EPFO Ordered to Compensate Employee ₹50,000 for Delayed Provident Fund Transfer
EPFO asked to pay ₹50,000 to employee for taking 10 years to process Provident Fund transfer from old to new account
Mint
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The District Consumer Disputes Redressal Commission in Chandigarh has ordered the Employees' Provident Fund Organisation (EPFO) to pay ₹50,000 to an employee for a 10-year delay in transferring funds from his old Provident Fund account to a new one. This ruling highlights EPFO's failure to address software issues that led to the prolonged process.
- 01EPFO delayed the transfer of funds for nearly a decade.
- 02The employee initially claimed ₹11.07 lakh but received only ₹6.21 lakh.
- 03The delay was attributed to the account being classified as inoperative.
- 04The commission deemed EPFO's actions as a deficiency of service.
- 05EPFO must pay ₹50,000 in compensation and comply within 60 days.
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The Employees' Provident Fund Organisation (EPFO) has been ordered to compensate an employee ₹50,000 by the District Consumer Disputes Redressal Commission in Chandigarh due to a 10-year delay in transferring his Provident Fund (PF) balance from an old account to a new one. The case involved an employee who worked at Tech Mahindra in 2009 and later joined Infosys, resulting in two PF accounts. After applying for the transfer in 2010, the employee faced continuous delays and filed a Right to Information (RTI) application in 2011 to check the status of his request. It wasn't until April 16, 2020, that EPFO transferred ₹6.21 lakh to his new account, despite his claim that he should have received ₹11.07 lakh. The EPFO later cited a technical error for not crediting interest during the delay, which the commission found unacceptable. The commission ruled that the prolonged delay constituted a deficiency in service and ordered EPFO to pay the employee compensation for the harassment caused, along with litigation costs. EPFO is required to comply with the order within 60 days, or face additional interest on the compensation amount.
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This ruling emphasizes the importance of timely processing of Provident Fund transfers, which can affect employees' financial planning and savings.
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