EMPLOYEES PROVIDENT FUND ORGANISATION

AGENDA BOOK

37thMeeting of the

Sub-CommitteeofCentral Board of Trustees (EPF)on

Exempted Establishments

Date ThursdayThe 7th August2014middot

Time 1230 PM

Venue Conference Hall 3rd Floor Head Office EPFO14BhikajiCama PlaceNew Delhi -110066

~

~

bull~)

)

bullt

EMPLOYEES PROVIDENT FUND ORGANISATION

Agenda for 37th Me~ting of theSub-Committee of Central Board of Trustees EPF

on Exempted Establishments

Date Thursday the 7thAugust2014 Time 1230 AM

51 No ITEMS Page No

i Confirmation of the minutes of 36thmeeting of the Sub-Committee of the 1-12Central Board of Trustees EPF onExempted Establishments held on15052014

2 Action Taken Statement in respect ofdecisions taken in the 36th meeting of the 13-14Sub-Committee of the Central Board ofTrustees EPF on Exempted

Establishments held on 150520143 Grant of exemption under Section

17(1)(a) of the Employees ProvidentFunds and Miscellaneous Provisions Act 15-771952 and Para 27A of the EmployeesProvident Funds Scheme 1952 byAppropriate Government

4 Levy of Surcharge on the Board ofTrustees for failure to make investments 78-82as per the directions of the Governmentfrom 2000-01 fiscal

5 Any other item with the permission of 83__ ---__ middotmiddotmiddotChalrmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddot

J

Item No1 Confirmation of the minutes of 36th meeting of the Sub-Committee ofthe Central Board of Trustees EPF on Exempted Establishments heldon 15052014

)11 The minutes of the 36th meeting of the Sub-Committeeof the CentratBoard of Trusteeson ExemptedEstablishmentsmiddotheld on 15052014 were circulated to all membersvide EPFO lettermiddotdated 23Q52014 _

12 The minutes circulated (Annexure-1A) are placed for confirmation before theCommittee

~

~

~

)

bull~

)bullbullbullbullbullbull)

~

bullbull-~

bull Page 10f83

t

bullt

bull

~E-mall rcexemptlonepfindiagovin

bullbullANNEXURE-IA()

o()

~ rreephone 011-26173877tilm Fax 011-26174207

-mr JiSllN4 mlaquor mcfill

Employees Provident Fund Organisation(Ministry of Labour Govt Of India)

~ ~ mrr 14-~ limT ~ t$ ~ middotmiddot110066 Bhavishya Ntdhi Bhawan 14bullBhikajl Cama Place NewDelhi - 110066

wwwepfindia_govin wwwepfindianicin

No E-IlI18l04 Sub-CommitteeVol-II I u U67 Date2 3 MA Y 20t4To

All the l(1embers (As per the list enclosedSub-Committee on Exempted EstablishmentsCentral Board of Trustees EPF

Subject Minutes of the 36th Meeting of the Sub-Committee on ExemptedEstablishments Central Board of Trustees EPFO held on15052014 at Conference Hall 3rd Floor EPFOHead Office NewDeihl

Sir

KIndly refer to EPFO letter No E-lII18(104Sub-CommitteeVol-II3290 dated 09052014

2 A copy of the approved minutes of 36th meeting of Sub-Committee of CBTon exempted establishments held on 15052014 at Conference Hall 3rd floor EPFOHeadOffice NeWDelhi - 110066 is endosed herewith for your kind information

Yours faithfully

Encl- As above

Ggt

bullbullbullbullbullbullbullbullbullbullbullbullebullbullbullbullbullbullbull

(Ani esh~Ishl______ bullRegional PFCommissioner-I Exemption) bull

Copy to

1) Central Provident Fund CommissionerChairman SUb-Committee on ExemptedEstablishment alogwith a copy of approved minutes of 36th meeting (through PS)EPFOHead Office New Delhi

Page 2 of83

bullbullbullbullbullbull

~

~

bull~)

)

bullt

EMPLOYEES PROVIDENT FUND ORGANISATION

Agenda for 37th Me~ting of theSub-Committee of Central Board of Trustees EPF

on Exempted Establishments

Date Thursday the 7thAugust2014 Time 1230 AM

51 No ITEMS Page No

i Confirmation of the minutes of 36thmeeting of the Sub-Committee of the 1-12Central Board of Trustees EPF onExempted Establishments held on15052014

2 Action Taken Statement in respect ofdecisions taken in the 36th meeting of the 13-14Sub-Committee of the Central Board ofTrustees EPF on Exempted

Establishments held on 150520143 Grant of exemption under Section

17(1)(a) of the Employees ProvidentFunds and Miscellaneous Provisions Act 15-771952 and Para 27A of the EmployeesProvident Funds Scheme 1952 byAppropriate Government

4 Levy of Surcharge on the Board ofTrustees for failure to make investments 78-82as per the directions of the Governmentfrom 2000-01 fiscal

5 Any other item with the permission of 83__ ---__ middotmiddotmiddotChalrmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddot

J

Item No1 Confirmation of the minutes of 36th meeting of the Sub-Committee ofthe Central Board of Trustees EPF on Exempted Establishments heldon 15052014

)11 The minutes of the 36th meeting of the Sub-Committeeof the CentratBoard of Trusteeson ExemptedEstablishmentsmiddotheld on 15052014 were circulated to all membersvide EPFO lettermiddotdated 23Q52014 _

12 The minutes circulated (Annexure-1A) are placed for confirmation before theCommittee

~

~

~

)

bull~

)bullbullbullbullbullbull)

~

bullbull-~

bull Page 10f83

t

bullt

bull

~E-mall rcexemptlonepfindiagovin

bullbullANNEXURE-IA()

o()

~ rreephone 011-26173877tilm Fax 011-26174207

-mr JiSllN4 mlaquor mcfill

Employees Provident Fund Organisation(Ministry of Labour Govt Of India)

~ ~ mrr 14-~ limT ~ t$ ~ middotmiddot110066 Bhavishya Ntdhi Bhawan 14bullBhikajl Cama Place NewDelhi - 110066

wwwepfindia_govin wwwepfindianicin

No E-IlI18l04 Sub-CommitteeVol-II I u U67 Date2 3 MA Y 20t4To

All the l(1embers (As per the list enclosedSub-Committee on Exempted EstablishmentsCentral Board of Trustees EPF

Subject Minutes of the 36th Meeting of the Sub-Committee on ExemptedEstablishments Central Board of Trustees EPFO held on15052014 at Conference Hall 3rd Floor EPFOHead Office NewDeihl

Sir

KIndly refer to EPFO letter No E-lII18(104Sub-CommitteeVol-II3290 dated 09052014

2 A copy of the approved minutes of 36th meeting of Sub-Committee of CBTon exempted establishments held on 15052014 at Conference Hall 3rd floor EPFOHeadOffice NeWDelhi - 110066 is endosed herewith for your kind information

Yours faithfully

Encl- As above

Ggt

bullbullbullbullbullbullbullbullbullbullbullbullebullbullbullbullbullbullbull

(Ani esh~Ishl______ bullRegional PFCommissioner-I Exemption) bull

Copy to

1) Central Provident Fund CommissionerChairman SUb-Committee on ExemptedEstablishment alogwith a copy of approved minutes of 36th meeting (through PS)EPFOHead Office New Delhi

Page 2 of83

bullbullbullbullbullbull

J

Item No1 Confirmation of the minutes of 36th meeting of the Sub-Committee ofthe Central Board of Trustees EPF on Exempted Establishments heldon 15052014

)11 The minutes of the 36th meeting of the Sub-Committeeof the CentratBoard of Trusteeson ExemptedEstablishmentsmiddotheld on 15052014 were circulated to all membersvide EPFO lettermiddotdated 23Q52014 _

12 The minutes circulated (Annexure-1A) are placed for confirmation before theCommittee

~

~

~

)

bull~

)bullbullbullbullbullbull)

~

bullbull-~

bull Page 10f83

t

bullt

bull

~E-mall rcexemptlonepfindiagovin

bullbullANNEXURE-IA()

o()

~ rreephone 011-26173877tilm Fax 011-26174207

-mr JiSllN4 mlaquor mcfill

Employees Provident Fund Organisation(Ministry of Labour Govt Of India)

~ ~ mrr 14-~ limT ~ t$ ~ middotmiddot110066 Bhavishya Ntdhi Bhawan 14bullBhikajl Cama Place NewDelhi - 110066

wwwepfindia_govin wwwepfindianicin

No E-IlI18l04 Sub-CommitteeVol-II I u U67 Date2 3 MA Y 20t4To

All the l(1embers (As per the list enclosedSub-Committee on Exempted EstablishmentsCentral Board of Trustees EPF

Subject Minutes of the 36th Meeting of the Sub-Committee on ExemptedEstablishments Central Board of Trustees EPFO held on15052014 at Conference Hall 3rd Floor EPFOHead Office NewDeihl

Sir

KIndly refer to EPFO letter No E-lII18(104Sub-CommitteeVol-II3290 dated 09052014

2 A copy of the approved minutes of 36th meeting of Sub-Committee of CBTon exempted establishments held on 15052014 at Conference Hall 3rd floor EPFOHeadOffice NeWDelhi - 110066 is endosed herewith for your kind information

Yours faithfully

Encl- As above

Ggt

bullbullbullbullbullbullbullbullbullbullbullbullebullbullbullbullbullbullbull

(Ani esh~Ishl______ bullRegional PFCommissioner-I Exemption) bull

Copy to

1) Central Provident Fund CommissionerChairman SUb-Committee on ExemptedEstablishment alogwith a copy of approved minutes of 36th meeting (through PS)EPFOHead Office New Delhi

Page 2 of83

bullbullbullbullbullbull

~E-mall rcexemptlonepfindiagovin

bullbullANNEXURE-IA()

o()

~ rreephone 011-26173877tilm Fax 011-26174207

-mr JiSllN4 mlaquor mcfill

Employees Provident Fund Organisation(Ministry of Labour Govt Of India)

~ ~ mrr 14-~ limT ~ t$ ~ middotmiddot110066 Bhavishya Ntdhi Bhawan 14bullBhikajl Cama Place NewDelhi - 110066

wwwepfindia_govin wwwepfindianicin

No E-IlI18l04 Sub-CommitteeVol-II I u U67 Date2 3 MA Y 20t4To

All the l(1embers (As per the list enclosedSub-Committee on Exempted EstablishmentsCentral Board of Trustees EPF

Subject Minutes of the 36th Meeting of the Sub-Committee on ExemptedEstablishments Central Board of Trustees EPFO held on15052014 at Conference Hall 3rd Floor EPFOHead Office NewDeihl

Sir

KIndly refer to EPFO letter No E-lII18(104Sub-CommitteeVol-II3290 dated 09052014

2 A copy of the approved minutes of 36th meeting of Sub-Committee of CBTon exempted establishments held on 15052014 at Conference Hall 3rd floor EPFOHeadOffice NeWDelhi - 110066 is endosed herewith for your kind information

Yours faithfully

Encl- As above

Ggt

bullbullbullbullbullbullbullbullbullbullbullbullebullbullbullbullbullbullbull

(Ani esh~Ishl______ bullRegional PFCommissioner-I Exemption) bull

Copy to

1) Central Provident Fund CommissionerChairman SUb-Committee on ExemptedEstablishment alogwith a copy of approved minutes of 36th meeting (through PS)EPFOHead Office New Delhi

Page 2 of83

bullbullbullbullbullbull

I

1 Smt Meenakshl Gupta IA amp M5Joint Secretary amp Financial AdvisorRoom No 107 Shram Shakti BhawanMinistry of labour amp EmploymentGovemmentof India New Delhi

2 Director (55)Ministry of labour amp EmploymentGovernment of IndiaShram Shakti BhawanNewDelhl-ll0001

3 ShrlBP PantSecretary FICCI amp EDAIOE(Res) VIS NCERT campusAuroblndo Marg New Delhi-ll0016

(Off) Executive DirectorAll India Orgn Of EmployersFederation HouseTansen Marg New Delhl-ll0001middot

4 Shri Sushanta SenPrindpal AdvisorConfederation of Indian Indusby249-F Sector 18 Udyog ViharPhase-IV Gurgaon-12201S(Haryana)

5 Shrl AK PadmanabhanPresident emJ BT~RBhawan13A Rouse AvenueNew Delhj-l1000~middotmiddot ------- _

6 Shri Ashok SinghVP INllJC amp Chairman CBWE(Res) No 435Vishwas Khand IIIGomti Nagar Luclmow (UP)

(Off) of the Chairman CSWERoom No 21 amp 22Barrack ~ 710 Jamnagar HouseMansingh Road New Delhi-llOOll

Page 3 of83

bull

_--------

1

1()1 1

---~Ie101deg11-1-1bullbull 1

bull 1

bullbull 1

bull 1bull Ibull Ibull 1

bull 1

bull 1

bull Ibull IIbull I

bullI - ---- - ---- 1

1

1

1

1

1

1

1

1

EMPLOYEES PROVIDENT FOND ORGAHISAnONMIKUT1S OF THE

36 HEEllNQ OF THESVa-cotcMlTlU CST (EPf) ONXEMPTED ESTABUSltMmTS

(EPF HEADQUAJrrERSHfW DELHI IS1 May 1014 103O~)

The 361h meeting of the SUb-Commlttee CST (EPF) on Exem~ EstabIlshments waschaired by 5hI1 KK Jalan Central PF CommlssJoner The folJowmg members attended themeeting

Shrl SUshaota Sell

Shrt kgthok Slngh

Shrl AK Padmanabhan

Ernp1oyers representzstlve

Employees representative

Employees re~tNe

EmpIoyersrepresentatlve

Addltional Cenral PF CommlSsfooer(CompUance) andConvenor

Shri BP Pant

Shri PK Udgata

The fu~OWlng members could not attend the meetJng because of their pre-ocxupatkm andsought~~e of ebsence

Smt M~nakshl Gupta Jolnt SecretaJy a Fl~lalAdvisor (Mnlstry of Labour a Employment)

Shrl Anlmesh ShartJ

The list of officers of the Employees ProvIdent Fund Organisation who llttendedthe meeting Is at Annexure 1A

Mthe 0lJtSe4 Central PF CommlssJoner and Chalnnan welcomed all the Membersand apprised the need for convening the meetlng of the SUb-Commlttee at is short notice

Page 1 on

Page40f83

bullbullbullbull

I~

1

bull

i

bullbullCbull-

(

bull bull(

bullbullbullbullt

t

Thereafter the agenda Items were taken up

Item No 1 eonftnnatlon of the minutes or 35 meeting of the SVtJ-CommlttMS ofbull the Central Board or Trusteec EPF on Exempted Establtshmenb held

on 28032014-

lJAddi CPFC(Cornpl~nce)lnf~rmed that themInUtes ~the 3~ meeting of the Sub-Committee of the Central Board of Trustees EPF on lxempted EstabUshments heldon 2803201~ were drculated to aUthe members on 04042014 and no feedbackhas been rereIYed from imy of the members

12 OaIrman stated that If there ls no objection of members the mInutes may betaken as conflrmecl

13 Honble Members unanlmousty confirmed the minutes of the 3slaquomeettng of theSUb-Commfttee of the Central Board of Trustees EPF on Exempted establishmentsas ml the issues raised have been acted upon

Item No2 AdJon Taken Statement tn respect of decisions taken In the 3Stlt

meeting of the Sub-Committee of the Central Board of TIUStee$IPf on Exempted EstabilshrMnts held on 28032014

21 Olairman expressed his ceoeeen on the Issue ratsed by SIlo AK ~manabhantegMflng study of the functionIng of estabhshments already granted exemption Hedirected Addl CPFC (ComPlance) to supply details of exempted establishments tothe members to start the study A two member Commlttee one ~ fromemployers skJe and one from Em~Ofees side from amongst the members of thIsCommlttee shall mrry out the study

22 ShriSU3hllrlta Sen suggested that the terms of reference shall be prescribed

23 ChalTJansuggested that the Committee will callY out a preliminary study to see as to whether the condItions stipulated In Appendlx-A to Paragraph 27M of theEmployeesProvident Funds Scheme 1952 for grant of exemptIon are adhered bythe exempted estabflshments Whether the rates of contribution and benefits givenby the exempted estabUshments to their employees are either at par or morebenendal than those available under the Employee Provident Funds and

_ Miscellaneous Provisons Act 1952 and the SChemes framed thereunder TheCommittee wi also suggest as to whether there Is a need to make _Cl --_ -middot __ middotmiddotmiddot_--middot-middot_middotmiddotmiddotmiddot __middotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddot-

comprehensive study in-house or ~ outside agencies for improving the functioningof the exempted establishments

Page 5 of 83

29 Chairman directed that the InvestigatiOn be carried out on top priority in thenterest of the WOI1cersThe same be followed up reguJarly and the developmentsthereof be epprtsed to the Committee

o()

ooeeamp

bullbullbulle

bullbullbullbullbullQ

bullbullbullbullbullbullbull

24 Shri BP Pant suggested that guldeDnestn the form of a smaI booklet bet Issued tothe exempted establishments to educate the employers so that deviations are notcommitted managing and maIntaining tne Trust

25 SM Sushanta sen suggested tnllt the exempted Trusts be eduCllted on the vartousaspects or Investment so that they wlQ be In a position to avoid axnmlWngdeWstJ~ from he pattemmiddot of investment piesa1bed by the Government

26 Chalmlan Informed that lnteracHon sessions were conducted durtl9 last year201~1-4at M~I Bangaluru and New Delhl to dlSQ1SS various Issues pert31nfng toexemption be It formation of the Trust be It election of the Employee Trustees beIt Budlt of the Trust be It Investment of Trust Fund and so on He assured themembers that such Interaction sessions wlll be conducted In regular lntelVal duringthIS current fsCa1to eduaste the employers end the Trustees

27 WIth thls deliberation It Is decided that the prelimInary study be done of ten majorexempted estabnshments to stzIlt with Chairman fixed the tJmelfne for supplyingthe detalls of exempted establtstvnents to the members as 25 May 2014 Hed1reded Add1 CPFC (compliance) middottomiddotprOYtdemiddotthemiddot details of ten mala- exemptedestablishments accordlngly

28 Thereafter AddlCPFC (Comp~nce) apprised the Committee that keeping In viewthe concerns of the members instructions have already been Issued to ZonalAdditional CPFCs to carry out the 1ovestlgatlon Into the compDance posttJon ofSahara india Jal Prakash AssocIates UP Drugs and Pharmaceuticals and UPStateRoad Transport CorporaUon

210 Members appreciated the good work done by EPfO by launching the software fOronline monltorlng 0( exempted establishments designing the format for re-audttlngof the accounts of Provident Fund maintained by the Board of Trustees ofexempted establishments and issuing guidelines for levy of surchargemiddot on the Boardof Trustees for the deviations they commit In investing the Trust Fund from the

- pattern of Investment presaibed by the Government

211 Shr1AshDk Singh suggested that the exempted lest1bUshments be divided 10to two ff parts - one which function as per rules an the other -whIch-fiiCtO-middotfiOCtimiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddot bullappropriately Strong action even canceUatlon f exemption should be taken to setright the functioning of the exempted establlshenls In the Interest of the woricers

Page 3 on bullbullbullPage 6 of 83

t)

f

I

bull)

bullbullbullbullbull)

)

bullbull)

bull1

bulltbulll

Item No3 Grant of exemption under SectIon 17(1)(8) of the Employe bullbull ProvIdent Funds and Miscellaneous Provisions Act 15)52 andPara 27A of the Employebullbull Provident Fund Scheme 1952by Appropriate GoVetnmnL

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

31 AdditIonal CPfC (Compliance) Infortlled the Ogtmmlttee that the out of enllstedtwentYestabl1shments nineteen establishments meet the requIrements and thusthelr proposals deserve colSldenltion and fecolMlendatlon on behalf of theCentral Board of Trustees EPF to the Appro~te Government for grant ofexemption

32 Additlonat CPFC (Compllance) pointed out that the case of the Food CorpoJation ofIndia(FCI) Is very pooJlIar and the COmmtttee may conslder the proposal HeInformed the Committee that FCI has lncurred loss for three years consecutivelywhkh s evident from Its Balance Sheets As per conditJon No 25 of the Appendtx-Ato Paragraph 27M of the EmployeesPttMdent Funds Scheme1952 no exemptJoncan be recommendedsanctioned to II company which blcu~ ~ for three yearsconseltutfvely

33 The AddItJoMl CPfC (Compliance) also brought to the noticemiddotof the Committee thesub~ons or the Chatrman and Manrgtng Director Fa ZlS detaled bclow

a) The CMD dclrlfled that Fa is Implementing the fOOd polley of the Government of IndIa and does not undertake aTfl cpmmerdal operations

The ent1re expendlture IncUrred by the corporation Is reimbursable by the Government of India Therefore the question of any profit or loss does notertse

b) The eoCPoration prepared Its Annual Report 10 the format preso1bed underSchedule VI of the Companies Act as lnssted by its sole auditor Comptroller~ Auditor Geneiol (eMG) By foRowlng such fonnat Bod and DoubtfulOebts are to be deplcted as lOss In the Profit amp loss Account

c)middot Qep1ctJonof tosses In the Annuaf Report5 are in fad deferred subsidy whldl Is released on completion of procedural aspects of write-off of --Bad andDoubtful Debts 11lI the time Bad and Doubtful Debts- are not writen-offhe Goyemment does notrelmburse the food Subsidy hence this conUnuesto be shown as losses ~ FaBalance Sheet __ ___

d) Fa Is a subsJdy based corporation hence quesHon of Bny proflt or loss doesnot DOse

Page4of9

Page 7 of 83

Page 8of83

bullbull

34 Additional ~ (CompOance) also brought to the notICe of the Commlttee thefoUowlng dartftaltlons on losses stlen by the AddltJOM Seaetary amp AnandalAcMsor Mlntstry of Consumer Affa~ food 6 Public OIstrlbuUon on behalf ofGovernment of India

a) The potkydedslons onmiddot Public Distribution System CPOS)National Food5ecurtty N1 (NFSA) etc are blken tit the Government of India through FC1for which entire expendJture Incurred by Food Corporation of lncfsa erereimbursed In the form of food subsidy Fa Is a subsidy based corporationhence question of any proftt or loss does not arise

b) The procedure of relmbursement of food subskty has been preso1bed bythe GoverMeot of India Thls Jnter-aHa stipulates that food subskfy Inrespect of bad and doubtful debts 15 releaSed only afterwrite-otf of thesame by the FO Thus ~bsIdy Is not released on the basis of creatiOn ofprovision for bad and doubtful debts Due to this stipulatiOn the amount of~ ~nd dcnlbtfut debtsprovided In the ~ of fCl are depicted as lossesIn the Ananc1al Statement tlll the same Is written off after followingpresa1bed procedure In fact these osses are deferred subsidy which arereleased to FClln the year when the bad and doubtful debts ere written offbyFa

bullbullbull

c) The losses shown In the financial Statement ot Fa is a mere depIctionsince they follow the fonnat of BaIBnceSh~t llnd Profit amplossAccounts aspresoibedunder the Companies Ivi 00 the advJCeof their sole auditorCampAG and approval cl the Government cf India bullmiddot35 Shri AK Pedmanabhan stated thatthe Food Corporation of India Is It no profit no

loss organisation of Government of India and condition No 2S of Appendix A toPara 27M of the Employees Provident Funds Scheme 1952 Is not attracted In caseof Fa Thus the proposel of fO deserves consideration and recommendation toApproprtate Government for grant of exemptlon

bullbullbull36 Shri Sushanta Sen end Shrl BP Pant conSented the Views of Shri AK bull

Padmanabhan and strongly opine that the proposal of Fa may be sent to bullGovernment of India Ministry of labour Ii Employment for approprtate

consideration and grant of exemption bull---~---- bullbullPage5ol9 bullbullbullbullbullbullbullbull

ir

bullbull

t(

bullbull(bullbullbullbullbull~

bullbullbullt~

tgt)

bullbullbullbullbull~

37 The Chalnnan stated that Fa it Government of lridla coocem as recouplng DRthedifference between the economic cost and saes realization In the form of consumersubsidy from the Gov~ment of India except the pnMsIons of bad and doubtfUldebts In the amp(COunts of the CltXVQratJon The subsidy fOr this expendtture Is notclaimed In the year of occurrence of expendlbJre but ls claimed In the year d writeoff of ampd iIDd DoUbtful Debts The depiction of osse$ In the Balance Sheet Issimply due to deferment of subsidy -dalm from the year of prov1slons mampde to thevear of wrtte-off The entire expendlture Incurred by fCI Is relmbured by theGovernment of Indla the form of food sUbskfy SInce the accounts of Fa areaudited by the caAG end In view d the clarifkatbns g1venbv Government of Indiathe proposal for gl1lnt of exemption may be forwarded to AppropJ1ate Governmentfor consideration bull

38 The Commlttee unanimously dedded to forward the proposal of Fa for grant ofexemption to Appropriate Government for cons1detCltlon

39 With tills deliberation the Committee consldered end recommended the proposalsIn respect of the foUowtng establishments as contained In the Agenda to theApproprlatemiddotGovemmentforconsdeBtlol-and gnSnt Of middotexemptlon

cocsNo Mtk ~I AlJpltopdtIt Mo ofcrct Para ~ rMmbersfront

HHIWV 01052009 17(1)(1) StIIb es125553 ~ d

~

Wl25410 OUIl2009 17 (ll(l) State 02 ~ rlHlh~

3 MIL TIU lJIIIltad SROJemshedprr

Jt1I1302 01011980 17(1)(1 CermI 1068GoYemment

4 M bullbull SIJSIC InJlotIatift ROGurgecn HR31l16 01()9la10 17(1)(1) GoveMrnent of 81PlJIItb SrldJa Pvt Ud 1ndIa

s HI bullbull WoodamptrJcS(Schoot 10 ~ UAl~ 01111993 llXt) Gootmment of 316lItbnncMI

6 MbullbullmiddotAI~ bullbullbullbullQnMb SIlO~ lJrJ~BlUInbd

O1o1t961 17(lX_) ~ rI 459~

7 Mallt Tamoort 00 DelhI DlJ2(X20Umbel Scxth

2O0um 17(1)(1) GoYenvnent of S34india

bullbull MIl eorultJng 10 DelhI 0l36Wng~ ScrYkeI South~) PvtUmIUd

29051974 17(lXa) ~_~ _~~ __ India

Page 9 of 83

Item No4

1

1deg1() I01

0101-111-111bull 1

1

bull 1bullbull 1

1

1bull 1

bull 141 Addltlonal CPFC (Compllzmce) brought to the notice of the Commlttee that bullwhile processing the pending appHcatJoos for grant of exemption some cases have bull Icome to the notlce of Head OffIce where the estabUshrrients maintain thelr own trust 1

~e exempted establishments~ ~~ ~__~~ ~ ~bull 1

1

1

1

1

1

1

1

1

Regularlsatlon of the proposals submitted by theestablishments for grant of exemption who maintaInthe Trusts without grant of relaxation under Para 79 ofthe Employees Provldent Funds Scheme 195~ or withpennlss10n of RPfOL

bullbull

bullbullbull Habullbull oftfte omc CodeHo WIth SectIonI ~ Noof 10 ~ 1Ifflaquot GoIrerMaent ~

froIa

aJ It Tyrw bull ~Mpore rJ(MtSI 01042D02 17(lX~) GMmment d -4711lIIdtlldrltc IImbd 9508 Jnck(VIIautTyN ~)HyIart

10 MbullbullUTTcinology fID~ ItVllIHI 01012014 17 UXa) GIIYernnWnt cI 1667sNba Ucnbdmiddot 205170 Incb

11 MaLG SRO Vesill ~asNI 01062001 VA Gooemmeat d mhtrocMmlcllll Umbel 9S22O IncIa

12- MsMJIQ SJU) Vashl MH95413 OU)6lClO7 VA ~d zshtroCh bullbullbullbullbull lImJted india

U- Ka HexJawwre RO Thane MV42123 01071996 17(lXI) ~ot 56Q5TechnologM Umlbd IncIa

14 MIs bullbull T RO Thane t+l20669 OUM2013 11 (1)(a) ~d 2396~ lJMItOIId Incla

15 Mbullbull GlC ~g to Bancn MVtWiI OUI31994 17 (1)(a) middot bullbullbullbullbullbullbullbull cI 142Finwlca Lln1ted 39407 tncSa

145 Merefld bullbull knz 110 KN24117- 0103200 27A state 1116ROII bullbull rch Bangillore X 8 GoverMmttl~elOP~At (1) (P)

of Kamtab

17 M_ food 1tO~1h1 Dlf2271 111989 2711 Central 76678 ~rtltlol1 0 zncn (N Gov

lL Mbullbullbullbullbullbull In cthoUc Ilaquo) ICllndMII MHKNDl 0111199 17(I)(a) Stilt 455Co-op Sank ltd 2613 1 Governmentor

MilharashtraUI KII Atillya Blrt SRO Rajkot GJ40n 0104200 27A Central l125tluvo ud 6 GOY~O KlllUampMII ~ RPRRO X93gtS16 01032009 17(lXa) Cer1tnII 26~ Indllt PYt Deli (SauttI) Govunrna-tUd

bullbullPagt 7 of9 bullbullbullbullbull

Page 10 of 83 bullbullbull

(

~

bull~bullbullbullbullbullbullbullbullbullbull

a) In some cases the estJIbllshmenis f1IZIlntilln their own TIUSts withoutBOY relaxation granted under PiA 79 of the Employees ProYIdentFunds Scheme 1952 after 9submission of applicaHonfor gnnt ofexemption either under Section 170Xa) or under Selttion 17(2) or theEmployees ProvIdent Funds 100 MlsceIaneous ProvIsIons Art 1952read with Para 27A d the Empbyees ProYIdent Funds Scheme 1952-

b) In some othet eases eStabl1shmentshave been covered by RegIOnal PFCommlsstoners of Reg)oncsVSub-RIlgiona omces under Sed10n 2A ofthe Act beatlng the same lIS bnmctees of main est2iblishments SIncethe date of coverage the establ15hments covered under 2A depositconbibutlons txgtYards provident fund in the Trust maintained by theirmain establlshments and conthIe to pay Penston and EDUcontributsons with the RPRs wherever they are covered OVer the-years complksnce In respect of ptOVIdent fund was never 1nslsted fromthese estabUshments nor any permIsslon was g1Vento them to complyIn respect of provident fund In 1he main estabnshments Even norelaxation was grented to these establishments under Para 79 of the

Employees Provkient funds Scheme-19Sl

1

I111

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

-42 Additional CPfC (COmpHance)epprlsed the Comml~ that Instructions wereIssued In past to RPfCs to grant relaxation under Para 79 of the EmployeesPrtMdent Foods Scheme 1952 to such categories of establishments which functJonas an exempted establishments from a prior date subject to usual condltlons asstipulated In Appendix A to Para 27M Of the Employees Provkient Funds Scheme1952 as retaxatlon Is required to be granted from a much prior date In order toreguJarise is period of time during wh1ch the establishment has complied as anexempted establ1Shment without been relaxed Because the law alklws only therelaxed establlshments to mallltaln its sepamte fund and function as an exemptedestablishment before the grant of exemption under Sectlon 17 of the Ad

3 Additional CPfC (Compnance) also lnfonned the Committee that Regional PFCommlssloners continue to conduct compliance audit over the years treating theseestabUshments as If exempted and forwarded the applications submitted by theseestabDshments for grant of exemption from the operation of the EmployeesProvident Funds Scheme 19-52where no relaxation has been gnmted A number dproposals pending for grant of exemption are of thls nature These establishmentscomply to all the condltlons reqUired for exemption as proylded In Appendix-A toPara 27Mmiddotof the Employees Provident Funds Scheme 1952 FQrwant of relaxation - the proposals of establ1shments of above nature are pending If thesemiddotltas~middotaremiddotnotmiddot middot--middotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddot-middotmiddot--middotmiddot-middotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotregularised then the Interest of the employees will be at stake and they wouldsuffer for no fisult of theirs These cases thus need to be regularJsedbull

1 Page 11 of 83

41 Shri AK Padmanabhan suggested that the cases of these so caUedexemptedestzIbllshments have to be regularised kl the lriterest of the employees and thisshould be a one tine exerdse for dlspostng the applJcatlons of these establishmentspending for grant of exemption for years together He felt that without much delaycasesd this nature should be forwarded to the AppropOat8 Government for grant ofexemption

45 Shri BP Pant pointed out that no relaxation CXJu1dbe given to theseestablishments who malntaln PfTrusts on ~ own even after Issue of lnstructlonsThe estabftshments made continuous effort 1n pursuing their cases but no actJon Istaken for proce$SIng their CZISeS He also stated that the establishments whkhmaintain Trusts without relaxation or permlss$on need to be regularised by way ofgrant of exemption wlthoutfurther delay

46 Shrt Sushanta Sen wanted to know as to why no relaXIItlon was granted Inthese cases

47 Additional CPfC (Comptlance)apprised the members that It IS a systemicfailureand for no fault of the employers the proposals be tcept pending further Herequested the Hooble members to take appropnate declston to regularise thesecases

48 Charman Informed the Committee that the power to grant relaxationmiddot underPara 79 of the Employees ProvkSent Funds SCheme 1952 has been withdrawn fromthe Regional PF Commissioners wef 24072012 Grant of exemption ~n all thesecases is pending duemiddot to lack of relaxation order permtsslononaccount of the faUureon the part of ttMi fteld fundIornllies These estaoUshments are assumed to beexempted establishments even in the absence of relaxatlonorderpermlsslon TheCommittee may conslder as an one time exetdse to rtfularise these pending caseswhere the establishments maintain the Trusts and abide by the conditions stipulatedIn Appendix A to Para 27M of the Employees ProvIdent Funds Scheme 1952

With ~ls deliberation It was dedded that the appllaltlons of these establlshmentswhich maintaIn their PF Trusts WIthout any relaxation permlssion to partldpate Inthe main Trusts of thetr parent establlshrnent should be processed Without furtherdelay and be placed before the Appr-opriate Forum for forwarding the same toAppropriate Government for grant of exemption

The meeting ended WIth vote of thanks to the ChaIr ---- _ --_ _ __ ___

--0----Pagetoft

-

Page 12 of 83

InffI

Ii~

o()ooebullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbull

~j

1

Item No2 Action Taken Statement in respect of decisions taken in the36thmeeting of the Sub-Committee of the Central Board ofTrustees EPFon Exempted Establishments held on 15052014

(

51 No

Action Complete

Action TakenUpdated StatusDecisions Directions of theCommittee

bullbull~

--

1 Conducting study of the The details of exemptedfunctioning of the establishmentshave been supplied toestablishments already the Committee Members for thegranted exemption by studyon28052014Members of the Committee

Chairmandirected that the detaitsof the Exempted Establishmentsshall be supplied to HonbleMembers by 25th May 2014 to

start the studv

(Item No23t1hMeetingof theCommittee 15052014)

2 Preparation of guidelines in Time to time instructions issuedto thethe form of a small booklet for field offices on various issues ofissueto the exempted exemptionare uploadedon the official-----

establishments for educating websiteot EPFO which can be visitedthe employers so that by ExemptedEstablishmentsdeviations are np~committedin managing and malntalnlnq

the Trust I i Howeverattempts RavealreadybeenShri BPPant suggested that the ~ken to prepare a small booklet asguidelines in the form of a small suggestedby Honble MemberIt willbooklet be issuedto the exempted take some mon~timeasthe staff iaestablishments to educate the awfully busy With Universal Accountemployers 0 that devia~ionsare Num~S~fAN) presently

in~~~~~Tnagngand sect~~~~0~~J3~ (Item No2 3t1hMeeting ofthe committee 15052014)

Page 13 of 83

I No Action TakenUpdated StatusDecisions I Directions of theCommittee

3 Investigation into thecompliance position of SaharaIndia Jai Prakash AssociatesUP Drugs and Pharmaceuticalsand UP State Road TransportCorporation

Chairman directed that theinvestigation be carried out on toppriority in the interest of theworkers and followed up regularlyand the development thereof beapprised to the Committee

(Item No2 3fih Meeting of theCommittee 15052014)

Investigation is going on nation-widein respect of Sahara India and JaiPrakash Associates and the same isbeing regularly monitored

Themterlrn report will be submittedto the Committee in their nextmeeting

Appropriate action has already beentaken against the UP Drugs andPharmaceuticals and UP State RoadTransport Corporation The finalreports will be submitted to theCommittee in their next meeting

BifurcationofExemptedEstablishments in to two parts - onewhich function as per rules andthe other which fail to functionappropriately to set right thefunctioning middotof the exemptedestablishmehts in the interestof the workers

Instructions have been issued to fieldoffices

a) tocarry out compliance audit of25 of the Exemptedestablishments functioning intheir jurisdiction each-quarter

b) to analyse and review theperiodical reports of

Shri Ashok Singh suggested that the exempted establishmentsexempted establishments be divided c) to carry out third partyin to two parts - one which function audit of the accounts ofas per rules and the other which fail the Fund maintained byto function appropriatety Strong the Board of Trustees byaction even cancellation of independentempanelledexemption should be taken to set Chartered Accountants ofright the functioning of the EPFO andexempted establishments in the d) tomonitor the functioningofinterest of the workers ----------- middotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddottnemiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotexemiddotmmiddotptecf

establishments online

Action Complete

coooobullbullbullebullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullebullbull

bullbullbull~~ j

Page lS of 83

1

1

1

1

1

1

1

1

1

~11

1

1

1

1_ 1

1

1

1

1

1

1

1

1

1

1

1

1

1

)

Item No3 Grant of exemption under Section 17(l)(a) of theEmployees Provident Funds and MiscellaneousProvisions Act 1952 and Para 27A of the EmployeesProvident Funds Scherne 1952 by AppropriateGovernment

I31 Section 17(1 )of the Employees Provident Funds arid MiscellaneousProvisions Act 1952 provides for exemption as under

Power to exempt - (1) The Appropriate Government may by notification in theOfficiat Gazette and subject to such conditions as may be specified in thenotification exempt whether prospectively or retrospectively from theoperation of all or any of the provisions of any Scheme Any establishment towhich this Act applies if in the opinion of the Appropriate Government therules of its provident fund with respect to the rates of contribution are not lessfavourable than those specified in Section 6 and the employees are also inenjoyment of other provident fund benefit which on the whole are not lessfavourable to the employees than the benefits provided under this Act or anyScheme in relation to the employees in any other establishment of a simitar character or

i

a Any establishment if the employees of such establishment are inenjoyment of benefits in the nature of provident fund pension orgratUity and the Appropriate Government if of the opinion that suchbenefits separately or jointly are on the whole not less favourable tosuch employees than the benefits provided under this Act or any Schemein relation to employees in any other establishment of a similarcharacter

32 Provided that no such exemption shall bemade except after consultationwith the Central Board which on such consultation shall forward its views onexemption to the Appropriate Government within such time limit as may bespecified in the Scheme

Para 27A (1) of the Employees Provident Fund Scheme 1952 provides

(

The Appropriate Government may -be+erder+errd middotmiddotmiddotsUbjettmiddotmiddotmiddotlomiddotmiddotmiddotmiddotmiddotmiddotsudmiddotmiddotmiddotmiddotmiddotmiddotmiddot conditions as may be specified in the order exempt from the operation ofall or any of the provisions of this Scheme any class of employees towhom the Scheme applies

Provided that such class of employees is entitled to benefits in the natureof Provident Fund gratUity or old age pension according to the rules ofthe [factory or other establishment] and such benefits separately orjointly are on the whole not less favourable than the benefits providedunder the Act and this Scheme

Page 16 of83

bullbulleoeG

bullbullbullbullbullbullbullbullbullbullbullbullbullbullmiddotGbullbullbullbullbullbull~bullbullbullbullbullbull

~

~

33 As per the above provisions of the of the Employees Provident Fundsand Misce~laneousProvisions Act 1952 and Ministry of Labour and Employmentletter dated 01042008 all cases of grant of exemption shall be placed beforethe Central Board of Trustees EPFfor consideration before sending the same toAppropriate Governments The copy of the Ministrys DO letter dated01042008 is placed as Annexure-3A

34 Before placing a proposal in the CST EPF its suitability is scrutinizedwith respect to the provisions -for grant of exemption as contained underSection 17 of the of the Employees Provident Funds and MiscellaneousProvisions Act 1952 Further in view of the guidelines issued by Ministry ofLabouramp Employment Government of India vide their letter dated 27022007as placed at Annexure - 38 all RPFGs furnish a certificate after dueverification carried out at their end with regard to the Ten Point Check List

35 Ministry of Labouramp Employment Government of India has also issued directions to the effect that the proposals shall be forwarded only if the latestCompliance Audit Report is found to be satisfactory Hence compliance auditcovering al the points as mentioned under the revised conditions for grant ofexemption is undertaken and a copy of the said report is ready to be forwardedto the Appropriate Government

36 Central Board of Trustees in its 202nd meeting held on 13012014authorized this committee to consider exemption proposals subject toratification by the Board as a one-time arrangement which has middot-bemiddotennecessitated because of large number of proposals required to be considered inthe current year in view of Income Tax exemption to the Trusts managing theirown PF only up to 31032014 A copy of the agenda item No 36 placed beforethe 202ndmeeting of the cer and minutes of the meeting are annexed herewithand marked as Annexure -3C and Annexure -3D respectively Terms ofreference of the Committee on Exempted Establishments is placed atAnnexure - 3E

37 A list of establishments as indicated in Annexure - 3F is now piacedbefore Sub-Committee for consideration and recommendation to AppropriateGovernment on behalf of the Central Board of Trustees EPF in accordance withthe proviso to Section 17 of the-Aet- -_ __

Proposal The Sub-Committee is requested to consider and recommendthe proposal in respect of establishments indicated inAnnexure -3F to the Appropriate Government on behalf of theCentral Boardfor grant of exemption

ANNEXURE-3A---a bullbull -= bull ~ bull

~i- ~

JOInt $acnary

Tel 23110l7 bullIIIbullbull

r _

Av-~ ~M JL--O~0 r

bullbull

N YOU ar IWUt sa5on 111 of tM poundmpoyus Provident Funck middotIt~ntOU Prcw$lonSAIJ 1952 proWIs thlt IppropMe GowrMlntrtlW hfWexempt cny uublbhment from Ut opcAtlonS oJ any SChamts sub)cltt to the ~hit such alCernpUon shalt bt made ttar consultation -Mth CennI SOlrd of TnmHf lUf)

1 middotThe MWstry $ ~Mnc bull numhr of cues of ~cnU ~~InlXetlptonundr ~ 11l) of the ~ rd pI 21 of [PF Scheme In tMfa ClR$bull~dod~ n some cllfltf mtampp of Cellll aoard of TNSUU (poundPF) tntral ProvIcStntFIM Cominlulonet has bHn lIWds1nCthe powen of he lIoud whn rtCOmmtfldlnlthe psu to tht IppfopnteGovemrnc~

3 Thl$ miner hiS ~tty MIl u~ In ~Uoct with Deprtment or LctltW$wto han opinedtht Wdwsect1on$ ofth k1 essential f1Inct~ ofthtr1laird of TNstetS (EPF1Bkethl$~ ~ HIdtltpted aM such dloPUon bytheampoud under pnlrJl powers of s-abl SE of ~I fulleUonof toMuK~n ndelSlaquoUoIl 17 wlV not bl pttmlsstbll

~ 4 Th m~r bbullbull btoUpt to th~ Idnd IIOtka of Chalrman arrHcnbl LEMt who tm bull concurred with thUI 1M k hu bte decided thlt hcrcrlorth aUsum1 We of yenllmptlon bt pg before he Cenbllloltd ofTN~ (Elf) fof consWentlon

