Citizens' Issues
Over Rs22,636 crore lying in inoperative PF accounts

According to minister of state for labour and employment Kodikunnil Suresh, member-wise account of inoperative accounts was not maintained centrally in the Employees Provident Fund Organisation

More than Rs22,636 crore is lying in inoperative accounts in the Employees Provident Fund, minister of state for labour and employment Kodikunnil Suresh informed the Lok Sabha on Monday.


We had earlier written: Half of the money with EPFO Nagpur office is unclaimed deposits! (Half of the money with EPFO Nagpur office is unclaimed deposits!)


The minister said the data relating to member-wise account of inoperative accounts was not maintained centrally in the Employees Provident Fund Organisation (EPFO). As per state-wise details, the total sum in inoperative accounts amounted to Rs22,636.57 crore, he added.


Answering another question, he said from 2010 onwards, there had been 65 complaints by labourers alleging harassment or exploitation by EPFO officials.


Replying to another question, the minister said from 2010 onwards, 398 complaints had been received by EPFO’s Vigilance Wing.




4 years ago

Are the EPF people giving Annual statements to members, i.e. by post


4 years ago

Are they transferring funds to other PF accounts when requested and if not why?
Are they making payments when requested if not why?
Who will pay Interest whose funds have not been transferred. Whether Interest will be paid by the Govt. or PF dept. employees.
That is why there is so much accumulation and shown as unclaimed.In actuality the position is somewhat different.


4 years ago

In Exempted EPF a/cs by Companies,they give Annual Statements to Members - Govt. EPF Office do not give them. Now that EPF Offices have Computerised their Accounts , They can easily send Annual Statements to Members to their Addresses Direct.It Helps Members to Know and Claim Back.
2 ) For these UnPaid Amount of Rs. 22,636 Crores , States EPF Offices Can Display in their WEBs , with Amount,Name & Address of Member, Account Number, so that Genuine Member / Heirs Can Claim the Amounts. ( 3 ) Blocking Hard Earned Money of Members During their Service Amounts to Crime.



In Reply to NSriramamurty 4 years ago

I do agree with Mr NSriramamurty. Feel they have no heart in the hard earned money of members

Why International Women’s Day has a special significance this year

The outrage over the dastardly Delhi gang-rape has subsided, but at the end of it, women seem to be paying a price for the lack of security it exposed. People don’t trust ham-handed police investigations, more importantly we don’t really trust the justice system to deliver. What lies ahead? Lets hear Justice Sujata Manohar on “The case for delivering better Justice to Women: A view from the Judge's Chair” on this International Women’s Day (supported by DSP BlackRock's Winvestor Initiative)

In December last year, it seemed as if all of India had risen in protest against the horrendous gang-rape of a Delhi student who later succumbed to her injuries. Students, teachers, parents and, it would seem, every male member of their family stood with the women protesters, braving the cold as well as the abuse, the lathi charge and the water cannons unleashed by the police at us, the people of India.


And yet, when the protests have died down, it seems as if life has become tougher for women. As teenagers, we enjoyed enormous freedom at home—so long as we were willing to deal with the curse of constant eve teasing. Today’s teens are not so lucky. We seem to have regressed!


Women half my age, watch their daughters even when they are 100 meters away from home. Some need them to text their parents every hour. Women’s hostels have tightened curfew timings and parents watch the clock until their daughters are safely home. The State, which cannot offer protection to women, finds unique ways to evade responsibility. Women should stay at home after 6 pm. Women should dress more conservatively. Women should wear overcoats—like a burqua. Why are they “painted and dented”? It is almost as though 25 years of hard-won freedom is vanishing before our eyes!


The new motto for mothers is—avoid trouble—even if it means locking your daughters up. Why? Probably because people don’t trust ham-handed police investigations, and want to protect victims of abuse from more humiliation that could scar them for life.


More importantly, we don’t really trust the justice system to deliver. Given the national mood, the subject for Moneylife Foundation’s 4th International Women’s Day event (supported by DSP BlackRock's Winvestor Initiative) chose itself. We are fortunate to have someone of the eminence of Justice Sujata Manohar to speak on “The case for delivering better Justice to Women: A view from the Judge's Chair”.


