private Provident Fund Trusts
Ministry: LABOUR AND EMPLOYMENT
Asked by: P.R. SUNDARAM

## GOVERNMENT OF INDIA MINISTRY OF LABOUR AND EMPLOYMENT LOK SABHA

UNSTARRED QUESTION NO. 2500

## TO BE ANSWERED ON 09.05.2016

## PRIVATE PROVIDENT FUND TRUSTS

2500. 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/UT-wise;
- (b)the  monitoring  mechanism  put  in  place  by  the  Government  to monitor and ensure transparency in the functioning of these trusts;
- (c)whether  any  compliant  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  and  the  action  taken  thereon,  year-wise, State/UT-wise; and
- (e)the policy guidelines in existence regarding companies, which have been allowed to maintain private provident fund of their employees
- despite their merger or being bought by other 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 is 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 caused 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 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  REFERRED  TO  IN  REPLY  TO  PART  (a)  OF  LOK  SABHA  UNSTARRED QUESTION NO. 2500 TO BE ANSWERED ON 09.05.2016 BY SHRI P.R. SUNDARAM REGARDING PRIVATE PROVIDENT FUND 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     | TOTAL           |     1575 |

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