(L ~sf__ laquondln the tv pr1atlaquoGMmtnnt as per the p~s of th411tt

5 In ~~ I s It ~ tntdut If VOl could kln6ty talte fU~f ~ tllbull thls ~CCordlnt

~~ ~~c~ rP~~il

~~~~~~~ ~~_~sectm

~ Shrt bullbullbullbullWwall2tban ~ - ~~ L~ ClntnolroItdentUndCo~~v 1) poundIII~ PnMdtnt Fund OrpnIQlJon ~ 6

Haw 0tRI1l0066

bull bull

bullbullbull

J~

Page 17 of 83

bullbull1

bull~ -ANNEXURE-3B _- -=-

~ the bullbull labIl~ futftlHno tho ~ conditiOns attc gfanl 01rlaquoXampUon~ Pbullbull 78 of tho EPF 8ctl4fmfJ 195and tMt ~ is no SolatIon otIhap condition

Page 18 of 83

bullofloebullbullbullbullbullbullbullbullbullbullbullebullbullbullbull

bullbull-bullbull~

bullbullbullbull6r~

~

bullbullbullbull

bullbull~

---~

rI

a

- -

IlHgtftt OR lilt wllldtPnJd 1MflDlltW I1QJWdtII mtoIIJamp1WSMtJo 10CIteMIJ

I Whether boerd of tnII1Cel bu boen aaICd under tho ~of employer

2 Whether an the dlpble cmpSoyeenre enroUed ISmcmbcn13 Whether tho 1ICCOUtamp will be mdntampiMd dceuoaica11y knd dl he

membeR fIillbc able to JCO their account lanco fiom the computertectnln1lalIfnOt be reMOdI thetepoundQCand b)r wfurt time accoants are~ 0 be mtintamcd eledronieaUy

~ Whltther board of tnistccs bampv6 fmliabcd a copy of prtsmbed undertaklnamp to the RPfC concemcd u per eM condition no 21

conWncd in Awrodix A to the RP Scheme 19521 tf yei I cqtyy ofthe IUnD to bo caclotcd

S Whether 1M employer and the board of tnlJ1ceI MVC Nmilbed theundcrWcb u ~ coodltion no 23 cootdned in Appendix A to theUP Sche1nc 19S2l lC)CI l copy or1he same to be eaelosed

6 Comparative lWtment or benefitl admiwbte under the EPF amp MPAet 1951 and tho Sebcmo ~ by heCltlb1isbmenl ell the huisof whi~ it I Olt)OCtuded tMt tho ~ of the eatabl~t u atleast compuablc lIith tboIcmiddot of the Act

7 Mechlnam propoampcclby the BlFOtPPFC to auurc that estsblilbmentis complyins with thO provUioaa or the condltiona (Of pant ofexcmptlon

S Nunc ottho RPfC in wbocejurlsdi~QQ ~ tmbUshment fillamp9 hyments Which need to be mamp by Ihc e5tabtisbmau to E~Oeven

after JIlDl of exemptionlOWhIther the uablbbmcont 11 fulfilllnamp chc preacrlbed conditions ancr

gnnt Oftdaxltioa Wldct Para79 o(tbc UP Sehcme 1951 and thereis DO viobtion oflhc same bull

(~(

(

(

(

i

-_ bull _-- --_ ___ bull

Page 19 of 83

-(

ANNEXURE-3C

Item No 36 Authorizing the Committee on ExemptedEstablishments (A Sub-Committeemiddot of the CentralBoard) for consideration of the proposals for grant ofexemption to the c5tablishments subject toratification

361 Proposals for grant of exemption to establishments from the operation of th~Employees Provident Fund Scheme 1952 under Section 17(1)(a) Employees ProvidentFunds amp Miscellaneous ProvislQns Act 19S2 and under Section 17(2~of the Act read withParagraph 27A of the Employees Provident Fund Scheme 1952 received from fieldoffices are examined in the Head Office with reference to the guidelines on the subjectissued (rom time to time

362 Section 17(1) of the Act stipulates that no such exemption shaJl be made except pfter consultation with the Central Boald which on such consultation shalljorward itsviews on exemption to the appropriate Government wIthin such time limit as may bespecified in the Scheme

363 Once the proposals are found to be complete in all respects the same are placed before the Central Board for consideration and recommendation to the AppropriateGovernment for grant of exemption and notification thereof within such time limit as maybe specified in the Scheme

364 Once the proposals are considered and approved by the Central Board they areforwarded to the Appropriate Government with the recommendation for grant of

exemption and notification in the Official Gazette

bullI

deg10JOJC Jc

1I--bullbullbullbullbullbull 1

~

bullbullbullbullbull41-

bullbull~

365 Clause (ea) was inserted in Rule 4 of Part-A of Fourth Schedule to the Income-tax bullbull

Act 1961 vide Finance Act 2006 to provide that recognition to a provident fund underthe Income-tax Act shall be restricted to only such funds

a) WhIch are covered under sub-section (3 or sub-section (4) of Section 1 of theEPF amp MP Act 1952 and

b)--Whichh1vebeenexemptedJlndecSeclon 17ofthe EPfamp MP Act 1952 fromthe operation of any scheme framed therein

366 It was also provided that the funds approved prior to 31032006 shall not beellglble for Income-tax benefit if they did not satisfy the conditions set out in clause (ea)of Rules 4 by 31032007 Accordingly EPFO was required to take necessary action inrespect of the funds recognized under the Income-tax Act on or before 31032006 andwho did not satis~ the conditions stipulated in clause (ea) of Rule 4 of Part A of FourthSchedule to the Income-tax Act The time period given in the statute was initially for one

P~e 200f83-464

I

I ~

) year which has been extended several times by legislative intervention vide Finance Actsof 2007 2008 200~ 2010 2011 2012 and 2013

367 While extending the time limit till 31032014 Min~stry of Finance Governmentof India made it dear that there wlllno further extension of the time limit

368 Approximately 260 proposals for exemption are pend1ng on the part of EPFOSome of them are under the process of examination at Head Office level and some are atthe level of field offices The processing of the proposals fakes time as the same are to begiven complete shape in consultation with the fieldofftces before placing the same to the

Central Board for consideration

Ir

3069 The Government of India Ministry of labour amp Employment in their letter dated01042008 issued dIrection to EPFO that all such cases of exemption be placed beforethe CentralBoard for consideration before sending the same to Appropriate Government

as per the provisions of the Act The proposals which are sent to AppropriateGovernment for grant of exemption shall be touted through the Central Board only Thesaid direction Is placed at Annexure 36-A

3610 Proviso to Paragraph 11 of the Employees Provident Funds Scheme 1952provides that the Central Board shall meet atleast twice in each financial year The lastmeeting (201~t) of the Central Board was held on 25022013 During the current year2013middot14 no meeting of the Board could be held till date

3611 In view of above it may not be possible to obtain the approval of the C~ntralBoard within 31032014 for all the proposals which are In order before forwarding thesame to the Appropriate Government for grant of exemption and notification thereof inthe Official Gazette This may lead to undesirable deadlock

3612 To overcome such possible deadlock it Is proposed that the power vested in theBoard for considerIng and recommending the proposals t~ Appropriate Government (forgrant of exemption and notification thereof) may be delegated to the Sub-Committee ofthe Central Board on Exempted Establishments All such proposals which are approved bythe Sub-Committee and sent to Appropriate Government will be put up to the CentralBoard in their sub5_e_g~ntm~~1gJorinformation and ratification

3613 Such delegation of power will streamline and expedite the processing ofexemption proposals to some extent

Proposal The Central Board is requested to consider and accordapproval to the proposal of authorizing the Sub-Committee onExempted Establishments for consideration of the proposalsfor recommending to Appropriate Government for grant of exemption to the establishments subJect to ratification

ANNEXURE-3D e()

oC)

bullbullbullbull

IEMPLOYEES PROVIDENT FUND ORGANISATION

MINUTES OF THE 202nd CHT MEETING (NEW DELHI 13 January 2014 1030 AM)

The 202ndmeeting of the Central Board of Trustees Employees Provident Fund

(CB1 EPF) was held under the Chairmanship of Shri Oscar fernandes Chairman CST EPFand Union Minister of labour amp Employment The following members attended themeeting-

1 MsGauri KumarSecretary (Labour amp Employment)Government of India New Delhi

2 Shri PK Pujari ASamp FAMinistry of Labour amp EmploymentGovernment of India New Delhi

3 ShriArun Kumar Sinha ASMinistry of Labour amp EmnbullbullbullbullVbullbullbullbullbullAntGovernment of India New Dejrnm~~~~~b

4 Shri Shashank Saxena vn~~II

Ministry of Finance rnvplHMpnt

S Shri Animesh Bhartl iJjrC1~~middott~~~~~~~Ministry of LabourGovernment of I

Central Governmentrepresentatives

6 Shri KK Jalan

7 Shri JP Chowdhary8 Shri Sharad Pati9 Shri Ravi Wig10 Dr UD Choubey11- Shri Badish Jindal12 Shri BP Pant13 Shri SushantaSen14 Shti GP Srivastava15 Dr Ram Tarneja16 Shri 55 Patil

PF Commissioner

Employers representatives

-_ _ _-__-_ --_ 17 Shri Virijesh UpadhYdY18 Shri M Jagdeeshwara Rao19 5hri Ram Kishore Tripathy

(vice Sori ADNagpal)LO Shr Ol Sachdeva21 Shri Ashok Singh22 Shri Krishna Chakraborty

(vice Shri Shankar Saha]23 Shri Raman Pandey

Employees representatives

bullbullbullbullbullebullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbull

(

(--

bullbullbullbull

i

bull

bull(

r------------------middott~

r

24 Shri AKPadmanabhan25 Shri Prabhakar J Banasure

26 $Ori Sanjay Prasad Principal Secretary (labour ampEmployment) Gujarat

27 Shri 5S Randawa AlC labour DepartmentPunjab

28 Shrf vs Arya Joint labour Commissioner Dellll29 Shri Glri Raj Singh Principal Secretary (labour amp

Employment Rajasthan30 Ms Nandita Gupta labour CommissJoner amp

Director (Employment) Himachal Pradesh

Staterepresentatives

Government

Following members could not attend the meeting and were granted leave ~f absence

1 Sh KSureshMinister of State for labour amp Employment

Vice Chairman

2 Or G Sanjeeva Reddy Employees representative

3 Principal Secretary bullbullbullbullbull-4 Principal Secretary amp0_bullbullbull

5 Principal Secretary6 Principal Secretary7 Principal Secretary ~YI~I~

S Principal Secretary Uf~

9 Principal Secretary (Lab10 Principal Secretary (latloild~~~Ml~ltJk~-11 Principal Secretary (labour) MaIUW12 Principal Secretary (labour) West

Government

The list of the officers of the Employees PF Organisation who attended the meetingis appended as Annexure A to these minutes

At the outset CPfe welcomed the Chairman andMembers The Board observed twominutes silence irniemorVmiddotonormed~nairmanmiddotorihemiddotmiddotCBTEPFmiddotmiddot~~dmiddotH~~bi~f~~er UnionMinister of labour amp Employment ShrJ Sls Ram Ola ji A condolence message to be sent tothe family of Shri Ola was also adopted by the Board

Thereafter Board welcomed first time members to the Board ~Shrl Prabhakar JBanasure Virijesh Upadhyay employees representatives 5S Pat ii employers

representatives of state Governments of Rajasthan and Himachal Pradesh

The agenda items were thereafter taken up for discussion

Page 23 of 83

~---i

Item No1 Confirmation of the minutes of 201st CST meeting held on 25022013

The minutes of the meeting circulated on 08032013 were confirmed by the Board

Item No 2 Action Taken Statement in respect of decisions taken upto the zoin CBr

meeting held on 25022013

middot21 Noted

22 Noted

202110 rrH~~1ingo~ cST EPF 13012014 Paee3bull

23 Noted Shri Ravi Wig stated that Permanent Account Numbers need to be issuedurgently to facilitate extension of PF benefits to all especially peripatetic workers It wasassured that the matter will be looked into Secretary (LampE)informed that EPFO has alreadybeen instructed to come up with a timeline for this purpose

24 to 215 Noted

216

comprehensive amendmentsproposal will be suitably

amendments

members It was informed thatrnlrlCrUmiddot~tjonof the Ministry and the

fliMllf1oisation of comprehensive

SShri MJ Rao Ol Sachdevato contractual employees ofbeen extended ESI benefitsexamine the issue and take ne(~e1SttHjo

of extension of PF benefitsInlrinnrv of such employees have_(fQT~rv (L amp pound) directed ACC(C) to

Item NO3 Purchase of ready and residential apartments to beconstructed by NBCC (Govt of India enterprise) at East Kidwal Nagar New Delhi

The Board approved the agehda as contained in the memorandum A few membershowever stated that such proposals should have prior approval of the Central Board Thevalso pointed out that meeting of the Board are not held regularly The members wereinformed that since time bound action was required to be taken in the matter and there

___ _~~~_~~~0l~~gS~~ryg~~Lth~J9fm~Iiliesbefcrehandractlon was taken aft er obtainingthe approval of the then Chairman Executive Committee and Chairman CBT

Item No4 Recovery of excess amount of Pension drawn by Shri 5ukhdeo Sharma MaCfhupUDC (Retd) Patna from 01022003 onwards

CPFC informed that a revised agenda has been circulated on the table today EPFOwas instructed to see if there was any angle of collusion and to take suitable action if casewas made out EPfO was also directed to investigate if similar cases were in existence ItWaS also decided that strict instructions should be issued so that such cases do not recur

Page 24 of 83

IIIIIIbullbullbullbullbullbullbullbull

bull bullbullbullbullbullbullQ

~

-~

~

bullbullbullbullbull-bullbullbull

-bullbullbull-

JI

~(

JI

(

I---------------------------------------------------------------------~

The Board approved the agenda as contained in the revised memorandum

Item No S Reconstitution of Executive Committee bull ElectIon of the representatives ofemployers and emplovees to the Executive Committee of the Central Board ofTrustees

The Board authorized the ChaIrman to nominate government representatives to theExecutive Committee The Board unanimously recommended folloWing representatives tothe Executive Committee-

51No Name of the Member1 Dr G Sanjeeva Reddy2 Shri M J Rao3 Stlrj AD Nagpat4 Dr UD Choubey5 Sh Badish Jindal6 Shri Ravi Wig (for the first term of two and a

half years) EmployersSh Sharad Patil

Representlng

Employees

Board ofTrustees Employees

Investment Committee beand shall look after audit related

representatives and~rmlmended that the Finance amp

~l1rr~~rltand Audit Committee (FlAC)

following were recommended for nomination to the sub-Commlttees-

FINANCE INVESTEMENTAND AUDITCOMMITIEESI No Name of the Member1 Shri Ram Tarneja2 Shri JP Chowdhary3 Dr G Sanjeeva Reddy-~--middot-----ShfimiddotPJmiddotBmiddotanastimiddotremiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddot EMPLOYEES

Repr~senting

EMPLOYERS

PENSION IMPLEMENTTION COMMITTEE1 Shrl GP Srivastava2 Shri Sharad Patll3 Shri Vlrijesh Upadhyay4 Shri DLSachdeva

EMPLOYERS

EMPLOYEES

P 25 f 83

COMMITIEE ON EXEMPTED ESTABLISHMENTS1 Shri BP Pant2 Shri Susanta Sen3 Shri AIltPadmenabhan4 Shri Ashok Singh

EMPLOYERS

EMPLOYEES

The Committee on Exempted Establishments shall also consider the pendingexemption proposals where relaxation has been granted before 310~2013 and which havebeen submitted in the current financial year on behalf of the Central Board and recommendthe same to Appropriate Government for grant of exemption This will be a one-timearrangement which has been necessitated because of large number of proposals required tobe considered in the current year in view of Income Tax exemption being available to trustsmanaging their own PF only up to 3103014

A other functions of different Sub-Committees of the Central Board shall be asproposed in the agenda

Item No7 Draft Annual RepOIt-ilc~ilJo~~~~~es of the Employees ProvidentljrSI(~ J t ~ bull

~~j~ ~r19t~~~~ bull-~ bull 1 -~~lt__t-

Shri JP Chaudhary made fol P6~ft~T~t-middot ~

i Lot of amount is vbullbull bullbullIodoOV inJ~jjJi(~~T~n-- ----- amp_41 bull_bullii PSUs account for a lartnoncchOof O)~d~fauft special recovery should be

thought of to addressiii Singapore CPF has a scheme

For this purpose EPF delegation had visited Singapore to study the same few years

ago EPFO should think of a Scheme on these linesiv It nay be as cert aine d whether a case exists for reducing Administrative Charges

v Permanent account number for PF members is required urgently

The Board considered the

Shri Ml Rao made following polnts-

_____1_middotmiddotmiddotmiddotmiddotmiddotmiddotmiddot_middotL middotHuge amountof arreacsespecially theNot Immediately Realisable (NIR) category is

a cause of concern

ii The Board had earlier recommended that High Courts be approached (or setting up

special benches for EPF related matters there has been no progress in the matteriii There should be no pendency in settlement of pension cases especially death

claims

iv Even though Annual Accounts slips contain columns for Date of Birth Date of Joiningand nomination but in most of the cases the field is left blank The fields must be

completed and members informed so that they can request for modifications if any

~middotIdeg_01n

I

o j

QIbull 1

)(

bullbullbullbullebull

bullbullbullbullbullbullbullbullGbull66

bullbullbullbullbullbullbullbullbullbull~

I

I

)

v Growth in funds invested was declining This needs to be ana1vsed and put up before

the Board

Shri Ashok Singh made following points-

i The benefits In death cases be expeditedii The nomination of the members needs to be collected at the time they become

Provident Fund membersiii Rate of growth in membership is very low vis-a-vis the growth in number of

establishments covered This needs to be looked Into

iv The information about membership should be indicated in three categories vizcontributingnon-contrlbutinginoperative

v Unique no for PF members should be issued on priorityvi EPFOshould go for universal number and centralisation of database

Shri AK Padmanabhan made following points-

i Pension cases need to be

Ii Exempted establishments

iii Arrears are a cause for

Shri DL Sachdevathe Annual Report Sri JlII~n-iJ~

are I)0t furnished indaisl~u~ittuil(t1~-Ad~olm~s remuneration is very less

needs to be revised

emerge in the report for

establishments has been released onfor monitoring exempted

it is expected to considerably improvethe process CPFC also informed the B~ard that the issue of permanent PF account numberto members and centralization of accounts is under active consideration and an update

status would soon be provided to the Board

Secretary lamp Emade the following observations-

---middotmiddotmiddotmiddotmiddotmiddot----tmiddotmiddot--middotThemiddotmiddotissuemiddotasmiddottomiddotwhethirotimahdinj(EPFQueS- canbe brought under SARFAESIAct (The Securitization and Reconstruction of Financial Assets and Enforcementof Securities Act 2002) may be taken up with the Department of FinancialServices (OFS) Ministry of Finance- (MoF)

It may be ascertained as to whether standing instructions can be given to the

banks on deduction of PF dues from employers account so that the active days

required for collection of such dues is reduced

1

1 11

l

I

l

iPage 21 of 83

1

Intervening in thestatutory wage ceiling is

reduction in administrative chaa)so stated that it is being centcompanies to self declare their PF lia of all employees on their rolls and paythe dues electronicallv every month Chairrnan requested the members to consider thepossibility of a Housing Scheme for the provident fund members by taking additlonalcontribution from them so that on superannuation they can be assured of some shelter Oil

the lines of the facility extended by the Singapore Provident Fund He further observed thatthe name of the nominee should always be included in the details to be submitted by themember and a system should be put in place so that claims are settled within hours and not

___ _ __ middotmiddotmiddotmiddotmiddotmiddotmiddotdaysmiddot-asmiddot-jsmiddot-themiddotpresenqjr~cncemiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddot

III In order to ensure the PSUs do not default in remittance of PF dues the matter

requires to be taken up with the concerned administrative Departments as wellaswith Ministry of finance

IV As regards providing hovsiog to the members the US law for HOPA 1995 mayalso be studied alongwith the provisions enforced by the Singapore PFauthorities -

V Specific tlmellnes be fixed for claim settlement pertaining to death casesVI Special campaign may be organised for an early settlement of Court cases on

arrearsVIIThe matter of inoperative accounts requires urgent attention It is the liability of

EPFO to identify the members especially of those establishments which haveeither been closed or are under liquidation and settle their claims A specialdrive may be launched for this purpose

VIII Service level bench-marks may be fixed for air major items of workof EPFObullind the process of service delivery should be simplified

IX The time line for grievance be improved further

X Coverage of newry iden be monitored closely so as toincrease compliance of eligible employees

xr The issue of be ana lysed and put upbefore FIAC

revision ofIt~Ibullbullmiddott~~ent and the issue of

wage ceiling is increased He

With these observations the Board approved the Annual Report 2012-13 of theEPFO

Item No 8 Audited Annual Account in respect of Employees Provident Fund Scheme1952 Employees Pension Scheme 1995 and Employees Deposit Linked InsuranceScheme 19-76 for the financial year 2012-13

FA amp CAO explained the salient features of the audited Annual Accounts It was

stated that action has already been initiated on all the observations made by the

Pa e 28 of83bull tmiddotmiddot 1 bull

202nd m e e t t nz ofCST EPF~ 1~1)120J4 PJpoundc7bull

bull()

oeC)

bullbullbull-bullbullbullbullbullbullbullbullbullbullbull

~

bullbullbullbullbullbullbullbullbullbullbullbullbullbullbulltwobullbullbullbull

(

t

)

-

I~--------------------------------------------------------------------Comptroller amp Auditor Genltral The matter was deliberated and it was decided to adopt theaudited Annual Accounts (or the fin~nclal year 2012-13 with the following observations ofSecretary lampE-

A pro-active effort should be made to locate non-operatlve accountsSince the legal position regarding non-payment of interest In case ofinoperative accounts Is still not clear provision may be kept for thIs purposeAll matters pertaining to legacy in case of accounts should be listed out andplaced before the Finance Investment and Audit CommIttee which shouldlook Into these issues come out with solution to each problem fix a timeframe for addressing them and monitor Its implementationAU accounts should be updated by 31032014 and adequate provisionsshould be made for this purposeThe issues required to be taken up with State Bank of India should be list~dand action middotInitiatedon them If any issue requires to be dealt with at the levelof Department of Fi~anclal Services the same may be brought to the noticeof Ministry of labour

VI dear SOP should from Inoperative accountsThe Finance should monitor and reviewsuchwithdlra~~~~[~~~~[~

VII In addition on expenditure while

I

II

III

IV

V

Item No9 Declaration of

The Board considered thi~m the observations raisedby the Ministry of Finance The Bo~~Ift~mt~lt~fi~ent provisions have already beenmade in Interest SUspense Account of interest which is due underinoperative account is being used for dedding the rate of interest on Provident funddeposits for the year 2013-14 It felt that it would bemiddotInappropriate not to give dues to theemployees as per the provisions of the Scheme The Board therefore decided torecommend to the Government that Provident Fund account holders be given interest atthe rate of 875 per annum for the year 2013-14

- - -----middotmiddotmiddot--middotmiddotltemNo~-iomiddotmiddotAppointment of a Consultant for Selection of Portfolio Manager

Custodian Concurrent Auditor and Performance Evaluation of Portfolio Managers

Members of the were apprised that the Honhle Minlster-cum-Chairman has alreadvnominated $hri Sharad PatH and Dr GS2nje_evaReddy as members of the Committee toselect the Consultant The Soard ratified the same The Board also ratified the earlieraction taken by the EPFO in this regard Secretary (lampE) observed that the terms ofreference for selection of portfolio managers should specificallv indicate that there Is no

Page 29 of 83

I

conflict of interest to the extent that EPF funds are used for investment in the parent

companies of the portfolio managers

Item No 11 Pattern of Investment 2008 notified by Ministry of Labour amp Employment

The Board took note of the proposal as ccntalned in the agenda

Item No 12 Additional Investment Guide lines for 2008 Pattern of Investment

After deliberations the Board decided to refer the matter to Finance Investment and AuditCommittee for taking appropriate action AS amp FA Ministry of Labour amp Employmentobserved that investmenti SOLcategory should be restricted to states following prudentfinancial norms Further investment under this category should be evenly distributed

Item No 13 Correction of name and date of birth of PF member - Provision in theApplication software- Subsequent amendments in the Manual of Acc~~nti~g P~o(edure ofEPFO

Item No 14 Amendmentincorporating the revised rbullbull~flfbullbullbullt~JJa~~

Part II-A for

with the observation

that the name of the noItem No 1S IncreasingAccount No2 amp EDlI AdmillfsttatliM AccoUii1TfAccounl

in EPF Administration

n para 1517 of the agenda

Item No 16 List of ineligible cases for waiver of damages rejected by CPFC

The Board took note of the proposal placed before it

Request for waiver of damages (item No 17 to 27)- The agenda as contained in itemnumbers 17 to 27 were approved by the Board with the rider that the waiver would be onlyin respect of unpaid damages

Members raised the issue of certain types of industries such as SMEs M5MEs

plantations ete which are outside the ambit of SARFAESIwhich was raised earlier and needto have a separate mechanism It was decided this may be discussed in Finance Investment

and Audit Committee Secretary (lampE) observed that the idea of forming a joint lenders

forum may be explored in this regard It was decided that this may be furtherdeliberated inFinance Investment and Audit Committee

middot1Inl()1

t7J-l-Imiddotlbullmiddot1- I-bullbullbullbullbullbullbullbullbullbullbull~

bullbullbullbullbullbullbullbullf-er

bullbullbull-bullbull4w

bullbullbull-

-

(bull(bull(bullbullbullbull~(~

bull~

)

i

)

bull-bull bull

bullbull

bull

Item No 28 Grant oj exemption under Section 17 of the Employees Provident Funds andMiscellaneous Provisions A~ 1952 and Para 27A of the Employees Provident FundsScheme 1952 by Appropriate Government _

CPFCinformed the Board that a supplementary agenda note circulated earlier hasalso been placed on t~etable

It was informed to the Honble Members that in most of the cases which are broughtbefore the Board the establishments are enJoying the relaxation for years together and theissue Is br~ught before the Board for regularizing the relaxation and recommending to theappropriate Government for 3 final decision in the matter After deliberations It wasdecided that in all the cases included in the present agenda be recommended to theappropriate Government for taking a decision The Board also decided that it should beseen that none of these establishments are In default It was further decided that a detailedSOP for grantlng exemption should be brought before the Executive Committeemiddot forconsideration

As regards Tata MarcopolO-

which is pending in the office llbullbullbullearlier The Board decidedrecommended from the

was informed that it is the onlY caserelaxatlon has been grantedMarcopolo Motors ltd be

as contained in theWith these nhltPfvtl

agenda

Item No 29 13th Valuation bullbullbullbullbullbullbullReport submitted by She PA BaiitiIOOmlJ1flllr(~

Fund as on 31032009 -by the Government

The Board approved the

Item No 30 Proposal on amendment of Para 32(1 of EPS 9S-Annual Valuation ofEmployees pension F~nd

The Board decided to continue with annual valuation of the Employees PensionFund

bull__ bullmiddotmiddot_middotbull _middot-middotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddot1 ~bullbull- bullbull Jbullbullbullbull ~ bullbull middotmiddotmiddotmiddotrt-middotmiddotmiddotmiddotmiddotamiddotmiddotdionmiddotmiddottakeiitlvmiddotEPFOstncethe last CST(lOut meeting held on

25th February 2013) - for Information

The Board took note of the agenda placed before it

Page 31 of 83

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

Item No 32 Revised Estimates for the year 2013middot14 and Budget Estimates for the year

2014-15 for EPFO and Schemes administered by EPFO

Since details were not brought about clearly The Board decided that the RevisedEstimates (20i3~14) and Budget Estimates (2014middot15) to be placed before the ExecutiveCommittee who were delegated the power to approve it

Item No 33 Delegation of Administrative and Financial Powers to Chief Engineer PFD

EPFO

The Board 3Rproved the proposal as contained in the agenda

Item No 34 Grant of Senior Time Scale of P83 Rsl~60~39100 Grade Pay Rs 6600- toregular APFCs after completion of 5 years - implementation date clarification

The Board decided that since matter is a complex one adetailedmiddotanalysis be made ofthe whole proposal and placed before Executive Committee for consideration

of Instalment facility to defaultingestablishments to liquidate

The Board approved t

Item No 36 Authorizingof the CentralBeard]establishments subject to

(A Sub-Committee

The Board approved niIt~iD~JubmiddotCQJtnit1leeproposals subject to ratification 6fiR~~~inecessitated because Of large number

ed toconsider exemptionarrangement which has been

to be considered in the currentyear in view of Income Tax exemption being available to trusts managing their own PF Onlyup to 31032014

Item No 37 Agenda for amendment to the Employees Deposit linked Insurance Scheme1976

The Board Was informed that actuarial valuation of the EOLI Scheme 1976 ismiddotmiddotmiddotunderwyenymiddot Smiddotoamiddot(fltieCided that pending Iinalisation of the actuarial valuation an interim

additional benefit of 20 over and above what is admissible under the provisions of theScheme be allowed to beneficiaries

ShriMJRao stated that there is a need for providing medical benefit to members by

amending Section 6C of the Act It was felt that this issue has already been raised earlieralso will be studied further

Page 32 of 83

~i~ 202nd n1eeting of CST EPf 130120140 lgtasel1bull

CfgtOJ001ebullbullbullbullbullbullbullbullbull -bullbullebullbullbullbullbullbullbullbullbullbullbullbullbullbull

t~

liIt

rII

i

l~

tbullt

Item No38 Suggested issues by few CST members

The Board decided that whenever any fraud Is discovered civil and criminal actionshall be taken against delinquent emplOyers

Members desired that the contact details of EPF officers be updated regularly on

wwwepfindiagovin

The Board appreciated that agenda and minutes of CST and EC are available on webIt was desired that agenda and minutes of all sub-Committees of the Board and ExecutiveCommittee be also put on web The Soard also directed to explore the possibility of settingup of information kiosks in al offices of EPFO so that stake holders could access informationthrough such kiosks directly

Sh MJ Rao raised the issue of installation of lift in the SRO Vishakhapatnam Stlri AKPadmanabhan stated that the issue of office building for SRO Tambaram needs middotto be

resolved at the earliest

workers money He alsoworkers engaged in various s~mpmiddotijjg~1U

in Kolkata many of which areity dues and holding on to

in the form of PF to

middotmiddotmiddotmiddotmiddot_middotmiddot-middotmiddotmiddotmiddotmiddotmiddot_middotmiddotmiddotmiddotmiddotmiddotmiddot_middotmiddotmiddotmiddotmiddotmiddot11middotmiddotbullbullbull bullbull

Page 33 of 83

_--------

1

1()1 1

---~Ie101deg11-1-1bullbull 1

bull 1

bullbull 1

bull 1bull Ibull Ibull 1

bull 1

bull 1

bull Ibull IIbull I

bullI - ---- - ---- 1

1

1

1

1

1

1

1

1

EMPLOYEES PROVIDENT FOND ORGAHISAnONMIKUT1S OF THE

36 HEEllNQ OF THESVa-cotcMlTlU CST (EPf) ONXEMPTED ESTABUSltMmTS

(EPF HEADQUAJrrERSHfW DELHI IS1 May 1014 103O~)

The 361h meeting of the SUb-Commlttee CST (EPF) on Exem~ EstabIlshments waschaired by 5hI1 KK Jalan Central PF CommlssJoner The folJowmg members attended themeeting

Shrl SUshaota Sell

Shrt kgthok Slngh

Shrl AK Padmanabhan

Ernp1oyers representzstlve

Employees representative

Employees re~tNe

EmpIoyersrepresentatlve

Addltional Cenral PF CommlSsfooer(CompUance) andConvenor

Shri BP Pant

Shri PK Udgata

The fu~OWlng members could not attend the meetJng because of their pre-ocxupatkm andsought~~e of ebsence

Smt M~nakshl Gupta Jolnt SecretaJy a Fl~lalAdvisor (Mnlstry of Labour a Employment)

Shrl Anlmesh ShartJ

The list of officers of the Employees ProvIdent Fund Organisation who llttendedthe meeting Is at Annexure 1A

Mthe 0lJtSe4 Central PF CommlssJoner and Chalnnan welcomed all the Membersand apprised the need for convening the meetlng of the SUb-Commlttee at is short notice

Page 1 on

Page40f83

bullbullbullbull

I~

1

bull

i

bullbullCbull-

(

bull bull(

bullbullbullbullt

t

Thereafter the agenda Items were taken up

Item No 1 eonftnnatlon of the minutes or 35 meeting of the SVtJ-CommlttMS ofbull the Central Board or Trusteec EPF on Exempted Establtshmenb held

on 28032014-

lJAddi CPFC(Cornpl~nce)lnf~rmed that themInUtes ~the 3~ meeting of the Sub-Committee of the Central Board of Trustees EPF on lxempted EstabUshments heldon 2803201~ were drculated to aUthe members on 04042014 and no feedbackhas been rereIYed from imy of the members

12 OaIrman stated that If there ls no objection of members the mInutes may betaken as conflrmecl

13 Honble Members unanlmousty confirmed the minutes of the 3slaquomeettng of theSUb-Commfttee of the Central Board of Trustees EPF on Exempted establishmentsas ml the issues raised have been acted upon

Item No2 AdJon Taken Statement tn respect of decisions taken In the 3Stlt

meeting of the Sub-Committee of the Central Board of TIUStee$IPf on Exempted EstabilshrMnts held on 28032014

21 Olairman expressed his ceoeeen on the Issue ratsed by SIlo AK ~manabhantegMflng study of the functionIng of estabhshments already granted exemption Hedirected Addl CPFC (ComPlance) to supply details of exempted establishments tothe members to start the study A two member Commlttee one ~ fromemployers skJe and one from Em~Ofees side from amongst the members of thIsCommlttee shall mrry out the study

22 ShriSU3hllrlta Sen suggested that the terms of reference shall be prescribed

23 ChalTJansuggested that the Committee will callY out a preliminary study to see as to whether the condItions stipulated In Appendlx-A to Paragraph 27M of theEmployeesProvident Funds Scheme 1952 for grant of exemptIon are adhered bythe exempted estabflshments Whether the rates of contribution and benefits givenby the exempted estabUshments to their employees are either at par or morebenendal than those available under the Employee Provident Funds and

_ Miscellaneous Provisons Act 1952 and the SChemes framed thereunder TheCommittee wi also suggest as to whether there Is a need to make _Cl --_ -middot __ middotmiddotmiddot_--middot-middot_middotmiddotmiddotmiddot __middotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddot-

comprehensive study in-house or ~ outside agencies for improving the functioningof the exempted establishments

Page 5 of 83

29 Chairman directed that the InvestigatiOn be carried out on top priority in thenterest of the WOI1cersThe same be followed up reguJarly and the developmentsthereof be epprtsed to the Committee

o()

ooeeamp

bullbullbulle

bullbullbullbullbullQ

bullbullbullbullbullbullbull

24 Shri BP Pant suggested that guldeDnestn the form of a smaI booklet bet Issued tothe exempted establishments to educate the employers so that deviations are notcommitted managing and maIntaining tne Trust

25 SM Sushanta sen suggested tnllt the exempted Trusts be eduCllted on the vartousaspects or Investment so that they wlQ be In a position to avoid axnmlWngdeWstJ~ from he pattemmiddot of investment piesa1bed by the Government

26 Chalmlan Informed that lnteracHon sessions were conducted durtl9 last year201~1-4at M~I Bangaluru and New Delhl to dlSQ1SS various Issues pert31nfng toexemption be It formation of the Trust be It election of the Employee Trustees beIt Budlt of the Trust be It Investment of Trust Fund and so on He assured themembers that such Interaction sessions wlll be conducted In regular lntelVal duringthIS current fsCa1to eduaste the employers end the Trustees

27 WIth thls deliberation It Is decided that the prelimInary study be done of ten majorexempted estabnshments to stzIlt with Chairman fixed the tJmelfne for supplyingthe detalls of exempted establtstvnents to the members as 25 May 2014 Hed1reded Add1 CPFC (compliance) middottomiddotprOYtdemiddotthemiddot details of ten mala- exemptedestablishments accordlngly

28 Thereafter AddlCPFC (Comp~nce) apprised the Committee that keeping In viewthe concerns of the members instructions have already been Issued to ZonalAdditional CPFCs to carry out the 1ovestlgatlon Into the compDance posttJon ofSahara india Jal Prakash AssocIates UP Drugs and Pharmaceuticals and UPStateRoad Transport CorporaUon

210 Members appreciated the good work done by EPfO by launching the software fOronline monltorlng 0( exempted establishments designing the format for re-audttlngof the accounts of Provident Fund maintained by the Board of Trustees ofexempted establishments and issuing guidelines for levy of surchargemiddot on the Boardof Trustees for the deviations they commit In investing the Trust Fund from the

- pattern of Investment presaibed by the Government

211 Shr1AshDk Singh suggested that the exempted lest1bUshments be divided 10to two ff parts - one which function as per rules an the other -whIch-fiiCtO-middotfiOCtimiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddot bullappropriately Strong action even canceUatlon f exemption should be taken to setright the functioning of the exempted establlshenls In the Interest of the woricers

Page 3 on bullbullbullPage 6 of 83

t)

f

I

bull)

bullbullbullbullbull)

)

bullbull)

bull1

bulltbulll

Item No3 Grant of exemption under SectIon 17(1)(8) of the Employe bullbull ProvIdent Funds and Miscellaneous Provisions Act 15)52 andPara 27A of the Employebullbull Provident Fund Scheme 1952by Appropriate GoVetnmnL

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

31 AdditIonal CPfC (Compliance) Infortlled the Ogtmmlttee that the out of enllstedtwentYestabl1shments nineteen establishments meet the requIrements and thusthelr proposals deserve colSldenltion and fecolMlendatlon on behalf of theCentral Board of Trustees EPF to the Appro~te Government for grant ofexemption

32 Additlonat CPFC (Compllance) pointed out that the case of the Food CorpoJation ofIndia(FCI) Is very pooJlIar and the COmmtttee may conslder the proposal HeInformed the Committee that FCI has lncurred loss for three years consecutivelywhkh s evident from Its Balance Sheets As per conditJon No 25 of the Appendtx-Ato Paragraph 27M of the EmployeesPttMdent Funds Scheme1952 no exemptJoncan be recommendedsanctioned to II company which blcu~ ~ for three yearsconseltutfvely

33 The AddItJoMl CPfC (Compliance) also brought to the noticemiddotof the Committee thesub~ons or the Chatrman and Manrgtng Director Fa ZlS detaled bclow

a) The CMD dclrlfled that Fa is Implementing the fOOd polley of the Government of IndIa and does not undertake aTfl cpmmerdal operations

The ent1re expendlture IncUrred by the corporation Is reimbursable by the Government of India Therefore the question of any profit or loss does notertse

b) The eoCPoration prepared Its Annual Report 10 the format preso1bed underSchedule VI of the Companies Act as lnssted by its sole auditor Comptroller~ Auditor Geneiol (eMG) By foRowlng such fonnat Bod and DoubtfulOebts are to be deplcted as lOss In the Profit amp loss Account

c)middot Qep1ctJonof tosses In the Annuaf Report5 are in fad deferred subsidy whldl Is released on completion of procedural aspects of write-off of --Bad andDoubtful Debts 11lI the time Bad and Doubtful Debts- are not writen-offhe Goyemment does notrelmburse the food Subsidy hence this conUnuesto be shown as losses ~ FaBalance Sheet __ ___

d) Fa Is a subsJdy based corporation hence quesHon of Bny proflt or loss doesnot DOse

Page4of9

Page 7 of 83

Page 8of83

bullbull

34 Additional ~ (CompOance) also brought to the notICe of the Commlttee thefoUowlng dartftaltlons on losses stlen by the AddltJOM Seaetary amp AnandalAcMsor Mlntstry of Consumer Affa~ food 6 Public OIstrlbuUon on behalf ofGovernment of India

a) The potkydedslons onmiddot Public Distribution System CPOS)National Food5ecurtty N1 (NFSA) etc are blken tit the Government of India through FC1for which entire expendJture Incurred by Food Corporation of lncfsa erereimbursed In the form of food subsidy Fa Is a subsidy based corporationhence question of any proftt or loss does not arise

b) The procedure of relmbursement of food subskty has been preso1bed bythe GoverMeot of India Thls Jnter-aHa stipulates that food subskfy Inrespect of bad and doubtful debts 15 releaSed only afterwrite-otf of thesame by the FO Thus ~bsIdy Is not released on the basis of creatiOn ofprovision for bad and doubtful debts Due to this stipulatiOn the amount of~ ~nd dcnlbtfut debtsprovided In the ~ of fCl are depicted as lossesIn the Ananc1al Statement tlll the same Is written off after followingpresa1bed procedure In fact these osses are deferred subsidy which arereleased to FClln the year when the bad and doubtful debts ere written offbyFa

bullbullbull

c) The losses shown In the financial Statement ot Fa is a mere depIctionsince they follow the fonnat of BaIBnceSh~t llnd Profit amplossAccounts aspresoibedunder the Companies Ivi 00 the advJCeof their sole auditorCampAG and approval cl the Government cf India bullmiddot35 Shri AK Pedmanabhan stated thatthe Food Corporation of India Is It no profit no

loss organisation of Government of India and condition No 2S of Appendix A toPara 27M of the Employees Provident Funds Scheme 1952 Is not attracted In caseof Fa Thus the proposel of fO deserves consideration and recommendation toApproprtate Government for grant of exemptlon

bullbullbull36 Shri Sushanta Sen end Shrl BP Pant conSented the Views of Shri AK bull

Padmanabhan and strongly opine that the proposal of Fa may be sent to bullGovernment of India Ministry of labour Ii Employment for approprtate

consideration and grant of exemption bull---~---- bullbullPage5ol9 bullbullbullbullbullbullbullbull

ir

bullbull

t(

bullbull(bullbullbullbullbull~

bullbullbullt~

tgt)

bullbullbullbullbull~

37 The Chalnnan stated that Fa it Government of lridla coocem as recouplng DRthedifference between the economic cost and saes realization In the form of consumersubsidy from the Gov~ment of India except the pnMsIons of bad and doubtfUldebts In the amp(COunts of the CltXVQratJon The subsidy fOr this expendtture Is notclaimed In the year of occurrence of expendlbJre but ls claimed In the year d writeoff of ampd iIDd DoUbtful Debts The depiction of osse$ In the Balance Sheet Issimply due to deferment of subsidy -dalm from the year of prov1slons mampde to thevear of wrtte-off The entire expendlture Incurred by fCI Is relmbured by theGovernment of Indla the form of food sUbskfy SInce the accounts of Fa areaudited by the caAG end In view d the clarifkatbns g1venbv Government of Indiathe proposal for gl1lnt of exemption may be forwarded to AppropJ1ate Governmentfor consideration bull

38 The Commlttee unanimously dedded to forward the proposal of Fa for grant ofexemption to Appropriate Government for cons1detCltlon

39 With tills deliberation the Committee consldered end recommended the proposalsIn respect of the foUowtng establishments as contained In the Agenda to theApproprlatemiddotGovemmentforconsdeBtlol-and gnSnt Of middotexemptlon

cocsNo Mtk ~I AlJpltopdtIt Mo ofcrct Para ~ rMmbersfront

HHIWV 01052009 17(1)(1) StIIb es125553 ~ d

~

Wl25410 OUIl2009 17 (ll(l) State 02 ~ rlHlh~

3 MIL TIU lJIIIltad SROJemshedprr

Jt1I1302 01011980 17(1)(1 CermI 1068GoYemment

4 M bullbull SIJSIC InJlotIatift ROGurgecn HR31l16 01()9la10 17(1)(1) GoveMrnent of 81PlJIItb SrldJa Pvt Ud 1ndIa

s HI bullbull WoodamptrJcS(Schoot 10 ~ UAl~ 01111993 llXt) Gootmment of 316lItbnncMI

6 MbullbullmiddotAI~ bullbullbullbullQnMb SIlO~ lJrJ~BlUInbd

O1o1t961 17(lX_) ~ rI 459~

7 Mallt Tamoort 00 DelhI DlJ2(X20Umbel Scxth

2O0um 17(1)(1) GoYenvnent of S34india

bullbull MIl eorultJng 10 DelhI 0l36Wng~ ScrYkeI South~) PvtUmIUd

29051974 17(lXa) ~_~ _~~ __ India

Page 9 of 83

Item No4

1

1deg1() I01

0101-111-111bull 1

1

bull 1bullbull 1

1

1bull 1

bull 141 Addltlonal CPFC (Compllzmce) brought to the notice of the Commlttee that bullwhile processing the pending appHcatJoos for grant of exemption some cases have bull Icome to the notlce of Head OffIce where the estabUshrrients maintain thelr own trust 1

~e exempted establishments~ ~~ ~__~~ ~ ~bull 1

1

1

1

1

1

1

1

1

Regularlsatlon of the proposals submitted by theestablishments for grant of exemption who maintaInthe Trusts without grant of relaxation under Para 79 ofthe Employees Provldent Funds Scheme 195~ or withpennlss10n of RPfOL

bullbull

bullbullbull Habullbull oftfte omc CodeHo WIth SectIonI ~ Noof 10 ~ 1Ifflaquot GoIrerMaent ~

froIa

aJ It Tyrw bull ~Mpore rJ(MtSI 01042D02 17(lX~) GMmment d -4711lIIdtlldrltc IImbd 9508 Jnck(VIIautTyN ~)HyIart

10 MbullbullUTTcinology fID~ ItVllIHI 01012014 17 UXa) GIIYernnWnt cI 1667sNba Ucnbdmiddot 205170 Incb

11 MaLG SRO Vesill ~asNI 01062001 VA Gooemmeat d mhtrocMmlcllll Umbel 9S22O IncIa

12- MsMJIQ SJU) Vashl MH95413 OU)6lClO7 VA ~d zshtroCh bullbullbullbullbull lImJted india

U- Ka HexJawwre RO Thane MV42123 01071996 17(lXI) ~ot 56Q5TechnologM Umlbd IncIa

14 MIs bullbull T RO Thane t+l20669 OUM2013 11 (1)(a) ~d 2396~ lJMItOIId Incla

15 Mbullbull GlC ~g to Bancn MVtWiI OUI31994 17 (1)(a) middot bullbullbullbullbullbullbullbull cI 142Finwlca Lln1ted 39407 tncSa

145 Merefld bullbull knz 110 KN24117- 0103200 27A state 1116ROII bullbull rch Bangillore X 8 GoverMmttl~elOP~At (1) (P)

of Kamtab

17 M_ food 1tO~1h1 Dlf2271 111989 2711 Central 76678 ~rtltlol1 0 zncn (N Gov

lL Mbullbullbullbullbullbull In cthoUc Ilaquo) ICllndMII MHKNDl 0111199 17(I)(a) Stilt 455Co-op Sank ltd 2613 1 Governmentor

MilharashtraUI KII Atillya Blrt SRO Rajkot GJ40n 0104200 27A Central l125tluvo ud 6 GOY~O KlllUampMII ~ RPRRO X93gtS16 01032009 17(lXa) Cer1tnII 26~ Indllt PYt Deli (SauttI) Govunrna-tUd

bullbullPagt 7 of9 bullbullbullbullbull

Page 10 of 83 bullbullbull

(

~

bull~bullbullbullbullbullbullbullbullbullbull

a) In some cases the estJIbllshmenis f1IZIlntilln their own TIUSts withoutBOY relaxation granted under PiA 79 of the Employees ProYIdentFunds Scheme 1952 after 9submission of applicaHonfor gnnt ofexemption either under Section 170Xa) or under Selttion 17(2) or theEmployees ProvIdent Funds 100 MlsceIaneous ProvIsIons Art 1952read with Para 27A d the Empbyees ProYIdent Funds Scheme 1952-

b) In some othet eases eStabl1shmentshave been covered by RegIOnal PFCommlsstoners of Reg)oncsVSub-RIlgiona omces under Sed10n 2A ofthe Act beatlng the same lIS bnmctees of main est2iblishments SIncethe date of coverage the establ15hments covered under 2A depositconbibutlons txgtYards provident fund in the Trust maintained by theirmain establlshments and conthIe to pay Penston and EDUcontributsons with the RPRs wherever they are covered OVer the-years complksnce In respect of ptOVIdent fund was never 1nslsted fromthese estabUshments nor any permIsslon was g1Vento them to complyIn respect of provident fund In 1he main estabnshments Even norelaxation was grented to these establishments under Para 79 of the

Employees Provkient funds Scheme-19Sl

1

I111

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

-42 Additional CPfC (COmpHance)epprlsed the Comml~ that Instructions wereIssued In past to RPfCs to grant relaxation under Para 79 of the EmployeesPrtMdent Foods Scheme 1952 to such categories of establishments which functJonas an exempted establishments from a prior date subject to usual condltlons asstipulated In Appendix A to Para 27M Of the Employees Provkient Funds Scheme1952 as retaxatlon Is required to be granted from a much prior date In order toreguJarise is period of time during wh1ch the establishment has complied as anexempted establ1Shment without been relaxed Because the law alklws only therelaxed establlshments to mallltaln its sepamte fund and function as an exemptedestablishment before the grant of exemption under Sectlon 17 of the Ad

3 Additional CPfC (Compnance) also lnfonned the Committee that Regional PFCommlssloners continue to conduct compliance audit over the years treating theseestabUshments as If exempted and forwarded the applications submitted by theseestabDshments for grant of exemption from the operation of the EmployeesProvident Funds Scheme 19-52where no relaxation has been gnmted A number dproposals pending for grant of exemption are of thls nature These establishmentscomply to all the condltlons reqUired for exemption as proylded In Appendix-A toPara 27Mmiddotof the Employees Provident Funds Scheme 1952 FQrwant of relaxation - the proposals of establ1shments of above nature are pending If thesemiddotltas~middotaremiddotnotmiddot middot--middotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddot-middotmiddot--middotmiddot-middotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotregularised then the Interest of the employees will be at stake and they wouldsuffer for no fisult of theirs These cases thus need to be regularJsedbull

1 Page 11 of 83

41 Shri AK Padmanabhan suggested that the cases of these so caUedexemptedestzIbllshments have to be regularised kl the lriterest of the employees and thisshould be a one tine exerdse for dlspostng the applJcatlons of these establishmentspending for grant of exemption for years together He felt that without much delaycasesd this nature should be forwarded to the AppropOat8 Government for grant ofexemption

45 Shri BP Pant pointed out that no relaxation CXJu1dbe given to theseestablishments who malntaln PfTrusts on ~ own even after Issue of lnstructlonsThe estabftshments made continuous effort 1n pursuing their cases but no actJon Istaken for proce$SIng their CZISeS He also stated that the establishments whkhmaintain Trusts without relaxation or permlss$on need to be regularised by way ofgrant of exemption wlthoutfurther delay

46 Shrt Sushanta Sen wanted to know as to why no relaXIItlon was granted Inthese cases

47 Additional CPfC (Comptlance)apprised the members that It IS a systemicfailureand for no fault of the employers the proposals be tcept pending further Herequested the Hooble members to take appropnate declston to regularise thesecases

48 Charman Informed the Committee that the power to grant relaxationmiddot underPara 79 of the Employees ProvkSent Funds SCheme 1952 has been withdrawn fromthe Regional PF Commissioners wef 24072012 Grant of exemption ~n all thesecases is pending duemiddot to lack of relaxation order permtsslononaccount of the faUureon the part of ttMi fteld fundIornllies These estaoUshments are assumed to beexempted establishments even in the absence of relaxatlonorderpermlsslon TheCommittee may conslder as an one time exetdse to rtfularise these pending caseswhere the establishments maintain the Trusts and abide by the conditions stipulatedIn Appendix A to Para 27M of the Employees ProvIdent Funds Scheme 1952

With ~ls deliberation It was dedded that the appllaltlons of these establlshmentswhich maintaIn their PF Trusts WIthout any relaxation permlssion to partldpate Inthe main Trusts of thetr parent establlshrnent should be processed Without furtherdelay and be placed before the Appr-opriate Forum for forwarding the same toAppropriate Government for grant of exemption

The meeting ended WIth vote of thanks to the ChaIr ---- _ --_ _ __ ___

--0----Pagetoft

-

Page 12 of 83

InffI

Ii~

o()ooebullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbull

~j

1

Item No2 Action Taken Statement in respect of decisions taken in the36thmeeting of the Sub-Committee of the Central Board ofTrustees EPFon Exempted Establishments held on 15052014

(

51 No

Action Complete

Action TakenUpdated StatusDecisions Directions of theCommittee

bullbull~

--

1 Conducting study of the The details of exemptedfunctioning of the establishmentshave been supplied toestablishments already the Committee Members for thegranted exemption by studyon28052014Members of the Committee

Chairmandirected that the detaitsof the Exempted Establishmentsshall be supplied to HonbleMembers by 25th May 2014 to

start the studv

(Item No23t1hMeetingof theCommittee 15052014)

2 Preparation of guidelines in Time to time instructions issuedto thethe form of a small booklet for field offices on various issues ofissueto the exempted exemptionare uploadedon the official-----

establishments for educating websiteot EPFO which can be visitedthe employers so that by ExemptedEstablishmentsdeviations are np~committedin managing and malntalnlnq

the Trust I i Howeverattempts RavealreadybeenShri BPPant suggested that the ~ken to prepare a small booklet asguidelines in the form of a small suggestedby Honble MemberIt willbooklet be issuedto the exempted take some mon~timeasthe staff iaestablishments to educate the awfully busy With Universal Accountemployers 0 that devia~ionsare Num~S~fAN) presently

in~~~~~Tnagngand sect~~~~0~~J3~ (Item No2 3t1hMeeting ofthe committee 15052014)

Page 13 of 83

I No Action TakenUpdated StatusDecisions I Directions of theCommittee

3 Investigation into thecompliance position of SaharaIndia Jai Prakash AssociatesUP Drugs and Pharmaceuticalsand UP State Road TransportCorporation

Chairman directed that theinvestigation be carried out on toppriority in the interest of theworkers and followed up regularlyand the development thereof beapprised to the Committee

(Item No2 3fih Meeting of theCommittee 15052014)

Investigation is going on nation-widein respect of Sahara India and JaiPrakash Associates and the same isbeing regularly monitored

Themterlrn report will be submittedto the Committee in their nextmeeting

Appropriate action has already beentaken against the UP Drugs andPharmaceuticals and UP State RoadTransport Corporation The finalreports will be submitted to theCommittee in their next meeting

BifurcationofExemptedEstablishments in to two parts - onewhich function as per rules andthe other which fail to functionappropriately to set right thefunctioning middotof the exemptedestablishmehts in the interestof the workers

Instructions have been issued to fieldoffices

a) tocarry out compliance audit of25 of the Exemptedestablishments functioning intheir jurisdiction each-quarter

b) to analyse and review theperiodical reports of

Shri Ashok Singh suggested that the exempted establishmentsexempted establishments be divided c) to carry out third partyin to two parts - one which function audit of the accounts ofas per rules and the other which fail the Fund maintained byto function appropriatety Strong the Board of Trustees byaction even cancellation of independentempanelledexemption should be taken to set Chartered Accountants ofright the functioning of the EPFO andexempted establishments in the d) tomonitor the functioningofinterest of the workers ----------- middotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddottnemiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotexemiddotmmiddotptecf

establishments online

Action Complete

coooobullbullbullebullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullebullbull

bullbullbull~~ j

Page lS of 83

1

1

1

1

1

1

1

1

1

~11

1

1

1

1_ 1

1

1

1

1

1

1

1

1

1

1

1

1

1

)

Item No3 Grant of exemption under Section 17(l)(a) of theEmployees Provident Funds and MiscellaneousProvisions Act 1952 and Para 27A of the EmployeesProvident Funds Scherne 1952 by AppropriateGovernment

I31 Section 17(1 )of the Employees Provident Funds arid MiscellaneousProvisions Act 1952 provides for exemption as under

Power to exempt - (1) The Appropriate Government may by notification in theOfficiat Gazette and subject to such conditions as may be specified in thenotification exempt whether prospectively or retrospectively from theoperation of all or any of the provisions of any Scheme Any establishment towhich this Act applies if in the opinion of the Appropriate Government therules of its provident fund with respect to the rates of contribution are not lessfavourable than those specified in Section 6 and the employees are also inenjoyment of other provident fund benefit which on the whole are not lessfavourable to the employees than the benefits provided under this Act or anyScheme in relation to the employees in any other establishment of a simitar character or

i

a Any establishment if the employees of such establishment are inenjoyment of benefits in the nature of provident fund pension orgratUity and the Appropriate Government if of the opinion that suchbenefits separately or jointly are on the whole not less favourable tosuch employees than the benefits provided under this Act or any Schemein relation to employees in any other establishment of a similarcharacter

32 Provided that no such exemption shall bemade except after consultationwith the Central Board which on such consultation shall forward its views onexemption to the Appropriate Government within such time limit as may bespecified in the Scheme

Para 27A (1) of the Employees Provident Fund Scheme 1952 provides

(

The Appropriate Government may -be+erder+errd middotmiddotmiddotsUbjettmiddotmiddotmiddotlomiddotmiddotmiddotmiddotmiddotmiddotsudmiddotmiddotmiddotmiddotmiddotmiddotmiddot conditions as may be specified in the order exempt from the operation ofall or any of the provisions of this Scheme any class of employees towhom the Scheme applies

Provided that such class of employees is entitled to benefits in the natureof Provident Fund gratUity or old age pension according to the rules ofthe [factory or other establishment] and such benefits separately orjointly are on the whole not less favourable than the benefits providedunder the Act and this Scheme

Page 16 of83

bullbulleoeG

bullbullbullbullbullbullbullbullbullbullbullbullbullbullmiddotGbullbullbullbullbullbull~bullbullbullbullbullbull

~

~

33 As per the above provisions of the of the Employees Provident Fundsand Misce~laneousProvisions Act 1952 and Ministry of Labour and Employmentletter dated 01042008 all cases of grant of exemption shall be placed beforethe Central Board of Trustees EPFfor consideration before sending the same toAppropriate Governments The copy of the Ministrys DO letter dated01042008 is placed as Annexure-3A

34 Before placing a proposal in the CST EPF its suitability is scrutinizedwith respect to the provisions -for grant of exemption as contained underSection 17 of the of the Employees Provident Funds and MiscellaneousProvisions Act 1952 Further in view of the guidelines issued by Ministry ofLabouramp Employment Government of India vide their letter dated 27022007as placed at Annexure - 38 all RPFGs furnish a certificate after dueverification carried out at their end with regard to the Ten Point Check List

35 Ministry of Labouramp Employment Government of India has also issued directions to the effect that the proposals shall be forwarded only if the latestCompliance Audit Report is found to be satisfactory Hence compliance auditcovering al the points as mentioned under the revised conditions for grant ofexemption is undertaken and a copy of the said report is ready to be forwardedto the Appropriate Government

36 Central Board of Trustees in its 202nd meeting held on 13012014authorized this committee to consider exemption proposals subject toratification by the Board as a one-time arrangement which has middot-bemiddotennecessitated because of large number of proposals required to be considered inthe current year in view of Income Tax exemption to the Trusts managing theirown PF only up to 31032014 A copy of the agenda item No 36 placed beforethe 202ndmeeting of the cer and minutes of the meeting are annexed herewithand marked as Annexure -3C and Annexure -3D respectively Terms ofreference of the Committee on Exempted Establishments is placed atAnnexure - 3E

37 A list of establishments as indicated in Annexure - 3F is now piacedbefore Sub-Committee for consideration and recommendation to AppropriateGovernment on behalf of the Central Board of Trustees EPF in accordance withthe proviso to Section 17 of the-Aet- -_ __

Proposal The Sub-Committee is requested to consider and recommendthe proposal in respect of establishments indicated inAnnexure -3F to the Appropriate Government on behalf of theCentral Boardfor grant of exemption

ANNEXURE-3A---a bullbull -= bull ~ bull

~i- ~

JOInt $acnary

Tel 23110l7 bullIIIbullbull

r _

Av-~ ~M JL--O~0 r

bullbull

N YOU ar IWUt sa5on 111 of tM poundmpoyus Provident Funck middotIt~ntOU Prcw$lonSAIJ 1952 proWIs thlt IppropMe GowrMlntrtlW hfWexempt cny uublbhment from Ut opcAtlonS oJ any SChamts sub)cltt to the ~hit such alCernpUon shalt bt made ttar consultation -Mth CennI SOlrd of TnmHf lUf)

1 middotThe MWstry $ ~Mnc bull numhr of cues of ~cnU ~~InlXetlptonundr ~ 11l) of the ~ rd pI 21 of [PF Scheme In tMfa ClR$bull~dod~ n some cllfltf mtampp of Cellll aoard of TNSUU (poundPF) tntral ProvIcStntFIM Cominlulonet has bHn lIWds1nCthe powen of he lIoud whn rtCOmmtfldlnlthe psu to tht IppfopnteGovemrnc~

3 Thl$ miner hiS ~tty MIl u~ In ~Uoct with Deprtment or LctltW$wto han opinedtht Wdwsect1on$ ofth k1 essential f1Inct~ ofthtr1laird of TNstetS (EPF1Bkethl$~ ~ HIdtltpted aM such dloPUon bytheampoud under pnlrJl powers of s-abl SE of ~I fulleUonof toMuK~n ndelSlaquoUoIl 17 wlV not bl pttmlsstbll

~ 4 Th m~r bbullbull btoUpt to th~ Idnd IIOtka of Chalrman arrHcnbl LEMt who tm bull concurred with thUI 1M k hu bte decided thlt hcrcrlorth aUsum1 We of yenllmptlon bt pg before he Cenbllloltd ofTN~ (Elf) fof consWentlon

(L ~sf__ laquondln the tv pr1atlaquoGMmtnnt as per the p~s of th411tt

5 In ~~ I s It ~ tntdut If VOl could kln6ty talte fU~f ~ tllbull thls ~CCordlnt

~~ ~~c~ rP~~il