Justice Sujata Manohar has broken many glass ceilings. The first lady judge of the Bombay High Court, and the first lady Chief Justice of the Bombay High Court and the Kerala High Court and a Supreme Court judge from 1994-99.


In her early years as a young lawyer, Sujata Manohar used to take up family law cases under legal aid and also worked pro bono for several NGOs. Since the year 2000, she has been a member of the National Human Rights Commission; her focal point of work was on trafficking, women’s issues and AIDS. She is also the chairperson of the Committee on Feminism and International Law of the International Law Association.


It is absolutely fitting that the keynote address on 8th March will be delivered by Justice Manohar!


And even more so that the two women activists that we will felicitate this year have done pathbreaking work on women’s rights. They are: Jyoti Mhapsekar of Stree Mukti Sanghatna and Meenu Seshu of Sangram. But more about them later!


Please register to join us on 8th March at the Yacht Club, Mumbai, for this session!


Having believed in the FM’s promises, foreign brokers suffer a rude awakening

Foreign brokers and institutions’ expectations were dashed when the recent Union Budget did not meet their expectations after being seduced by the finance minister not so long ago. Why is it not a surprise to us?

Just when foreign brokers and investors were getting ready to toast their cocktails to the possibility of the finance minister pandering to their expectations, they were taken aback by a ho-hum budget that addressed the vast majority of the electorate instead. Earlier, we had written how the finance minister was wooing foreign capital and broking firms like Citi were falling for it. In a pre-budget meeting Palaniappan Chidambaram, finance minister, had addressed several foreign institutional investors (FIIs), debt investors and corporates in Singapore and Hong Kong and briefed them of the status of India’s economy and how he hopes to fix it by magically reducing the fiscal deficit to 3% by 2016-2017. At that time we had said that this would not be possible given that the general elections nearing and that the government was draining away coffers to win votes. Hence, there was no way that any rational investor could buy the logic. But foreign investors indeed fell for this and got their hopes dashed.

The reality is captured by the words of Manishi Raychaudhuri, Asia Pacific Strategist, BNP Paribas, who wrote in a report on Friday: “Following FM Chidambaram’s meetings with investors across the globe in January, the financial markets were hopeful of a strong pro-growth message and fiscal consolidation signals in the budget. Disappointment came on both counts. The pro-growth message was diluted by sharp cuts in planned expenditure in FY13. The attainability of a 4.8% fiscal deficit looks suspect—though more achievable than previous years’ targets. In summary, we see no explicit direction to the budget and we are back to considering fundamental drivers and global cues.” The BNP report is titled: “Let’s Forget the Budget and Move On”.

However, this isn’t surprising to us, given our understanding of finance minister, P Chidambaram. In the Fortnightly Market View column readers were cautioned that the finance minister is not exactly a good ‘listener’. Anybody who has observed the finance minister carefully over the years would have seen this coming.

BNP Paribas was disappointed that the budget did not address growth concerns (i.e. lack of growth). The report stated: “The budget for FY14 didn’t quite give a sense of direction. Ostensibly the thrust was on growth—with a 29.4% increase in planned expenditure, but in reality that increase was on the back of a 17.5% reduction in FY13 planned expenditure.”

Furthermore, with respect to double-taxation, the BNP Paribas report mentions: “The classification of Tax Residency Certificates (TRC) as “necessary but not sufficient” documents for claiming tax benefit under DTAA is bound to create uncertainty in the market about fund inflows from countries that have double taxation agreements with India. Such uncertainty is already visible in Friday’s market reaction.” It is pertinent to note that GAAR has been pushed and postponed to 2016, and therefore caused enough uncertainty so far, and will continue to be uncertain till it is finally implemented. It is also pertinent to note that domestic investors were actually taking the opposite tack as foreign investors—by selling in droves. Perhaps, domestic investors know the ground realities better than foreign investors and brokers. We had written about this earlier as well. Click here to read about the differences between FIIs and DIIs in terms of fund flows.

This isn’t the first time that foreign investors’ expectations were belied and it won’t be the last either.


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