~~~~~~~ ~~_~sectm

~ Shrt bullbullbullbullWwall2tban ~ - ~~ L~ ClntnolroItdentUndCo~~v 1) poundIII~ PnMdtnt Fund OrpnIQlJon ~ 6

Haw 0tRI1l0066

bull bull

bullbullbull

J~

Page 17 of 83

bullbull1

bull~ -ANNEXURE-3B _- -=-

~ the bullbull labIl~ futftlHno tho ~ conditiOns attc gfanl 01rlaquoXampUon~ Pbullbull 78 of tho EPF 8ctl4fmfJ 195and tMt ~ is no SolatIon otIhap condition

Page 18 of 83

bullofloebullbullbullbullbullbullbullbullbullbullbullebullbullbullbull

bullbull-bullbull~

bullbullbullbull6r~

~

bullbullbullbull

bullbull~

---~

rI

a

- -

IlHgtftt OR lilt wllldtPnJd 1MflDlltW I1QJWdtII mtoIIJamp1WSMtJo 10CIteMIJ

I Whether boerd of tnII1Cel bu boen aaICd under tho ~of employer

2 Whether an the dlpble cmpSoyeenre enroUed ISmcmbcn13 Whether tho 1ICCOUtamp will be mdntampiMd dceuoaica11y knd dl he

membeR fIillbc able to JCO their account lanco fiom the computertectnln1lalIfnOt be reMOdI thetepoundQCand b)r wfurt time accoants are~ 0 be mtintamcd eledronieaUy

~ Whltther board of tnistccs bampv6 fmliabcd a copy of prtsmbed undertaklnamp to the RPfC concemcd u per eM condition no 21

conWncd in Awrodix A to the RP Scheme 19521 tf yei I cqtyy ofthe IUnD to bo caclotcd

S Whether 1M employer and the board of tnlJ1ceI MVC Nmilbed theundcrWcb u ~ coodltion no 23 cootdned in Appendix A to theUP Sche1nc 19S2l lC)CI l copy or1he same to be eaelosed

6 Comparative lWtment or benefitl admiwbte under the EPF amp MPAet 1951 and tho Sebcmo ~ by heCltlb1isbmenl ell the huisof whi~ it I Olt)OCtuded tMt tho ~ of the eatabl~t u atleast compuablc lIith tboIcmiddot of the Act

7 Mechlnam propoampcclby the BlFOtPPFC to auurc that estsblilbmentis complyins with thO provUioaa or the condltiona (Of pant ofexcmptlon

S Nunc ottho RPfC in wbocejurlsdi~QQ ~ tmbUshment fillamp9 hyments Which need to be mamp by Ihc e5tabtisbmau to E~Oeven

after JIlDl of exemptionlOWhIther the uablbbmcont 11 fulfilllnamp chc preacrlbed conditions ancr

gnnt Oftdaxltioa Wldct Para79 o(tbc UP Sehcme 1951 and thereis DO viobtion oflhc same bull

(~(

(

(

(

i

-_ bull _-- --_ ___ bull

Page 19 of 83

-(

ANNEXURE-3C

Item No 36 Authorizing the Committee on ExemptedEstablishments (A Sub-Committeemiddot of the CentralBoard) for consideration of the proposals for grant ofexemption to the c5tablishments subject toratification

361 Proposals for grant of exemption to establishments from the operation of th~Employees Provident Fund Scheme 1952 under Section 17(1)(a) Employees ProvidentFunds amp Miscellaneous ProvislQns Act 19S2 and under Section 17(2~of the Act read withParagraph 27A of the Employees Provident Fund Scheme 1952 received from fieldoffices are examined in the Head Office with reference to the guidelines on the subjectissued (rom time to time

362 Section 17(1) of the Act stipulates that no such exemption shaJl be made except pfter consultation with the Central Boald which on such consultation shalljorward itsviews on exemption to the appropriate Government wIthin such time limit as may bespecified in the Scheme

363 Once the proposals are found to be complete in all respects the same are placed before the Central Board for consideration and recommendation to the AppropriateGovernment for grant of exemption and notification thereof within such time limit as maybe specified in the Scheme

364 Once the proposals are considered and approved by the Central Board they areforwarded to the Appropriate Government with the recommendation for grant of

exemption and notification in the Official Gazette

bullI

deg10JOJC Jc

1I--bullbullbullbullbullbull 1

~

bullbullbullbullbull41-

bullbull~

365 Clause (ea) was inserted in Rule 4 of Part-A of Fourth Schedule to the Income-tax bullbull

Act 1961 vide Finance Act 2006 to provide that recognition to a provident fund underthe Income-tax Act shall be restricted to only such funds

a) WhIch are covered under sub-section (3 or sub-section (4) of Section 1 of theEPF amp MP Act 1952 and

b)--Whichh1vebeenexemptedJlndecSeclon 17ofthe EPfamp MP Act 1952 fromthe operation of any scheme framed therein

366 It was also provided that the funds approved prior to 31032006 shall not beellglble for Income-tax benefit if they did not satisfy the conditions set out in clause (ea)of Rules 4 by 31032007 Accordingly EPFO was required to take necessary action inrespect of the funds recognized under the Income-tax Act on or before 31032006 andwho did not satis~ the conditions stipulated in clause (ea) of Rule 4 of Part A of FourthSchedule to the Income-tax Act The time period given in the statute was initially for one

P~e 200f83-464

I

I ~

) year which has been extended several times by legislative intervention vide Finance Actsof 2007 2008 200~ 2010 2011 2012 and 2013

367 While extending the time limit till 31032014 Min~stry of Finance Governmentof India made it dear that there wlllno further extension of the time limit

368 Approximately 260 proposals for exemption are pend1ng on the part of EPFOSome of them are under the process of examination at Head Office level and some are atthe level of field offices The processing of the proposals fakes time as the same are to begiven complete shape in consultation with the fieldofftces before placing the same to the

Central Board for consideration

Ir

3069 The Government of India Ministry of labour amp Employment in their letter dated01042008 issued dIrection to EPFO that all such cases of exemption be placed beforethe CentralBoard for consideration before sending the same to Appropriate Government

as per the provisions of the Act The proposals which are sent to AppropriateGovernment for grant of exemption shall be touted through the Central Board only Thesaid direction Is placed at Annexure 36-A

3610 Proviso to Paragraph 11 of the Employees Provident Funds Scheme 1952provides that the Central Board shall meet atleast twice in each financial year The lastmeeting (201~t) of the Central Board was held on 25022013 During the current year2013middot14 no meeting of the Board could be held till date

3611 In view of above it may not be possible to obtain the approval of the C~ntralBoard within 31032014 for all the proposals which are In order before forwarding thesame to the Appropriate Government for grant of exemption and notification thereof inthe Official Gazette This may lead to undesirable deadlock

3612 To overcome such possible deadlock it Is proposed that the power vested in theBoard for considerIng and recommending the proposals t~ Appropriate Government (forgrant of exemption and notification thereof) may be delegated to the Sub-Committee ofthe Central Board on Exempted Establishments All such proposals which are approved bythe Sub-Committee and sent to Appropriate Government will be put up to the CentralBoard in their sub5_e_g~ntm~~1gJorinformation and ratification

3613 Such delegation of power will streamline and expedite the processing ofexemption proposals to some extent

Proposal The Central Board is requested to consider and accordapproval to the proposal of authorizing the Sub-Committee onExempted Establishments for consideration of the proposalsfor recommending to Appropriate Government for grant of exemption to the establishments subJect to ratification

ANNEXURE-3D e()

oC)

bullbullbullbull

IEMPLOYEES PROVIDENT FUND ORGANISATION

MINUTES OF THE 202nd CHT MEETING (NEW DELHI 13 January 2014 1030 AM)

The 202ndmeeting of the Central Board of Trustees Employees Provident Fund

(CB1 EPF) was held under the Chairmanship of Shri Oscar fernandes Chairman CST EPFand Union Minister of labour amp Employment The following members attended themeeting-

1 MsGauri KumarSecretary (Labour amp Employment)Government of India New Delhi

2 Shri PK Pujari ASamp FAMinistry of Labour amp EmploymentGovernment of India New Delhi

3 ShriArun Kumar Sinha ASMinistry of Labour amp EmnbullbullbullbullVbullbullbullbullbullAntGovernment of India New Dejrnm~~~~~b

4 Shri Shashank Saxena vn~~II

Ministry of Finance rnvplHMpnt

S Shri Animesh Bhartl iJjrC1~~middott~~~~~~~Ministry of LabourGovernment of I

Central Governmentrepresentatives

6 Shri KK Jalan

7 Shri JP Chowdhary8 Shri Sharad Pati9 Shri Ravi Wig10 Dr UD Choubey11- Shri Badish Jindal12 Shri BP Pant13 Shri SushantaSen14 Shti GP Srivastava15 Dr Ram Tarneja16 Shri 55 Patil

PF Commissioner

Employers representatives

-_ _ _-__-_ --_ 17 Shri Virijesh UpadhYdY18 Shri M Jagdeeshwara Rao19 5hri Ram Kishore Tripathy

(vice Sori ADNagpal)LO Shr Ol Sachdeva21 Shri Ashok Singh22 Shri Krishna Chakraborty

(vice Shri Shankar Saha]23 Shri Raman Pandey

Employees representatives

bullbullbullbullbullebullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbull

(

(--

bullbullbullbull

i

bull

bull(

r------------------middott~

r

24 Shri AKPadmanabhan25 Shri Prabhakar J Banasure

26 $Ori Sanjay Prasad Principal Secretary (labour ampEmployment) Gujarat

27 Shri 5S Randawa AlC labour DepartmentPunjab

28 Shrf vs Arya Joint labour Commissioner Dellll29 Shri Glri Raj Singh Principal Secretary (labour amp

Employment Rajasthan30 Ms Nandita Gupta labour CommissJoner amp

Director (Employment) Himachal Pradesh

Staterepresentatives

Government

Following members could not attend the meeting and were granted leave ~f absence

1 Sh KSureshMinister of State for labour amp Employment

Vice Chairman

2 Or G Sanjeeva Reddy Employees representative

3 Principal Secretary bullbullbullbullbull-4 Principal Secretary amp0_bullbullbull

5 Principal Secretary6 Principal Secretary7 Principal Secretary ~YI~I~

S Principal Secretary Uf~

9 Principal Secretary (Lab10 Principal Secretary (latloild~~~Ml~ltJk~-11 Principal Secretary (labour) MaIUW12 Principal Secretary (labour) West

Government

The list of the officers of the Employees PF Organisation who attended the meetingis appended as Annexure A to these minutes

At the outset CPfe welcomed the Chairman andMembers The Board observed twominutes silence irniemorVmiddotonormed~nairmanmiddotorihemiddotmiddotCBTEPFmiddotmiddot~~dmiddotH~~bi~f~~er UnionMinister of labour amp Employment ShrJ Sls Ram Ola ji A condolence message to be sent tothe family of Shri Ola was also adopted by the Board

Thereafter Board welcomed first time members to the Board ~Shrl Prabhakar JBanasure Virijesh Upadhyay employees representatives 5S Pat ii employers

representatives of state Governments of Rajasthan and Himachal Pradesh

The agenda items were thereafter taken up for discussion

Page 23 of 83

~---i

Item No1 Confirmation of the minutes of 201st CST meeting held on 25022013

The minutes of the meeting circulated on 08032013 were confirmed by the Board

Item No 2 Action Taken Statement in respect of decisions taken upto the zoin CBr

meeting held on 25022013

middot21 Noted

22 Noted

202110 rrH~~1ingo~ cST EPF 13012014 Paee3bull

23 Noted Shri Ravi Wig stated that Permanent Account Numbers need to be issuedurgently to facilitate extension of PF benefits to all especially peripatetic workers It wasassured that the matter will be looked into Secretary (LampE)informed that EPFO has alreadybeen instructed to come up with a timeline for this purpose

24 to 215 Noted

216

comprehensive amendmentsproposal will be suitably

amendments

members It was informed thatrnlrlCrUmiddot~tjonof the Ministry and the

fliMllf1oisation of comprehensive

SShri MJ Rao Ol Sachdevato contractual employees ofbeen extended ESI benefitsexamine the issue and take ne(~e1SttHjo

of extension of PF benefitsInlrinnrv of such employees have_(fQT~rv (L amp pound) directed ACC(C) to

Item NO3 Purchase of ready and residential apartments to beconstructed by NBCC (Govt of India enterprise) at East Kidwal Nagar New Delhi

The Board approved the agehda as contained in the memorandum A few membershowever stated that such proposals should have prior approval of the Central Board Thevalso pointed out that meeting of the Board are not held regularly The members wereinformed that since time bound action was required to be taken in the matter and there

___ _~~~_~~~0l~~gS~~ryg~~Lth~J9fm~Iiliesbefcrehandractlon was taken aft er obtainingthe approval of the then Chairman Executive Committee and Chairman CBT

Item No4 Recovery of excess amount of Pension drawn by Shri 5ukhdeo Sharma MaCfhupUDC (Retd) Patna from 01022003 onwards

CPFC informed that a revised agenda has been circulated on the table today EPFOwas instructed to see if there was any angle of collusion and to take suitable action if casewas made out EPfO was also directed to investigate if similar cases were in existence ItWaS also decided that strict instructions should be issued so that such cases do not recur

Page 24 of 83

IIIIIIbullbullbullbullbullbullbullbull

bull bullbullbullbullbullbullQ

~

-~

~

bullbullbullbullbull-bullbullbull

-bullbullbull-

JI

~(

JI

(

I---------------------------------------------------------------------~

The Board approved the agenda as contained in the revised memorandum

Item No S Reconstitution of Executive Committee bull ElectIon of the representatives ofemployers and emplovees to the Executive Committee of the Central Board ofTrustees

The Board authorized the ChaIrman to nominate government representatives to theExecutive Committee The Board unanimously recommended folloWing representatives tothe Executive Committee-

51No Name of the Member1 Dr G Sanjeeva Reddy2 Shri M J Rao3 Stlrj AD Nagpat4 Dr UD Choubey5 Sh Badish Jindal6 Shri Ravi Wig (for the first term of two and a

half years) EmployersSh Sharad Patil

Representlng

Employees

Board ofTrustees Employees

Investment Committee beand shall look after audit related

representatives and~rmlmended that the Finance amp

~l1rr~~rltand Audit Committee (FlAC)

following were recommended for nomination to the sub-Commlttees-

FINANCE INVESTEMENTAND AUDITCOMMITIEESI No Name of the Member1 Shri Ram Tarneja2 Shri JP Chowdhary3 Dr G Sanjeeva Reddy-~--middot-----ShfimiddotPJmiddotBmiddotanastimiddotremiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddot EMPLOYEES

Repr~senting

EMPLOYERS

PENSION IMPLEMENTTION COMMITTEE1 Shrl GP Srivastava2 Shri Sharad Patll3 Shri Vlrijesh Upadhyay4 Shri DLSachdeva

EMPLOYERS

EMPLOYEES

P 25 f 83

COMMITIEE ON EXEMPTED ESTABLISHMENTS1 Shri BP Pant2 Shri Susanta Sen3 Shri AIltPadmenabhan4 Shri Ashok Singh

EMPLOYERS

EMPLOYEES

The Committee on Exempted Establishments shall also consider the pendingexemption proposals where relaxation has been granted before 310~2013 and which havebeen submitted in the current financial year on behalf of the Central Board and recommendthe same to Appropriate Government for grant of exemption This will be a one-timearrangement which has been necessitated because of large number of proposals required tobe considered in the current year in view of Income Tax exemption being available to trustsmanaging their own PF only up to 3103014

A other functions of different Sub-Committees of the Central Board shall be asproposed in the agenda

Item No7 Draft Annual RepOIt-ilc~ilJo~~~~~es of the Employees ProvidentljrSI(~ J t ~ bull

~~j~ ~r19t~~~~ bull-~ bull 1 -~~lt__t-

Shri JP Chaudhary made fol P6~ft~T~t-middot ~

i Lot of amount is vbullbull bullbullIodoOV inJ~jjJi(~~T~n-- ----- amp_41 bull_bullii PSUs account for a lartnoncchOof O)~d~fauft special recovery should be

thought of to addressiii Singapore CPF has a scheme

For this purpose EPF delegation had visited Singapore to study the same few years

ago EPFO should think of a Scheme on these linesiv It nay be as cert aine d whether a case exists for reducing Administrative Charges

v Permanent account number for PF members is required urgently

The Board considered the

Shri Ml Rao made following polnts-

_____1_middotmiddotmiddotmiddotmiddotmiddotmiddotmiddot_middotL middotHuge amountof arreacsespecially theNot Immediately Realisable (NIR) category is

a cause of concern

ii The Board had earlier recommended that High Courts be approached (or setting up

special benches for EPF related matters there has been no progress in the matteriii There should be no pendency in settlement of pension cases especially death

claims

iv Even though Annual Accounts slips contain columns for Date of Birth Date of Joiningand nomination but in most of the cases the field is left blank The fields must be

completed and members informed so that they can request for modifications if any

~middotIdeg_01n

I

o j

QIbull 1

)(

bullbullbullbullebull

bullbullbullbullbullbullbullbullGbull66

bullbullbullbullbullbullbullbullbullbull~

I

I

)

v Growth in funds invested was declining This needs to be ana1vsed and put up before

the Board

Shri Ashok Singh made following points-

i The benefits In death cases be expeditedii The nomination of the members needs to be collected at the time they become

Provident Fund membersiii Rate of growth in membership is very low vis-a-vis the growth in number of

establishments covered This needs to be looked Into

iv The information about membership should be indicated in three categories vizcontributingnon-contrlbutinginoperative

v Unique no for PF members should be issued on priorityvi EPFOshould go for universal number and centralisation of database

Shri AK Padmanabhan made following points-

i Pension cases need to be

Ii Exempted establishments

iii Arrears are a cause for

Shri DL Sachdevathe Annual Report Sri JlII~n-iJ~

are I)0t furnished indaisl~u~ittuil(t1~-Ad~olm~s remuneration is very less

needs to be revised

emerge in the report for

establishments has been released onfor monitoring exempted

it is expected to considerably improvethe process CPFC also informed the B~ard that the issue of permanent PF account numberto members and centralization of accounts is under active consideration and an update

status would soon be provided to the Board

Secretary lamp Emade the following observations-

---middotmiddotmiddotmiddotmiddotmiddot----tmiddotmiddot--middotThemiddotmiddotissuemiddotasmiddottomiddotwhethirotimahdinj(EPFQueS- canbe brought under SARFAESIAct (The Securitization and Reconstruction of Financial Assets and Enforcementof Securities Act 2002) may be taken up with the Department of FinancialServices (OFS) Ministry of Finance- (MoF)

It may be ascertained as to whether standing instructions can be given to the

banks on deduction of PF dues from employers account so that the active days

required for collection of such dues is reduced

1

1 11

l

I

l

iPage 21 of 83

1

Intervening in thestatutory wage ceiling is

reduction in administrative chaa)so stated that it is being centcompanies to self declare their PF lia of all employees on their rolls and paythe dues electronicallv every month Chairrnan requested the members to consider thepossibility of a Housing Scheme for the provident fund members by taking additlonalcontribution from them so that on superannuation they can be assured of some shelter Oil

the lines of the facility extended by the Singapore Provident Fund He further observed thatthe name of the nominee should always be included in the details to be submitted by themember and a system should be put in place so that claims are settled within hours and not

___ _ __ middotmiddotmiddotmiddotmiddotmiddotmiddotdaysmiddot-asmiddot-jsmiddot-themiddotpresenqjr~cncemiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddot

III In order to ensure the PSUs do not default in remittance of PF dues the matter

requires to be taken up with the concerned administrative Departments as wellaswith Ministry of finance

IV As regards providing hovsiog to the members the US law for HOPA 1995 mayalso be studied alongwith the provisions enforced by the Singapore PFauthorities -

V Specific tlmellnes be fixed for claim settlement pertaining to death casesVI Special campaign may be organised for an early settlement of Court cases on

arrearsVIIThe matter of inoperative accounts requires urgent attention It is the liability of

EPFO to identify the members especially of those establishments which haveeither been closed or are under liquidation and settle their claims A specialdrive may be launched for this purpose

VIII Service level bench-marks may be fixed for air major items of workof EPFObullind the process of service delivery should be simplified

IX The time line for grievance be improved further

X Coverage of newry iden be monitored closely so as toincrease compliance of eligible employees

xr The issue of be ana lysed and put upbefore FIAC

revision ofIt~Ibullbullmiddott~~ent and the issue of

wage ceiling is increased He

With these observations the Board approved the Annual Report 2012-13 of theEPFO

Item No 8 Audited Annual Account in respect of Employees Provident Fund Scheme1952 Employees Pension Scheme 1995 and Employees Deposit Linked InsuranceScheme 19-76 for the financial year 2012-13

FA amp CAO explained the salient features of the audited Annual Accounts It was

stated that action has already been initiated on all the observations made by the

Pa e 28 of83bull tmiddotmiddot 1 bull

202nd m e e t t nz ofCST EPF~ 1~1)120J4 PJpoundc7bull

bull()

oeC)

bullbullbull-bullbullbullbullbullbullbullbullbullbullbull

~

bullbullbullbullbullbullbullbullbullbullbullbullbullbullbulltwobullbullbullbull

(

t

)

-

I~--------------------------------------------------------------------Comptroller amp Auditor Genltral The matter was deliberated and it was decided to adopt theaudited Annual Accounts (or the fin~nclal year 2012-13 with the following observations ofSecretary lampE-

A pro-active effort should be made to locate non-operatlve accountsSince the legal position regarding non-payment of interest In case ofinoperative accounts Is still not clear provision may be kept for thIs purposeAll matters pertaining to legacy in case of accounts should be listed out andplaced before the Finance Investment and Audit CommIttee which shouldlook Into these issues come out with solution to each problem fix a timeframe for addressing them and monitor Its implementationAU accounts should be updated by 31032014 and adequate provisionsshould be made for this purposeThe issues required to be taken up with State Bank of India should be list~dand action middotInitiatedon them If any issue requires to be dealt with at the levelof Department of Fi~anclal Services the same may be brought to the noticeof Ministry of labour

VI dear SOP should from Inoperative accountsThe Finance should monitor and reviewsuchwithdlra~~~~[~~~~[~

VII In addition on expenditure while

I

II

III

IV

V

Item No9 Declaration of

The Board considered thi~m the observations raisedby the Ministry of Finance The Bo~~Ift~mt~lt~fi~ent provisions have already beenmade in Interest SUspense Account of interest which is due underinoperative account is being used for dedding the rate of interest on Provident funddeposits for the year 2013-14 It felt that it would bemiddotInappropriate not to give dues to theemployees as per the provisions of the Scheme The Board therefore decided torecommend to the Government that Provident Fund account holders be given interest atthe rate of 875 per annum for the year 2013-14

- - -----middotmiddotmiddot--middotmiddotltemNo~-iomiddotmiddotAppointment of a Consultant for Selection of Portfolio Manager

Custodian Concurrent Auditor and Performance Evaluation of Portfolio Managers

Members of the were apprised that the Honhle Minlster-cum-Chairman has alreadvnominated $hri Sharad PatH and Dr GS2nje_evaReddy as members of the Committee toselect the Consultant The Soard ratified the same The Board also ratified the earlieraction taken by the EPFO in this regard Secretary (lampE) observed that the terms ofreference for selection of portfolio managers should specificallv indicate that there Is no

Page 29 of 83

I

conflict of interest to the extent that EPF funds are used for investment in the parent

companies of the portfolio managers

Item No 11 Pattern of Investment 2008 notified by Ministry of Labour amp Employment

The Board took note of the proposal as ccntalned in the agenda

Item No 12 Additional Investment Guide lines for 2008 Pattern of Investment

After deliberations the Board decided to refer the matter to Finance Investment and AuditCommittee for taking appropriate action AS amp FA Ministry of Labour amp Employmentobserved that investmenti SOLcategory should be restricted to states following prudentfinancial norms Further investment under this category should be evenly distributed

Item No 13 Correction of name and date of birth of PF member - Provision in theApplication software- Subsequent amendments in the Manual of Acc~~nti~g P~o(edure ofEPFO

Item No 14 Amendmentincorporating the revised rbullbull~flfbullbullbullt~JJa~~

Part II-A for

with the observation

that the name of the noItem No 1S IncreasingAccount No2 amp EDlI AdmillfsttatliM AccoUii1TfAccounl

in EPF Administration

n para 1517 of the agenda

Item No 16 List of ineligible cases for waiver of damages rejected by CPFC

The Board took note of the proposal placed before it

Request for waiver of damages (item No 17 to 27)- The agenda as contained in itemnumbers 17 to 27 were approved by the Board with the rider that the waiver would be onlyin respect of unpaid damages

Members raised the issue of certain types of industries such as SMEs M5MEs

plantations ete which are outside the ambit of SARFAESIwhich was raised earlier and needto have a separate mechanism It was decided this may be discussed in Finance Investment

and Audit Committee Secretary (lampE) observed that the idea of forming a joint lenders

forum may be explored in this regard It was decided that this may be furtherdeliberated inFinance Investment and Audit Committee

middot1Inl()1

t7J-l-Imiddotlbullmiddot1- I-bullbullbullbullbullbullbullbullbullbullbull~

bullbullbullbullbullbullbullbullf-er

bullbullbull-bullbull4w

bullbullbull-

-

(bull(bull(bullbullbullbull~(~

bull~

)

i

)

bull-bull bull

bullbull

bull

Item No 28 Grant oj exemption under Section 17 of the Employees Provident Funds andMiscellaneous Provisions A~ 1952 and Para 27A of the Employees Provident FundsScheme 1952 by Appropriate Government _

CPFCinformed the Board that a supplementary agenda note circulated earlier hasalso been placed on t~etable

It was informed to the Honble Members that in most of the cases which are broughtbefore the Board the establishments are enJoying the relaxation for years together and theissue Is br~ught before the Board for regularizing the relaxation and recommending to theappropriate Government for 3 final decision in the matter After deliberations It wasdecided that in all the cases included in the present agenda be recommended to theappropriate Government for taking a decision The Board also decided that it should beseen that none of these establishments are In default It was further decided that a detailedSOP for grantlng exemption should be brought before the Executive Committeemiddot forconsideration

As regards Tata MarcopolO-

which is pending in the office llbullbullbullearlier The Board decidedrecommended from the

was informed that it is the onlY caserelaxatlon has been grantedMarcopolo Motors ltd be

as contained in theWith these nhltPfvtl

agenda

Item No 29 13th Valuation bullbullbullbullbullbullbullReport submitted by She PA BaiitiIOOmlJ1flllr(~

Fund as on 31032009 -by the Government

The Board approved the

Item No 30 Proposal on amendment of Para 32(1 of EPS 9S-Annual Valuation ofEmployees pension F~nd

The Board decided to continue with annual valuation of the Employees PensionFund

bull__ bullmiddotmiddot_middotbull _middot-middotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddot1 ~bullbull- bullbull Jbullbullbullbull ~ bullbull middotmiddotmiddotmiddotrt-middotmiddotmiddotmiddotmiddotamiddotmiddotdionmiddotmiddottakeiitlvmiddotEPFOstncethe last CST(lOut meeting held on

25th February 2013) - for Information

The Board took note of the agenda placed before it

Page 31 of 83

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

Item No 32 Revised Estimates for the year 2013middot14 and Budget Estimates for the year

2014-15 for EPFO and Schemes administered by EPFO

Since details were not brought about clearly The Board decided that the RevisedEstimates (20i3~14) and Budget Estimates (2014middot15) to be placed before the ExecutiveCommittee who were delegated the power to approve it

Item No 33 Delegation of Administrative and Financial Powers to Chief Engineer PFD

EPFO

The Board 3Rproved the proposal as contained in the agenda

Item No 34 Grant of Senior Time Scale of P83 Rsl~60~39100 Grade Pay Rs 6600- toregular APFCs after completion of 5 years - implementation date clarification

The Board decided that since matter is a complex one adetailedmiddotanalysis be made ofthe whole proposal and placed before Executive Committee for consideration

of Instalment facility to defaultingestablishments to liquidate

The Board approved t

Item No 36 Authorizingof the CentralBeard]establishments subject to

(A Sub-Committee

The Board approved niIt~iD~JubmiddotCQJtnit1leeproposals subject to ratification 6fiR~~~inecessitated because Of large number

ed toconsider exemptionarrangement which has been

to be considered in the currentyear in view of Income Tax exemption being available to trusts managing their own PF Onlyup to 31032014

Item No 37 Agenda for amendment to the Employees Deposit linked Insurance Scheme1976

The Board Was informed that actuarial valuation of the EOLI Scheme 1976 ismiddotmiddotmiddotunderwyenymiddot Smiddotoamiddot(fltieCided that pending Iinalisation of the actuarial valuation an interim

additional benefit of 20 over and above what is admissible under the provisions of theScheme be allowed to beneficiaries

ShriMJRao stated that there is a need for providing medical benefit to members by

amending Section 6C of the Act It was felt that this issue has already been raised earlieralso will be studied further

Page 32 of 83

~i~ 202nd n1eeting of CST EPf 130120140 lgtasel1bull

CfgtOJ001ebullbullbullbullbullbullbullbullbull -bullbullebullbullbullbullbullbullbullbullbullbullbullbullbullbull

t~

liIt

rII

i

l~

tbullt

Item No38 Suggested issues by few CST members

The Board decided that whenever any fraud Is discovered civil and criminal actionshall be taken against delinquent emplOyers

Members desired that the contact details of EPF officers be updated regularly on

wwwepfindiagovin

The Board appreciated that agenda and minutes of CST and EC are available on webIt was desired that agenda and minutes of all sub-Committees of the Board and ExecutiveCommittee be also put on web The Soard also directed to explore the possibility of settingup of information kiosks in al offices of EPFO so that stake holders could access informationthrough such kiosks directly

Sh MJ Rao raised the issue of installation of lift in the SRO Vishakhapatnam Stlri AKPadmanabhan stated that the issue of office building for SRO Tambaram needs middotto be

resolved at the earliest

workers money He alsoworkers engaged in various s~mpmiddotijjg~1U

in Kolkata many of which areity dues and holding on to

in the form of PF to

middotmiddotmiddotmiddotmiddot_middotmiddot-middotmiddotmiddotmiddotmiddotmiddot_middotmiddotmiddotmiddotmiddotmiddotmiddot_middotmiddotmiddotmiddotmiddotmiddot11middotmiddotbullbullbull bullbull

Page 33 of 83

I~

1

bull

i

bullbullCbull-

(

bull bull(

bullbullbullbullt

t

Thereafter the agenda Items were taken up

Item No 1 eonftnnatlon of the minutes or 35 meeting of the SVtJ-CommlttMS ofbull the Central Board or Trusteec EPF on Exempted Establtshmenb held

on 28032014-

lJAddi CPFC(Cornpl~nce)lnf~rmed that themInUtes ~the 3~ meeting of the Sub-Committee of the Central Board of Trustees EPF on lxempted EstabUshments heldon 2803201~ were drculated to aUthe members on 04042014 and no feedbackhas been rereIYed from imy of the members

12 OaIrman stated that If there ls no objection of members the mInutes may betaken as conflrmecl

13 Honble Members unanlmousty confirmed the minutes of the 3slaquomeettng of theSUb-Commfttee of the Central Board of Trustees EPF on Exempted establishmentsas ml the issues raised have been acted upon

Item No2 AdJon Taken Statement tn respect of decisions taken In the 3Stlt

meeting of the Sub-Committee of the Central Board of TIUStee$IPf on Exempted EstabilshrMnts held on 28032014

21 Olairman expressed his ceoeeen on the Issue ratsed by SIlo AK ~manabhantegMflng study of the functionIng of estabhshments already granted exemption Hedirected Addl CPFC (ComPlance) to supply details of exempted establishments tothe members to start the study A two member Commlttee one ~ fromemployers skJe and one from Em~Ofees side from amongst the members of thIsCommlttee shall mrry out the study

22 ShriSU3hllrlta Sen suggested that the terms of reference shall be prescribed

23 ChalTJansuggested that the Committee will callY out a preliminary study to see as to whether the condItions stipulated In Appendlx-A to Paragraph 27M of theEmployeesProvident Funds Scheme 1952 for grant of exemptIon are adhered bythe exempted estabflshments Whether the rates of contribution and benefits givenby the exempted estabUshments to their employees are either at par or morebenendal than those available under the Employee Provident Funds and

_ Miscellaneous Provisons Act 1952 and the SChemes framed thereunder TheCommittee wi also suggest as to whether there Is a need to make _Cl --_ -middot __ middotmiddotmiddot_--middot-middot_middotmiddotmiddotmiddot __middotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddot-

comprehensive study in-house or ~ outside agencies for improving the functioningof the exempted establishments

Page 5 of 83

29 Chairman directed that the InvestigatiOn be carried out on top priority in thenterest of the WOI1cersThe same be followed up reguJarly and the developmentsthereof be epprtsed to the Committee

o()

ooeeamp

bullbullbulle

bullbullbullbullbullQ

bullbullbullbullbullbullbull

24 Shri BP Pant suggested that guldeDnestn the form of a smaI booklet bet Issued tothe exempted establishments to educate the employers so that deviations are notcommitted managing and maIntaining tne Trust

25 SM Sushanta sen suggested tnllt the exempted Trusts be eduCllted on the vartousaspects or Investment so that they wlQ be In a position to avoid axnmlWngdeWstJ~ from he pattemmiddot of investment piesa1bed by the Government

26 Chalmlan Informed that lnteracHon sessions were conducted durtl9 last year201~1-4at M~I Bangaluru and New Delhl to dlSQ1SS various Issues pert31nfng toexemption be It formation of the Trust be It election of the Employee Trustees beIt Budlt of the Trust be It Investment of Trust Fund and so on He assured themembers that such Interaction sessions wlll be conducted In regular lntelVal duringthIS current fsCa1to eduaste the employers end the Trustees

27 WIth thls deliberation It Is decided that the prelimInary study be done of ten majorexempted estabnshments to stzIlt with Chairman fixed the tJmelfne for supplyingthe detalls of exempted establtstvnents to the members as 25 May 2014 Hed1reded Add1 CPFC (compliance) middottomiddotprOYtdemiddotthemiddot details of ten mala- exemptedestablishments accordlngly

28 Thereafter AddlCPFC (Comp~nce) apprised the Committee that keeping In viewthe concerns of the members instructions have already been Issued to ZonalAdditional CPFCs to carry out the 1ovestlgatlon Into the compDance posttJon ofSahara india Jal Prakash AssocIates UP Drugs and Pharmaceuticals and UPStateRoad Transport CorporaUon

210 Members appreciated the good work done by EPfO by launching the software fOronline monltorlng 0( exempted establishments designing the format for re-audttlngof the accounts of Provident Fund maintained by the Board of Trustees ofexempted establishments and issuing guidelines for levy of surchargemiddot on the Boardof Trustees for the deviations they commit In investing the Trust Fund from the

- pattern of Investment presaibed by the Government

211 Shr1AshDk Singh suggested that the exempted lest1bUshments be divided 10to two ff parts - one which function as per rules an the other -whIch-fiiCtO-middotfiOCtimiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddot bullappropriately Strong action even canceUatlon f exemption should be taken to setright the functioning of the exempted establlshenls In the Interest of the woricers

Page 3 on bullbullbullPage 6 of 83

t)

f

I

bull)

bullbullbullbullbull)

)

bullbull)

bull1

bulltbulll

Item No3 Grant of exemption under SectIon 17(1)(8) of the Employe bullbull ProvIdent Funds and Miscellaneous Provisions Act 15)52 andPara 27A of the Employebullbull Provident Fund Scheme 1952by Appropriate GoVetnmnL

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

31 AdditIonal CPfC (Compliance) Infortlled the Ogtmmlttee that the out of enllstedtwentYestabl1shments nineteen establishments meet the requIrements and thusthelr proposals deserve colSldenltion and fecolMlendatlon on behalf of theCentral Board of Trustees EPF to the Appro~te Government for grant ofexemption

32 Additlonat CPFC (Compllance) pointed out that the case of the Food CorpoJation ofIndia(FCI) Is very pooJlIar and the COmmtttee may conslder the proposal HeInformed the Committee that FCI has lncurred loss for three years consecutivelywhkh s evident from Its Balance Sheets As per conditJon No 25 of the Appendtx-Ato Paragraph 27M of the EmployeesPttMdent Funds Scheme1952 no exemptJoncan be recommendedsanctioned to II company which blcu~ ~ for three yearsconseltutfvely

33 The AddItJoMl CPfC (Compliance) also brought to the noticemiddotof the Committee thesub~ons or the Chatrman and Manrgtng Director Fa ZlS detaled bclow

a) The CMD dclrlfled that Fa is Implementing the fOOd polley of the Government of IndIa and does not undertake aTfl cpmmerdal operations

The ent1re expendlture IncUrred by the corporation Is reimbursable by the Government of India Therefore the question of any profit or loss does notertse

b) The eoCPoration prepared Its Annual Report 10 the format preso1bed underSchedule VI of the Companies Act as lnssted by its sole auditor Comptroller~ Auditor Geneiol (eMG) By foRowlng such fonnat Bod and DoubtfulOebts are to be deplcted as lOss In the Profit amp loss Account

c)middot Qep1ctJonof tosses In the Annuaf Report5 are in fad deferred subsidy whldl Is released on completion of procedural aspects of write-off of --Bad andDoubtful Debts 11lI the time Bad and Doubtful Debts- are not writen-offhe Goyemment does notrelmburse the food Subsidy hence this conUnuesto be shown as losses ~ FaBalance Sheet __ ___

d) Fa Is a subsJdy based corporation hence quesHon of Bny proflt or loss doesnot DOse

Page4of9

Page 7 of 83

Page 8of83

bullbull

34 Additional ~ (CompOance) also brought to the notICe of the Commlttee thefoUowlng dartftaltlons on losses stlen by the AddltJOM Seaetary amp AnandalAcMsor Mlntstry of Consumer Affa~ food 6 Public OIstrlbuUon on behalf ofGovernment of India

a) The potkydedslons onmiddot Public Distribution System CPOS)National Food5ecurtty N1 (NFSA) etc are blken tit the Government of India through FC1for which entire expendJture Incurred by Food Corporation of lncfsa erereimbursed In the form of food subsidy Fa Is a subsidy based corporationhence question of any proftt or loss does not arise

b) The procedure of relmbursement of food subskty has been preso1bed bythe GoverMeot of India Thls Jnter-aHa stipulates that food subskfy Inrespect of bad and doubtful debts 15 releaSed only afterwrite-otf of thesame by the FO Thus ~bsIdy Is not released on the basis of creatiOn ofprovision for bad and doubtful debts Due to this stipulatiOn the amount of~ ~nd dcnlbtfut debtsprovided In the ~ of fCl are depicted as lossesIn the Ananc1al Statement tlll the same Is written off after followingpresa1bed procedure In fact these osses are deferred subsidy which arereleased to FClln the year when the bad and doubtful debts ere written offbyFa

bullbullbull

c) The losses shown In the financial Statement ot Fa is a mere depIctionsince they follow the fonnat of BaIBnceSh~t llnd Profit amplossAccounts aspresoibedunder the Companies Ivi 00 the advJCeof their sole auditorCampAG and approval cl the Government cf India bullmiddot35 Shri AK Pedmanabhan stated thatthe Food Corporation of India Is It no profit no

loss organisation of Government of India and condition No 2S of Appendix A toPara 27M of the Employees Provident Funds Scheme 1952 Is not attracted In caseof Fa Thus the proposel of fO deserves consideration and recommendation toApproprtate Government for grant of exemptlon

bullbullbull36 Shri Sushanta Sen end Shrl BP Pant conSented the Views of Shri AK bull

Padmanabhan and strongly opine that the proposal of Fa may be sent to bullGovernment of India Ministry of labour Ii Employment for approprtate

consideration and grant of exemption bull---~---- bullbullPage5ol9 bullbullbullbullbullbullbullbull

ir

bullbull

t(

bullbull(bullbullbullbullbull~

bullbullbullt~

tgt)

bullbullbullbullbull~

37 The Chalnnan stated that Fa it Government of lridla coocem as recouplng DRthedifference between the economic cost and saes realization In the form of consumersubsidy from the Gov~ment of India except the pnMsIons of bad and doubtfUldebts In the amp(COunts of the CltXVQratJon The subsidy fOr this expendtture Is notclaimed In the year of occurrence of expendlbJre but ls claimed In the year d writeoff of ampd iIDd DoUbtful Debts The depiction of osse$ In the Balance Sheet Issimply due to deferment of subsidy -dalm from the year of prov1slons mampde to thevear of wrtte-off The entire expendlture Incurred by fCI Is relmbured by theGovernment of Indla the form of food sUbskfy SInce the accounts of Fa areaudited by the caAG end In view d the clarifkatbns g1venbv Government of Indiathe proposal for gl1lnt of exemption may be forwarded to AppropJ1ate Governmentfor consideration bull

38 The Commlttee unanimously dedded to forward the proposal of Fa for grant ofexemption to Appropriate Government for cons1detCltlon

39 With tills deliberation the Committee consldered end recommended the proposalsIn respect of the foUowtng establishments as contained In the Agenda to theApproprlatemiddotGovemmentforconsdeBtlol-and gnSnt Of middotexemptlon

cocsNo Mtk ~I AlJpltopdtIt Mo ofcrct Para ~ rMmbersfront

HHIWV 01052009 17(1)(1) StIIb es125553 ~ d

~

Wl25410 OUIl2009 17 (ll(l) State 02 ~ rlHlh~

3 MIL TIU lJIIIltad SROJemshedprr

Jt1I1302 01011980 17(1)(1 CermI 1068GoYemment

4 M bullbull SIJSIC InJlotIatift ROGurgecn HR31l16 01()9la10 17(1)(1) GoveMrnent of 81PlJIItb SrldJa Pvt Ud 1ndIa

s HI bullbull WoodamptrJcS(Schoot 10 ~ UAl~ 01111993 llXt) Gootmment of 316lItbnncMI

6 MbullbullmiddotAI~ bullbullbullbullQnMb SIlO~ lJrJ~BlUInbd

O1o1t961 17(lX_) ~ rI 459~

7 Mallt Tamoort 00 DelhI DlJ2(X20Umbel Scxth

2O0um 17(1)(1) GoYenvnent of S34india

bullbull MIl eorultJng 10 DelhI 0l36Wng~ ScrYkeI South~) PvtUmIUd

29051974 17(lXa) ~_~ _~~ __ India

Page 9 of 83

Item No4

1

1deg1() I01

0101-111-111bull 1

1

bull 1bullbull 1

1

1bull 1

bull 141 Addltlonal CPFC (Compllzmce) brought to the notice of the Commlttee that bullwhile processing the pending appHcatJoos for grant of exemption some cases have bull Icome to the notlce of Head OffIce where the estabUshrrients maintain thelr own trust 1

~e exempted establishments~ ~~ ~__~~ ~ ~bull 1

1

1

1

1

1

1

1

1

Regularlsatlon of the proposals submitted by theestablishments for grant of exemption who maintaInthe Trusts without grant of relaxation under Para 79 ofthe Employees Provldent Funds Scheme 195~ or withpennlss10n of RPfOL

bullbull

bullbullbull Habullbull oftfte omc CodeHo WIth SectIonI ~ Noof 10 ~ 1Ifflaquot GoIrerMaent ~

froIa

aJ It Tyrw bull ~Mpore rJ(MtSI 01042D02 17(lX~) GMmment d -4711lIIdtlldrltc IImbd 9508 Jnck(VIIautTyN ~)HyIart

10 MbullbullUTTcinology fID~ ItVllIHI 01012014 17 UXa) GIIYernnWnt cI 1667sNba Ucnbdmiddot 205170 Incb

11 MaLG SRO Vesill ~asNI 01062001 VA Gooemmeat d mhtrocMmlcllll Umbel 9S22O IncIa

12- MsMJIQ SJU) Vashl MH95413 OU)6lClO7 VA ~d zshtroCh bullbullbullbullbull lImJted india

U- Ka HexJawwre RO Thane MV42123 01071996 17(lXI) ~ot 56Q5TechnologM Umlbd IncIa

14 MIs bullbull T RO Thane t+l20669 OUM2013 11 (1)(a) ~d 2396~ lJMItOIId Incla

15 Mbullbull GlC ~g to Bancn MVtWiI OUI31994 17 (1)(a) middot bullbullbullbullbullbullbullbull cI 142Finwlca Lln1ted 39407 tncSa

145 Merefld bullbull knz 110 KN24117- 0103200 27A state 1116ROII bullbull rch Bangillore X 8 GoverMmttl~elOP~At (1) (P)

of Kamtab

17 M_ food 1tO~1h1 Dlf2271 111989 2711 Central 76678 ~rtltlol1 0 zncn (N Gov

lL Mbullbullbullbullbullbull In cthoUc Ilaquo) ICllndMII MHKNDl 0111199 17(I)(a) Stilt 455Co-op Sank ltd 2613 1 Governmentor

MilharashtraUI KII Atillya Blrt SRO Rajkot GJ40n 0104200 27A Central l125tluvo ud 6 GOY~O KlllUampMII ~ RPRRO X93gtS16 01032009 17(lXa) Cer1tnII 26~ Indllt PYt Deli (SauttI) Govunrna-tUd

bullbullPagt 7 of9 bullbullbullbullbull

Page 10 of 83 bullbullbull

(

~

bull~bullbullbullbullbullbullbullbullbullbull

a) In some cases the estJIbllshmenis f1IZIlntilln their own TIUSts withoutBOY relaxation granted under PiA 79 of the Employees ProYIdentFunds Scheme 1952 after 9submission of applicaHonfor gnnt ofexemption either under Section 170Xa) or under Selttion 17(2) or theEmployees ProvIdent Funds 100 MlsceIaneous ProvIsIons Art 1952read with Para 27A d the Empbyees ProYIdent Funds Scheme 1952-

b) In some othet eases eStabl1shmentshave been covered by RegIOnal PFCommlsstoners of Reg)oncsVSub-RIlgiona omces under Sed10n 2A ofthe Act beatlng the same lIS bnmctees of main est2iblishments SIncethe date of coverage the establ15hments covered under 2A depositconbibutlons txgtYards provident fund in the Trust maintained by theirmain establlshments and conthIe to pay Penston and EDUcontributsons with the RPRs wherever they are covered OVer the-years complksnce In respect of ptOVIdent fund was never 1nslsted fromthese estabUshments nor any permIsslon was g1Vento them to complyIn respect of provident fund In 1he main estabnshments Even norelaxation was grented to these establishments under Para 79 of the

Employees Provkient funds Scheme-19Sl

1

I111

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

-42 Additional CPfC (COmpHance)epprlsed the Comml~ that Instructions wereIssued In past to RPfCs to grant relaxation under Para 79 of the EmployeesPrtMdent Foods Scheme 1952 to such categories of establishments which functJonas an exempted establishments from a prior date subject to usual condltlons asstipulated In Appendix A to Para 27M Of the Employees Provkient Funds Scheme1952 as retaxatlon Is required to be granted from a much prior date In order toreguJarise is period of time during wh1ch the establishment has complied as anexempted establ1Shment without been relaxed Because the law alklws only therelaxed establlshments to mallltaln its sepamte fund and function as an exemptedestablishment before the grant of exemption under Sectlon 17 of the Ad

3 Additional CPfC (Compnance) also lnfonned the Committee that Regional PFCommlssloners continue to conduct compliance audit over the years treating theseestabUshments as If exempted and forwarded the applications submitted by theseestabDshments for grant of exemption from the operation of the EmployeesProvident Funds Scheme 19-52where no relaxation has been gnmted A number dproposals pending for grant of exemption are of thls nature These establishmentscomply to all the condltlons reqUired for exemption as proylded In Appendix-A toPara 27Mmiddotof the Employees Provident Funds Scheme 1952 FQrwant of relaxation - the proposals of establ1shments of above nature are pending If thesemiddotltas~middotaremiddotnotmiddot middot--middotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddot-middotmiddot--middotmiddot-middotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotregularised then the Interest of the employees will be at stake and they wouldsuffer for no fisult of theirs These cases thus need to be regularJsedbull

1 Page 11 of 83

41 Shri AK Padmanabhan suggested that the cases of these so caUedexemptedestzIbllshments have to be regularised kl the lriterest of the employees and thisshould be a one tine exerdse for dlspostng the applJcatlons of these establishmentspending for grant of exemption for years together He felt that without much delaycasesd this nature should be forwarded to the AppropOat8 Government for grant ofexemption

45 Shri BP Pant pointed out that no relaxation CXJu1dbe given to theseestablishments who malntaln PfTrusts on ~ own even after Issue of lnstructlonsThe estabftshments made continuous effort 1n pursuing their cases but no actJon Istaken for proce$SIng their CZISeS He also stated that the establishments whkhmaintain Trusts without relaxation or permlss$on need to be regularised by way ofgrant of exemption wlthoutfurther delay

46 Shrt Sushanta Sen wanted to know as to why no relaXIItlon was granted Inthese cases

47 Additional CPfC (Comptlance)apprised the members that It IS a systemicfailureand for no fault of the employers the proposals be tcept pending further Herequested the Hooble members to take appropnate declston to regularise thesecases

48 Charman Informed the Committee that the power to grant relaxationmiddot underPara 79 of the Employees ProvkSent Funds SCheme 1952 has been withdrawn fromthe Regional PF Commissioners wef 24072012 Grant of exemption ~n all thesecases is pending duemiddot to lack of relaxation order permtsslononaccount of the faUureon the part of ttMi fteld fundIornllies These estaoUshments are assumed to beexempted establishments even in the absence of relaxatlonorderpermlsslon TheCommittee may conslder as an one time exetdse to rtfularise these pending caseswhere the establishments maintain the Trusts and abide by the conditions stipulatedIn Appendix A to Para 27M of the Employees ProvIdent Funds Scheme 1952

With ~ls deliberation It was dedded that the appllaltlons of these establlshmentswhich maintaIn their PF Trusts WIthout any relaxation permlssion to partldpate Inthe main Trusts of thetr parent establlshrnent should be processed Without furtherdelay and be placed before the Appr-opriate Forum for forwarding the same toAppropriate Government for grant of exemption

The meeting ended WIth vote of thanks to the ChaIr ---- _ --_ _ __ ___

--0----Pagetoft

-

Page 12 of 83

InffI

Ii~

o()ooebullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbull

~j

1

Item No2 Action Taken Statement in respect of decisions taken in the36thmeeting of the Sub-Committee of the Central Board ofTrustees EPFon Exempted Establishments held on 15052014

(

51 No

Action Complete

Action TakenUpdated StatusDecisions Directions of theCommittee

bullbull~

--

1 Conducting study of the The details of exemptedfunctioning of the establishmentshave been supplied toestablishments already the Committee Members for thegranted exemption by studyon28052014Members of the Committee

Chairmandirected that the detaitsof the Exempted Establishmentsshall be supplied to HonbleMembers by 25th May 2014 to

start the studv

(Item No23t1hMeetingof theCommittee 15052014)

2 Preparation of guidelines in Time to time instructions issuedto thethe form of a small booklet for field offices on various issues ofissueto the exempted exemptionare uploadedon the official-----

establishments for educating websiteot EPFO which can be visitedthe employers so that by ExemptedEstablishmentsdeviations are np~committedin managing and malntalnlnq

the Trust I i Howeverattempts RavealreadybeenShri BPPant suggested that the ~ken to prepare a small booklet asguidelines in the form of a small suggestedby Honble MemberIt willbooklet be issuedto the exempted take some mon~timeasthe staff iaestablishments to educate the awfully busy With Universal Accountemployers 0 that devia~ionsare Num~S~fAN) presently

in~~~~~Tnagngand sect~~~~0~~J3~ (Item No2 3t1hMeeting ofthe committee 15052014)

Page 13 of 83

I No Action TakenUpdated StatusDecisions I Directions of theCommittee

3 Investigation into thecompliance position of SaharaIndia Jai Prakash AssociatesUP Drugs and Pharmaceuticalsand UP State Road TransportCorporation

Chairman directed that theinvestigation be carried out on toppriority in the interest of theworkers and followed up regularlyand the development thereof beapprised to the Committee

(Item No2 3fih Meeting of theCommittee 15052014)

Investigation is going on nation-widein respect of Sahara India and JaiPrakash Associates and the same isbeing regularly monitored

Themterlrn report will be submittedto the Committee in their nextmeeting

Appropriate action has already beentaken against the UP Drugs andPharmaceuticals and UP State RoadTransport Corporation The finalreports will be submitted to theCommittee in their next meeting

BifurcationofExemptedEstablishments in to two parts - onewhich function as per rules andthe other which fail to functionappropriately to set right thefunctioning middotof the exemptedestablishmehts in the interestof the workers

Instructions have been issued to fieldoffices

a) tocarry out compliance audit of25 of the Exemptedestablishments functioning intheir jurisdiction each-quarter

b) to analyse and review theperiodical reports of

Shri Ashok Singh suggested that the exempted establishmentsexempted establishments be divided c) to carry out third partyin to two parts - one which function audit of the accounts ofas per rules and the other which fail the Fund maintained byto function appropriatety Strong the Board of Trustees byaction even cancellation of independentempanelledexemption should be taken to set Chartered Accountants ofright the functioning of the EPFO andexempted establishments in the d) tomonitor the functioningofinterest of the workers ----------- middotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddottnemiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotexemiddotmmiddotptecf

establishments online

Action Complete

coooobullbullbullebullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullebullbull

bullbullbull~~ j

Page lS of 83

1

1

1

1

1

1

1

1

1

~11

1

1

1

1_ 1

1

1

1

1

1

1

1

1

1

1

1

1

1

)

Item No3 Grant of exemption under Section 17(l)(a) of theEmployees Provident Funds and MiscellaneousProvisions Act 1952 and Para 27A of the EmployeesProvident Funds Scherne 1952 by AppropriateGovernment

I31 Section 17(1 )of the Employees Provident Funds arid MiscellaneousProvisions Act 1952 provides for exemption as under

Power to exempt - (1) The Appropriate Government may by notification in theOfficiat Gazette and subject to such conditions as may be specified in thenotification exempt whether prospectively or retrospectively from theoperation of all or any of the provisions of any Scheme Any establishment towhich this Act applies if in the opinion of the Appropriate Government therules of its provident fund with respect to the rates of contribution are not lessfavourable than those specified in Section 6 and the employees are also inenjoyment of other provident fund benefit which on the whole are not lessfavourable to the employees than the benefits provided under this Act or anyScheme in relation to the employees in any other establishment of a simitar character or

i

a Any establishment if the employees of such establishment are inenjoyment of benefits in the nature of provident fund pension orgratUity and the Appropriate Government if of the opinion that suchbenefits separately or jointly are on the whole not less favourable tosuch employees than the benefits provided under this Act or any Schemein relation to employees in any other establishment of a similarcharacter

32 Provided that no such exemption shall bemade except after consultationwith the Central Board which on such consultation shall forward its views onexemption to the Appropriate Government within such time limit as may bespecified in the Scheme

Para 27A (1) of the Employees Provident Fund Scheme 1952 provides

(

The Appropriate Government may -be+erder+errd middotmiddotmiddotsUbjettmiddotmiddotmiddotlomiddotmiddotmiddotmiddotmiddotmiddotsudmiddotmiddotmiddotmiddotmiddotmiddotmiddot conditions as may be specified in the order exempt from the operation ofall or any of the provisions of this Scheme any class of employees towhom the Scheme applies

Provided that such class of employees is entitled to benefits in the natureof Provident Fund gratUity or old age pension according to the rules ofthe [factory or other establishment] and such benefits separately orjointly are on the whole not less favourable than the benefits providedunder the Act and this Scheme

Page 16 of83

bullbulleoeG

bullbullbullbullbullbullbullbullbullbullbullbullbullbullmiddotGbullbullbullbullbullbull~bullbullbullbullbullbull

~

~

33 As per the above provisions of the of the Employees Provident Fundsand Misce~laneousProvisions Act 1952 and Ministry of Labour and Employmentletter dated 01042008 all cases of grant of exemption shall be placed beforethe Central Board of Trustees EPFfor consideration before sending the same toAppropriate Governments The copy of the Ministrys DO letter dated01042008 is placed as Annexure-3A

34 Before placing a proposal in the CST EPF its suitability is scrutinizedwith respect to the provisions -for grant of exemption as contained underSection 17 of the of the Employees Provident Funds and MiscellaneousProvisions Act 1952 Further in view of the guidelines issued by Ministry ofLabouramp Employment Government of India vide their letter dated 27022007as placed at Annexure - 38 all RPFGs furnish a certificate after dueverification carried out at their end with regard to the Ten Point Check List

35 Ministry of Labouramp Employment Government of India has also issued directions to the effect that the proposals shall be forwarded only if the latestCompliance Audit Report is found to be satisfactory Hence compliance auditcovering al the points as mentioned under the revised conditions for grant ofexemption is undertaken and a copy of the said report is ready to be forwardedto the Appropriate Government

36 Central Board of Trustees in its 202nd meeting held on 13012014authorized this committee to consider exemption proposals subject toratification by the Board as a one-time arrangement which has middot-bemiddotennecessitated because of large number of proposals required to be considered inthe current year in view of Income Tax exemption to the Trusts managing theirown PF only up to 31032014 A copy of the agenda item No 36 placed beforethe 202ndmeeting of the cer and minutes of the meeting are annexed herewithand marked as Annexure -3C and Annexure -3D respectively Terms ofreference of the Committee on Exempted Establishments is placed atAnnexure - 3E

37 A list of establishments as indicated in Annexure - 3F is now piacedbefore Sub-Committee for consideration and recommendation to AppropriateGovernment on behalf of the Central Board of Trustees EPF in accordance withthe proviso to Section 17 of the-Aet- -_ __

Proposal The Sub-Committee is requested to consider and recommendthe proposal in respect of establishments indicated inAnnexure -3F to the Appropriate Government on behalf of theCentral Boardfor grant of exemption

ANNEXURE-3A---a bullbull -= bull ~ bull

~i- ~

JOInt $acnary

Tel 23110l7 bullIIIbullbull

r _

Av-~ ~M JL--O~0 r

bullbull

N YOU ar IWUt sa5on 111 of tM poundmpoyus Provident Funck middotIt~ntOU Prcw$lonSAIJ 1952 proWIs thlt IppropMe GowrMlntrtlW hfWexempt cny uublbhment from Ut opcAtlonS oJ any SChamts sub)cltt to the ~hit such alCernpUon shalt bt made ttar consultation -Mth CennI SOlrd of TnmHf lUf)

1 middotThe MWstry $ ~Mnc bull numhr of cues of ~cnU ~~InlXetlptonundr ~ 11l) of the ~ rd pI 21 of [PF Scheme In tMfa ClR$bull~dod~ n some cllfltf mtampp of Cellll aoard of TNSUU (poundPF) tntral ProvIcStntFIM Cominlulonet has bHn lIWds1nCthe powen of he lIoud whn rtCOmmtfldlnlthe psu to tht IppfopnteGovemrnc~

3 Thl$ miner hiS ~tty MIl u~ In ~Uoct with Deprtment or LctltW$wto han opinedtht Wdwsect1on$ ofth k1 essential f1Inct~ ofthtr1laird of TNstetS (EPF1Bkethl$~ ~ HIdtltpted aM such dloPUon bytheampoud under pnlrJl powers of s-abl SE of ~I fulleUonof toMuK~n ndelSlaquoUoIl 17 wlV not bl pttmlsstbll

~ 4 Th m~r bbullbull btoUpt to th~ Idnd IIOtka of Chalrman arrHcnbl LEMt who tm bull concurred with thUI 1M k hu bte decided thlt hcrcrlorth aUsum1 We of yenllmptlon bt pg before he Cenbllloltd ofTN~ (Elf) fof consWentlon

(L ~sf__ laquondln the tv pr1atlaquoGMmtnnt as per the p~s of th411tt

5 In ~~ I s It ~ tntdut If VOl could kln6ty talte fU~f ~ tllbull thls ~CCordlnt

~~ ~~c~ rP~~il

~~~~~~~ ~~_~sectm

~ Shrt bullbullbullbullWwall2tban ~ - ~~ L~ ClntnolroItdentUndCo~~v 1) poundIII~ PnMdtnt Fund OrpnIQlJon ~ 6

Haw 0tRI1l0066

bull bull

bullbullbull

J~

Page 17 of 83

bullbull1

bull~ -ANNEXURE-3B _- -=-

~ the bullbull labIl~ futftlHno tho ~ conditiOns attc gfanl 01rlaquoXampUon~ Pbullbull 78 of tho EPF 8ctl4fmfJ 195and tMt ~ is no SolatIon otIhap condition

Page 18 of 83

bullofloebullbullbullbullbullbullbullbullbullbullbullebullbullbullbull

bullbull-bullbull~

bullbullbullbull6r~

~

bullbullbullbull

bullbull~

---~

rI

a

- -

IlHgtftt OR lilt wllldtPnJd 1MflDlltW I1QJWdtII mtoIIJamp1WSMtJo 10CIteMIJ

I Whether boerd of tnII1Cel bu boen aaICd under tho ~of employer

2 Whether an the dlpble cmpSoyeenre enroUed ISmcmbcn13 Whether tho 1ICCOUtamp will be mdntampiMd dceuoaica11y knd dl he

membeR fIillbc able to JCO their account lanco fiom the computertectnln1lalIfnOt be reMOdI thetepoundQCand b)r wfurt time accoants are~ 0 be mtintamcd eledronieaUy

~ Whltther board of tnistccs bampv6 fmliabcd a copy of prtsmbed undertaklnamp to the RPfC concemcd u per eM condition no 21

conWncd in Awrodix A to the RP Scheme 19521 tf yei I cqtyy ofthe IUnD to bo caclotcd

S Whether 1M employer and the board of tnlJ1ceI MVC Nmilbed theundcrWcb u ~ coodltion no 23 cootdned in Appendix A to theUP Sche1nc 19S2l lC)CI l copy or1he same to be eaelosed

6 Comparative lWtment or benefitl admiwbte under the EPF amp MPAet 1951 and tho Sebcmo ~ by heCltlb1isbmenl ell the huisof whi~ it I Olt)OCtuded tMt tho ~ of the eatabl~t u atleast compuablc lIith tboIcmiddot of the Act

7 Mechlnam propoampcclby the BlFOtPPFC to auurc that estsblilbmentis complyins with thO provUioaa or the condltiona (Of pant ofexcmptlon

S Nunc ottho RPfC in wbocejurlsdi~QQ ~ tmbUshment fillamp9 hyments Which need to be mamp by Ihc e5tabtisbmau to E~Oeven

after JIlDl of exemptionlOWhIther the uablbbmcont 11 fulfilllnamp chc preacrlbed conditions ancr

gnnt Oftdaxltioa Wldct Para79 o(tbc UP Sehcme 1951 and thereis DO viobtion oflhc same bull

(~(

(

(

(

i

-_ bull _-- --_ ___ bull

Page 19 of 83

-(

ANNEXURE-3C

Item No 36 Authorizing the Committee on ExemptedEstablishments (A Sub-Committeemiddot of the CentralBoard) for consideration of the proposals for grant ofexemption to the c5tablishments subject toratification

361 Proposals for grant of exemption to establishments from the operation of th~Employees Provident Fund Scheme 1952 under Section 17(1)(a) Employees ProvidentFunds amp Miscellaneous ProvislQns Act 19S2 and under Section 17(2~of the Act read withParagraph 27A of the Employees Provident Fund Scheme 1952 received from fieldoffices are examined in the Head Office with reference to the guidelines on the subjectissued (rom time to time

362 Section 17(1) of the Act stipulates that no such exemption shaJl be made except pfter consultation with the Central Boald which on such consultation shalljorward itsviews on exemption to the appropriate Government wIthin such time limit as may bespecified in the Scheme

363 Once the proposals are found to be complete in all respects the same are placed before the Central Board for consideration and recommendation to the AppropriateGovernment for grant of exemption and notification thereof within such time limit as maybe specified in the Scheme

364 Once the proposals are considered and approved by the Central Board they areforwarded to the Appropriate Government with the recommendation for grant of

exemption and notification in the Official Gazette

bullI

deg10JOJC Jc

1I--bullbullbullbullbullbull 1

~

bullbullbullbullbull41-

bullbull~

365 Clause (ea) was inserted in Rule 4 of Part-A of Fourth Schedule to the Income-tax bullbull

Act 1961 vide Finance Act 2006 to provide that recognition to a provident fund underthe Income-tax Act shall be restricted to only such funds

a) WhIch are covered under sub-section (3 or sub-section (4) of Section 1 of theEPF amp MP Act 1952 and

b)--Whichh1vebeenexemptedJlndecSeclon 17ofthe EPfamp MP Act 1952 fromthe operation of any scheme framed therein

366 It was also provided that the funds approved prior to 31032006 shall not beellglble for Income-tax benefit if they did not satisfy the conditions set out in clause (ea)of Rules 4 by 31032007 Accordingly EPFO was required to take necessary action inrespect of the funds recognized under the Income-tax Act on or before 31032006 andwho did not satis~ the conditions stipulated in clause (ea) of Rule 4 of Part A of FourthSchedule to the Income-tax Act The time period given in the statute was initially for one

P~e 200f83-464

I

I ~

) year which has been extended several times by legislative intervention vide Finance Actsof 2007 2008 200~ 2010 2011 2012 and 2013

367 While extending the time limit till 31032014 Min~stry of Finance Governmentof India made it dear that there wlllno further extension of the time limit

368 Approximately 260 proposals for exemption are pend1ng on the part of EPFOSome of them are under the process of examination at Head Office level and some are atthe level of field offices The processing of the proposals fakes time as the same are to begiven complete shape in consultation with the fieldofftces before placing the same to the

Central Board for consideration

Ir

3069 The Government of India Ministry of labour amp Employment in their letter dated01042008 issued dIrection to EPFO that all such cases of exemption be placed beforethe CentralBoard for consideration before sending the same to Appropriate Government

as per the provisions of the Act The proposals which are sent to AppropriateGovernment for grant of exemption shall be touted through the Central Board only Thesaid direction Is placed at Annexure 36-A

3610 Proviso to Paragraph 11 of the Employees Provident Funds Scheme 1952provides that the Central Board shall meet atleast twice in each financial year The lastmeeting (201~t) of the Central Board was held on 25022013 During the current year2013middot14 no meeting of the Board could be held till date

3611 In view of above it may not be possible to obtain the approval of the C~ntralBoard within 31032014 for all the proposals which are In order before forwarding thesame to the Appropriate Government for grant of exemption and notification thereof inthe Official Gazette This may lead to undesirable deadlock

3612 To overcome such possible deadlock it Is proposed that the power vested in theBoard for considerIng and recommending the proposals t~ Appropriate Government (forgrant of exemption and notification thereof) may be delegated to the Sub-Committee ofthe Central Board on Exempted Establishments All such proposals which are approved bythe Sub-Committee and sent to Appropriate Government will be put up to the CentralBoard in their sub5_e_g~ntm~~1gJorinformation and ratification

3613 Such delegation of power will streamline and expedite the processing ofexemption proposals to some extent

Proposal The Central Board is requested to consider and accordapproval to the proposal of authorizing the Sub-Committee onExempted Establishments for consideration of the proposalsfor recommending to Appropriate Government for grant of exemption to the establishments subJect to ratification

ANNEXURE-3D e()

oC)

bullbullbullbull

IEMPLOYEES PROVIDENT FUND ORGANISATION

MINUTES OF THE 202nd CHT MEETING (NEW DELHI 13 January 2014 1030 AM)

The 202ndmeeting of the Central Board of Trustees Employees Provident Fund

(CB1 EPF) was held under the Chairmanship of Shri Oscar fernandes Chairman CST EPFand Union Minister of labour amp Employment The following members attended themeeting-

1 MsGauri KumarSecretary (Labour amp Employment)Government of India New Delhi

2 Shri PK Pujari ASamp FAMinistry of Labour amp EmploymentGovernment of India New Delhi

3 ShriArun Kumar Sinha ASMinistry of Labour amp EmnbullbullbullbullVbullbullbullbullbullAntGovernment of India New Dejrnm~~~~~b

4 Shri Shashank Saxena vn~~II

Ministry of Finance rnvplHMpnt

S Shri Animesh Bhartl iJjrC1~~middott~~~~~~~Ministry of LabourGovernment of I

Central Governmentrepresentatives

6 Shri KK Jalan

7 Shri JP Chowdhary8 Shri Sharad Pati9 Shri Ravi Wig10 Dr UD Choubey11- Shri Badish Jindal12 Shri BP Pant13 Shri SushantaSen14 Shti GP Srivastava15 Dr Ram Tarneja16 Shri 55 Patil

PF Commissioner

Employers representatives

-_ _ _-__-_ --_ 17 Shri Virijesh UpadhYdY18 Shri M Jagdeeshwara Rao19 5hri Ram Kishore Tripathy

(vice Sori ADNagpal)LO Shr Ol Sachdeva21 Shri Ashok Singh22 Shri Krishna Chakraborty

(vice Shri Shankar Saha]23 Shri Raman Pandey

Employees representatives

bullbullbullbullbullebullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbull

(

(--

bullbullbullbull

i

bull

bull(

r------------------middott~

r

24 Shri AKPadmanabhan25 Shri Prabhakar J Banasure

26 $Ori Sanjay Prasad Principal Secretary (labour ampEmployment) Gujarat

27 Shri 5S Randawa AlC labour DepartmentPunjab

28 Shrf vs Arya Joint labour Commissioner Dellll29 Shri Glri Raj Singh Principal Secretary (labour amp

Employment Rajasthan30 Ms Nandita Gupta labour CommissJoner amp

Director (Employment) Himachal Pradesh

Staterepresentatives

Government

Following members could not attend the meeting and were granted leave ~f absence

1 Sh KSureshMinister of State for labour amp Employment

Vice Chairman

2 Or G Sanjeeva Reddy Employees representative

3 Principal Secretary bullbullbullbullbull-4 Principal Secretary amp0_bullbullbull

5 Principal Secretary6 Principal Secretary7 Principal Secretary ~YI~I~

S Principal Secretary Uf~

9 Principal Secretary (Lab10 Principal Secretary (latloild~~~Ml~ltJk~-11 Principal Secretary (labour) MaIUW12 Principal Secretary (labour) West

Government

The list of the officers of the Employees PF Organisation who attended the meetingis appended as Annexure A to these minutes

At the outset CPfe welcomed the Chairman andMembers The Board observed twominutes silence irniemorVmiddotonormed~nairmanmiddotorihemiddotmiddotCBTEPFmiddotmiddot~~dmiddotH~~bi~f~~er UnionMinister of labour amp Employment ShrJ Sls Ram Ola ji A condolence message to be sent tothe family of Shri Ola was also adopted by the Board

Thereafter Board welcomed first time members to the Board ~Shrl Prabhakar JBanasure Virijesh Upadhyay employees representatives 5S Pat ii employers

representatives of state Governments of Rajasthan and Himachal Pradesh

The agenda items were thereafter taken up for discussion

Page 23 of 83

~---i

Item No1 Confirmation of the minutes of 201st CST meeting held on 25022013

The minutes of the meeting circulated on 08032013 were confirmed by the Board

Item No 2 Action Taken Statement in respect of decisions taken upto the zoin CBr

meeting held on 25022013

middot21 Noted

22 Noted

202110 rrH~~1ingo~ cST EPF 13012014 Paee3bull

23 Noted Shri Ravi Wig stated that Permanent Account Numbers need to be issuedurgently to facilitate extension of PF benefits to all especially peripatetic workers It wasassured that the matter will be looked into Secretary (LampE)informed that EPFO has alreadybeen instructed to come up with a timeline for this purpose

24 to 215 Noted

216

comprehensive amendmentsproposal will be suitably

amendments

members It was informed thatrnlrlCrUmiddot~tjonof the Ministry and the

fliMllf1oisation of comprehensive

SShri MJ Rao Ol Sachdevato contractual employees ofbeen extended ESI benefitsexamine the issue and take ne(~e1SttHjo

of extension of PF benefitsInlrinnrv of such employees have_(fQT~rv (L amp pound) directed ACC(C) to

Item NO3 Purchase of ready and residential apartments to beconstructed by NBCC (Govt of India enterprise) at East Kidwal Nagar New Delhi

The Board approved the agehda as contained in the memorandum A few membershowever stated that such proposals should have prior approval of the Central Board Thevalso pointed out that meeting of the Board are not held regularly The members wereinformed that since time bound action was required to be taken in the matter and there

___ _~~~_~~~0l~~gS~~ryg~~Lth~J9fm~Iiliesbefcrehandractlon was taken aft er obtainingthe approval of the then Chairman Executive Committee and Chairman CBT

Item No4 Recovery of excess amount of Pension drawn by Shri 5ukhdeo Sharma MaCfhupUDC (Retd) Patna from 01022003 onwards

CPFC informed that a revised agenda has been circulated on the table today EPFOwas instructed to see if there was any angle of collusion and to take suitable action if casewas made out EPfO was also directed to investigate if similar cases were in existence ItWaS also decided that strict instructions should be issued so that such cases do not recur

Page 24 of 83

IIIIIIbullbullbullbullbullbullbullbull

bull bullbullbullbullbullbullQ

~

-~

~

bullbullbullbullbull-bullbullbull

-bullbullbull-

JI

~(

JI

(

I---------------------------------------------------------------------~

The Board approved the agenda as contained in the revised memorandum

Item No S Reconstitution of Executive Committee bull ElectIon of the representatives ofemployers and emplovees to the Executive Committee of the Central Board ofTrustees

The Board authorized the ChaIrman to nominate government representatives to theExecutive Committee The Board unanimously recommended folloWing representatives tothe Executive Committee-

51No Name of the Member1 Dr G Sanjeeva Reddy2 Shri M J Rao3 Stlrj AD Nagpat4 Dr UD Choubey5 Sh Badish Jindal6 Shri Ravi Wig (for the first term of two and a

half years) EmployersSh Sharad Patil

Representlng

Employees

Board ofTrustees Employees

Investment Committee beand shall look after audit related

representatives and~rmlmended that the Finance amp

~l1rr~~rltand Audit Committee (FlAC)

following were recommended for nomination to the sub-Commlttees-

FINANCE INVESTEMENTAND AUDITCOMMITIEESI No Name of the Member1 Shri Ram Tarneja2 Shri JP Chowdhary3 Dr G Sanjeeva Reddy-~--middot-----ShfimiddotPJmiddotBmiddotanastimiddotremiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddot EMPLOYEES

Repr~senting

EMPLOYERS

PENSION IMPLEMENTTION COMMITTEE1 Shrl GP Srivastava2 Shri Sharad Patll3 Shri Vlrijesh Upadhyay4 Shri DLSachdeva

EMPLOYERS

EMPLOYEES

P 25 f 83

COMMITIEE ON EXEMPTED ESTABLISHMENTS1 Shri BP Pant2 Shri Susanta Sen3 Shri AIltPadmenabhan4 Shri Ashok Singh

EMPLOYERS

EMPLOYEES

The Committee on Exempted Establishments shall also consider the pendingexemption proposals where relaxation has been granted before 310~2013 and which havebeen submitted in the current financial year on behalf of the Central Board and recommendthe same to Appropriate Government for grant of exemption This will be a one-timearrangement which has been necessitated because of large number of proposals required tobe considered in the current year in view of Income Tax exemption being available to trustsmanaging their own PF only up to 3103014

A other functions of different Sub-Committees of the Central Board shall be asproposed in the agenda

Item No7 Draft Annual RepOIt-ilc~ilJo~~~~~es of the Employees ProvidentljrSI(~ J t ~ bull

~~j~ ~r19t~~~~ bull-~ bull 1 -~~lt__t-

Shri JP Chaudhary made fol P6~ft~T~t-middot ~

i Lot of amount is vbullbull bullbullIodoOV inJ~jjJi(~~T~n-- ----- amp_41 bull_bullii PSUs account for a lartnoncchOof O)~d~fauft special recovery should be

thought of to addressiii Singapore CPF has a scheme

For this purpose EPF delegation had visited Singapore to study the same few years

ago EPFO should think of a Scheme on these linesiv It nay be as cert aine d whether a case exists for reducing Administrative Charges

v Permanent account number for PF members is required urgently

The Board considered the

Shri Ml Rao made following polnts-

_____1_middotmiddotmiddotmiddotmiddotmiddotmiddotmiddot_middotL middotHuge amountof arreacsespecially theNot Immediately Realisable (NIR) category is

a cause of concern

ii The Board had earlier recommended that High Courts be approached (or setting up

special benches for EPF related matters there has been no progress in the matteriii There should be no pendency in settlement of pension cases especially death

claims

iv Even though Annual Accounts slips contain columns for Date of Birth Date of Joiningand nomination but in most of the cases the field is left blank The fields must be

completed and members informed so that they can request for modifications if any

~middotIdeg_01n

I

o j

QIbull 1

)(

bullbullbullbullebull

bullbullbullbullbullbullbullbullGbull66

bullbullbullbullbullbullbullbullbullbull~

I

I

)

v Growth in funds invested was declining This needs to be ana1vsed and put up before

the Board

Shri Ashok Singh made following points-

i The benefits In death cases be expeditedii The nomination of the members needs to be collected at the time they become

Provident Fund membersiii Rate of growth in membership is very low vis-a-vis the growth in number of

establishments covered This needs to be looked Into

iv The information about membership should be indicated in three categories vizcontributingnon-contrlbutinginoperative

v Unique no for PF members should be issued on priorityvi EPFOshould go for universal number and centralisation of database

Shri AK Padmanabhan made following points-

i Pension cases need to be

Ii Exempted establishments

iii Arrears are a cause for

Shri DL Sachdevathe Annual Report Sri JlII~n-iJ~

are I)0t furnished indaisl~u~ittuil(t1~-Ad~olm~s remuneration is very less

needs to be revised

emerge in the report for

establishments has been released onfor monitoring exempted

it is expected to considerably improvethe process CPFC also informed the B~ard that the issue of permanent PF account numberto members and centralization of accounts is under active consideration and an update

status would soon be provided to the Board

Secretary lamp Emade the following observations-

---middotmiddotmiddotmiddotmiddotmiddot----tmiddotmiddot--middotThemiddotmiddotissuemiddotasmiddottomiddotwhethirotimahdinj(EPFQueS- canbe brought under SARFAESIAct (The Securitization and Reconstruction of Financial Assets and Enforcementof Securities Act 2002) may be taken up with the Department of FinancialServices (OFS) Ministry of Finance- (MoF)

It may be ascertained as to whether standing instructions can be given to the

banks on deduction of PF dues from employers account so that the active days

required for collection of such dues is reduced

1

1 11

l

I

l

iPage 21 of 83

1

Intervening in thestatutory wage ceiling is

reduction in administrative chaa)so stated that it is being centcompanies to self declare their PF lia of all employees on their rolls and paythe dues electronicallv every month Chairrnan requested the members to consider thepossibility of a Housing Scheme for the provident fund members by taking additlonalcontribution from them so that on superannuation they can be assured of some shelter Oil

the lines of the facility extended by the Singapore Provident Fund He further observed thatthe name of the nominee should always be included in the details to be submitted by themember and a system should be put in place so that claims are settled within hours and not

___ _ __ middotmiddotmiddotmiddotmiddotmiddotmiddotdaysmiddot-asmiddot-jsmiddot-themiddotpresenqjr~cncemiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddot

III In order to ensure the PSUs do not default in remittance of PF dues the matter

requires to be taken up with the concerned administrative Departments as wellaswith Ministry of finance

IV As regards providing hovsiog to the members the US law for HOPA 1995 mayalso be studied alongwith the provisions enforced by the Singapore PFauthorities -

V Specific tlmellnes be fixed for claim settlement pertaining to death casesVI Special campaign may be organised for an early settlement of Court cases on

arrearsVIIThe matter of inoperative accounts requires urgent attention It is the liability of

EPFO to identify the members especially of those establishments which haveeither been closed or are under liquidation and settle their claims A specialdrive may be launched for this purpose

VIII Service level bench-marks may be fixed for air major items of workof EPFObullind the process of service delivery should be simplified

IX The time line for grievance be improved further

X Coverage of newry iden be monitored closely so as toincrease compliance of eligible employees

xr The issue of be ana lysed and put upbefore FIAC

revision ofIt~Ibullbullmiddott~~ent and the issue of

wage ceiling is increased He

With these observations the Board approved the Annual Report 2012-13 of theEPFO

Item No 8 Audited Annual Account in respect of Employees Provident Fund Scheme1952 Employees Pension Scheme 1995 and Employees Deposit Linked InsuranceScheme 19-76 for the financial year 2012-13

FA amp CAO explained the salient features of the audited Annual Accounts It was

stated that action has already been initiated on all the observations made by the

Pa e 28 of83bull tmiddotmiddot 1 bull

202nd m e e t t nz ofCST EPF~ 1~1)120J4 PJpoundc7bull

bull()

oeC)

bullbullbull-bullbullbullbullbullbullbullbullbullbullbull

~

bullbullbullbullbullbullbullbullbullbullbullbullbullbullbulltwobullbullbullbull

(

t

)

-

I~--------------------------------------------------------------------Comptroller amp Auditor Genltral The matter was deliberated and it was decided to adopt theaudited Annual Accounts (or the fin~nclal year 2012-13 with the following observations ofSecretary lampE-

A pro-active effort should be made to locate non-operatlve accountsSince the legal position regarding non-payment of interest In case ofinoperative accounts Is still not clear provision may be kept for thIs purposeAll matters pertaining to legacy in case of accounts should be listed out andplaced before the Finance Investment and Audit CommIttee which shouldlook Into these issues come out with solution to each problem fix a timeframe for addressing them and monitor Its implementationAU accounts should be updated by 31032014 and adequate provisionsshould be made for this purposeThe issues required to be taken up with State Bank of India should be list~dand action middotInitiatedon them If any issue requires to be dealt with at the levelof Department of Fi~anclal Services the same may be brought to the noticeof Ministry of labour

VI dear SOP should from Inoperative accountsThe Finance should monitor and reviewsuchwithdlra~~~~[~~~~[~

VII In addition on expenditure while

I

II

III

IV

V

Item No9 Declaration of

The Board considered thi~m the observations raisedby the Ministry of Finance The Bo~~Ift~mt~lt~fi~ent provisions have already beenmade in Interest SUspense Account of interest which is due underinoperative account is being used for dedding the rate of interest on Provident funddeposits for the year 2013-14 It felt that it would bemiddotInappropriate not to give dues to theemployees as per the provisions of the Scheme The Board therefore decided torecommend to the Government that Provident Fund account holders be given interest atthe rate of 875 per annum for the year 2013-14

- - -----middotmiddotmiddot--middotmiddotltemNo~-iomiddotmiddotAppointment of a Consultant for Selection of Portfolio Manager

Custodian Concurrent Auditor and Performance Evaluation of Portfolio Managers

Members of the were apprised that the Honhle Minlster-cum-Chairman has alreadvnominated $hri Sharad PatH and Dr GS2nje_evaReddy as members of the Committee toselect the Consultant The Soard ratified the same The Board also ratified the earlieraction taken by the EPFO in this regard Secretary (lampE) observed that the terms ofreference for selection of portfolio managers should specificallv indicate that there Is no

Page 29 of 83

I

conflict of interest to the extent that EPF funds are used for investment in the parent

companies of the portfolio managers

Item No 11 Pattern of Investment 2008 notified by Ministry of Labour amp Employment

The Board took note of the proposal as ccntalned in the agenda

Item No 12 Additional Investment Guide lines for 2008 Pattern of Investment

After deliberations the Board decided to refer the matter to Finance Investment and AuditCommittee for taking appropriate action AS amp FA Ministry of Labour amp Employmentobserved that investmenti SOLcategory should be restricted to states following prudentfinancial norms Further investment under this category should be evenly distributed

Item No 13 Correction of name and date of birth of PF member - Provision in theApplication software- Subsequent amendments in the Manual of Acc~~nti~g P~o(edure ofEPFO

Item No 14 Amendmentincorporating the revised rbullbull~flfbullbullbullt~JJa~~

Part II-A for

with the observation

that the name of the noItem No 1S IncreasingAccount No2 amp EDlI AdmillfsttatliM AccoUii1TfAccounl

in EPF Administration

n para 1517 of the agenda

Item No 16 List of ineligible cases for waiver of damages rejected by CPFC

The Board took note of the proposal placed before it

Request for waiver of damages (item No 17 to 27)- The agenda as contained in itemnumbers 17 to 27 were approved by the Board with the rider that the waiver would be onlyin respect of unpaid damages

Members raised the issue of certain types of industries such as SMEs M5MEs

plantations ete which are outside the ambit of SARFAESIwhich was raised earlier and needto have a separate mechanism It was decided this may be discussed in Finance Investment

and Audit Committee Secretary (lampE) observed that the idea of forming a joint lenders

forum may be explored in this regard It was decided that this may be furtherdeliberated inFinance Investment and Audit Committee

middot1Inl()1

t7J-l-Imiddotlbullmiddot1- I-bullbullbullbullbullbullbullbullbullbullbull~

bullbullbullbullbullbullbullbullf-er

bullbullbull-bullbull4w

bullbullbull-

-

(bull(bull(bullbullbullbull~(~

bull~

)

i

)

bull-bull bull

bullbull

bull

Item No 28 Grant oj exemption under Section 17 of the Employees Provident Funds andMiscellaneous Provisions A~ 1952 and Para 27A of the Employees Provident FundsScheme 1952 by Appropriate Government _

CPFCinformed the Board that a supplementary agenda note circulated earlier hasalso been placed on t~etable

It was informed to the Honble Members that in most of the cases which are broughtbefore the Board the establishments are enJoying the relaxation for years together and theissue Is br~ught before the Board for regularizing the relaxation and recommending to theappropriate Government for 3 final decision in the matter After deliberations It wasdecided that in all the cases included in the present agenda be recommended to theappropriate Government for taking a decision The Board also decided that it should beseen that none of these establishments are In default It was further decided that a detailedSOP for grantlng exemption should be brought before the Executive Committeemiddot forconsideration

As regards Tata MarcopolO-

which is pending in the office llbullbullbullearlier The Board decidedrecommended from the

was informed that it is the onlY caserelaxatlon has been grantedMarcopolo Motors ltd be

as contained in theWith these nhltPfvtl

agenda

Item No 29 13th Valuation bullbullbullbullbullbullbullReport submitted by She PA BaiitiIOOmlJ1flllr(~

Fund as on 31032009 -by the Government

The Board approved the

Item No 30 Proposal on amendment of Para 32(1 of EPS 9S-Annual Valuation ofEmployees pension F~nd

The Board decided to continue with annual valuation of the Employees PensionFund

bull__ bullmiddotmiddot_middotbull _middot-middotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddot1 ~bullbull- bullbull Jbullbullbullbull ~ bullbull middotmiddotmiddotmiddotrt-middotmiddotmiddotmiddotmiddotamiddotmiddotdionmiddotmiddottakeiitlvmiddotEPFOstncethe last CST(lOut meeting held on

25th February 2013) - for Information

The Board took note of the agenda placed before it

Page 31 of 83

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

Item No 32 Revised Estimates for the year 2013middot14 and Budget Estimates for the year

2014-15 for EPFO and Schemes administered by EPFO

Since details were not brought about clearly The Board decided that the RevisedEstimates (20i3~14) and Budget Estimates (2014middot15) to be placed before the ExecutiveCommittee who were delegated the power to approve it

Item No 33 Delegation of Administrative and Financial Powers to Chief Engineer PFD

EPFO

The Board 3Rproved the proposal as contained in the agenda

Item No 34 Grant of Senior Time Scale of P83 Rsl~60~39100 Grade Pay Rs 6600- toregular APFCs after completion of 5 years - implementation date clarification

The Board decided that since matter is a complex one adetailedmiddotanalysis be made ofthe whole proposal and placed before Executive Committee for consideration

of Instalment facility to defaultingestablishments to liquidate

The Board approved t

Item No 36 Authorizingof the CentralBeard]establishments subject to

(A Sub-Committee

The Board approved niIt~iD~JubmiddotCQJtnit1leeproposals subject to ratification 6fiR~~~inecessitated because Of large number

ed toconsider exemptionarrangement which has been

to be considered in the currentyear in view of Income Tax exemption being available to trusts managing their own PF Onlyup to 31032014

Item No 37 Agenda for amendment to the Employees Deposit linked Insurance Scheme1976

The Board Was informed that actuarial valuation of the EOLI Scheme 1976 ismiddotmiddotmiddotunderwyenymiddot Smiddotoamiddot(fltieCided that pending Iinalisation of the actuarial valuation an interim

additional benefit of 20 over and above what is admissible under the provisions of theScheme be allowed to beneficiaries

ShriMJRao stated that there is a need for providing medical benefit to members by

amending Section 6C of the Act It was felt that this issue has already been raised earlieralso will be studied further

Page 32 of 83

~i~ 202nd n1eeting of CST EPf 130120140 lgtasel1bull

CfgtOJ001ebullbullbullbullbullbullbullbullbull -bullbullebullbullbullbullbullbullbullbullbullbullbullbullbullbull

t~

liIt

rII

i

l~

tbullt

Item No38 Suggested issues by few CST members

The Board decided that whenever any fraud Is discovered civil and criminal actionshall be taken against delinquent emplOyers

Members desired that the contact details of EPF officers be updated regularly on

wwwepfindiagovin

The Board appreciated that agenda and minutes of CST and EC are available on webIt was desired that agenda and minutes of all sub-Committees of the Board and ExecutiveCommittee be also put on web The Soard also directed to explore the possibility of settingup of information kiosks in al offices of EPFO so that stake holders could access informationthrough such kiosks directly

Sh MJ Rao raised the issue of installation of lift in the SRO Vishakhapatnam Stlri AKPadmanabhan stated that the issue of office building for SRO Tambaram needs middotto be

resolved at the earliest

workers money He alsoworkers engaged in various s~mpmiddotijjg~1U

in Kolkata many of which areity dues and holding on to

in the form of PF to

middotmiddotmiddotmiddotmiddot_middotmiddot-middotmiddotmiddotmiddotmiddotmiddot_middotmiddotmiddotmiddotmiddotmiddotmiddot_middotmiddotmiddotmiddotmiddotmiddot11middotmiddotbullbullbull bullbull

Page 33 of 83

29 Chairman directed that the InvestigatiOn be carried out on top priority in thenterest of the WOI1cersThe same be followed up reguJarly and the developmentsthereof be epprtsed to the Committee

o()

ooeeamp

bullbullbulle

bullbullbullbullbullQ

bullbullbullbullbullbullbull

24 Shri BP Pant suggested that guldeDnestn the form of a smaI booklet bet Issued tothe exempted establishments to educate the employers so that deviations are notcommitted managing and maIntaining tne Trust

25 SM Sushanta sen suggested tnllt the exempted Trusts be eduCllted on the vartousaspects or Investment so that they wlQ be In a position to avoid axnmlWngdeWstJ~ from he pattemmiddot of investment piesa1bed by the Government

26 Chalmlan Informed that lnteracHon sessions were conducted durtl9 last year201~1-4at M~I Bangaluru and New Delhl to dlSQ1SS various Issues pert31nfng toexemption be It formation of the Trust be It election of the Employee Trustees beIt Budlt of the Trust be It Investment of Trust Fund and so on He assured themembers that such Interaction sessions wlll be conducted In regular lntelVal duringthIS current fsCa1to eduaste the employers end the Trustees

27 WIth thls deliberation It Is decided that the prelimInary study be done of ten majorexempted estabnshments to stzIlt with Chairman fixed the tJmelfne for supplyingthe detalls of exempted establtstvnents to the members as 25 May 2014 Hed1reded Add1 CPFC (compliance) middottomiddotprOYtdemiddotthemiddot details of ten mala- exemptedestablishments accordlngly

28 Thereafter AddlCPFC (Comp~nce) apprised the Committee that keeping In viewthe concerns of the members instructions have already been Issued to ZonalAdditional CPFCs to carry out the 1ovestlgatlon Into the compDance posttJon ofSahara india Jal Prakash AssocIates UP Drugs and Pharmaceuticals and UPStateRoad Transport CorporaUon

210 Members appreciated the good work done by EPfO by launching the software fOronline monltorlng 0( exempted establishments designing the format for re-audttlngof the accounts of Provident Fund maintained by the Board of Trustees ofexempted establishments and issuing guidelines for levy of surchargemiddot on the Boardof Trustees for the deviations they commit In investing the Trust Fund from the

- pattern of Investment presaibed by the Government

211 Shr1AshDk Singh suggested that the exempted lest1bUshments be divided 10to two ff parts - one which function as per rules an the other -whIch-fiiCtO-middotfiOCtimiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddot bullappropriately Strong action even canceUatlon f exemption should be taken to setright the functioning of the exempted establlshenls In the Interest of the woricers

Page 3 on bullbullbullPage 6 of 83

t)

f

I

bull)

bullbullbullbullbull)

)

bullbull)

bull1

bulltbulll

Item No3 Grant of exemption under SectIon 17(1)(8) of the Employe bullbull ProvIdent Funds and Miscellaneous Provisions Act 15)52 andPara 27A of the Employebullbull Provident Fund Scheme 1952by Appropriate GoVetnmnL

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

31 AdditIonal CPfC (Compliance) Infortlled the Ogtmmlttee that the out of enllstedtwentYestabl1shments nineteen establishments meet the requIrements and thusthelr proposals deserve colSldenltion and fecolMlendatlon on behalf of theCentral Board of Trustees EPF to the Appro~te Government for grant ofexemption

32 Additlonat CPFC (Compllance) pointed out that the case of the Food CorpoJation ofIndia(FCI) Is very pooJlIar and the COmmtttee may conslder the proposal HeInformed the Committee that FCI has lncurred loss for three years consecutivelywhkh s evident from Its Balance Sheets As per conditJon No 25 of the Appendtx-Ato Paragraph 27M of the EmployeesPttMdent Funds Scheme1952 no exemptJoncan be recommendedsanctioned to II company which blcu~ ~ for three yearsconseltutfvely

33 The AddItJoMl CPfC (Compliance) also brought to the noticemiddotof the Committee thesub~ons or the Chatrman and Manrgtng Director Fa ZlS detaled bclow

a) The CMD dclrlfled that Fa is Implementing the fOOd polley of the Government of IndIa and does not undertake aTfl cpmmerdal operations

The ent1re expendlture IncUrred by the corporation Is reimbursable by the Government of India Therefore the question of any profit or loss does notertse

b) The eoCPoration prepared Its Annual Report 10 the format preso1bed underSchedule VI of the Companies Act as lnssted by its sole auditor Comptroller~ Auditor Geneiol (eMG) By foRowlng such fonnat Bod and DoubtfulOebts are to be deplcted as lOss In the Profit amp loss Account

c)middot Qep1ctJonof tosses In the Annuaf Report5 are in fad deferred subsidy whldl Is released on completion of procedural aspects of write-off of --Bad andDoubtful Debts 11lI the time Bad and Doubtful Debts- are not writen-offhe Goyemment does notrelmburse the food Subsidy hence this conUnuesto be shown as losses ~ FaBalance Sheet __ ___

d) Fa Is a subsJdy based corporation hence quesHon of Bny proflt or loss doesnot DOse

Page4of9

Page 7 of 83

Page 8of83

bullbull

34 Additional ~ (CompOance) also brought to the notICe of the Commlttee thefoUowlng dartftaltlons on losses stlen by the AddltJOM Seaetary amp AnandalAcMsor Mlntstry of Consumer Affa~ food 6 Public OIstrlbuUon on behalf ofGovernment of India

a) The potkydedslons onmiddot Public Distribution System CPOS)National Food5ecurtty N1 (NFSA) etc are blken tit the Government of India through FC1for which entire expendJture Incurred by Food Corporation of lncfsa erereimbursed In the form of food subsidy Fa Is a subsidy based corporationhence question of any proftt or loss does not arise

b) The procedure of relmbursement of food subskty has been preso1bed bythe GoverMeot of India Thls Jnter-aHa stipulates that food subskfy Inrespect of bad and doubtful debts 15 releaSed only afterwrite-otf of thesame by the FO Thus ~bsIdy Is not released on the basis of creatiOn ofprovision for bad and doubtful debts Due to this stipulatiOn the amount of~ ~nd dcnlbtfut debtsprovided In the ~ of fCl are depicted as lossesIn the Ananc1al Statement tlll the same Is written off after followingpresa1bed procedure In fact these osses are deferred subsidy which arereleased to FClln the year when the bad and doubtful debts ere written offbyFa

bullbullbull

c) The losses shown In the financial Statement ot Fa is a mere depIctionsince they follow the fonnat of BaIBnceSh~t llnd Profit amplossAccounts aspresoibedunder the Companies Ivi 00 the advJCeof their sole auditorCampAG and approval cl the Government cf India bullmiddot35 Shri AK Pedmanabhan stated thatthe Food Corporation of India Is It no profit no

loss organisation of Government of India and condition No 2S of Appendix A toPara 27M of the Employees Provident Funds Scheme 1952 Is not attracted In caseof Fa Thus the proposel of fO deserves consideration and recommendation toApproprtate Government for grant of exemptlon

bullbullbull36 Shri Sushanta Sen end Shrl BP Pant conSented the Views of Shri AK bull

Padmanabhan and strongly opine that the proposal of Fa may be sent to bullGovernment of India Ministry of labour Ii Employment for approprtate

consideration and grant of exemption bull---~---- bullbullPage5ol9 bullbullbullbullbullbullbullbull

ir

bullbull

t(

bullbull(bullbullbullbullbull~

bullbullbullt~

tgt)

bullbullbullbullbull~

37 The Chalnnan stated that Fa it Government of lridla coocem as recouplng DRthedifference between the economic cost and saes realization In the form of consumersubsidy from the Gov~ment of India except the pnMsIons of bad and doubtfUldebts In the amp(COunts of the CltXVQratJon The subsidy fOr this expendtture Is notclaimed In the year of occurrence of expendlbJre but ls claimed In the year d writeoff of ampd iIDd DoUbtful Debts The depiction of osse$ In the Balance Sheet Issimply due to deferment of subsidy -dalm from the year of prov1slons mampde to thevear of wrtte-off The entire expendlture Incurred by fCI Is relmbured by theGovernment of Indla the form of food sUbskfy SInce the accounts of Fa areaudited by the caAG end In view d the clarifkatbns g1venbv Government of Indiathe proposal for gl1lnt of exemption may be forwarded to AppropJ1ate Governmentfor consideration bull

38 The Commlttee unanimously dedded to forward the proposal of Fa for grant ofexemption to Appropriate Government for cons1detCltlon

39 With tills deliberation the Committee consldered end recommended the proposalsIn respect of the foUowtng establishments as contained In the Agenda to theApproprlatemiddotGovemmentforconsdeBtlol-and gnSnt Of middotexemptlon

cocsNo Mtk ~I AlJpltopdtIt Mo ofcrct Para ~ rMmbersfront

HHIWV 01052009 17(1)(1) StIIb es125553 ~ d

~

Wl25410 OUIl2009 17 (ll(l) State 02 ~ rlHlh~

3 MIL TIU lJIIIltad SROJemshedprr

Jt1I1302 01011980 17(1)(1 CermI 1068GoYemment

4 M bullbull SIJSIC InJlotIatift ROGurgecn HR31l16 01()9la10 17(1)(1) GoveMrnent of 81PlJIItb SrldJa Pvt Ud 1ndIa

s HI bullbull WoodamptrJcS(Schoot 10 ~ UAl~ 01111993 llXt) Gootmment of 316lItbnncMI

6 MbullbullmiddotAI~ bullbullbullbullQnMb SIlO~ lJrJ~BlUInbd

O1o1t961 17(lX_) ~ rI 459~

7 Mallt Tamoort 00 DelhI DlJ2(X20Umbel Scxth

2O0um 17(1)(1) GoYenvnent of S34india

bullbull MIl eorultJng 10 DelhI 0l36Wng~ ScrYkeI South~) PvtUmIUd

29051974 17(lXa) ~_~ _~~ __ India

Page 9 of 83

Item No4

1

1deg1() I01

0101-111-111bull 1

1

bull 1bullbull 1

1

1bull 1

bull 141 Addltlonal CPFC (Compllzmce) brought to the notice of the Commlttee that bullwhile processing the pending appHcatJoos for grant of exemption some cases have bull Icome to the notlce of Head OffIce where the estabUshrrients maintain thelr own trust 1

~e exempted establishments~ ~~ ~__~~ ~ ~bull 1

1

1

1

1

1

1

1

1

Regularlsatlon of the proposals submitted by theestablishments for grant of exemption who maintaInthe Trusts without grant of relaxation under Para 79 ofthe Employees Provldent Funds Scheme 195~ or withpennlss10n of RPfOL

bullbull

bullbullbull Habullbull oftfte omc CodeHo WIth SectIonI ~ Noof 10 ~ 1Ifflaquot GoIrerMaent ~

froIa

aJ It Tyrw bull ~Mpore rJ(MtSI 01042D02 17(lX~) GMmment d -4711lIIdtlldrltc IImbd 9508 Jnck(VIIautTyN ~)HyIart

10 MbullbullUTTcinology fID~ ItVllIHI 01012014 17 UXa) GIIYernnWnt cI 1667sNba Ucnbdmiddot 205170 Incb

11 MaLG SRO Vesill ~asNI 01062001 VA Gooemmeat d mhtrocMmlcllll Umbel 9S22O IncIa

12- MsMJIQ SJU) Vashl MH95413 OU)6lClO7 VA ~d zshtroCh bullbullbullbullbull lImJted india

U- Ka HexJawwre RO Thane MV42123 01071996 17(lXI) ~ot 56Q5TechnologM Umlbd IncIa

14 MIs bullbull T RO Thane t+l20669 OUM2013 11 (1)(a) ~d 2396~ lJMItOIId Incla

15 Mbullbull GlC ~g to Bancn MVtWiI OUI31994 17 (1)(a) middot bullbullbullbullbullbullbullbull cI 142Finwlca Lln1ted 39407 tncSa

145 Merefld bullbull knz 110 KN24117- 0103200 27A state 1116ROII bullbull rch Bangillore X 8 GoverMmttl~elOP~At (1) (P)

of Kamtab

17 M_ food 1tO~1h1 Dlf2271 111989 2711 Central 76678 ~rtltlol1 0 zncn (N Gov

lL Mbullbullbullbullbullbull In cthoUc Ilaquo) ICllndMII MHKNDl 0111199 17(I)(a) Stilt 455Co-op Sank ltd 2613 1 Governmentor

MilharashtraUI KII Atillya Blrt SRO Rajkot GJ40n 0104200 27A Central l125tluvo ud 6 GOY~O KlllUampMII ~ RPRRO X93gtS16 01032009 17(lXa) Cer1tnII 26~ Indllt PYt Deli (SauttI) Govunrna-tUd

bullbullPagt 7 of9 bullbullbullbullbull

Page 10 of 83 bullbullbull

(

~

bull~bullbullbullbullbullbullbullbullbullbull

a) In some cases the estJIbllshmenis f1IZIlntilln their own TIUSts withoutBOY relaxation granted under PiA 79 of the Employees ProYIdentFunds Scheme 1952 after 9submission of applicaHonfor gnnt ofexemption either under Section 170Xa) or under Selttion 17(2) or theEmployees ProvIdent Funds 100 MlsceIaneous ProvIsIons Art 1952read with Para 27A d the Empbyees ProYIdent Funds Scheme 1952-

b) In some othet eases eStabl1shmentshave been covered by RegIOnal PFCommlsstoners of Reg)oncsVSub-RIlgiona omces under Sed10n 2A ofthe Act beatlng the same lIS bnmctees of main est2iblishments SIncethe date of coverage the establ15hments covered under 2A depositconbibutlons txgtYards provident fund in the Trust maintained by theirmain establlshments and conthIe to pay Penston and EDUcontributsons with the RPRs wherever they are covered OVer the-years complksnce In respect of ptOVIdent fund was never 1nslsted fromthese estabUshments nor any permIsslon was g1Vento them to complyIn respect of provident fund In 1he main estabnshments Even norelaxation was grented to these establishments under Para 79 of the

Employees Provkient funds Scheme-19Sl

1

I111

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

-42 Additional CPfC (COmpHance)epprlsed the Comml~ that Instructions wereIssued In past to RPfCs to grant relaxation under Para 79 of the EmployeesPrtMdent Foods Scheme 1952 to such categories of establishments which functJonas an exempted establishments from a prior date subject to usual condltlons asstipulated In Appendix A to Para 27M Of the Employees Provkient Funds Scheme1952 as retaxatlon Is required to be granted from a much prior date In order toreguJarise is period of time during wh1ch the establishment has complied as anexempted establ1Shment without been relaxed Because the law alklws only therelaxed establlshments to mallltaln its sepamte fund and function as an exemptedestablishment before the grant of exemption under Sectlon 17 of the Ad

3 Additional CPfC (Compnance) also lnfonned the Committee that Regional PFCommlssloners continue to conduct compliance audit over the years treating theseestabUshments as If exempted and forwarded the applications submitted by theseestabDshments for grant of exemption from the operation of the EmployeesProvident Funds Scheme 19-52where no relaxation has been gnmted A number dproposals pending for grant of exemption are of thls nature These establishmentscomply to all the condltlons reqUired for exemption as proylded In Appendix-A toPara 27Mmiddotof the Employees Provident Funds Scheme 1952 FQrwant of relaxation - the proposals of establ1shments of above nature are pending If thesemiddotltas~middotaremiddotnotmiddot middot--middotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddot-middotmiddot--middotmiddot-middotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotregularised then the Interest of the employees will be at stake and they wouldsuffer for no fisult of theirs These cases thus need to be regularJsedbull

1 Page 11 of 83

41 Shri AK Padmanabhan suggested that the cases of these so caUedexemptedestzIbllshments have to be regularised kl the lriterest of the employees and thisshould be a one tine exerdse for dlspostng the applJcatlons of these establishmentspending for grant of exemption for years together He felt that without much delaycasesd this nature should be forwarded to the AppropOat8 Government for grant ofexemption

45 Shri BP Pant pointed out that no relaxation CXJu1dbe given to theseestablishments who malntaln PfTrusts on ~ own even after Issue of lnstructlonsThe estabftshments made continuous effort 1n pursuing their cases but no actJon Istaken for proce$SIng their CZISeS He also stated that the establishments whkhmaintain Trusts without relaxation or permlss$on need to be regularised by way ofgrant of exemption wlthoutfurther delay

46 Shrt Sushanta Sen wanted to know as to why no relaXIItlon was granted Inthese cases

47 Additional CPfC (Comptlance)apprised the members that It IS a systemicfailureand for no fault of the employers the proposals be tcept pending further Herequested the Hooble members to take appropnate declston to regularise thesecases

48 Charman Informed the Committee that the power to grant relaxationmiddot underPara 79 of the Employees ProvkSent Funds SCheme 1952 has been withdrawn fromthe Regional PF Commissioners wef 24072012 Grant of exemption ~n all thesecases is pending duemiddot to lack of relaxation order permtsslononaccount of the faUureon the part of ttMi fteld fundIornllies These estaoUshments are assumed to beexempted establishments even in the absence of relaxatlonorderpermlsslon TheCommittee may conslder as an one time exetdse to rtfularise these pending caseswhere the establishments maintain the Trusts and abide by the conditions stipulatedIn Appendix A to Para 27M of the Employees ProvIdent Funds Scheme 1952

With ~ls deliberation It was dedded that the appllaltlons of these establlshmentswhich maintaIn their PF Trusts WIthout any relaxation permlssion to partldpate Inthe main Trusts of thetr parent establlshrnent should be processed Without furtherdelay and be placed before the Appr-opriate Forum for forwarding the same toAppropriate Government for grant of exemption

The meeting ended WIth vote of thanks to the ChaIr ---- _ --_ _ __ ___

--0----Pagetoft

-

Page 12 of 83

InffI

Ii~

o()ooebullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbull

~j

1

Item No2 Action Taken Statement in respect of decisions taken in the36thmeeting of the Sub-Committee of the Central Board ofTrustees EPFon Exempted Establishments held on 15052014

(

51 No

Action Complete

Action TakenUpdated StatusDecisions Directions of theCommittee

bullbull~

--

1 Conducting study of the The details of exemptedfunctioning of the establishmentshave been supplied toestablishments already the Committee Members for thegranted exemption by studyon28052014Members of the Committee

Chairmandirected that the detaitsof the Exempted Establishmentsshall be supplied to HonbleMembers by 25th May 2014 to

start the studv

(Item No23t1hMeetingof theCommittee 15052014)

2 Preparation of guidelines in Time to time instructions issuedto thethe form of a small booklet for field offices on various issues ofissueto the exempted exemptionare uploadedon the official-----

establishments for educating websiteot EPFO which can be visitedthe employers so that by ExemptedEstablishmentsdeviations are np~committedin managing and malntalnlnq

the Trust I i Howeverattempts RavealreadybeenShri BPPant suggested that the ~ken to prepare a small booklet asguidelines in the form of a small suggestedby Honble MemberIt willbooklet be issuedto the exempted take some mon~timeasthe staff iaestablishments to educate the awfully busy With Universal Accountemployers 0 that devia~ionsare Num~S~fAN) presently

in~~~~~Tnagngand sect~~~~0~~J3~ (Item No2 3t1hMeeting ofthe committee 15052014)

Page 13 of 83

I No Action TakenUpdated StatusDecisions I Directions of theCommittee

3 Investigation into thecompliance position of SaharaIndia Jai Prakash AssociatesUP Drugs and Pharmaceuticalsand UP State Road TransportCorporation

Chairman directed that theinvestigation be carried out on toppriority in the interest of theworkers and followed up regularlyand the development thereof beapprised to the Committee

(Item No2 3fih Meeting of theCommittee 15052014)

Investigation is going on nation-widein respect of Sahara India and JaiPrakash Associates and the same isbeing regularly monitored

Themterlrn report will be submittedto the Committee in their nextmeeting

Appropriate action has already beentaken against the UP Drugs andPharmaceuticals and UP State RoadTransport Corporation The finalreports will be submitted to theCommittee in their next meeting

BifurcationofExemptedEstablishments in to two parts - onewhich function as per rules andthe other which fail to functionappropriately to set right thefunctioning middotof the exemptedestablishmehts in the interestof the workers

Instructions have been issued to fieldoffices

a) tocarry out compliance audit of25 of the Exemptedestablishments functioning intheir jurisdiction each-quarter

b) to analyse and review theperiodical reports of

Shri Ashok Singh suggested that the exempted establishmentsexempted establishments be divided c) to carry out third partyin to two parts - one which function audit of the accounts ofas per rules and the other which fail the Fund maintained byto function appropriatety Strong the Board of Trustees byaction even cancellation of independentempanelledexemption should be taken to set Chartered Accountants ofright the functioning of the EPFO andexempted establishments in the d) tomonitor the functioningofinterest of the workers ----------- middotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddottnemiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotexemiddotmmiddotptecf

establishments online

Action Complete

coooobullbullbullebullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullebullbull

bullbullbull~~ j

Page lS of 83

1

1

1

1

1

1

1

1

1

~11

1

1

1

1_ 1

1

1

1

1

1

1

1

1

1

1

1

1

1

)

Item No3 Grant of exemption under Section 17(l)(a) of theEmployees Provident Funds and MiscellaneousProvisions Act 1952 and Para 27A of the EmployeesProvident Funds Scherne 1952 by AppropriateGovernment

I31 Section 17(1 )of the Employees Provident Funds arid MiscellaneousProvisions Act 1952 provides for exemption as under

Power to exempt - (1) The Appropriate Government may by notification in theOfficiat Gazette and subject to such conditions as may be specified in thenotification exempt whether prospectively or retrospectively from theoperation of all or any of the provisions of any Scheme Any establishment towhich this Act applies if in the opinion of the Appropriate Government therules of its provident fund with respect to the rates of contribution are not lessfavourable than those specified in Section 6 and the employees are also inenjoyment of other provident fund benefit which on the whole are not lessfavourable to the employees than the benefits provided under this Act or anyScheme in relation to the employees in any other establishment of a simitar character or

i

a Any establishment if the employees of such establishment are inenjoyment of benefits in the nature of provident fund pension orgratUity and the Appropriate Government if of the opinion that suchbenefits separately or jointly are on the whole not less favourable tosuch employees than the benefits provided under this Act or any Schemein relation to employees in any other establishment of a similarcharacter

32 Provided that no such exemption shall bemade except after consultationwith the Central Board which on such consultation shall forward its views onexemption to the Appropriate Government within such time limit as may bespecified in the Scheme

Para 27A (1) of the Employees Provident Fund Scheme 1952 provides

(

The Appropriate Government may -be+erder+errd middotmiddotmiddotsUbjettmiddotmiddotmiddotlomiddotmiddotmiddotmiddotmiddotmiddotsudmiddotmiddotmiddotmiddotmiddotmiddotmiddot conditions as may be specified in the order exempt from the operation ofall or any of the provisions of this Scheme any class of employees towhom the Scheme applies

Provided that such class of employees is entitled to benefits in the natureof Provident Fund gratUity or old age pension according to the rules ofthe [factory or other establishment] and such benefits separately orjointly are on the whole not less favourable than the benefits providedunder the Act and this Scheme

Page 16 of83

bullbulleoeG

bullbullbullbullbullbullbullbullbullbullbullbullbullbullmiddotGbullbullbullbullbullbull~bullbullbullbullbullbull

~

~

33 As per the above provisions of the of the Employees Provident Fundsand Misce~laneousProvisions Act 1952 and Ministry of Labour and Employmentletter dated 01042008 all cases of grant of exemption shall be placed beforethe Central Board of Trustees EPFfor consideration before sending the same toAppropriate Governments The copy of the Ministrys DO letter dated01042008 is placed as Annexure-3A

34 Before placing a proposal in the CST EPF its suitability is scrutinizedwith respect to the provisions -for grant of exemption as contained underSection 17 of the of the Employees Provident Funds and MiscellaneousProvisions Act 1952 Further in view of the guidelines issued by Ministry ofLabouramp Employment Government of India vide their letter dated 27022007as placed at Annexure - 38 all RPFGs furnish a certificate after dueverification carried out at their end with regard to the Ten Point Check List

35 Ministry of Labouramp Employment Government of India has also issued directions to the effect that the proposals shall be forwarded only if the latestCompliance Audit Report is found to be satisfactory Hence compliance auditcovering al the points as mentioned under the revised conditions for grant ofexemption is undertaken and a copy of the said report is ready to be forwardedto the Appropriate Government

36 Central Board of Trustees in its 202nd meeting held on 13012014authorized this committee to consider exemption proposals subject toratification by the Board as a one-time arrangement which has middot-bemiddotennecessitated because of large number of proposals required to be considered inthe current year in view of Income Tax exemption to the Trusts managing theirown PF only up to 31032014 A copy of the agenda item No 36 placed beforethe 202ndmeeting of the cer and minutes of the meeting are annexed herewithand marked as Annexure -3C and Annexure -3D respectively Terms ofreference of the Committee on Exempted Establishments is placed atAnnexure - 3E

37 A list of establishments as indicated in Annexure - 3F is now piacedbefore Sub-Committee for consideration and recommendation to AppropriateGovernment on behalf of the Central Board of Trustees EPF in accordance withthe proviso to Section 17 of the-Aet- -_ __

Proposal The Sub-Committee is requested to consider and recommendthe proposal in respect of establishments indicated inAnnexure -3F to the Appropriate Government on behalf of theCentral Boardfor grant of exemption

ANNEXURE-3A---a bullbull -= bull ~ bull

~i- ~

JOInt $acnary

Tel 23110l7 bullIIIbullbull

r _

Av-~ ~M JL--O~0 r

bullbull

N YOU ar IWUt sa5on 111 of tM poundmpoyus Provident Funck middotIt~ntOU Prcw$lonSAIJ 1952 proWIs thlt IppropMe GowrMlntrtlW hfWexempt cny uublbhment from Ut opcAtlonS oJ any SChamts sub)cltt to the ~hit such alCernpUon shalt bt made ttar consultation -Mth CennI SOlrd of TnmHf lUf)

1 middotThe MWstry $ ~Mnc bull numhr of cues of ~cnU ~~InlXetlptonundr ~ 11l) of the ~ rd pI 21 of [PF Scheme In tMfa ClR$bull~dod~ n some cllfltf mtampp of Cellll aoard of TNSUU (poundPF) tntral ProvIcStntFIM Cominlulonet has bHn lIWds1nCthe powen of he lIoud whn rtCOmmtfldlnlthe psu to tht IppfopnteGovemrnc~

3 Thl$ miner hiS ~tty MIl u~ In ~Uoct with Deprtment or LctltW$wto han opinedtht Wdwsect1on$ ofth k1 essential f1Inct~ ofthtr1laird of TNstetS (EPF1Bkethl$~ ~ HIdtltpted aM such dloPUon bytheampoud under pnlrJl powers of s-abl SE of ~I fulleUonof toMuK~n ndelSlaquoUoIl 17 wlV not bl pttmlsstbll

~ 4 Th m~r bbullbull btoUpt to th~ Idnd IIOtka of Chalrman arrHcnbl LEMt who tm bull concurred with thUI 1M k hu bte decided thlt hcrcrlorth aUsum1 We of yenllmptlon bt pg before he Cenbllloltd ofTN~ (Elf) fof consWentlon

(L ~sf__ laquondln the tv pr1atlaquoGMmtnnt as per the p~s of th411tt

5 In ~~ I s It ~ tntdut If VOl could kln6ty talte fU~f ~ tllbull thls ~CCordlnt

~~ ~~c~ rP~~il

~~~~~~~ ~~_~sectm

~ Shrt bullbullbullbullWwall2tban ~ - ~~ L~ ClntnolroItdentUndCo~~v 1) poundIII~ PnMdtnt Fund OrpnIQlJon ~ 6

Haw 0tRI1l0066

bull bull

bullbullbull

J~

Page 17 of 83

bullbull1

bull~ -ANNEXURE-3B _- -=-

~ the bullbull labIl~ futftlHno tho ~ conditiOns attc gfanl 01rlaquoXampUon~ Pbullbull 78 of tho EPF 8ctl4fmfJ 195and tMt ~ is no SolatIon otIhap condition

Page 18 of 83

bullofloebullbullbullbullbullbullbullbullbullbullbullebullbullbullbull

bullbull-bullbull~

bullbullbullbull6r~

~

bullbullbullbull

bullbull~

---~

rI

a

- -

IlHgtftt OR lilt wllldtPnJd 1MflDlltW I1QJWdtII mtoIIJamp1WSMtJo 10CIteMIJ

I Whether boerd of tnII1Cel bu boen aaICd under tho ~of employer

2 Whether an the dlpble cmpSoyeenre enroUed ISmcmbcn13 Whether tho 1ICCOUtamp will be mdntampiMd dceuoaica11y knd dl he

membeR fIillbc able to JCO their account lanco fiom the computertectnln1lalIfnOt be reMOdI thetepoundQCand b)r wfurt time accoants are~ 0 be mtintamcd eledronieaUy

~ Whltther board of tnistccs bampv6 fmliabcd a copy of prtsmbed undertaklnamp to the RPfC concemcd u per eM condition no 21

conWncd in Awrodix A to the RP Scheme 19521 tf yei I cqtyy ofthe IUnD to bo caclotcd

S Whether 1M employer and the board of tnlJ1ceI MVC Nmilbed theundcrWcb u ~ coodltion no 23 cootdned in Appendix A to theUP Sche1nc 19S2l lC)CI l copy or1he same to be eaelosed

6 Comparative lWtment or benefitl admiwbte under the EPF amp MPAet 1951 and tho Sebcmo ~ by heCltlb1isbmenl ell the huisof whi~ it I Olt)OCtuded tMt tho ~ of the eatabl~t u atleast compuablc lIith tboIcmiddot of the Act

7 Mechlnam propoampcclby the BlFOtPPFC to auurc that estsblilbmentis complyins with thO provUioaa or the condltiona (Of pant ofexcmptlon

S Nunc ottho RPfC in wbocejurlsdi~QQ ~ tmbUshment fillamp9 hyments Which need to be mamp by Ihc e5tabtisbmau to E~Oeven

after JIlDl of exemptionlOWhIther the uablbbmcont 11 fulfilllnamp chc preacrlbed conditions ancr

gnnt Oftdaxltioa Wldct Para79 o(tbc UP Sehcme 1951 and thereis DO viobtion oflhc same bull

(~(

(

(

(

i

-_ bull _-- --_ ___ bull

Page 19 of 83

-(

ANNEXURE-3C

Item No 36 Authorizing the Committee on ExemptedEstablishments (A Sub-Committeemiddot of the CentralBoard) for consideration of the proposals for grant ofexemption to the c5tablishments subject toratification

361 Proposals for grant of exemption to establishments from the operation of th~Employees Provident Fund Scheme 1952 under Section 17(1)(a) Employees ProvidentFunds amp Miscellaneous ProvislQns Act 19S2 and under Section 17(2~of the Act read withParagraph 27A of the Employees Provident Fund Scheme 1952 received from fieldoffices are examined in the Head Office with reference to the guidelines on the subjectissued (rom time to time

362 Section 17(1) of the Act stipulates that no such exemption shaJl be made except pfter consultation with the Central Boald which on such consultation shalljorward itsviews on exemption to the appropriate Government wIthin such time limit as may bespecified in the Scheme

363 Once the proposals are found to be complete in all respects the same are placed before the Central Board for consideration and recommendation to the AppropriateGovernment for grant of exemption and notification thereof within such time limit as maybe specified in the Scheme

364 Once the proposals are considered and approved by the Central Board they areforwarded to the Appropriate Government with the recommendation for grant of

exemption and notification in the Official Gazette

bullI

deg10JOJC Jc

1I--bullbullbullbullbullbull 1

~

bullbullbullbullbull41-

bullbull~

365 Clause (ea) was inserted in Rule 4 of Part-A of Fourth Schedule to the Income-tax bullbull

Act 1961 vide Finance Act 2006 to provide that recognition to a provident fund underthe Income-tax Act shall be restricted to only such funds

a) WhIch are covered under sub-section (3 or sub-section (4) of Section 1 of theEPF amp MP Act 1952 and

b)--Whichh1vebeenexemptedJlndecSeclon 17ofthe EPfamp MP Act 1952 fromthe operation of any scheme framed therein

366 It was also provided that the funds approved prior to 31032006 shall not beellglble for Income-tax benefit if they did not satisfy the conditions set out in clause (ea)of Rules 4 by 31032007 Accordingly EPFO was required to take necessary action inrespect of the funds recognized under the Income-tax Act on or before 31032006 andwho did not satis~ the conditions stipulated in clause (ea) of Rule 4 of Part A of FourthSchedule to the Income-tax Act The time period given in the statute was initially for one

P~e 200f83-464

I

I ~

) year which has been extended several times by legislative intervention vide Finance Actsof 2007 2008 200~ 2010 2011 2012 and 2013

367 While extending the time limit till 31032014 Min~stry of Finance Governmentof India made it dear that there wlllno further extension of the time limit

368 Approximately 260 proposals for exemption are pend1ng on the part of EPFOSome of them are under the process of examination at Head Office level and some are atthe level of field offices The processing of the proposals fakes time as the same are to begiven complete shape in consultation with the fieldofftces before placing the same to the

Central Board for consideration

Ir

3069 The Government of India Ministry of labour amp Employment in their letter dated01042008 issued dIrection to EPFO that all such cases of exemption be placed beforethe CentralBoard for consideration before sending the same to Appropriate Government

as per the provisions of the Act The proposals which are sent to AppropriateGovernment for grant of exemption shall be touted through the Central Board only Thesaid direction Is placed at Annexure 36-A

3610 Proviso to Paragraph 11 of the Employees Provident Funds Scheme 1952provides that the Central Board shall meet atleast twice in each financial year The lastmeeting (201~t) of the Central Board was held on 25022013 During the current year2013middot14 no meeting of the Board could be held till date

3611 In view of above it may not be possible to obtain the approval of the C~ntralBoard within 31032014 for all the proposals which are In order before forwarding thesame to the Appropriate Government for grant of exemption and notification thereof inthe Official Gazette This may lead to undesirable deadlock

3612 To overcome such possible deadlock it Is proposed that the power vested in theBoard for considerIng and recommending the proposals t~ Appropriate Government (forgrant of exemption and notification thereof) may be delegated to the Sub-Committee ofthe Central Board on Exempted Establishments All such proposals which are approved bythe Sub-Committee and sent to Appropriate Government will be put up to the CentralBoard in their sub5_e_g~ntm~~1gJorinformation and ratification

3613 Such delegation of power will streamline and expedite the processing ofexemption proposals to some extent

Proposal The Central Board is requested to consider and accordapproval to the proposal of authorizing the Sub-Committee onExempted Establishments for consideration of the proposalsfor recommending to Appropriate Government for grant of exemption to the establishments subJect to ratification

ANNEXURE-3D e()

oC)

bullbullbullbull

IEMPLOYEES PROVIDENT FUND ORGANISATION

MINUTES OF THE 202nd CHT MEETING (NEW DELHI 13 January 2014 1030 AM)

The 202ndmeeting of the Central Board of Trustees Employees Provident Fund

(CB1 EPF) was held under the Chairmanship of Shri Oscar fernandes Chairman CST EPFand Union Minister of labour amp Employment The following members attended themeeting-

1 MsGauri KumarSecretary (Labour amp Employment)Government of India New Delhi

2 Shri PK Pujari ASamp FAMinistry of Labour amp EmploymentGovernment of India New Delhi

3 ShriArun Kumar Sinha ASMinistry of Labour amp EmnbullbullbullbullVbullbullbullbullbullAntGovernment of India New Dejrnm~~~~~b

4 Shri Shashank Saxena vn~~II

Ministry of Finance rnvplHMpnt

S Shri Animesh Bhartl iJjrC1~~middott~~~~~~~Ministry of LabourGovernment of I

Central Governmentrepresentatives

6 Shri KK Jalan

7 Shri JP Chowdhary8 Shri Sharad Pati9 Shri Ravi Wig10 Dr UD Choubey11- Shri Badish Jindal12 Shri BP Pant13 Shri SushantaSen14 Shti GP Srivastava15 Dr Ram Tarneja16 Shri 55 Patil

PF Commissioner

Employers representatives

-_ _ _-__-_ --_ 17 Shri Virijesh UpadhYdY18 Shri M Jagdeeshwara Rao19 5hri Ram Kishore Tripathy

(vice Sori ADNagpal)LO Shr Ol Sachdeva21 Shri Ashok Singh22 Shri Krishna Chakraborty

(vice Shri Shankar Saha]23 Shri Raman Pandey

Employees representatives

bullbullbullbullbullebullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbull

(

(--

bullbullbullbull

i

bull

bull(

r------------------middott~

r

24 Shri AKPadmanabhan25 Shri Prabhakar J Banasure

26 $Ori Sanjay Prasad Principal Secretary (labour ampEmployment) Gujarat

27 Shri 5S Randawa AlC labour DepartmentPunjab

28 Shrf vs Arya Joint labour Commissioner Dellll29 Shri Glri Raj Singh Principal Secretary (labour amp

Employment Rajasthan30 Ms Nandita Gupta labour CommissJoner amp

Director (Employment) Himachal Pradesh

Staterepresentatives

Government

Following members could not attend the meeting and were granted leave ~f absence

1 Sh KSureshMinister of State for labour amp Employment

Vice Chairman

2 Or G Sanjeeva Reddy Employees representative

3 Principal Secretary bullbullbullbullbull-4 Principal Secretary amp0_bullbullbull

5 Principal Secretary6 Principal Secretary7 Principal Secretary ~YI~I~

S Principal Secretary Uf~

9 Principal Secretary (Lab10 Principal Secretary (latloild~~~Ml~ltJk~-11 Principal Secretary (labour) MaIUW12 Principal Secretary (labour) West

Government

The list of the officers of the Employees PF Organisation who attended the meetingis appended as Annexure A to these minutes

At the outset CPfe welcomed the Chairman andMembers The Board observed twominutes silence irniemorVmiddotonormed~nairmanmiddotorihemiddotmiddotCBTEPFmiddotmiddot~~dmiddotH~~bi~f~~er UnionMinister of labour amp Employment ShrJ Sls Ram Ola ji A condolence message to be sent tothe family of Shri Ola was also adopted by the Board

Thereafter Board welcomed first time members to the Board ~Shrl Prabhakar JBanasure Virijesh Upadhyay employees representatives 5S Pat ii employers

representatives of state Governments of Rajasthan and Himachal Pradesh

The agenda items were thereafter taken up for discussion

Page 23 of 83

~---i

Item No1 Confirmation of the minutes of 201st CST meeting held on 25022013

The minutes of the meeting circulated on 08032013 were confirmed by the Board

Item No 2 Action Taken Statement in respect of decisions taken upto the zoin CBr

meeting held on 25022013

middot21 Noted

22 Noted

202110 rrH~~1ingo~ cST EPF 13012014 Paee3bull

23 Noted Shri Ravi Wig stated that Permanent Account Numbers need to be issuedurgently to facilitate extension of PF benefits to all especially peripatetic workers It wasassured that the matter will be looked into Secretary (LampE)informed that EPFO has alreadybeen instructed to come up with a timeline for this purpose

24 to 215 Noted

216

comprehensive amendmentsproposal will be suitably

amendments

members It was informed thatrnlrlCrUmiddot~tjonof the Ministry and the

fliMllf1oisation of comprehensive

SShri MJ Rao Ol Sachdevato contractual employees ofbeen extended ESI benefitsexamine the issue and take ne(~e1SttHjo

of extension of PF benefitsInlrinnrv of such employees have_(fQT~rv (L amp pound) directed ACC(C) to

Item NO3 Purchase of ready and residential apartments to beconstructed by NBCC (Govt of India enterprise) at East Kidwal Nagar New Delhi

The Board approved the agehda as contained in the memorandum A few membershowever stated that such proposals should have prior approval of the Central Board Thevalso pointed out that meeting of the Board are not held regularly The members wereinformed that since time bound action was required to be taken in the matter and there

___ _~~~_~~~0l~~gS~~ryg~~Lth~J9fm~Iiliesbefcrehandractlon was taken aft er obtainingthe approval of the then Chairman Executive Committee and Chairman CBT

Item No4 Recovery of excess amount of Pension drawn by Shri 5ukhdeo Sharma MaCfhupUDC (Retd) Patna from 01022003 onwards

CPFC informed that a revised agenda has been circulated on the table today EPFOwas instructed to see if there was any angle of collusion and to take suitable action if casewas made out EPfO was also directed to investigate if similar cases were in existence ItWaS also decided that strict instructions should be issued so that such cases do not recur

Page 24 of 83

IIIIIIbullbullbullbullbullbullbullbull

bull bullbullbullbullbullbullQ

~

-~

~

bullbullbullbullbull-bullbullbull

-bullbullbull-

JI

~(

JI

(

I---------------------------------------------------------------------~

The Board approved the agenda as contained in the revised memorandum

Item No S Reconstitution of Executive Committee bull ElectIon of the representatives ofemployers and emplovees to the Executive Committee of the Central Board ofTrustees

The Board authorized the ChaIrman to nominate government representatives to theExecutive Committee The Board unanimously recommended folloWing representatives tothe Executive Committee-

51No Name of the Member1 Dr G Sanjeeva Reddy2 Shri M J Rao3 Stlrj AD Nagpat4 Dr UD Choubey5 Sh Badish Jindal6 Shri Ravi Wig (for the first term of two and a

half years) EmployersSh Sharad Patil

Representlng

Employees

Board ofTrustees Employees

Investment Committee beand shall look after audit related

representatives and~rmlmended that the Finance amp

~l1rr~~rltand Audit Committee (FlAC)

following were recommended for nomination to the sub-Commlttees-

FINANCE INVESTEMENTAND AUDITCOMMITIEESI No Name of the Member1 Shri Ram Tarneja2 Shri JP Chowdhary3 Dr G Sanjeeva Reddy-~--middot-----ShfimiddotPJmiddotBmiddotanastimiddotremiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddot EMPLOYEES

Repr~senting

EMPLOYERS

PENSION IMPLEMENTTION COMMITTEE1 Shrl GP Srivastava2 Shri Sharad Patll3 Shri Vlrijesh Upadhyay4 Shri DLSachdeva

EMPLOYERS

EMPLOYEES

P 25 f 83

COMMITIEE ON EXEMPTED ESTABLISHMENTS1 Shri BP Pant2 Shri Susanta Sen3 Shri AIltPadmenabhan4 Shri Ashok Singh

EMPLOYERS

EMPLOYEES

The Committee on Exempted Establishments shall also consider the pendingexemption proposals where relaxation has been granted before 310~2013 and which havebeen submitted in the current financial year on behalf of the Central Board and recommendthe same to Appropriate Government for grant of exemption This will be a one-timearrangement which has been necessitated because of large number of proposals required tobe considered in the current year in view of Income Tax exemption being available to trustsmanaging their own PF only up to 3103014

A other functions of different Sub-Committees of the Central Board shall be asproposed in the agenda

Item No7 Draft Annual RepOIt-ilc~ilJo~~~~~es of the Employees ProvidentljrSI(~ J t ~ bull

~~j~ ~r19t~~~~ bull-~ bull 1 -~~lt__t-

Shri JP Chaudhary made fol P6~ft~T~t-middot ~

i Lot of amount is vbullbull bullbullIodoOV inJ~jjJi(~~T~n-- ----- amp_41 bull_bullii PSUs account for a lartnoncchOof O)~d~fauft special recovery should be

thought of to addressiii Singapore CPF has a scheme

For this purpose EPF delegation had visited Singapore to study the same few years

ago EPFO should think of a Scheme on these linesiv It nay be as cert aine d whether a case exists for reducing Administrative Charges

v Permanent account number for PF members is required urgently

The Board considered the

Shri Ml Rao made following polnts-

_____1_middotmiddotmiddotmiddotmiddotmiddotmiddotmiddot_middotL middotHuge amountof arreacsespecially theNot Immediately Realisable (NIR) category is

a cause of concern

ii The Board had earlier recommended that High Courts be approached (or setting up

special benches for EPF related matters there has been no progress in the matteriii There should be no pendency in settlement of pension cases especially death

claims

iv Even though Annual Accounts slips contain columns for Date of Birth Date of Joiningand nomination but in most of the cases the field is left blank The fields must be

completed and members informed so that they can request for modifications if any

~middotIdeg_01n

I

o j

QIbull 1

)(

bullbullbullbullebull

bullbullbullbullbullbullbullbullGbull66

bullbullbullbullbullbullbullbullbullbull~

I

I

)

v Growth in funds invested was declining This needs to be ana1vsed and put up before

the Board

Shri Ashok Singh made following points-

i The benefits In death cases be expeditedii The nomination of the members needs to be collected at the time they become

Provident Fund membersiii Rate of growth in membership is very low vis-a-vis the growth in number of

establishments covered This needs to be looked Into

iv The information about membership should be indicated in three categories vizcontributingnon-contrlbutinginoperative

v Unique no for PF members should be issued on priorityvi EPFOshould go for universal number and centralisation of database

Shri AK Padmanabhan made following points-

i Pension cases need to be

Ii Exempted establishments

iii Arrears are a cause for

Shri DL Sachdevathe Annual Report Sri JlII~n-iJ~

are I)0t furnished indaisl~u~ittuil(t1~-Ad~olm~s remuneration is very less

needs to be revised

emerge in the report for

establishments has been released onfor monitoring exempted

it is expected to considerably improvethe process CPFC also informed the B~ard that the issue of permanent PF account numberto members and centralization of accounts is under active consideration and an update

status would soon be provided to the Board

Secretary lamp Emade the following observations-

---middotmiddotmiddotmiddotmiddotmiddot----tmiddotmiddot--middotThemiddotmiddotissuemiddotasmiddottomiddotwhethirotimahdinj(EPFQueS- canbe brought under SARFAESIAct (The Securitization and Reconstruction of Financial Assets and Enforcementof Securities Act 2002) may be taken up with the Department of FinancialServices (OFS) Ministry of Finance- (MoF)

It may be ascertained as to whether standing instructions can be given to the

banks on deduction of PF dues from employers account so that the active days

required for collection of such dues is reduced

1

1 11

l

I

l

iPage 21 of 83

1

Intervening in thestatutory wage ceiling is

reduction in administrative chaa)so stated that it is being centcompanies to self declare their PF lia of all employees on their rolls and paythe dues electronicallv every month Chairrnan requested the members to consider thepossibility of a Housing Scheme for the provident fund members by taking additlonalcontribution from them so that on superannuation they can be assured of some shelter Oil

the lines of the facility extended by the Singapore Provident Fund He further observed thatthe name of the nominee should always be included in the details to be submitted by themember and a system should be put in place so that claims are settled within hours and not

___ _ __ middotmiddotmiddotmiddotmiddotmiddotmiddotdaysmiddot-asmiddot-jsmiddot-themiddotpresenqjr~cncemiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddot

III In order to ensure the PSUs do not default in remittance of PF dues the matter

requires to be taken up with the concerned administrative Departments as wellaswith Ministry of finance

IV As regards providing hovsiog to the members the US law for HOPA 1995 mayalso be studied alongwith the provisions enforced by the Singapore PFauthorities -

V Specific tlmellnes be fixed for claim settlement pertaining to death casesVI Special campaign may be organised for an early settlement of Court cases on

arrearsVIIThe matter of inoperative accounts requires urgent attention It is the liability of

EPFO to identify the members especially of those establishments which haveeither been closed or are under liquidation and settle their claims A specialdrive may be launched for this purpose

VIII Service level bench-marks may be fixed for air major items of workof EPFObullind the process of service delivery should be simplified

IX The time line for grievance be improved further

X Coverage of newry iden be monitored closely so as toincrease compliance of eligible employees

xr The issue of be ana lysed and put upbefore FIAC

revision ofIt~Ibullbullmiddott~~ent and the issue of

wage ceiling is increased He

With these observations the Board approved the Annual Report 2012-13 of theEPFO

Item No 8 Audited Annual Account in respect of Employees Provident Fund Scheme1952 Employees Pension Scheme 1995 and Employees Deposit Linked InsuranceScheme 19-76 for the financial year 2012-13

FA amp CAO explained the salient features of the audited Annual Accounts It was

stated that action has already been initiated on all the observations made by the

Pa e 28 of83bull tmiddotmiddot 1 bull

202nd m e e t t nz ofCST EPF~ 1~1)120J4 PJpoundc7bull

bull()

oeC)

bullbullbull-bullbullbullbullbullbullbullbullbullbullbull

~

bullbullbullbullbullbullbullbullbullbullbullbullbullbullbulltwobullbullbullbull

(

t

)

-

I~--------------------------------------------------------------------Comptroller amp Auditor Genltral The matter was deliberated and it was decided to adopt theaudited Annual Accounts (or the fin~nclal year 2012-13 with the following observations ofSecretary lampE-

A pro-active effort should be made to locate non-operatlve accountsSince the legal position regarding non-payment of interest In case ofinoperative accounts Is still not clear provision may be kept for thIs purposeAll matters pertaining to legacy in case of accounts should be listed out andplaced before the Finance Investment and Audit CommIttee which shouldlook Into these issues come out with solution to each problem fix a timeframe for addressing them and monitor Its implementationAU accounts should be updated by 31032014 and adequate provisionsshould be made for this purposeThe issues required to be taken up with State Bank of India should be list~dand action middotInitiatedon them If any issue requires to be dealt with at the levelof Department of Fi~anclal Services the same may be brought to the noticeof Ministry of labour

VI dear SOP should from Inoperative accountsThe Finance should monitor and reviewsuchwithdlra~~~~[~~~~[~

VII In addition on expenditure while

I

II

III

IV

V

Item No9 Declaration of

The Board considered thi~m the observations raisedby the Ministry of Finance The Bo~~Ift~mt~lt~fi~ent provisions have already beenmade in Interest SUspense Account of interest which is due underinoperative account is being used for dedding the rate of interest on Provident funddeposits for the year 2013-14 It felt that it would bemiddotInappropriate not to give dues to theemployees as per the provisions of the Scheme The Board therefore decided torecommend to the Government that Provident Fund account holders be given interest atthe rate of 875 per annum for the year 2013-14

- - -----middotmiddotmiddot--middotmiddotltemNo~-iomiddotmiddotAppointment of a Consultant for Selection of Portfolio Manager

Custodian Concurrent Auditor and Performance Evaluation of Portfolio Managers

Members of the were apprised that the Honhle Minlster-cum-Chairman has alreadvnominated $hri Sharad PatH and Dr GS2nje_evaReddy as members of the Committee toselect the Consultant The Soard ratified the same The Board also ratified the earlieraction taken by the EPFO in this regard Secretary (lampE) observed that the terms ofreference for selection of portfolio managers should specificallv indicate that there Is no

Page 29 of 83

I

conflict of interest to the extent that EPF funds are used for investment in the parent

companies of the portfolio managers

Item No 11 Pattern of Investment 2008 notified by Ministry of Labour amp Employment

The Board took note of the proposal as ccntalned in the agenda

Item No 12 Additional Investment Guide lines for 2008 Pattern of Investment

After deliberations the Board decided to refer the matter to Finance Investment and AuditCommittee for taking appropriate action AS amp FA Ministry of Labour amp Employmentobserved that investmenti SOLcategory should be restricted to states following prudentfinancial norms Further investment under this category should be evenly distributed

Item No 13 Correction of name and date of birth of PF member - Provision in theApplication software- Subsequent amendments in the Manual of Acc~~nti~g P~o(edure ofEPFO

Item No 14 Amendmentincorporating the revised rbullbull~flfbullbullbullt~JJa~~

Part II-A for

with the observation

that the name of the noItem No 1S IncreasingAccount No2 amp EDlI AdmillfsttatliM AccoUii1TfAccounl

in EPF Administration

n para 1517 of the agenda

Item No 16 List of ineligible cases for waiver of damages rejected by CPFC

The Board took note of the proposal placed before it

Request for waiver of damages (item No 17 to 27)- The agenda as contained in itemnumbers 17 to 27 were approved by the Board with the rider that the waiver would be onlyin respect of unpaid damages

Members raised the issue of certain types of industries such as SMEs M5MEs

plantations ete which are outside the ambit of SARFAESIwhich was raised earlier and needto have a separate mechanism It was decided this may be discussed in Finance Investment

and Audit Committee Secretary (lampE) observed that the idea of forming a joint lenders

forum may be explored in this regard It was decided that this may be furtherdeliberated inFinance Investment and Audit Committee

middot1Inl()1

t7J-l-Imiddotlbullmiddot1- I-bullbullbullbullbullbullbullbullbullbullbull~

bullbullbullbullbullbullbullbullf-er

bullbullbull-bullbull4w

bullbullbull-

-

(bull(bull(bullbullbullbull~(~

bull~

)

i

)

bull-bull bull

bullbull

bull

Item No 28 Grant oj exemption under Section 17 of the Employees Provident Funds andMiscellaneous Provisions A~ 1952 and Para 27A of the Employees Provident FundsScheme 1952 by Appropriate Government _

CPFCinformed the Board that a supplementary agenda note circulated earlier hasalso been placed on t~etable

It was informed to the Honble Members that in most of the cases which are broughtbefore the Board the establishments are enJoying the relaxation for years together and theissue Is br~ught before the Board for regularizing the relaxation and recommending to theappropriate Government for 3 final decision in the matter After deliberations It wasdecided that in all the cases included in the present agenda be recommended to theappropriate Government for taking a decision The Board also decided that it should beseen that none of these establishments are In default It was further decided that a detailedSOP for grantlng exemption should be brought before the Executive Committeemiddot forconsideration

As regards Tata MarcopolO-

which is pending in the office llbullbullbullearlier The Board decidedrecommended from the

was informed that it is the onlY caserelaxatlon has been grantedMarcopolo Motors ltd be

as contained in theWith these nhltPfvtl

agenda

Item No 29 13th Valuation bullbullbullbullbullbullbullReport submitted by She PA BaiitiIOOmlJ1flllr(~

Fund as on 31032009 -by the Government

The Board approved the

Item No 30 Proposal on amendment of Para 32(1 of EPS 9S-Annual Valuation ofEmployees pension F~nd

The Board decided to continue with annual valuation of the Employees PensionFund

bull__ bullmiddotmiddot_middotbull _middot-middotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddot1 ~bullbull- bullbull Jbullbullbullbull ~ bullbull middotmiddotmiddotmiddotrt-middotmiddotmiddotmiddotmiddotamiddotmiddotdionmiddotmiddottakeiitlvmiddotEPFOstncethe last CST(lOut meeting held on

25th February 2013) - for Information

The Board took note of the agenda placed before it

Page 31 of 83

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

Item No 32 Revised Estimates for the year 2013middot14 and Budget Estimates for the year

2014-15 for EPFO and Schemes administered by EPFO

Since details were not brought about clearly The Board decided that the RevisedEstimates (20i3~14) and Budget Estimates (2014middot15) to be placed before the ExecutiveCommittee who were delegated the power to approve it

Item No 33 Delegation of Administrative and Financial Powers to Chief Engineer PFD

EPFO

The Board 3Rproved the proposal as contained in the agenda

Item No 34 Grant of Senior Time Scale of P83 Rsl~60~39100 Grade Pay Rs 6600- toregular APFCs after completion of 5 years - implementation date clarification

The Board decided that since matter is a complex one adetailedmiddotanalysis be made ofthe whole proposal and placed before Executive Committee for consideration

of Instalment facility to defaultingestablishments to liquidate

The Board approved t

Item No 36 Authorizingof the CentralBeard]establishments subject to

(A Sub-Committee

The Board approved niIt~iD~JubmiddotCQJtnit1leeproposals subject to ratification 6fiR~~~inecessitated because Of large number

ed toconsider exemptionarrangement which has been

to be considered in the currentyear in view of Income Tax exemption being available to trusts managing their own PF Onlyup to 31032014

Item No 37 Agenda for amendment to the Employees Deposit linked Insurance Scheme1976

The Board Was informed that actuarial valuation of the EOLI Scheme 1976 ismiddotmiddotmiddotunderwyenymiddot Smiddotoamiddot(fltieCided that pending Iinalisation of the actuarial valuation an interim

additional benefit of 20 over and above what is admissible under the provisions of theScheme be allowed to beneficiaries

ShriMJRao stated that there is a need for providing medical benefit to members by

amending Section 6C of the Act It was felt that this issue has already been raised earlieralso will be studied further

Page 32 of 83

~i~ 202nd n1eeting of CST EPf 130120140 lgtasel1bull

CfgtOJ001ebullbullbullbullbullbullbullbullbull -bullbullebullbullbullbullbullbullbullbullbullbullbullbullbullbull

t~

liIt

rII

i

l~

tbullt

Item No38 Suggested issues by few CST members

The Board decided that whenever any fraud Is discovered civil and criminal actionshall be taken against delinquent emplOyers

Members desired that the contact details of EPF officers be updated regularly on

wwwepfindiagovin

The Board appreciated that agenda and minutes of CST and EC are available on webIt was desired that agenda and minutes of all sub-Committees of the Board and ExecutiveCommittee be also put on web The Soard also directed to explore the possibility of settingup of information kiosks in al offices of EPFO so that stake holders could access informationthrough such kiosks directly

Sh MJ Rao raised the issue of installation of lift in the SRO Vishakhapatnam Stlri AKPadmanabhan stated that the issue of office building for SRO Tambaram needs middotto be

resolved at the earliest

workers money He alsoworkers engaged in various s~mpmiddotijjg~1U

in Kolkata many of which areity dues and holding on to

in the form of PF to

middotmiddotmiddotmiddotmiddot_middotmiddot-middotmiddotmiddotmiddotmiddotmiddot_middotmiddotmiddotmiddotmiddotmiddotmiddot_middotmiddotmiddotmiddotmiddotmiddot11middotmiddotbullbullbull bullbull

Page 33 of 83

f

I

bull)

bullbullbullbullbull)

)

bullbull)

bull1

bulltbulll

Item No3 Grant of exemption under SectIon 17(1)(8) of the Employe bullbull ProvIdent Funds and Miscellaneous Provisions Act 15)52 andPara 27A of the Employebullbull Provident Fund Scheme 1952by Appropriate GoVetnmnL

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

31 AdditIonal CPfC (Compliance) Infortlled the Ogtmmlttee that the out of enllstedtwentYestabl1shments nineteen establishments meet the requIrements and thusthelr proposals deserve colSldenltion and fecolMlendatlon on behalf of theCentral Board of Trustees EPF to the Appro~te Government for grant ofexemption

32 Additlonat CPFC (Compllance) pointed out that the case of the Food CorpoJation ofIndia(FCI) Is very pooJlIar and the COmmtttee may conslder the proposal HeInformed the Committee that FCI has lncurred loss for three years consecutivelywhkh s evident from Its Balance Sheets As per conditJon No 25 of the Appendtx-Ato Paragraph 27M of the EmployeesPttMdent Funds Scheme1952 no exemptJoncan be recommendedsanctioned to II company which blcu~ ~ for three yearsconseltutfvely

33 The AddItJoMl CPfC (Compliance) also brought to the noticemiddotof the Committee thesub~ons or the Chatrman and Manrgtng Director Fa ZlS detaled bclow

a) The CMD dclrlfled that Fa is Implementing the fOOd polley of the Government of IndIa and does not undertake aTfl cpmmerdal operations

The ent1re expendlture IncUrred by the corporation Is reimbursable by the Government of India Therefore the question of any profit or loss does notertse

b) The eoCPoration prepared Its Annual Report 10 the format preso1bed underSchedule VI of the Companies Act as lnssted by its sole auditor Comptroller~ Auditor Geneiol (eMG) By foRowlng such fonnat Bod and DoubtfulOebts are to be deplcted as lOss In the Profit amp loss Account

c)middot Qep1ctJonof tosses In the Annuaf Report5 are in fad deferred subsidy whldl Is released on completion of procedural aspects of write-off of --Bad andDoubtful Debts 11lI the time Bad and Doubtful Debts- are not writen-offhe Goyemment does notrelmburse the food Subsidy hence this conUnuesto be shown as losses ~ FaBalance Sheet __ ___

d) Fa Is a subsJdy based corporation hence quesHon of Bny proflt or loss doesnot DOse

Page4of9

Page 7 of 83

Page 8of83

bullbull

34 Additional ~ (CompOance) also brought to the notICe of the Commlttee thefoUowlng dartftaltlons on losses stlen by the AddltJOM Seaetary amp AnandalAcMsor Mlntstry of Consumer Affa~ food 6 Public OIstrlbuUon on behalf ofGovernment of India

a) The potkydedslons onmiddot Public Distribution System CPOS)National Food5ecurtty N1 (NFSA) etc are blken tit the Government of India through FC1for which entire expendJture Incurred by Food Corporation of lncfsa erereimbursed In the form of food subsidy Fa Is a subsidy based corporationhence question of any proftt or loss does not arise

b) The procedure of relmbursement of food subskty has been preso1bed bythe GoverMeot of India Thls Jnter-aHa stipulates that food subskfy Inrespect of bad and doubtful debts 15 releaSed only afterwrite-otf of thesame by the FO Thus ~bsIdy Is not released on the basis of creatiOn ofprovision for bad and doubtful debts Due to this stipulatiOn the amount of~ ~nd dcnlbtfut debtsprovided In the ~ of fCl are depicted as lossesIn the Ananc1al Statement tlll the same Is written off after followingpresa1bed procedure In fact these osses are deferred subsidy which arereleased to FClln the year when the bad and doubtful debts ere written offbyFa

bullbullbull

c) The losses shown In the financial Statement ot Fa is a mere depIctionsince they follow the fonnat of BaIBnceSh~t llnd Profit amplossAccounts aspresoibedunder the Companies Ivi 00 the advJCeof their sole auditorCampAG and approval cl the Government cf India bullmiddot35 Shri AK Pedmanabhan stated thatthe Food Corporation of India Is It no profit no

loss organisation of Government of India and condition No 2S of Appendix A toPara 27M of the Employees Provident Funds Scheme 1952 Is not attracted In caseof Fa Thus the proposel of fO deserves consideration and recommendation toApproprtate Government for grant of exemptlon

bullbullbull36 Shri Sushanta Sen end Shrl BP Pant conSented the Views of Shri AK bull

Padmanabhan and strongly opine that the proposal of Fa may be sent to bullGovernment of India Ministry of labour Ii Employment for approprtate

consideration and grant of exemption bull---~---- bullbullPage5ol9 bullbullbullbullbullbullbullbull

ir

bullbull

t(

bullbull(bullbullbullbullbull~

bullbullbullt~

tgt)

bullbullbullbullbull~

37 The Chalnnan stated that Fa it Government of lridla coocem as recouplng DRthedifference between the economic cost and saes realization In the form of consumersubsidy from the Gov~ment of India except the pnMsIons of bad and doubtfUldebts In the amp(COunts of the CltXVQratJon The subsidy fOr this expendtture Is notclaimed In the year of occurrence of expendlbJre but ls claimed In the year d writeoff of ampd iIDd DoUbtful Debts The depiction of osse$ In the Balance Sheet Issimply due to deferment of subsidy -dalm from the year of prov1slons mampde to thevear of wrtte-off The entire expendlture Incurred by fCI Is relmbured by theGovernment of Indla the form of food sUbskfy SInce the accounts of Fa areaudited by the caAG end In view d the clarifkatbns g1venbv Government of Indiathe proposal for gl1lnt of exemption may be forwarded to AppropJ1ate Governmentfor consideration bull

38 The Commlttee unanimously dedded to forward the proposal of Fa for grant ofexemption to Appropriate Government for cons1detCltlon

39 With tills deliberation the Committee consldered end recommended the proposalsIn respect of the foUowtng establishments as contained In the Agenda to theApproprlatemiddotGovemmentforconsdeBtlol-and gnSnt Of middotexemptlon

cocsNo Mtk ~I AlJpltopdtIt Mo ofcrct Para ~ rMmbersfront

HHIWV 01052009 17(1)(1) StIIb es125553 ~ d

~

Wl25410 OUIl2009 17 (ll(l) State 02 ~ rlHlh~

3 MIL TIU lJIIIltad SROJemshedprr

Jt1I1302 01011980 17(1)(1 CermI 1068GoYemment

4 M bullbull SIJSIC InJlotIatift ROGurgecn HR31l16 01()9la10 17(1)(1) GoveMrnent of 81PlJIItb SrldJa Pvt Ud 1ndIa

s HI bullbull WoodamptrJcS(Schoot 10 ~ UAl~ 01111993 llXt) Gootmment of 316lItbnncMI

6 MbullbullmiddotAI~ bullbullbullbullQnMb SIlO~ lJrJ~BlUInbd

O1o1t961 17(lX_) ~ rI 459~

7 Mallt Tamoort 00 DelhI DlJ2(X20Umbel Scxth

2O0um 17(1)(1) GoYenvnent of S34india

bullbull MIl eorultJng 10 DelhI 0l36Wng~ ScrYkeI South~) PvtUmIUd

29051974 17(lXa) ~_~ _~~ __ India

Page 9 of 83

Item No4

1

1deg1() I01

0101-111-111bull 1

1

bull 1bullbull 1

1

1bull 1

bull 141 Addltlonal CPFC (Compllzmce) brought to the notice of the Commlttee that bullwhile processing the pending appHcatJoos for grant of exemption some cases have bull Icome to the notlce of Head OffIce where the estabUshrrients maintain thelr own trust 1

~e exempted establishments~ ~~ ~__~~ ~ ~bull 1

1

1

1

1

1

1

1

1

Regularlsatlon of the proposals submitted by theestablishments for grant of exemption who maintaInthe Trusts without grant of relaxation under Para 79 ofthe Employees Provldent Funds Scheme 195~ or withpennlss10n of RPfOL

bullbull

bullbullbull Habullbull oftfte omc CodeHo WIth SectIonI ~ Noof 10 ~ 1Ifflaquot GoIrerMaent ~

froIa

aJ It Tyrw bull ~Mpore rJ(MtSI 01042D02 17(lX~) GMmment d -4711lIIdtlldrltc IImbd 9508 Jnck(VIIautTyN ~)HyIart

10 MbullbullUTTcinology fID~ ItVllIHI 01012014 17 UXa) GIIYernnWnt cI 1667sNba Ucnbdmiddot 205170 Incb

11 MaLG SRO Vesill ~asNI 01062001 VA Gooemmeat d mhtrocMmlcllll Umbel 9S22O IncIa

12- MsMJIQ SJU) Vashl MH95413 OU)6lClO7 VA ~d zshtroCh bullbullbullbullbull lImJted india

U- Ka HexJawwre RO Thane MV42123 01071996 17(lXI) ~ot 56Q5TechnologM Umlbd IncIa

14 MIs bullbull T RO Thane t+l20669 OUM2013 11 (1)(a) ~d 2396~ lJMItOIId Incla

15 Mbullbull GlC ~g to Bancn MVtWiI OUI31994 17 (1)(a) middot bullbullbullbullbullbullbullbull cI 142Finwlca Lln1ted 39407 tncSa

145 Merefld bullbull knz 110 KN24117- 0103200 27A state 1116ROII bullbull rch Bangillore X 8 GoverMmttl~elOP~At (1) (P)

of Kamtab

17 M_ food 1tO~1h1 Dlf2271 111989 2711 Central 76678 ~rtltlol1 0 zncn (N Gov

lL Mbullbullbullbullbullbull In cthoUc Ilaquo) ICllndMII MHKNDl 0111199 17(I)(a) Stilt 455Co-op Sank ltd 2613 1 Governmentor

MilharashtraUI KII Atillya Blrt SRO Rajkot GJ40n 0104200 27A Central l125tluvo ud 6 GOY~O KlllUampMII ~ RPRRO X93gtS16 01032009 17(lXa) Cer1tnII 26~ Indllt PYt Deli (SauttI) Govunrna-tUd

bullbullPagt 7 of9 bullbullbullbullbull

Page 10 of 83 bullbullbull

(

~

bull~bullbullbullbullbullbullbullbullbullbull

a) In some cases the estJIbllshmenis f1IZIlntilln their own TIUSts withoutBOY relaxation granted under PiA 79 of the Employees ProYIdentFunds Scheme 1952 after 9submission of applicaHonfor gnnt ofexemption either under Section 170Xa) or under Selttion 17(2) or theEmployees ProvIdent Funds 100 MlsceIaneous ProvIsIons Art 1952read with Para 27A d the Empbyees ProYIdent Funds Scheme 1952-

b) In some othet eases eStabl1shmentshave been covered by RegIOnal PFCommlsstoners of Reg)oncsVSub-RIlgiona omces under Sed10n 2A ofthe Act beatlng the same lIS bnmctees of main est2iblishments SIncethe date of coverage the establ15hments covered under 2A depositconbibutlons txgtYards provident fund in the Trust maintained by theirmain establlshments and conthIe to pay Penston and EDUcontributsons with the RPRs wherever they are covered OVer the-years complksnce In respect of ptOVIdent fund was never 1nslsted fromthese estabUshments nor any permIsslon was g1Vento them to complyIn respect of provident fund In 1he main estabnshments Even norelaxation was grented to these establishments under Para 79 of the

Employees Provkient funds Scheme-19Sl

1

I111

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

-42 Additional CPfC (COmpHance)epprlsed the Comml~ that Instructions wereIssued In past to RPfCs to grant relaxation under Para 79 of the EmployeesPrtMdent Foods Scheme 1952 to such categories of establishments which functJonas an exempted establishments from a prior date subject to usual condltlons asstipulated In Appendix A to Para 27M Of the Employees Provkient Funds Scheme1952 as retaxatlon Is required to be granted from a much prior date In order toreguJarise is period of time during wh1ch the establishment has complied as anexempted establ1Shment without been relaxed Because the law alklws only therelaxed establlshments to mallltaln its sepamte fund and function as an exemptedestablishment before the grant of exemption under Sectlon 17 of the Ad

3 Additional CPfC (Compnance) also lnfonned the Committee that Regional PFCommlssloners continue to conduct compliance audit over the years treating theseestabUshments as If exempted and forwarded the applications submitted by theseestabDshments for grant of exemption from the operation of the EmployeesProvident Funds Scheme 19-52where no relaxation has been gnmted A number dproposals pending for grant of exemption are of thls nature These establishmentscomply to all the condltlons reqUired for exemption as proylded In Appendix-A toPara 27Mmiddotof the Employees Provident Funds Scheme 1952 FQrwant of relaxation - the proposals of establ1shments of above nature are pending If thesemiddotltas~middotaremiddotnotmiddot middot--middotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddot-middotmiddot--middotmiddot-middotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotregularised then the Interest of the employees will be at stake and they wouldsuffer for no fisult of theirs These cases thus need to be regularJsedbull

1 Page 11 of 83

41 Shri AK Padmanabhan suggested that the cases of these so caUedexemptedestzIbllshments have to be regularised kl the lriterest of the employees and thisshould be a one tine exerdse for dlspostng the applJcatlons of these establishmentspending for grant of exemption for years together He felt that without much delaycasesd this nature should be forwarded to the AppropOat8 Government for grant ofexemption

45 Shri BP Pant pointed out that no relaxation CXJu1dbe given to theseestablishments who malntaln PfTrusts on ~ own even after Issue of lnstructlonsThe estabftshments made continuous effort 1n pursuing their cases but no actJon Istaken for proce$SIng their CZISeS He also stated that the establishments whkhmaintain Trusts without relaxation or permlss$on need to be regularised by way ofgrant of exemption wlthoutfurther delay

46 Shrt Sushanta Sen wanted to know as to why no relaXIItlon was granted Inthese cases

47 Additional CPfC (Comptlance)apprised the members that It IS a systemicfailureand for no fault of the employers the proposals be tcept pending further Herequested the Hooble members to take appropnate declston to regularise thesecases

48 Charman Informed the Committee that the power to grant relaxationmiddot underPara 79 of the Employees ProvkSent Funds SCheme 1952 has been withdrawn fromthe Regional PF Commissioners wef 24072012 Grant of exemption ~n all thesecases is pending duemiddot to lack of relaxation order permtsslononaccount of the faUureon the part of ttMi fteld fundIornllies These estaoUshments are assumed to beexempted establishments even in the absence of relaxatlonorderpermlsslon TheCommittee may conslder as an one time exetdse to rtfularise these pending caseswhere the establishments maintain the Trusts and abide by the conditions stipulatedIn Appendix A to Para 27M of the Employees ProvIdent Funds Scheme 1952

With ~ls deliberation It was dedded that the appllaltlons of these establlshmentswhich maintaIn their PF Trusts WIthout any relaxation permlssion to partldpate Inthe main Trusts of thetr parent establlshrnent should be processed Without furtherdelay and be placed before the Appr-opriate Forum for forwarding the same toAppropriate Government for grant of exemption

The meeting ended WIth vote of thanks to the ChaIr ---- _ --_ _ __ ___

--0----Pagetoft

-

Page 12 of 83

InffI

Ii~

o()ooebullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbull

~j

1

Item No2 Action Taken Statement in respect of decisions taken in the36thmeeting of the Sub-Committee of the Central Board ofTrustees EPFon Exempted Establishments held on 15052014

(

51 No

Action Complete

Action TakenUpdated StatusDecisions Directions of theCommittee

bullbull~

--

1 Conducting study of the The details of exemptedfunctioning of the establishmentshave been supplied toestablishments already the Committee Members for thegranted exemption by studyon28052014Members of the Committee

Chairmandirected that the detaitsof the Exempted Establishmentsshall be supplied to HonbleMembers by 25th May 2014 to

start the studv

(Item No23t1hMeetingof theCommittee 15052014)

2 Preparation of guidelines in Time to time instructions issuedto thethe form of a small booklet for field offices on various issues ofissueto the exempted exemptionare uploadedon the official-----

establishments for educating websiteot EPFO which can be visitedthe employers so that by ExemptedEstablishmentsdeviations are np~committedin managing and malntalnlnq

the Trust I i Howeverattempts RavealreadybeenShri BPPant suggested that the ~ken to prepare a small booklet asguidelines in the form of a small suggestedby Honble MemberIt willbooklet be issuedto the exempted take some mon~timeasthe staff iaestablishments to educate the awfully busy With Universal Accountemployers 0 that devia~ionsare Num~S~fAN) presently

in~~~~~Tnagngand sect~~~~0~~J3~ (Item No2 3t1hMeeting ofthe committee 15052014)

Page 13 of 83

I No Action TakenUpdated StatusDecisions I Directions of theCommittee

3 Investigation into thecompliance position of SaharaIndia Jai Prakash AssociatesUP Drugs and Pharmaceuticalsand UP State Road TransportCorporation

Chairman directed that theinvestigation be carried out on toppriority in the interest of theworkers and followed up regularlyand the development thereof beapprised to the Committee

(Item No2 3fih Meeting of theCommittee 15052014)

Investigation is going on nation-widein respect of Sahara India and JaiPrakash Associates and the same isbeing regularly monitored

Themterlrn report will be submittedto the Committee in their nextmeeting

Appropriate action has already beentaken against the UP Drugs andPharmaceuticals and UP State RoadTransport Corporation The finalreports will be submitted to theCommittee in their next meeting

BifurcationofExemptedEstablishments in to two parts - onewhich function as per rules andthe other which fail to functionappropriately to set right thefunctioning middotof the exemptedestablishmehts in the interestof the workers

Instructions have been issued to fieldoffices

a) tocarry out compliance audit of25 of the Exemptedestablishments functioning intheir jurisdiction each-quarter

b) to analyse and review theperiodical reports of

Shri Ashok Singh suggested that the exempted establishmentsexempted establishments be divided c) to carry out third partyin to two parts - one which function audit of the accounts ofas per rules and the other which fail the Fund maintained byto function appropriatety Strong the Board of Trustees byaction even cancellation of independentempanelledexemption should be taken to set Chartered Accountants ofright the functioning of the EPFO andexempted establishments in the d) tomonitor the functioningofinterest of the workers ----------- middotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddottnemiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotexemiddotmmiddotptecf

establishments online

Action Complete

coooobullbullbullebullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullebullbull

bullbullbull~~ j

Page lS of 83

1

1

1

1

1

1

1

1

1

~11

1

1

1

1_ 1

1

1

1

1

1

1

1

1

1

1

1

1

1

)

Item No3 Grant of exemption under Section 17(l)(a) of theEmployees Provident Funds and MiscellaneousProvisions Act 1952 and Para 27A of the EmployeesProvident Funds Scherne 1952 by AppropriateGovernment

I31 Section 17(1 )of the Employees Provident Funds arid MiscellaneousProvisions Act 1952 provides for exemption as under

Power to exempt - (1) The Appropriate Government may by notification in theOfficiat Gazette and subject to such conditions as may be specified in thenotification exempt whether prospectively or retrospectively from theoperation of all or any of the provisions of any Scheme Any establishment towhich this Act applies if in the opinion of the Appropriate Government therules of its provident fund with respect to the rates of contribution are not lessfavourable than those specified in Section 6 and the employees are also inenjoyment of other provident fund benefit which on the whole are not lessfavourable to the employees than the benefits provided under this Act or anyScheme in relation to the employees in any other establishment of a simitar character or

i

a Any establishment if the employees of such establishment are inenjoyment of benefits in the nature of provident fund pension orgratUity and the Appropriate Government if of the opinion that suchbenefits separately or jointly are on the whole not less favourable tosuch employees than the benefits provided under this Act or any Schemein relation to employees in any other establishment of a similarcharacter

32 Provided that no such exemption shall bemade except after consultationwith the Central Board which on such consultation shall forward its views onexemption to the Appropriate Government within such time limit as may bespecified in the Scheme

Para 27A (1) of the Employees Provident Fund Scheme 1952 provides

(

The Appropriate Government may -be+erder+errd middotmiddotmiddotsUbjettmiddotmiddotmiddotlomiddotmiddotmiddotmiddotmiddotmiddotsudmiddotmiddotmiddotmiddotmiddotmiddotmiddot conditions as may be specified in the order exempt from the operation ofall or any of the provisions of this Scheme any class of employees towhom the Scheme applies

Provided that such class of employees is entitled to benefits in the natureof Provident Fund gratUity or old age pension according to the rules ofthe [factory or other establishment] and such benefits separately orjointly are on the whole not less favourable than the benefits providedunder the Act and this Scheme

Page 16 of83

bullbulleoeG

bullbullbullbullbullbullbullbullbullbullbullbullbullbullmiddotGbullbullbullbullbullbull~bullbullbullbullbullbull

~

~

33 As per the above provisions of the of the Employees Provident Fundsand Misce~laneousProvisions Act 1952 and Ministry of Labour and Employmentletter dated 01042008 all cases of grant of exemption shall be placed beforethe Central Board of Trustees EPFfor consideration before sending the same toAppropriate Governments The copy of the Ministrys DO letter dated01042008 is placed as Annexure-3A

34 Before placing a proposal in the CST EPF its suitability is scrutinizedwith respect to the provisions -for grant of exemption as contained underSection 17 of the of the Employees Provident Funds and MiscellaneousProvisions Act 1952 Further in view of the guidelines issued by Ministry ofLabouramp Employment Government of India vide their letter dated 27022007as placed at Annexure - 38 all RPFGs furnish a certificate after dueverification carried out at their end with regard to the Ten Point Check List

35 Ministry of Labouramp Employment Government of India has also issued directions to the effect that the proposals shall be forwarded only if the latestCompliance Audit Report is found to be satisfactory Hence compliance auditcovering al the points as mentioned under the revised conditions for grant ofexemption is undertaken and a copy of the said report is ready to be forwardedto the Appropriate Government

36 Central Board of Trustees in its 202nd meeting held on 13012014authorized this committee to consider exemption proposals subject toratification by the Board as a one-time arrangement which has middot-bemiddotennecessitated because of large number of proposals required to be considered inthe current year in view of Income Tax exemption to the Trusts managing theirown PF only up to 31032014 A copy of the agenda item No 36 placed beforethe 202ndmeeting of the cer and minutes of the meeting are annexed herewithand marked as Annexure -3C and Annexure -3D respectively Terms ofreference of the Committee on Exempted Establishments is placed atAnnexure - 3E

37 A list of establishments as indicated in Annexure - 3F is now piacedbefore Sub-Committee for consideration and recommendation to AppropriateGovernment on behalf of the Central Board of Trustees EPF in accordance withthe proviso to Section 17 of the-Aet- -_ __

Proposal The Sub-Committee is requested to consider and recommendthe proposal in respect of establishments indicated inAnnexure -3F to the Appropriate Government on behalf of theCentral Boardfor grant of exemption

ANNEXURE-3A---a bullbull -= bull ~ bull

~i- ~

JOInt $acnary

Tel 23110l7 bullIIIbullbull

r _

Av-~ ~M JL--O~0 r

bullbull

N YOU ar IWUt sa5on 111 of tM poundmpoyus Provident Funck middotIt~ntOU Prcw$lonSAIJ 1952 proWIs thlt IppropMe GowrMlntrtlW hfWexempt cny uublbhment from Ut opcAtlonS oJ any SChamts sub)cltt to the ~hit such alCernpUon shalt bt made ttar consultation -Mth CennI SOlrd of TnmHf lUf)

1 middotThe MWstry $ ~Mnc bull numhr of cues of ~cnU ~~InlXetlptonundr ~ 11l) of the ~ rd pI 21 of [PF Scheme In tMfa ClR$bull~dod~ n some cllfltf mtampp of Cellll aoard of TNSUU (poundPF) tntral ProvIcStntFIM Cominlulonet has bHn lIWds1nCthe powen of he lIoud whn rtCOmmtfldlnlthe psu to tht IppfopnteGovemrnc~

3 Thl$ miner hiS ~tty MIl u~ In ~Uoct with Deprtment or LctltW$wto han opinedtht Wdwsect1on$ ofth k1 essential f1Inct~ ofthtr1laird of TNstetS (EPF1Bkethl$~ ~ HIdtltpted aM such dloPUon bytheampoud under pnlrJl powers of s-abl SE of ~I fulleUonof toMuK~n ndelSlaquoUoIl 17 wlV not bl pttmlsstbll

~ 4 Th m~r bbullbull btoUpt to th~ Idnd IIOtka of Chalrman arrHcnbl LEMt who tm bull concurred with thUI 1M k hu bte decided thlt hcrcrlorth aUsum1 We of yenllmptlon bt pg before he Cenbllloltd ofTN~ (Elf) fof consWentlon

(L ~sf__ laquondln the tv pr1atlaquoGMmtnnt as per the p~s of th411tt

5 In ~~ I s It ~ tntdut If VOl could kln6ty talte fU~f ~ tllbull thls ~CCordlnt

~~ ~~c~ rP~~il

~~~~~~~ ~~_~sectm

~ Shrt bullbullbullbullWwall2tban ~ - ~~ L~ ClntnolroItdentUndCo~~v 1) poundIII~ PnMdtnt Fund OrpnIQlJon ~ 6

Haw 0tRI1l0066

bull bull

bullbullbull

J~

Page 17 of 83

bullbull1

bull~ -ANNEXURE-3B _- -=-

~ the bullbull labIl~ futftlHno tho ~ conditiOns attc gfanl 01rlaquoXampUon~ Pbullbull 78 of tho EPF 8ctl4fmfJ 195and tMt ~ is no SolatIon otIhap condition

Page 18 of 83

bullofloebullbullbullbullbullbullbullbullbullbullbullebullbullbullbull

bullbull-bullbull~

bullbullbullbull6r~

~

bullbullbullbull

bullbull~

---~

rI

a

- -

IlHgtftt OR lilt wllldtPnJd 1MflDlltW I1QJWdtII mtoIIJamp1WSMtJo 10CIteMIJ

I Whether boerd of tnII1Cel bu boen aaICd under tho ~of employer

2 Whether an the dlpble cmpSoyeenre enroUed ISmcmbcn13 Whether tho 1ICCOUtamp will be mdntampiMd dceuoaica11y knd dl he

membeR fIillbc able to JCO their account lanco fiom the computertectnln1lalIfnOt be reMOdI thetepoundQCand b)r wfurt time accoants are~ 0 be mtintamcd eledronieaUy

~ Whltther board of tnistccs bampv6 fmliabcd a copy of prtsmbed undertaklnamp to the RPfC concemcd u per eM condition no 21

conWncd in Awrodix A to the RP Scheme 19521 tf yei I cqtyy ofthe IUnD to bo caclotcd

S Whether 1M employer and the board of tnlJ1ceI MVC Nmilbed theundcrWcb u ~ coodltion no 23 cootdned in Appendix A to theUP Sche1nc 19S2l lC)CI l copy or1he same to be eaelosed

6 Comparative lWtment or benefitl admiwbte under the EPF amp MPAet 1951 and tho Sebcmo ~ by heCltlb1isbmenl ell the huisof whi~ it I Olt)OCtuded tMt tho ~ of the eatabl~t u atleast compuablc lIith tboIcmiddot of the Act

7 Mechlnam propoampcclby the BlFOtPPFC to auurc that estsblilbmentis complyins with thO provUioaa or the condltiona (Of pant ofexcmptlon

S Nunc ottho RPfC in wbocejurlsdi~QQ ~ tmbUshment fillamp9 hyments Which need to be mamp by Ihc e5tabtisbmau to E~Oeven

after JIlDl of exemptionlOWhIther the uablbbmcont 11 fulfilllnamp chc preacrlbed conditions ancr

gnnt Oftdaxltioa Wldct Para79 o(tbc UP Sehcme 1951 and thereis DO viobtion oflhc same bull

(~(

(

(

(

i

-_ bull _-- --_ ___ bull

Page 19 of 83

-(

ANNEXURE-3C

Item No 36 Authorizing the Committee on ExemptedEstablishments (A Sub-Committeemiddot of the CentralBoard) for consideration of the proposals for grant ofexemption to the c5tablishments subject toratification

361 Proposals for grant of exemption to establishments from the operation of th~Employees Provident Fund Scheme 1952 under Section 17(1)(a) Employees ProvidentFunds amp Miscellaneous ProvislQns Act 19S2 and under Section 17(2~of the Act read withParagraph 27A of the Employees Provident Fund Scheme 1952 received from fieldoffices are examined in the Head Office with reference to the guidelines on the subjectissued (rom time to time

362 Section 17(1) of the Act stipulates that no such exemption shaJl be made except pfter consultation with the Central Boald which on such consultation shalljorward itsviews on exemption to the appropriate Government wIthin such time limit as may bespecified in the Scheme

363 Once the proposals are found to be complete in all respects the same are placed before the Central Board for consideration and recommendation to the AppropriateGovernment for grant of exemption and notification thereof within such time limit as maybe specified in the Scheme

364 Once the proposals are considered and approved by the Central Board they areforwarded to the Appropriate Government with the recommendation for grant of

exemption and notification in the Official Gazette

bullI

deg10JOJC Jc

1I--bullbullbullbullbullbull 1

~

bullbullbullbullbull41-

bullbull~

365 Clause (ea) was inserted in Rule 4 of Part-A of Fourth Schedule to the Income-tax bullbull

Act 1961 vide Finance Act 2006 to provide that recognition to a provident fund underthe Income-tax Act shall be restricted to only such funds

a) WhIch are covered under sub-section (3 or sub-section (4) of Section 1 of theEPF amp MP Act 1952 and

b)--Whichh1vebeenexemptedJlndecSeclon 17ofthe EPfamp MP Act 1952 fromthe operation of any scheme framed therein

366 It was also provided that the funds approved prior to 31032006 shall not beellglble for Income-tax benefit if they did not satisfy the conditions set out in clause (ea)of Rules 4 by 31032007 Accordingly EPFO was required to take necessary action inrespect of the funds recognized under the Income-tax Act on or before 31032006 andwho did not satis~ the conditions stipulated in clause (ea) of Rule 4 of Part A of FourthSchedule to the Income-tax Act The time period given in the statute was initially for one

P~e 200f83-464

I

I ~

) year which has been extended several times by legislative intervention vide Finance Actsof 2007 2008 200~ 2010 2011 2012 and 2013

367 While extending the time limit till 31032014 Min~stry of Finance Governmentof India made it dear that there wlllno further extension of the time limit

368 Approximately 260 proposals for exemption are pend1ng on the part of EPFOSome of them are under the process of examination at Head Office level and some are atthe level of field offices The processing of the proposals fakes time as the same are to begiven complete shape in consultation with the fieldofftces before placing the same to the

Central Board for consideration

Ir

3069 The Government of India Ministry of labour amp Employment in their letter dated01042008 issued dIrection to EPFO that all such cases of exemption be placed beforethe CentralBoard for consideration before sending the same to Appropriate Government

as per the provisions of the Act The proposals which are sent to AppropriateGovernment for grant of exemption shall be touted through the Central Board only Thesaid direction Is placed at Annexure 36-A

3610 Proviso to Paragraph 11 of the Employees Provident Funds Scheme 1952provides that the Central Board shall meet atleast twice in each financial year The lastmeeting (201~t) of the Central Board was held on 25022013 During the current year2013middot14 no meeting of the Board could be held till date

3611 In view of above it may not be possible to obtain the approval of the C~ntralBoard within 31032014 for all the proposals which are In order before forwarding thesame to the Appropriate Government for grant of exemption and notification thereof inthe Official Gazette This may lead to undesirable deadlock

3612 To overcome such possible deadlock it Is proposed that the power vested in theBoard for considerIng and recommending the proposals t~ Appropriate Government (forgrant of exemption and notification thereof) may be delegated to the Sub-Committee ofthe Central Board on Exempted Establishments All such proposals which are approved bythe Sub-Committee and sent to Appropriate Government will be put up to the CentralBoard in their sub5_e_g~ntm~~1gJorinformation and ratification

3613 Such delegation of power will streamline and expedite the processing ofexemption proposals to some extent

Proposal The Central Board is requested to consider and accordapproval to the proposal of authorizing the Sub-Committee onExempted Establishments for consideration of the proposalsfor recommending to Appropriate Government for grant of exemption to the establishments subJect to ratification

ANNEXURE-3D e()

oC)

bullbullbullbull

IEMPLOYEES PROVIDENT FUND ORGANISATION

MINUTES OF THE 202nd CHT MEETING (NEW DELHI 13 January 2014 1030 AM)

The 202ndmeeting of the Central Board of Trustees Employees Provident Fund

(CB1 EPF) was held under the Chairmanship of Shri Oscar fernandes Chairman CST EPFand Union Minister of labour amp Employment The following members attended themeeting-

1 MsGauri KumarSecretary (Labour amp Employment)Government of India New Delhi

2 Shri PK Pujari ASamp FAMinistry of Labour amp EmploymentGovernment of India New Delhi

3 ShriArun Kumar Sinha ASMinistry of Labour amp EmnbullbullbullbullVbullbullbullbullbullAntGovernment of India New Dejrnm~~~~~b

4 Shri Shashank Saxena vn~~II

Ministry of Finance rnvplHMpnt

S Shri Animesh Bhartl iJjrC1~~middott~~~~~~~Ministry of LabourGovernment of I

Central Governmentrepresentatives

6 Shri KK Jalan

7 Shri JP Chowdhary8 Shri Sharad Pati9 Shri Ravi Wig10 Dr UD Choubey11- Shri Badish Jindal12 Shri BP Pant13 Shri SushantaSen14 Shti GP Srivastava15 Dr Ram Tarneja16 Shri 55 Patil

PF Commissioner

Employers representatives

-_ _ _-__-_ --_ 17 Shri Virijesh UpadhYdY18 Shri M Jagdeeshwara Rao19 5hri Ram Kishore Tripathy

(vice Sori ADNagpal)LO Shr Ol Sachdeva21 Shri Ashok Singh22 Shri Krishna Chakraborty

(vice Shri Shankar Saha]23 Shri Raman Pandey

Employees representatives

bullbullbullbullbullebullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbull

(

(--

bullbullbullbull

i

bull

bull(

r------------------middott~

r

24 Shri AKPadmanabhan25 Shri Prabhakar J Banasure

26 $Ori Sanjay Prasad Principal Secretary (labour ampEmployment) Gujarat

27 Shri 5S Randawa AlC labour DepartmentPunjab

28 Shrf vs Arya Joint labour Commissioner Dellll29 Shri Glri Raj Singh Principal Secretary (labour amp

Employment Rajasthan30 Ms Nandita Gupta labour CommissJoner amp

Director (Employment) Himachal Pradesh

Staterepresentatives

Government

Following members could not attend the meeting and were granted leave ~f absence

1 Sh KSureshMinister of State for labour amp Employment

Vice Chairman

2 Or G Sanjeeva Reddy Employees representative

3 Principal Secretary bullbullbullbullbull-4 Principal Secretary amp0_bullbullbull

5 Principal Secretary6 Principal Secretary7 Principal Secretary ~YI~I~

S Principal Secretary Uf~

9 Principal Secretary (Lab10 Principal Secretary (latloild~~~Ml~ltJk~-11 Principal Secretary (labour) MaIUW12 Principal Secretary (labour) West

Government

The list of the officers of the Employees PF Organisation who attended the meetingis appended as Annexure A to these minutes

At the outset CPfe welcomed the Chairman andMembers The Board observed twominutes silence irniemorVmiddotonormed~nairmanmiddotorihemiddotmiddotCBTEPFmiddotmiddot~~dmiddotH~~bi~f~~er UnionMinister of labour amp Employment ShrJ Sls Ram Ola ji A condolence message to be sent tothe family of Shri Ola was also adopted by the Board

Thereafter Board welcomed first time members to the Board ~Shrl Prabhakar JBanasure Virijesh Upadhyay employees representatives 5S Pat ii employers

representatives of state Governments of Rajasthan and Himachal Pradesh

The agenda items were thereafter taken up for discussion

Page 23 of 83

~---i

Item No1 Confirmation of the minutes of 201st CST meeting held on 25022013

The minutes of the meeting circulated on 08032013 were confirmed by the Board

Item No 2 Action Taken Statement in respect of decisions taken upto the zoin CBr

meeting held on 25022013

middot21 Noted

22 Noted

202110 rrH~~1ingo~ cST EPF 13012014 Paee3bull

23 Noted Shri Ravi Wig stated that Permanent Account Numbers need to be issuedurgently to facilitate extension of PF benefits to all especially peripatetic workers It wasassured that the matter will be looked into Secretary (LampE)informed that EPFO has alreadybeen instructed to come up with a timeline for this purpose

24 to 215 Noted

216

comprehensive amendmentsproposal will be suitably

amendments

members It was informed thatrnlrlCrUmiddot~tjonof the Ministry and the

fliMllf1oisation of comprehensive

SShri MJ Rao Ol Sachdevato contractual employees ofbeen extended ESI benefitsexamine the issue and take ne(~e1SttHjo

of extension of PF benefitsInlrinnrv of such employees have_(fQT~rv (L amp pound) directed ACC(C) to

Item NO3 Purchase of ready and residential apartments to beconstructed by NBCC (Govt of India enterprise) at East Kidwal Nagar New Delhi

The Board approved the agehda as contained in the memorandum A few membershowever stated that such proposals should have prior approval of the Central Board Thevalso pointed out that meeting of the Board are not held regularly The members wereinformed that since time bound action was required to be taken in the matter and there

___ _~~~_~~~0l~~gS~~ryg~~Lth~J9fm~Iiliesbefcrehandractlon was taken aft er obtainingthe approval of the then Chairman Executive Committee and Chairman CBT

Item No4 Recovery of excess amount of Pension drawn by Shri 5ukhdeo Sharma MaCfhupUDC (Retd) Patna from 01022003 onwards

CPFC informed that a revised agenda has been circulated on the table today EPFOwas instructed to see if there was any angle of collusion and to take suitable action if casewas made out EPfO was also directed to investigate if similar cases were in existence ItWaS also decided that strict instructions should be issued so that such cases do not recur

Page 24 of 83

IIIIIIbullbullbullbullbullbullbullbull

bull bullbullbullbullbullbullQ

~

-~

~

bullbullbullbullbull-bullbullbull

-bullbullbull-

JI

~(

JI

(

I---------------------------------------------------------------------~

The Board approved the agenda as contained in the revised memorandum

Item No S Reconstitution of Executive Committee bull ElectIon of the representatives ofemployers and emplovees to the Executive Committee of the Central Board ofTrustees

The Board authorized the ChaIrman to nominate government representatives to theExecutive Committee The Board unanimously recommended folloWing representatives tothe Executive Committee-

51No Name of the Member1 Dr G Sanjeeva Reddy2 Shri M J Rao3 Stlrj AD Nagpat4 Dr UD Choubey5 Sh Badish Jindal6 Shri Ravi Wig (for the first term of two and a

half years) EmployersSh Sharad Patil

Representlng

Employees

Board ofTrustees Employees

Investment Committee beand shall look after audit related

representatives and~rmlmended that the Finance amp

~l1rr~~rltand Audit Committee (FlAC)

following were recommended for nomination to the sub-Commlttees-

FINANCE INVESTEMENTAND AUDITCOMMITIEESI No Name of the Member1 Shri Ram Tarneja2 Shri JP Chowdhary3 Dr G Sanjeeva Reddy-~--middot-----ShfimiddotPJmiddotBmiddotanastimiddotremiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddot EMPLOYEES

Repr~senting

EMPLOYERS

PENSION IMPLEMENTTION COMMITTEE1 Shrl GP Srivastava2 Shri Sharad Patll3 Shri Vlrijesh Upadhyay4 Shri DLSachdeva

EMPLOYERS

EMPLOYEES

P 25 f 83

COMMITIEE ON EXEMPTED ESTABLISHMENTS1 Shri BP Pant2 Shri Susanta Sen3 Shri AIltPadmenabhan4 Shri Ashok Singh

EMPLOYERS

EMPLOYEES

The Committee on Exempted Establishments shall also consider the pendingexemption proposals where relaxation has been granted before 310~2013 and which havebeen submitted in the current financial year on behalf of the Central Board and recommendthe same to Appropriate Government for grant of exemption This will be a one-timearrangement which has been necessitated because of large number of proposals required tobe considered in the current year in view of Income Tax exemption being available to trustsmanaging their own PF only up to 3103014

A other functions of different Sub-Committees of the Central Board shall be asproposed in the agenda

Item No7 Draft Annual RepOIt-ilc~ilJo~~~~~es of the Employees ProvidentljrSI(~ J t ~ bull

~~j~ ~r19t~~~~ bull-~ bull 1 -~~lt__t-

Shri JP Chaudhary made fol P6~ft~T~t-middot ~

i Lot of amount is vbullbull bullbullIodoOV inJ~jjJi(~~T~n-- ----- amp_41 bull_bullii PSUs account for a lartnoncchOof O)~d~fauft special recovery should be

thought of to addressiii Singapore CPF has a scheme

For this purpose EPF delegation had visited Singapore to study the same few years

ago EPFO should think of a Scheme on these linesiv It nay be as cert aine d whether a case exists for reducing Administrative Charges

v Permanent account number for PF members is required urgently

The Board considered the

Shri Ml Rao made following polnts-

_____1_middotmiddotmiddotmiddotmiddotmiddotmiddotmiddot_middotL middotHuge amountof arreacsespecially theNot Immediately Realisable (NIR) category is

a cause of concern

ii The Board had earlier recommended that High Courts be approached (or setting up

special benches for EPF related matters there has been no progress in the matteriii There should be no pendency in settlement of pension cases especially death

claims

iv Even though Annual Accounts slips contain columns for Date of Birth Date of Joiningand nomination but in most of the cases the field is left blank The fields must be

completed and members informed so that they can request for modifications if any

~middotIdeg_01n

I

o j

QIbull 1

)(

bullbullbullbullebull

bullbullbullbullbullbullbullbullGbull66

bullbullbullbullbullbullbullbullbullbull~

I

I

)

v Growth in funds invested was declining This needs to be ana1vsed and put up before

the Board

Shri Ashok Singh made following points-

i The benefits In death cases be expeditedii The nomination of the members needs to be collected at the time they become

Provident Fund membersiii Rate of growth in membership is very low vis-a-vis the growth in number of

establishments covered This needs to be looked Into

iv The information about membership should be indicated in three categories vizcontributingnon-contrlbutinginoperative

v Unique no for PF members should be issued on priorityvi EPFOshould go for universal number and centralisation of database

Shri AK Padmanabhan made following points-

i Pension cases need to be

Ii Exempted establishments

iii Arrears are a cause for

Shri DL Sachdevathe Annual Report Sri JlII~n-iJ~

are I)0t furnished indaisl~u~ittuil(t1~-Ad~olm~s remuneration is very less

needs to be revised

emerge in the report for

establishments has been released onfor monitoring exempted

it is expected to considerably improvethe process CPFC also informed the B~ard that the issue of permanent PF account numberto members and centralization of accounts is under active consideration and an update

status would soon be provided to the Board

Secretary lamp Emade the following observations-

---middotmiddotmiddotmiddotmiddotmiddot----tmiddotmiddot--middotThemiddotmiddotissuemiddotasmiddottomiddotwhethirotimahdinj(EPFQueS- canbe brought under SARFAESIAct (The Securitization and Reconstruction of Financial Assets and Enforcementof Securities Act 2002) may be taken up with the Department of FinancialServices (OFS) Ministry of Finance- (MoF)

It may be ascertained as to whether standing instructions can be given to the

banks on deduction of PF dues from employers account so that the active days

required for collection of such dues is reduced

1

1 11

l

I

l

iPage 21 of 83

1

Intervening in thestatutory wage ceiling is

reduction in administrative chaa)so stated that it is being centcompanies to self declare their PF lia of all employees on their rolls and paythe dues electronicallv every month Chairrnan requested the members to consider thepossibility of a Housing Scheme for the provident fund members by taking additlonalcontribution from them so that on superannuation they can be assured of some shelter Oil

the lines of the facility extended by the Singapore Provident Fund He further observed thatthe name of the nominee should always be included in the details to be submitted by themember and a system should be put in place so that claims are settled within hours and not

___ _ __ middotmiddotmiddotmiddotmiddotmiddotmiddotdaysmiddot-asmiddot-jsmiddot-themiddotpresenqjr~cncemiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddot

III In order to ensure the PSUs do not default in remittance of PF dues the matter

requires to be taken up with the concerned administrative Departments as wellaswith Ministry of finance

IV As regards providing hovsiog to the members the US law for HOPA 1995 mayalso be studied alongwith the provisions enforced by the Singapore PFauthorities -

V Specific tlmellnes be fixed for claim settlement pertaining to death casesVI Special campaign may be organised for an early settlement of Court cases on

arrearsVIIThe matter of inoperative accounts requires urgent attention It is the liability of

EPFO to identify the members especially of those establishments which haveeither been closed or are under liquidation and settle their claims A specialdrive may be launched for this purpose

VIII Service level bench-marks may be fixed for air major items of workof EPFObullind the process of service delivery should be simplified

IX The time line for grievance be improved further

X Coverage of newry iden be monitored closely so as toincrease compliance of eligible employees

xr The issue of be ana lysed and put upbefore FIAC

revision ofIt~Ibullbullmiddott~~ent and the issue of

wage ceiling is increased He

With these observations the Board approved the Annual Report 2012-13 of theEPFO

Item No 8 Audited Annual Account in respect of Employees Provident Fund Scheme1952 Employees Pension Scheme 1995 and Employees Deposit Linked InsuranceScheme 19-76 for the financial year 2012-13

FA amp CAO explained the salient features of the audited Annual Accounts It was

stated that action has already been initiated on all the observations made by the

Pa e 28 of83bull tmiddotmiddot 1 bull

202nd m e e t t nz ofCST EPF~ 1~1)120J4 PJpoundc7bull

bull()

oeC)

bullbullbull-bullbullbullbullbullbullbullbullbullbullbull

~

bullbullbullbullbullbullbullbullbullbullbullbullbullbullbulltwobullbullbullbull

(

t

)

-

I~--------------------------------------------------------------------Comptroller amp Auditor Genltral The matter was deliberated and it was decided to adopt theaudited Annual Accounts (or the fin~nclal year 2012-13 with the following observations ofSecretary lampE-

A pro-active effort should be made to locate non-operatlve accountsSince the legal position regarding non-payment of interest In case ofinoperative accounts Is still not clear provision may be kept for thIs purposeAll matters pertaining to legacy in case of accounts should be listed out andplaced before the Finance Investment and Audit CommIttee which shouldlook Into these issues come out with solution to each problem fix a timeframe for addressing them and monitor Its implementationAU accounts should be updated by 31032014 and adequate provisionsshould be made for this purposeThe issues required to be taken up with State Bank of India should be list~dand action middotInitiatedon them If any issue requires to be dealt with at the levelof Department of Fi~anclal Services the same may be brought to the noticeof Ministry of labour

VI dear SOP should from Inoperative accountsThe Finance should monitor and reviewsuchwithdlra~~~~[~~~~[~

VII In addition on expenditure while

I

II

III

IV

V

Item No9 Declaration of

The Board considered thi~m the observations raisedby the Ministry of Finance The Bo~~Ift~mt~lt~fi~ent provisions have already beenmade in Interest SUspense Account of interest which is due underinoperative account is being used for dedding the rate of interest on Provident funddeposits for the year 2013-14 It felt that it would bemiddotInappropriate not to give dues to theemployees as per the provisions of the Scheme The Board therefore decided torecommend to the Government that Provident Fund account holders be given interest atthe rate of 875 per annum for the year 2013-14

- - -----middotmiddotmiddot--middotmiddotltemNo~-iomiddotmiddotAppointment of a Consultant for Selection of Portfolio Manager

Custodian Concurrent Auditor and Performance Evaluation of Portfolio Managers

Members of the were apprised that the Honhle Minlster-cum-Chairman has alreadvnominated $hri Sharad PatH and Dr GS2nje_evaReddy as members of the Committee toselect the Consultant The Soard ratified the same The Board also ratified the earlieraction taken by the EPFO in this regard Secretary (lampE) observed that the terms ofreference for selection of portfolio managers should specificallv indicate that there Is no

Page 29 of 83

I

conflict of interest to the extent that EPF funds are used for investment in the parent

companies of the portfolio managers

Item No 11 Pattern of Investment 2008 notified by Ministry of Labour amp Employment

The Board took note of the proposal as ccntalned in the agenda

Item No 12 Additional Investment Guide lines for 2008 Pattern of Investment

After deliberations the Board decided to refer the matter to Finance Investment and AuditCommittee for taking appropriate action AS amp FA Ministry of Labour amp Employmentobserved that investmenti SOLcategory should be restricted to states following prudentfinancial norms Further investment under this category should be evenly distributed

Item No 13 Correction of name and date of birth of PF member - Provision in theApplication software- Subsequent amendments in the Manual of Acc~~nti~g P~o(edure ofEPFO

Item No 14 Amendmentincorporating the revised rbullbull~flfbullbullbullt~JJa~~

Part II-A for

with the observation

that the name of the noItem No 1S IncreasingAccount No2 amp EDlI AdmillfsttatliM AccoUii1TfAccounl

in EPF Administration

n para 1517 of the agenda

Item No 16 List of ineligible cases for waiver of damages rejected by CPFC

The Board took note of the proposal placed before it

Request for waiver of damages (item No 17 to 27)- The agenda as contained in itemnumbers 17 to 27 were approved by the Board with the rider that the waiver would be onlyin respect of unpaid damages

Members raised the issue of certain types of industries such as SMEs M5MEs

plantations ete which are outside the ambit of SARFAESIwhich was raised earlier and needto have a separate mechanism It was decided this may be discussed in Finance Investment

and Audit Committee Secretary (lampE) observed that the idea of forming a joint lenders

forum may be explored in this regard It was decided that this may be furtherdeliberated inFinance Investment and Audit Committee

middot1Inl()1

t7J-l-Imiddotlbullmiddot1- I-bullbullbullbullbullbullbullbullbullbullbull~

bullbullbullbullbullbullbullbullf-er

bullbullbull-bullbull4w

bullbullbull-

-

(bull(bull(bullbullbullbull~(~

bull~

)

i

)

bull-bull bull

bullbull

bull

Item No 28 Grant oj exemption under Section 17 of the Employees Provident Funds andMiscellaneous Provisions A~ 1952 and Para 27A of the Employees Provident FundsScheme 1952 by Appropriate Government _

CPFCinformed the Board that a supplementary agenda note circulated earlier hasalso been placed on t~etable

It was informed to the Honble Members that in most of the cases which are broughtbefore the Board the establishments are enJoying the relaxation for years together and theissue Is br~ught before the Board for regularizing the relaxation and recommending to theappropriate Government for 3 final decision in the matter After deliberations It wasdecided that in all the cases included in the present agenda be recommended to theappropriate Government for taking a decision The Board also decided that it should beseen that none of these establishments are In default It was further decided that a detailedSOP for grantlng exemption should be brought before the Executive Committeemiddot forconsideration

As regards Tata MarcopolO-

which is pending in the office llbullbullbullearlier The Board decidedrecommended from the

was informed that it is the onlY caserelaxatlon has been grantedMarcopolo Motors ltd be

as contained in theWith these nhltPfvtl

agenda

Item No 29 13th Valuation bullbullbullbullbullbullbullReport submitted by She PA BaiitiIOOmlJ1flllr(~

Fund as on 31032009 -by the Government

The Board approved the

Item No 30 Proposal on amendment of Para 32(1 of EPS 9S-Annual Valuation ofEmployees pension F~nd

The Board decided to continue with annual valuation of the Employees PensionFund

bull__ bullmiddotmiddot_middotbull _middot-middotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddot1 ~bullbull- bullbull Jbullbullbullbull ~ bullbull middotmiddotmiddotmiddotrt-middotmiddotmiddotmiddotmiddotamiddotmiddotdionmiddotmiddottakeiitlvmiddotEPFOstncethe last CST(lOut meeting held on

25th February 2013) - for Information

The Board took note of the agenda placed before it

Page 31 of 83

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

Item No 32 Revised Estimates for the year 2013middot14 and Budget Estimates for the year

2014-15 for EPFO and Schemes administered by EPFO

Since details were not brought about clearly The Board decided that the RevisedEstimates (20i3~14) and Budget Estimates (2014middot15) to be placed before the ExecutiveCommittee who were delegated the power to approve it

Item No 33 Delegation of Administrative and Financial Powers to Chief Engineer PFD

EPFO

The Board 3Rproved the proposal as contained in the agenda

Item No 34 Grant of Senior Time Scale of P83 Rsl~60~39100 Grade Pay Rs 6600- toregular APFCs after completion of 5 years - implementation date clarification

The Board decided that since matter is a complex one adetailedmiddotanalysis be made ofthe whole proposal and placed before Executive Committee for consideration

of Instalment facility to defaultingestablishments to liquidate

The Board approved t

Item No 36 Authorizingof the CentralBeard]establishments subject to

(A Sub-Committee

The Board approved niIt~iD~JubmiddotCQJtnit1leeproposals subject to ratification 6fiR~~~inecessitated because Of large number

ed toconsider exemptionarrangement which has been

to be considered in the currentyear in view of Income Tax exemption being available to trusts managing their own PF Onlyup to 31032014

Item No 37 Agenda for amendment to the Employees Deposit linked Insurance Scheme1976

The Board Was informed that actuarial valuation of the EOLI Scheme 1976 ismiddotmiddotmiddotunderwyenymiddot Smiddotoamiddot(fltieCided that pending Iinalisation of the actuarial valuation an interim

additional benefit of 20 over and above what is admissible under the provisions of theScheme be allowed to beneficiaries

ShriMJRao stated that there is a need for providing medical benefit to members by

amending Section 6C of the Act It was felt that this issue has already been raised earlieralso will be studied further

Page 32 of 83

~i~ 202nd n1eeting of CST EPf 130120140 lgtasel1bull

CfgtOJ001ebullbullbullbullbullbullbullbullbull -bullbullebullbullbullbullbullbullbullbullbullbullbullbullbullbull

t~

liIt

rII

i

l~

tbullt

Item No38 Suggested issues by few CST members

The Board decided that whenever any fraud Is discovered civil and criminal actionshall be taken against delinquent emplOyers

Members desired that the contact details of EPF officers be updated regularly on

wwwepfindiagovin

The Board appreciated that agenda and minutes of CST and EC are available on webIt was desired that agenda and minutes of all sub-Committees of the Board and ExecutiveCommittee be also put on web The Soard also directed to explore the possibility of settingup of information kiosks in al offices of EPFO so that stake holders could access informationthrough such kiosks directly

Sh MJ Rao raised the issue of installation of lift in the SRO Vishakhapatnam Stlri AKPadmanabhan stated that the issue of office building for SRO Tambaram needs middotto be

resolved at the earliest

workers money He alsoworkers engaged in various s~mpmiddotijjg~1U

in Kolkata many of which areity dues and holding on to

in the form of PF to

middotmiddotmiddotmiddotmiddot_middotmiddot-middotmiddotmiddotmiddotmiddotmiddot_middotmiddotmiddotmiddotmiddotmiddotmiddot_middotmiddotmiddotmiddotmiddotmiddot11middotmiddotbullbullbull bullbull

Page 33 of 83

Page 8of83

bullbull

34 Additional ~ (CompOance) also brought to the notICe of the Commlttee thefoUowlng dartftaltlons on losses stlen by the AddltJOM Seaetary amp AnandalAcMsor Mlntstry of Consumer Affa~ food 6 Public OIstrlbuUon on behalf ofGovernment of India

a) The potkydedslons onmiddot Public Distribution System CPOS)National Food5ecurtty N1 (NFSA) etc are blken tit the Government of India through FC1for which entire expendJture Incurred by Food Corporation of lncfsa erereimbursed In the form of food subsidy Fa Is a subsidy based corporationhence question of any proftt or loss does not arise

b) The procedure of relmbursement of food subskty has been preso1bed bythe GoverMeot of India Thls Jnter-aHa stipulates that food subskfy Inrespect of bad and doubtful debts 15 releaSed only afterwrite-otf of thesame by the FO Thus ~bsIdy Is not released on the basis of creatiOn ofprovision for bad and doubtful debts Due to this stipulatiOn the amount of~ ~nd dcnlbtfut debtsprovided In the ~ of fCl are depicted as lossesIn the Ananc1al Statement tlll the same Is written off after followingpresa1bed procedure In fact these osses are deferred subsidy which arereleased to FClln the year when the bad and doubtful debts ere written offbyFa

bullbullbull

c) The losses shown In the financial Statement ot Fa is a mere depIctionsince they follow the fonnat of BaIBnceSh~t llnd Profit amplossAccounts aspresoibedunder the Companies Ivi 00 the advJCeof their sole auditorCampAG and approval cl the Government cf India bullmiddot35 Shri AK Pedmanabhan stated thatthe Food Corporation of India Is It no profit no

loss organisation of Government of India and condition No 2S of Appendix A toPara 27M of the Employees Provident Funds Scheme 1952 Is not attracted In caseof Fa Thus the proposel of fO deserves consideration and recommendation toApproprtate Government for grant of exemptlon

bullbullbull36 Shri Sushanta Sen end Shrl BP Pant conSented the Views of Shri AK bull

Padmanabhan and strongly opine that the proposal of Fa may be sent to bullGovernment of India Ministry of labour Ii Employment for approprtate

consideration and grant of exemption bull---~---- bullbullPage5ol9 bullbullbullbullbullbullbullbull

ir

bullbull

t(

bullbull(bullbullbullbullbull~

bullbullbullt~

tgt)

bullbullbullbullbull~

37 The Chalnnan stated that Fa it Government of lridla coocem as recouplng DRthedifference between the economic cost and saes realization In the form of consumersubsidy from the Gov~ment of India except the pnMsIons of bad and doubtfUldebts In the amp(COunts of the CltXVQratJon The subsidy fOr this expendtture Is notclaimed In the year of occurrence of expendlbJre but ls claimed In the year d writeoff of ampd iIDd DoUbtful Debts The depiction of osse$ In the Balance Sheet Issimply due to deferment of subsidy -dalm from the year of prov1slons mampde to thevear of wrtte-off The entire expendlture Incurred by fCI Is relmbured by theGovernment of Indla the form of food sUbskfy SInce the accounts of Fa areaudited by the caAG end In view d the clarifkatbns g1venbv Government of Indiathe proposal for gl1lnt of exemption may be forwarded to AppropJ1ate Governmentfor consideration bull

38 The Commlttee unanimously dedded to forward the proposal of Fa for grant ofexemption to Appropriate Government for cons1detCltlon

39 With tills deliberation the Committee consldered end recommended the proposalsIn respect of the foUowtng establishments as contained In the Agenda to theApproprlatemiddotGovemmentforconsdeBtlol-and gnSnt Of middotexemptlon

cocsNo Mtk ~I AlJpltopdtIt Mo ofcrct Para ~ rMmbersfront

HHIWV 01052009 17(1)(1) StIIb es125553 ~ d

~

Wl25410 OUIl2009 17 (ll(l) State 02 ~ rlHlh~

3 MIL TIU lJIIIltad SROJemshedprr

Jt1I1302 01011980 17(1)(1 CermI 1068GoYemment

4 M bullbull SIJSIC InJlotIatift ROGurgecn HR31l16 01()9la10 17(1)(1) GoveMrnent of 81PlJIItb SrldJa Pvt Ud 1ndIa

s HI bullbull WoodamptrJcS(Schoot 10 ~ UAl~ 01111993 llXt) Gootmment of 316lItbnncMI

6 MbullbullmiddotAI~ bullbullbullbullQnMb SIlO~ lJrJ~BlUInbd

O1o1t961 17(lX_) ~ rI 459~

7 Mallt Tamoort 00 DelhI DlJ2(X20Umbel Scxth

2O0um 17(1)(1) GoYenvnent of S34india

bullbull MIl eorultJng 10 DelhI 0l36Wng~ ScrYkeI South~) PvtUmIUd

29051974 17(lXa) ~_~ _~~ __ India

Page 9 of 83

Item No4

1

1deg1() I01

0101-111-111bull 1

1

bull 1bullbull 1

1

1bull 1

bull 141 Addltlonal CPFC (Compllzmce) brought to the notice of the Commlttee that bullwhile processing the pending appHcatJoos for grant of exemption some cases have bull Icome to the notlce of Head OffIce where the estabUshrrients maintain thelr own trust 1

~e exempted establishments~ ~~ ~__~~ ~ ~bull 1

1

1

1

1

1

1

1

1

Regularlsatlon of the proposals submitted by theestablishments for grant of exemption who maintaInthe Trusts without grant of relaxation under Para 79 ofthe Employees Provldent Funds Scheme 195~ or withpennlss10n of RPfOL

bullbull

bullbullbull Habullbull oftfte omc CodeHo WIth SectIonI ~ Noof 10 ~ 1Ifflaquot GoIrerMaent ~

froIa

aJ It Tyrw bull ~Mpore rJ(MtSI 01042D02 17(lX~) GMmment d -4711lIIdtlldrltc IImbd 9508 Jnck(VIIautTyN ~)HyIart

10 MbullbullUTTcinology fID~ ItVllIHI 01012014 17 UXa) GIIYernnWnt cI 1667sNba Ucnbdmiddot 205170 Incb

11 MaLG SRO Vesill ~asNI 01062001 VA Gooemmeat d mhtrocMmlcllll Umbel 9S22O IncIa

12- MsMJIQ SJU) Vashl MH95413 OU)6lClO7 VA ~d zshtroCh bullbullbullbullbull lImJted india

U- Ka HexJawwre RO Thane MV42123 01071996 17(lXI) ~ot 56Q5TechnologM Umlbd IncIa

14 MIs bullbull T RO Thane t+l20669 OUM2013 11 (1)(a) ~d 2396~ lJMItOIId Incla

15 Mbullbull GlC ~g to Bancn MVtWiI OUI31994 17 (1)(a) middot bullbullbullbullbullbullbullbull cI 142Finwlca Lln1ted 39407 tncSa

145 Merefld bullbull knz 110 KN24117- 0103200 27A state 1116ROII bullbull rch Bangillore X 8 GoverMmttl~elOP~At (1) (P)

of Kamtab

17 M_ food 1tO~1h1 Dlf2271 111989 2711 Central 76678 ~rtltlol1 0 zncn (N Gov

lL Mbullbullbullbullbullbull In cthoUc Ilaquo) ICllndMII MHKNDl 0111199 17(I)(a) Stilt 455Co-op Sank ltd 2613 1 Governmentor

MilharashtraUI KII Atillya Blrt SRO Rajkot GJ40n 0104200 27A Central l125tluvo ud 6 GOY~O KlllUampMII ~ RPRRO X93gtS16 01032009 17(lXa) Cer1tnII 26~ Indllt PYt Deli (SauttI) Govunrna-tUd

bullbullPagt 7 of9 bullbullbullbullbull

Page 10 of 83 bullbullbull

(

~

bull~bullbullbullbullbullbullbullbullbullbull

a) In some cases the estJIbllshmenis f1IZIlntilln their own TIUSts withoutBOY relaxation granted under PiA 79 of the Employees ProYIdentFunds Scheme 1952 after 9submission of applicaHonfor gnnt ofexemption either under Section 170Xa) or under Selttion 17(2) or theEmployees ProvIdent Funds 100 MlsceIaneous ProvIsIons Art 1952read with Para 27A d the Empbyees ProYIdent Funds Scheme 1952-

b) In some othet eases eStabl1shmentshave been covered by RegIOnal PFCommlsstoners of Reg)oncsVSub-RIlgiona omces under Sed10n 2A ofthe Act beatlng the same lIS bnmctees of main est2iblishments SIncethe date of coverage the establ15hments covered under 2A depositconbibutlons txgtYards provident fund in the Trust maintained by theirmain establlshments and conthIe to pay Penston and EDUcontributsons with the RPRs wherever they are covered OVer the-years complksnce In respect of ptOVIdent fund was never 1nslsted fromthese estabUshments nor any permIsslon was g1Vento them to complyIn respect of provident fund In 1he main estabnshments Even norelaxation was grented to these establishments under Para 79 of the

Employees Provkient funds Scheme-19Sl

1

I111

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

-42 Additional CPfC (COmpHance)epprlsed the Comml~ that Instructions wereIssued In past to RPfCs to grant relaxation under Para 79 of the EmployeesPrtMdent Foods Scheme 1952 to such categories of establishments which functJonas an exempted establishments from a prior date subject to usual condltlons asstipulated In Appendix A to Para 27M Of the Employees Provkient Funds Scheme1952 as retaxatlon Is required to be granted from a much prior date In order toreguJarise is period of time during wh1ch the establishment has complied as anexempted establ1Shment without been relaxed Because the law alklws only therelaxed establlshments to mallltaln its sepamte fund and function as an exemptedestablishment before the grant of exemption under Sectlon 17 of the Ad

3 Additional CPfC (Compnance) also lnfonned the Committee that Regional PFCommlssloners continue to conduct compliance audit over the years treating theseestabUshments as If exempted and forwarded the applications submitted by theseestabDshments for grant of exemption from the operation of the EmployeesProvident Funds Scheme 19-52where no relaxation has been gnmted A number dproposals pending for grant of exemption are of thls nature These establishmentscomply to all the condltlons reqUired for exemption as proylded In Appendix-A toPara 27Mmiddotof the Employees Provident Funds Scheme 1952 FQrwant of relaxation - the proposals of establ1shments of above nature are pending If thesemiddotltas~middotaremiddotnotmiddot middot--middotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddot-middotmiddot--middotmiddot-middotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotregularised then the Interest of the employees will be at stake and they wouldsuffer for no fisult of theirs These cases thus need to be regularJsedbull

1 Page 11 of 83

41 Shri AK Padmanabhan suggested that the cases of these so caUedexemptedestzIbllshments have to be regularised kl the lriterest of the employees and thisshould be a one tine exerdse for dlspostng the applJcatlons of these establishmentspending for grant of exemption for years together He felt that without much delaycasesd this nature should be forwarded to the AppropOat8 Government for grant ofexemption

45 Shri BP Pant pointed out that no relaxation CXJu1dbe given to theseestablishments who malntaln PfTrusts on ~ own even after Issue of lnstructlonsThe estabftshments made continuous effort 1n pursuing their cases but no actJon Istaken for proce$SIng their CZISeS He also stated that the establishments whkhmaintain Trusts without relaxation or permlss$on need to be regularised by way ofgrant of exemption wlthoutfurther delay

46 Shrt Sushanta Sen wanted to know as to why no relaXIItlon was granted Inthese cases

47 Additional CPfC (Comptlance)apprised the members that It IS a systemicfailureand for no fault of the employers the proposals be tcept pending further Herequested the Hooble members to take appropnate declston to regularise thesecases

48 Charman Informed the Committee that the power to grant relaxationmiddot underPara 79 of the Employees ProvkSent Funds SCheme 1952 has been withdrawn fromthe Regional PF Commissioners wef 24072012 Grant of exemption ~n all thesecases is pending duemiddot to lack of relaxation order permtsslononaccount of the faUureon the part of ttMi fteld fundIornllies These estaoUshments are assumed to beexempted establishments even in the absence of relaxatlonorderpermlsslon TheCommittee may conslder as an one time exetdse to rtfularise these pending caseswhere the establishments maintain the Trusts and abide by the conditions stipulatedIn Appendix A to Para 27M of the Employees ProvIdent Funds Scheme 1952

With ~ls deliberation It was dedded that the appllaltlons of these establlshmentswhich maintaIn their PF Trusts WIthout any relaxation permlssion to partldpate Inthe main Trusts of thetr parent establlshrnent should be processed Without furtherdelay and be placed before the Appr-opriate Forum for forwarding the same toAppropriate Government for grant of exemption

The meeting ended WIth vote of thanks to the ChaIr ---- _ --_ _ __ ___

--0----Pagetoft

-

Page 12 of 83

InffI

Ii~

o()ooebullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbull

~j

1

Item No2 Action Taken Statement in respect of decisions taken in the36thmeeting of the Sub-Committee of the Central Board ofTrustees EPFon Exempted Establishments held on 15052014

(

51 No

Action Complete

Action TakenUpdated StatusDecisions Directions of theCommittee

bullbull~

--

1 Conducting study of the The details of exemptedfunctioning of the establishmentshave been supplied toestablishments already the Committee Members for thegranted exemption by studyon28052014Members of the Committee

Chairmandirected that the detaitsof the Exempted Establishmentsshall be supplied to HonbleMembers by 25th May 2014 to

start the studv

(Item No23t1hMeetingof theCommittee 15052014)

2 Preparation of guidelines in Time to time instructions issuedto thethe form of a small booklet for field offices on various issues ofissueto the exempted exemptionare uploadedon the official-----

establishments for educating websiteot EPFO which can be visitedthe employers so that by ExemptedEstablishmentsdeviations are np~committedin managing and malntalnlnq

the Trust I i Howeverattempts RavealreadybeenShri BPPant suggested that the ~ken to prepare a small booklet asguidelines in the form of a small suggestedby Honble MemberIt willbooklet be issuedto the exempted take some mon~timeasthe staff iaestablishments to educate the awfully busy With Universal Accountemployers 0 that devia~ionsare Num~S~fAN) presently

in~~~~~Tnagngand sect~~~~0~~J3~ (Item No2 3t1hMeeting ofthe committee 15052014)

Page 13 of 83

I No Action TakenUpdated StatusDecisions I Directions of theCommittee

3 Investigation into thecompliance position of SaharaIndia Jai Prakash AssociatesUP Drugs and Pharmaceuticalsand UP State Road TransportCorporation

Chairman directed that theinvestigation be carried out on toppriority in the interest of theworkers and followed up regularlyand the development thereof beapprised to the Committee

(Item No2 3fih Meeting of theCommittee 15052014)

Investigation is going on nation-widein respect of Sahara India and JaiPrakash Associates and the same isbeing regularly monitored

Themterlrn report will be submittedto the Committee in their nextmeeting

Appropriate action has already beentaken against the UP Drugs andPharmaceuticals and UP State RoadTransport Corporation The finalreports will be submitted to theCommittee in their next meeting

BifurcationofExemptedEstablishments in to two parts - onewhich function as per rules andthe other which fail to functionappropriately to set right thefunctioning middotof the exemptedestablishmehts in the interestof the workers

Instructions have been issued to fieldoffices

a) tocarry out compliance audit of25 of the Exemptedestablishments functioning intheir jurisdiction each-quarter

b) to analyse and review theperiodical reports of

Shri Ashok Singh suggested that the exempted establishmentsexempted establishments be divided c) to carry out third partyin to two parts - one which function audit of the accounts ofas per rules and the other which fail the Fund maintained byto function appropriatety Strong the Board of Trustees byaction even cancellation of independentempanelledexemption should be taken to set Chartered Accountants ofright the functioning of the EPFO andexempted establishments in the d) tomonitor the functioningofinterest of the workers ----------- middotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddottnemiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotexemiddotmmiddotptecf

establishments online

Action Complete

coooobullbullbullebullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullebullbull

bullbullbull~~ j

Page lS of 83

1

1

1

1

1

1

1

1

1

~11

1

1

1

1_ 1

1

1

1

1

1

1

1

1

1

1

1

1

1

)

Item No3 Grant of exemption under Section 17(l)(a) of theEmployees Provident Funds and MiscellaneousProvisions Act 1952 and Para 27A of the EmployeesProvident Funds Scherne 1952 by AppropriateGovernment

I31 Section 17(1 )of the Employees Provident Funds arid MiscellaneousProvisions Act 1952 provides for exemption as under

Power to exempt - (1) The Appropriate Government may by notification in theOfficiat Gazette and subject to such conditions as may be specified in thenotification exempt whether prospectively or retrospectively from theoperation of all or any of the provisions of any Scheme Any establishment towhich this Act applies if in the opinion of the Appropriate Government therules of its provident fund with respect to the rates of contribution are not lessfavourable than those specified in Section 6 and the employees are also inenjoyment of other provident fund benefit which on the whole are not lessfavourable to the employees than the benefits provided under this Act or anyScheme in relation to the employees in any other establishment of a simitar character or

i

a Any establishment if the employees of such establishment are inenjoyment of benefits in the nature of provident fund pension orgratUity and the Appropriate Government if of the opinion that suchbenefits separately or jointly are on the whole not less favourable tosuch employees than the benefits provided under this Act or any Schemein relation to employees in any other establishment of a similarcharacter

32 Provided that no such exemption shall bemade except after consultationwith the Central Board which on such consultation shall forward its views onexemption to the Appropriate Government within such time limit as may bespecified in the Scheme

Para 27A (1) of the Employees Provident Fund Scheme 1952 provides

(

The Appropriate Government may -be+erder+errd middotmiddotmiddotsUbjettmiddotmiddotmiddotlomiddotmiddotmiddotmiddotmiddotmiddotsudmiddotmiddotmiddotmiddotmiddotmiddotmiddot conditions as may be specified in the order exempt from the operation ofall or any of the provisions of this Scheme any class of employees towhom the Scheme applies

Provided that such class of employees is entitled to benefits in the natureof Provident Fund gratUity or old age pension according to the rules ofthe [factory or other establishment] and such benefits separately orjointly are on the whole not less favourable than the benefits providedunder the Act and this Scheme

Page 16 of83

bullbulleoeG

bullbullbullbullbullbullbullbullbullbullbullbullbullbullmiddotGbullbullbullbullbullbull~bullbullbullbullbullbull

~

~

33 As per the above provisions of the of the Employees Provident Fundsand Misce~laneousProvisions Act 1952 and Ministry of Labour and Employmentletter dated 01042008 all cases of grant of exemption shall be placed beforethe Central Board of Trustees EPFfor consideration before sending the same toAppropriate Governments The copy of the Ministrys DO letter dated01042008 is placed as Annexure-3A

34 Before placing a proposal in the CST EPF its suitability is scrutinizedwith respect to the provisions -for grant of exemption as contained underSection 17 of the of the Employees Provident Funds and MiscellaneousProvisions Act 1952 Further in view of the guidelines issued by Ministry ofLabouramp Employment Government of India vide their letter dated 27022007as placed at Annexure - 38 all RPFGs furnish a certificate after dueverification carried out at their end with regard to the Ten Point Check List

35 Ministry of Labouramp Employment Government of India has also issued directions to the effect that the proposals shall be forwarded only if the latestCompliance Audit Report is found to be satisfactory Hence compliance auditcovering al the points as mentioned under the revised conditions for grant ofexemption is undertaken and a copy of the said report is ready to be forwardedto the Appropriate Government

36 Central Board of Trustees in its 202nd meeting held on 13012014authorized this committee to consider exemption proposals subject toratification by the Board as a one-time arrangement which has middot-bemiddotennecessitated because of large number of proposals required to be considered inthe current year in view of Income Tax exemption to the Trusts managing theirown PF only up to 31032014 A copy of the agenda item No 36 placed beforethe 202ndmeeting of the cer and minutes of the meeting are annexed herewithand marked as Annexure -3C and Annexure -3D respectively Terms ofreference of the Committee on Exempted Establishments is placed atAnnexure - 3E

37 A list of establishments as indicated in Annexure - 3F is now piacedbefore Sub-Committee for consideration and recommendation to AppropriateGovernment on behalf of the Central Board of Trustees EPF in accordance withthe proviso to Section 17 of the-Aet- -_ __

Proposal The Sub-Committee is requested to consider and recommendthe proposal in respect of establishments indicated inAnnexure -3F to the Appropriate Government on behalf of theCentral Boardfor grant of exemption

ANNEXURE-3A---a bullbull -= bull ~ bull

~i- ~

JOInt $acnary

Tel 23110l7 bullIIIbullbull

r _

Av-~ ~M JL--O~0 r

bullbull

N YOU ar IWUt sa5on 111 of tM poundmpoyus Provident Funck middotIt~ntOU Prcw$lonSAIJ 1952 proWIs thlt IppropMe GowrMlntrtlW hfWexempt cny uublbhment from Ut opcAtlonS oJ any SChamts sub)cltt to the ~hit such alCernpUon shalt bt made ttar consultation -Mth CennI SOlrd of TnmHf lUf)

1 middotThe MWstry $ ~Mnc bull numhr of cues of ~cnU ~~InlXetlptonundr ~ 11l) of the ~ rd pI 21 of [PF Scheme In tMfa ClR$bull~dod~ n some cllfltf mtampp of Cellll aoard of TNSUU (poundPF) tntral ProvIcStntFIM Cominlulonet has bHn lIWds1nCthe powen of he lIoud whn rtCOmmtfldlnlthe psu to tht IppfopnteGovemrnc~

3 Thl$ miner hiS ~tty MIl u~ In ~Uoct with Deprtment or LctltW$wto han opinedtht Wdwsect1on$ ofth k1 essential f1Inct~ ofthtr1laird of TNstetS (EPF1Bkethl$~ ~ HIdtltpted aM such dloPUon bytheampoud under pnlrJl powers of s-abl SE of ~I fulleUonof toMuK~n ndelSlaquoUoIl 17 wlV not bl pttmlsstbll

~ 4 Th m~r bbullbull btoUpt to th~ Idnd IIOtka of Chalrman arrHcnbl LEMt who tm bull concurred with thUI 1M k hu bte decided thlt hcrcrlorth aUsum1 We of yenllmptlon bt pg before he Cenbllloltd ofTN~ (Elf) fof consWentlon

(L ~sf__ laquondln the tv pr1atlaquoGMmtnnt as per the p~s of th411tt

5 In ~~ I s It ~ tntdut If VOl could kln6ty talte fU~f ~ tllbull thls ~CCordlnt

~~ ~~c~ rP~~il

~~~~~~~ ~~_~sectm

~ Shrt bullbullbullbullWwall2tban ~ - ~~ L~ ClntnolroItdentUndCo~~v 1) poundIII~ PnMdtnt Fund OrpnIQlJon ~ 6

Haw 0tRI1l0066

bull bull

bullbullbull

J~

Page 17 of 83

bullbull1

bull~ -ANNEXURE-3B _- -=-

~ the bullbull labIl~ futftlHno tho ~ conditiOns attc gfanl 01rlaquoXampUon~ Pbullbull 78 of tho EPF 8ctl4fmfJ 195and tMt ~ is no SolatIon otIhap condition

Page 18 of 83

bullofloebullbullbullbullbullbullbullbullbullbullbullebullbullbullbull

bullbull-bullbull~

bullbullbullbull6r~

~

bullbullbullbull

bullbull~

---~

rI

a

- -

IlHgtftt OR lilt wllldtPnJd 1MflDlltW I1QJWdtII mtoIIJamp1WSMtJo 10CIteMIJ

I Whether boerd of tnII1Cel bu boen aaICd under tho ~of employer

2 Whether an the dlpble cmpSoyeenre enroUed ISmcmbcn13 Whether tho 1ICCOUtamp will be mdntampiMd dceuoaica11y knd dl he

membeR fIillbc able to JCO their account lanco fiom the computertectnln1lalIfnOt be reMOdI thetepoundQCand b)r wfurt time accoants are~ 0 be mtintamcd eledronieaUy

~ Whltther board of tnistccs bampv6 fmliabcd a copy of prtsmbed undertaklnamp to the RPfC concemcd u per eM condition no 21

conWncd in Awrodix A to the RP Scheme 19521 tf yei I cqtyy ofthe IUnD to bo caclotcd

S Whether 1M employer and the board of tnlJ1ceI MVC Nmilbed theundcrWcb u ~ coodltion no 23 cootdned in Appendix A to theUP Sche1nc 19S2l lC)CI l copy or1he same to be eaelosed

6 Comparative lWtment or benefitl admiwbte under the EPF amp MPAet 1951 and tho Sebcmo ~ by heCltlb1isbmenl ell the huisof whi~ it I Olt)OCtuded tMt tho ~ of the eatabl~t u atleast compuablc lIith tboIcmiddot of the Act

7 Mechlnam propoampcclby the BlFOtPPFC to auurc that estsblilbmentis complyins with thO provUioaa or the condltiona (Of pant ofexcmptlon

S Nunc ottho RPfC in wbocejurlsdi~QQ ~ tmbUshment fillamp9 hyments Which need to be mamp by Ihc e5tabtisbmau to E~Oeven

after JIlDl of exemptionlOWhIther the uablbbmcont 11 fulfilllnamp chc preacrlbed conditions ancr

gnnt Oftdaxltioa Wldct Para79 o(tbc UP Sehcme 1951 and thereis DO viobtion oflhc same bull

(~(

(

(

(

i

-_ bull _-- --_ ___ bull

Page 19 of 83

-(

ANNEXURE-3C

Item No 36 Authorizing the Committee on ExemptedEstablishments (A Sub-Committeemiddot of the CentralBoard) for consideration of the proposals for grant ofexemption to the c5tablishments subject toratification

361 Proposals for grant of exemption to establishments from the operation of th~Employees Provident Fund Scheme 1952 under Section 17(1)(a) Employees ProvidentFunds amp Miscellaneous ProvislQns Act 19S2 and under Section 17(2~of the Act read withParagraph 27A of the Employees Provident Fund Scheme 1952 received from fieldoffices are examined in the Head Office with reference to the guidelines on the subjectissued (rom time to time

362 Section 17(1) of the Act stipulates that no such exemption shaJl be made except pfter consultation with the Central Boald which on such consultation shalljorward itsviews on exemption to the appropriate Government wIthin such time limit as may bespecified in the Scheme

363 Once the proposals are found to be complete in all respects the same are placed before the Central Board for consideration and recommendation to the AppropriateGovernment for grant of exemption and notification thereof within such time limit as maybe specified in the Scheme

364 Once the proposals are considered and approved by the Central Board they areforwarded to the Appropriate Government with the recommendation for grant of

exemption and notification in the Official Gazette

bullI

deg10JOJC Jc

1I--bullbullbullbullbullbull 1

~

bullbullbullbullbull41-

bullbull~

365 Clause (ea) was inserted in Rule 4 of Part-A of Fourth Schedule to the Income-tax bullbull

Act 1961 vide Finance Act 2006 to provide that recognition to a provident fund underthe Income-tax Act shall be restricted to only such funds

a) WhIch are covered under sub-section (3 or sub-section (4) of Section 1 of theEPF amp MP Act 1952 and

b)--Whichh1vebeenexemptedJlndecSeclon 17ofthe EPfamp MP Act 1952 fromthe operation of any scheme framed therein

366 It was also provided that the funds approved prior to 31032006 shall not beellglble for Income-tax benefit if they did not satisfy the conditions set out in clause (ea)of Rules 4 by 31032007 Accordingly EPFO was required to take necessary action inrespect of the funds recognized under the Income-tax Act on or before 31032006 andwho did not satis~ the conditions stipulated in clause (ea) of Rule 4 of Part A of FourthSchedule to the Income-tax Act The time period given in the statute was initially for one

P~e 200f83-464

I

I ~

) year which has been extended several times by legislative intervention vide Finance Actsof 2007 2008 200~ 2010 2011 2012 and 2013

367 While extending the time limit till 31032014 Min~stry of Finance Governmentof India made it dear that there wlllno further extension of the time limit

368 Approximately 260 proposals for exemption are pend1ng on the part of EPFOSome of them are under the process of examination at Head Office level and some are atthe level of field offices The processing of the proposals fakes time as the same are to begiven complete shape in consultation with the fieldofftces before placing the same to the

Central Board for consideration

Ir

3069 The Government of India Ministry of labour amp Employment in their letter dated01042008 issued dIrection to EPFO that all such cases of exemption be placed beforethe CentralBoard for consideration before sending the same to Appropriate Government

as per the provisions of the Act The proposals which are sent to AppropriateGovernment for grant of exemption shall be touted through the Central Board only Thesaid direction Is placed at Annexure 36-A

3610 Proviso to Paragraph 11 of the Employees Provident Funds Scheme 1952provides that the Central Board shall meet atleast twice in each financial year The lastmeeting (201~t) of the Central Board was held on 25022013 During the current year2013middot14 no meeting of the Board could be held till date

3611 In view of above it may not be possible to obtain the approval of the C~ntralBoard within 31032014 for all the proposals which are In order before forwarding thesame to the Appropriate Government for grant of exemption and notification thereof inthe Official Gazette This may lead to undesirable deadlock

3612 To overcome such possible deadlock it Is proposed that the power vested in theBoard for considerIng and recommending the proposals t~ Appropriate Government (forgrant of exemption and notification thereof) may be delegated to the Sub-Committee ofthe Central Board on Exempted Establishments All such proposals which are approved bythe Sub-Committee and sent to Appropriate Government will be put up to the CentralBoard in their sub5_e_g~ntm~~1gJorinformation and ratification

3613 Such delegation of power will streamline and expedite the processing ofexemption proposals to some extent

Proposal The Central Board is requested to consider and accordapproval to the proposal of authorizing the Sub-Committee onExempted Establishments for consideration of the proposalsfor recommending to Appropriate Government for grant of exemption to the establishments subJect to ratification

ANNEXURE-3D e()

oC)

bullbullbullbull

IEMPLOYEES PROVIDENT FUND ORGANISATION

MINUTES OF THE 202nd CHT MEETING (NEW DELHI 13 January 2014 1030 AM)

The 202ndmeeting of the Central Board of Trustees Employees Provident Fund

(CB1 EPF) was held under the Chairmanship of Shri Oscar fernandes Chairman CST EPFand Union Minister of labour amp Employment The following members attended themeeting-

1 MsGauri KumarSecretary (Labour amp Employment)Government of India New Delhi

2 Shri PK Pujari ASamp FAMinistry of Labour amp EmploymentGovernment of India New Delhi

3 ShriArun Kumar Sinha ASMinistry of Labour amp EmnbullbullbullbullVbullbullbullbullbullAntGovernment of India New Dejrnm~~~~~b

4 Shri Shashank Saxena vn~~II

Ministry of Finance rnvplHMpnt

S Shri Animesh Bhartl iJjrC1~~middott~~~~~~~Ministry of LabourGovernment of I

Central Governmentrepresentatives

6 Shri KK Jalan

7 Shri JP Chowdhary8 Shri Sharad Pati9 Shri Ravi Wig10 Dr UD Choubey11- Shri Badish Jindal12 Shri BP Pant13 Shri SushantaSen14 Shti GP Srivastava15 Dr Ram Tarneja16 Shri 55 Patil

PF Commissioner

Employers representatives

-_ _ _-__-_ --_ 17 Shri Virijesh UpadhYdY18 Shri M Jagdeeshwara Rao19 5hri Ram Kishore Tripathy

(vice Sori ADNagpal)LO Shr Ol Sachdeva21 Shri Ashok Singh22 Shri Krishna Chakraborty

(vice Shri Shankar Saha]23 Shri Raman Pandey

Employees representatives

bullbullbullbullbullebullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbull

(

(--

bullbullbullbull

i

bull

bull(

r------------------middott~

r

24 Shri AKPadmanabhan25 Shri Prabhakar J Banasure

26 $Ori Sanjay Prasad Principal Secretary (labour ampEmployment) Gujarat

27 Shri 5S Randawa AlC labour DepartmentPunjab

28 Shrf vs Arya Joint labour Commissioner Dellll29 Shri Glri Raj Singh Principal Secretary (labour amp

Employment Rajasthan30 Ms Nandita Gupta labour CommissJoner amp

Director (Employment) Himachal Pradesh

Staterepresentatives

Government

Following members could not attend the meeting and were granted leave ~f absence

1 Sh KSureshMinister of State for labour amp Employment

Vice Chairman

2 Or G Sanjeeva Reddy Employees representative

3 Principal Secretary bullbullbullbullbull-4 Principal Secretary amp0_bullbullbull

5 Principal Secretary6 Principal Secretary7 Principal Secretary ~YI~I~

S Principal Secretary Uf~

9 Principal Secretary (Lab10 Principal Secretary (latloild~~~Ml~ltJk~-11 Principal Secretary (labour) MaIUW12 Principal Secretary (labour) West

Government

The list of the officers of the Employees PF Organisation who attended the meetingis appended as Annexure A to these minutes

At the outset CPfe welcomed the Chairman andMembers The Board observed twominutes silence irniemorVmiddotonormed~nairmanmiddotorihemiddotmiddotCBTEPFmiddotmiddot~~dmiddotH~~bi~f~~er UnionMinister of labour amp Employment ShrJ Sls Ram Ola ji A condolence message to be sent tothe family of Shri Ola was also adopted by the Board

Thereafter Board welcomed first time members to the Board ~Shrl Prabhakar JBanasure Virijesh Upadhyay employees representatives 5S Pat ii employers

representatives of state Governments of Rajasthan and Himachal Pradesh

The agenda items were thereafter taken up for discussion

Page 23 of 83

~---i

Item No1 Confirmation of the minutes of 201st CST meeting held on 25022013

The minutes of the meeting circulated on 08032013 were confirmed by the Board

Item No 2 Action Taken Statement in respect of decisions taken upto the zoin CBr

meeting held on 25022013

middot21 Noted

22 Noted

202110 rrH~~1ingo~ cST EPF 13012014 Paee3bull

23 Noted Shri Ravi Wig stated that Permanent Account Numbers need to be issuedurgently to facilitate extension of PF benefits to all especially peripatetic workers It wasassured that the matter will be looked into Secretary (LampE)informed that EPFO has alreadybeen instructed to come up with a timeline for this purpose

24 to 215 Noted

216

comprehensive amendmentsproposal will be suitably

amendments

members It was informed thatrnlrlCrUmiddot~tjonof the Ministry and the

fliMllf1oisation of comprehensive

SShri MJ Rao Ol Sachdevato contractual employees ofbeen extended ESI benefitsexamine the issue and take ne(~e1SttHjo

of extension of PF benefitsInlrinnrv of such employees have_(fQT~rv (L amp pound) directed ACC(C) to

Item NO3 Purchase of ready and residential apartments to beconstructed by NBCC (Govt of India enterprise) at East Kidwal Nagar New Delhi

The Board approved the agehda as contained in the memorandum A few membershowever stated that such proposals should have prior approval of the Central Board Thevalso pointed out that meeting of the Board are not held regularly The members wereinformed that since time bound action was required to be taken in the matter and there

___ _~~~_~~~0l~~gS~~ryg~~Lth~J9fm~Iiliesbefcrehandractlon was taken aft er obtainingthe approval of the then Chairman Executive Committee and Chairman CBT

Item No4 Recovery of excess amount of Pension drawn by Shri 5ukhdeo Sharma MaCfhupUDC (Retd) Patna from 01022003 onwards

CPFC informed that a revised agenda has been circulated on the table today EPFOwas instructed to see if there was any angle of collusion and to take suitable action if casewas made out EPfO was also directed to investigate if similar cases were in existence ItWaS also decided that strict instructions should be issued so that such cases do not recur

Page 24 of 83

IIIIIIbullbullbullbullbullbullbullbull

bull bullbullbullbullbullbullQ

~

-~

~

bullbullbullbullbull-bullbullbull

-bullbullbull-

JI

~(

JI

(

I---------------------------------------------------------------------~

The Board approved the agenda as contained in the revised memorandum

Item No S Reconstitution of Executive Committee bull ElectIon of the representatives ofemployers and emplovees to the Executive Committee of the Central Board ofTrustees

The Board authorized the ChaIrman to nominate government representatives to theExecutive Committee The Board unanimously recommended folloWing representatives tothe Executive Committee-

51No Name of the Member1 Dr G Sanjeeva Reddy2 Shri M J Rao3 Stlrj AD Nagpat4 Dr UD Choubey5 Sh Badish Jindal6 Shri Ravi Wig (for the first term of two and a

half years) EmployersSh Sharad Patil

Representlng

Employees

Board ofTrustees Employees

Investment Committee beand shall look after audit related

representatives and~rmlmended that the Finance amp

~l1rr~~rltand Audit Committee (FlAC)

following were recommended for nomination to the sub-Commlttees-

FINANCE INVESTEMENTAND AUDITCOMMITIEESI No Name of the Member1 Shri Ram Tarneja2 Shri JP Chowdhary3 Dr G Sanjeeva Reddy-~--middot-----ShfimiddotPJmiddotBmiddotanastimiddotremiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddot EMPLOYEES

Repr~senting

EMPLOYERS

PENSION IMPLEMENTTION COMMITTEE1 Shrl GP Srivastava2 Shri Sharad Patll3 Shri Vlrijesh Upadhyay4 Shri DLSachdeva

EMPLOYERS

EMPLOYEES

P 25 f 83

COMMITIEE ON EXEMPTED ESTABLISHMENTS1 Shri BP Pant2 Shri Susanta Sen3 Shri AIltPadmenabhan4 Shri Ashok Singh

EMPLOYERS

EMPLOYEES

The Committee on Exempted Establishments shall also consider the pendingexemption proposals where relaxation has been granted before 310~2013 and which havebeen submitted in the current financial year on behalf of the Central Board and recommendthe same to Appropriate Government for grant of exemption This will be a one-timearrangement which has been necessitated because of large number of proposals required tobe considered in the current year in view of Income Tax exemption being available to trustsmanaging their own PF only up to 3103014

A other functions of different Sub-Committees of the Central Board shall be asproposed in the agenda

Item No7 Draft Annual RepOIt-ilc~ilJo~~~~~es of the Employees ProvidentljrSI(~ J t ~ bull

~~j~ ~r19t~~~~ bull-~ bull 1 -~~lt__t-

Shri JP Chaudhary made fol P6~ft~T~t-middot ~

i Lot of amount is vbullbull bullbullIodoOV inJ~jjJi(~~T~n-- ----- amp_41 bull_bullii PSUs account for a lartnoncchOof O)~d~fauft special recovery should be

thought of to addressiii Singapore CPF has a scheme

For this purpose EPF delegation had visited Singapore to study the same few years

ago EPFO should think of a Scheme on these linesiv It nay be as cert aine d whether a case exists for reducing Administrative Charges

v Permanent account number for PF members is required urgently

The Board considered the

Shri Ml Rao made following polnts-

_____1_middotmiddotmiddotmiddotmiddotmiddotmiddotmiddot_middotL middotHuge amountof arreacsespecially theNot Immediately Realisable (NIR) category is

a cause of concern

ii The Board had earlier recommended that High Courts be approached (or setting up

special benches for EPF related matters there has been no progress in the matteriii There should be no pendency in settlement of pension cases especially death

claims

iv Even though Annual Accounts slips contain columns for Date of Birth Date of Joiningand nomination but in most of the cases the field is left blank The fields must be

completed and members informed so that they can request for modifications if any

~middotIdeg_01n

I

o j

QIbull 1

)(

bullbullbullbullebull

bullbullbullbullbullbullbullbullGbull66

bullbullbullbullbullbullbullbullbullbull~

I

I

)

v Growth in funds invested was declining This needs to be ana1vsed and put up before

the Board

Shri Ashok Singh made following points-

i The benefits In death cases be expeditedii The nomination of the members needs to be collected at the time they become

Provident Fund membersiii Rate of growth in membership is very low vis-a-vis the growth in number of

establishments covered This needs to be looked Into

iv The information about membership should be indicated in three categories vizcontributingnon-contrlbutinginoperative

v Unique no for PF members should be issued on priorityvi EPFOshould go for universal number and centralisation of database

Shri AK Padmanabhan made following points-

i Pension cases need to be

Ii Exempted establishments

iii Arrears are a cause for

Shri DL Sachdevathe Annual Report Sri JlII~n-iJ~

are I)0t furnished indaisl~u~ittuil(t1~-Ad~olm~s remuneration is very less

needs to be revised

emerge in the report for

establishments has been released onfor monitoring exempted

it is expected to considerably improvethe process CPFC also informed the B~ard that the issue of permanent PF account numberto members and centralization of accounts is under active consideration and an update

status would soon be provided to the Board

Secretary lamp Emade the following observations-

---middotmiddotmiddotmiddotmiddotmiddot----tmiddotmiddot--middotThemiddotmiddotissuemiddotasmiddottomiddotwhethirotimahdinj(EPFQueS- canbe brought under SARFAESIAct (The Securitization and Reconstruction of Financial Assets and Enforcementof Securities Act 2002) may be taken up with the Department of FinancialServices (OFS) Ministry of Finance- (MoF)

It may be ascertained as to whether standing instructions can be given to the

banks on deduction of PF dues from employers account so that the active days

required for collection of such dues is reduced

1

1 11

l

I

l

iPage 21 of 83

1

Intervening in thestatutory wage ceiling is

reduction in administrative chaa)so stated that it is being centcompanies to self declare their PF lia of all employees on their rolls and paythe dues electronicallv every month Chairrnan requested the members to consider thepossibility of a Housing Scheme for the provident fund members by taking additlonalcontribution from them so that on superannuation they can be assured of some shelter Oil

the lines of the facility extended by the Singapore Provident Fund He further observed thatthe name of the nominee should always be included in the details to be submitted by themember and a system should be put in place so that claims are settled within hours and not

___ _ __ middotmiddotmiddotmiddotmiddotmiddotmiddotdaysmiddot-asmiddot-jsmiddot-themiddotpresenqjr~cncemiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddot

III In order to ensure the PSUs do not default in remittance of PF dues the matter

requires to be taken up with the concerned administrative Departments as wellaswith Ministry of finance

IV As regards providing hovsiog to the members the US law for HOPA 1995 mayalso be studied alongwith the provisions enforced by the Singapore PFauthorities -

V Specific tlmellnes be fixed for claim settlement pertaining to death casesVI Special campaign may be organised for an early settlement of Court cases on

arrearsVIIThe matter of inoperative accounts requires urgent attention It is the liability of

EPFO to identify the members especially of those establishments which haveeither been closed or are under liquidation and settle their claims A specialdrive may be launched for this purpose

VIII Service level bench-marks may be fixed for air major items of workof EPFObullind the process of service delivery should be simplified

IX The time line for grievance be improved further

X Coverage of newry iden be monitored closely so as toincrease compliance of eligible employees

xr The issue of be ana lysed and put upbefore FIAC

revision ofIt~Ibullbullmiddott~~ent and the issue of

wage ceiling is increased He

With these observations the Board approved the Annual Report 2012-13 of theEPFO

Item No 8 Audited Annual Account in respect of Employees Provident Fund Scheme1952 Employees Pension Scheme 1995 and Employees Deposit Linked InsuranceScheme 19-76 for the financial year 2012-13

FA amp CAO explained the salient features of the audited Annual Accounts It was

stated that action has already been initiated on all the observations made by the

Pa e 28 of83bull tmiddotmiddot 1 bull

202nd m e e t t nz ofCST EPF~ 1~1)120J4 PJpoundc7bull

bull()

oeC)

bullbullbull-bullbullbullbullbullbullbullbullbullbullbull

~

bullbullbullbullbullbullbullbullbullbullbullbullbullbullbulltwobullbullbullbull

(

t

)

-

I~--------------------------------------------------------------------Comptroller amp Auditor Genltral The matter was deliberated and it was decided to adopt theaudited Annual Accounts (or the fin~nclal year 2012-13 with the following observations ofSecretary lampE-

A pro-active effort should be made to locate non-operatlve accountsSince the legal position regarding non-payment of interest In case ofinoperative accounts Is still not clear provision may be kept for thIs purposeAll matters pertaining to legacy in case of accounts should be listed out andplaced before the Finance Investment and Audit CommIttee which shouldlook Into these issues come out with solution to each problem fix a timeframe for addressing them and monitor Its implementationAU accounts should be updated by 31032014 and adequate provisionsshould be made for this purposeThe issues required to be taken up with State Bank of India should be list~dand action middotInitiatedon them If any issue requires to be dealt with at the levelof Department of Fi~anclal Services the same may be brought to the noticeof Ministry of labour

VI dear SOP should from Inoperative accountsThe Finance should monitor and reviewsuchwithdlra~~~~[~~~~[~

VII In addition on expenditure while

I

II

III

IV

V

Item No9 Declaration of

The Board considered thi~m the observations raisedby the Ministry of Finance The Bo~~Ift~mt~lt~fi~ent provisions have already beenmade in Interest SUspense Account of interest which is due underinoperative account is being used for dedding the rate of interest on Provident funddeposits for the year 2013-14 It felt that it would bemiddotInappropriate not to give dues to theemployees as per the provisions of the Scheme The Board therefore decided torecommend to the Government that Provident Fund account holders be given interest atthe rate of 875 per annum for the year 2013-14

- - -----middotmiddotmiddot--middotmiddotltemNo~-iomiddotmiddotAppointment of a Consultant for Selection of Portfolio Manager

Custodian Concurrent Auditor and Performance Evaluation of Portfolio Managers

Members of the were apprised that the Honhle Minlster-cum-Chairman has alreadvnominated $hri Sharad PatH and Dr GS2nje_evaReddy as members of the Committee toselect the Consultant The Soard ratified the same The Board also ratified the earlieraction taken by the EPFO in this regard Secretary (lampE) observed that the terms ofreference for selection of portfolio managers should specificallv indicate that there Is no

Page 29 of 83

I

conflict of interest to the extent that EPF funds are used for investment in the parent

companies of the portfolio managers

Item No 11 Pattern of Investment 2008 notified by Ministry of Labour amp Employment

The Board took note of the proposal as ccntalned in the agenda

Item No 12 Additional Investment Guide lines for 2008 Pattern of Investment

After deliberations the Board decided to refer the matter to Finance Investment and AuditCommittee for taking appropriate action AS amp FA Ministry of Labour amp Employmentobserved that investmenti SOLcategory should be restricted to states following prudentfinancial norms Further investment under this category should be evenly distributed

Item No 13 Correction of name and date of birth of PF member - Provision in theApplication software- Subsequent amendments in the Manual of Acc~~nti~g P~o(edure ofEPFO

Item No 14 Amendmentincorporating the revised rbullbull~flfbullbullbullt~JJa~~

Part II-A for

with the observation

that the name of the noItem No 1S IncreasingAccount No2 amp EDlI AdmillfsttatliM AccoUii1TfAccounl

in EPF Administration

n para 1517 of the agenda

Item No 16 List of ineligible cases for waiver of damages rejected by CPFC

The Board took note of the proposal placed before it

Request for waiver of damages (item No 17 to 27)- The agenda as contained in itemnumbers 17 to 27 were approved by the Board with the rider that the waiver would be onlyin respect of unpaid damages

Members raised the issue of certain types of industries such as SMEs M5MEs

plantations ete which are outside the ambit of SARFAESIwhich was raised earlier and needto have a separate mechanism It was decided this may be discussed in Finance Investment

and Audit Committee Secretary (lampE) observed that the idea of forming a joint lenders

forum may be explored in this regard It was decided that this may be furtherdeliberated inFinance Investment and Audit Committee

middot1Inl()1

t7J-l-Imiddotlbullmiddot1- I-bullbullbullbullbullbullbullbullbullbullbull~

bullbullbullbullbullbullbullbullf-er

bullbullbull-bullbull4w

bullbullbull-

-

(bull(bull(bullbullbullbull~(~

bull~

)

i

)

bull-bull bull

bullbull

bull

Item No 28 Grant oj exemption under Section 17 of the Employees Provident Funds andMiscellaneous Provisions A~ 1952 and Para 27A of the Employees Provident FundsScheme 1952 by Appropriate Government _

CPFCinformed the Board that a supplementary agenda note circulated earlier hasalso been placed on t~etable

It was informed to the Honble Members that in most of the cases which are broughtbefore the Board the establishments are enJoying the relaxation for years together and theissue Is br~ught before the Board for regularizing the relaxation and recommending to theappropriate Government for 3 final decision in the matter After deliberations It wasdecided that in all the cases included in the present agenda be recommended to theappropriate Government for taking a decision The Board also decided that it should beseen that none of these establishments are In default It was further decided that a detailedSOP for grantlng exemption should be brought before the Executive Committeemiddot forconsideration

As regards Tata MarcopolO-

which is pending in the office llbullbullbullearlier The Board decidedrecommended from the

was informed that it is the onlY caserelaxatlon has been grantedMarcopolo Motors ltd be

as contained in theWith these nhltPfvtl

agenda

Item No 29 13th Valuation bullbullbullbullbullbullbullReport submitted by She PA BaiitiIOOmlJ1flllr(~

Fund as on 31032009 -by the Government

The Board approved the

Item No 30 Proposal on amendment of Para 32(1 of EPS 9S-Annual Valuation ofEmployees pension F~nd

The Board decided to continue with annual valuation of the Employees PensionFund

bull__ bullmiddotmiddot_middotbull _middot-middotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddotmiddot1 ~bullbull- bullbull Jbullbullbullbull ~ bullbull middotmiddotmiddotmiddotrt-middotmiddotmiddotmiddotmiddotamiddotmiddotdionmiddotmiddottakeiitlvmiddotEPFOstncethe last CST(lOut meeting held on

25th February 2013) - for Information

The Board took note of the agenda placed before it

Page 31 of 83

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

Item No 32 Revised Estimates for the year 2013middot14 and Budget Estimates for the year

2014-15 for EPFO and Schemes administered by EPFO

Since details were not brought about clearly The Board decided that the RevisedEstimates (20i3~14) and Budget Estimates (2014middot15) to be placed before the ExecutiveCommittee who were delegated the power to approve it

Item No 33 Delegation of Administrative and Financial Powers to Chief Engineer PFD

EPFO

The Board 3Rproved the proposal as contained in the agenda

Item No 34 Grant of Senior Time Scale of P83 Rsl~60~39100 Grade Pay Rs 6600- toregular APFCs after completion of 5 years - implementation date clarification

The Board decided that since matter is a complex one adetailedmiddotanalysis be made ofthe whole proposal and placed before Executive Committee for consideration

of Instalment facility to defaultingestablishments to liquidate

The Board approved t

Item No 36 Authorizingof the CentralBeard]establishments subject to

(A Sub-Committee

The Board approved niIt~iD~JubmiddotCQJtnit1leeproposals subject to ratification 6fiR~~~inecessitated because Of large number

ed toconsider exemptionarrangement which has been

to be considered in the currentyear in view of Income Tax exemption being available to trusts managing their own PF Onlyup to 31032014

Item No 37 Agenda for amendment to the Employees Deposit linked Insurance Scheme1976

The Board Was informed that actuarial valuation of the EOLI Scheme 1976 ismiddotmiddotmiddotunderwyenymiddot Smiddotoamiddot(fltieCided that pending Iinalisation of the actuarial valuation an interim

additional benefit of 20 over and above what is admissible under the provisions of theScheme be allowed to beneficiaries

ShriMJRao stated that there is a need for providing medical benefit to members by

amending Section 6C of the Act It was felt that this issue has already been raised earlieralso will be studied further

Page 32 of 83

~i~ 202nd n1eeting of CST EPf 130120140 lgtasel1bull

CfgtOJ001ebullbullbullbullbullbullbullbullbull -bullbullebullbullbullbullbullbullbullbullbullbullbullbullbullbull

t~

liIt

rII

i

l~

tbullt

Item No38 Suggested issues by few CST members

The Board decided that whenever any fraud Is discovered civil and criminal actionshall be taken against delinquent emplOyers

Members desired that the contact details of EPF officers be updated regularly on

wwwepfindiagovin

The Board appreciated that agenda and minutes of CST and EC are available on webIt was desired that agenda and minutes of all sub-Committees of the Board and ExecutiveCommittee be also put on web The Soard also directed to explore the possibility of settingup of information kiosks in al offices of EPFO so that stake holders could access informationthrough such kiosks directly

Sh MJ Rao raised the issue of installation of lift in the SRO Vishakhapatnam Stlri AKPadmanabhan stated that the issue of office building for SRO Tambaram needs middotto be

resolved at the earliest

workers money He alsoworkers engaged in various s~mpmiddotijjg~1U

in Kolkata many of which areity dues and holding on to

in the form of PF to

middotmiddotmiddotmiddotmiddot_middotmiddot-middotmiddotmiddotmiddotmiddotmiddot_middotmiddotmiddotmiddotmiddotmiddotmiddot_middotmiddotmiddotmiddotmiddotmiddot11middotmiddotbullbullbull bullbull

Page 33 of 83