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EPFO to pay ₹50,000 compensation for 10-year-delay in PF transfer
12 May 2026

The Chandigarh District Consumer Disputes Redressal Commission has directed the Employees' Provident Fund Organisation (EPFO) to pay ₹50,000 as compensation.

This is for a decade-long delay in transferring funds from an employee's old provident fund (PF) account to his new one.

The case dates back to 2009 when the complainant was employed by Tech Mahindra and later joined Infosys in 2010, leading to the opening of two PF accounts.

Employee's attempts to resolve issue
Transfer attempts

To resolve the issue of having two PF accounts, the employee applied through Infosys in September 2010 for transferring his old account's funds to the new one.

However, he received no response from EPFO despite several attempts.

This prompted him to file an RTI application on September 9, 2011, seeking information about his transfer application status.

Long wait for PF transfer
Fund transfer

The EPFO responded to the RTI on November 9, 2011, triggering a long exchange of correspondence between the two parties.

Finally, on April 16, 2020, EPFO transferred ₹6.21 lakh to the employee's new PF account.

However, he claimed that based on his calculations, he should receive ₹11.07 lakh instead of what was transferred by the EPFO.

EPFO's explanation for delay
Interest payments

In response to the employee's objection, EPFO claimed that interest payments were stopped as the account was declared inoperative from April 1, 2011.

Hence, no interest income for the period from 2012-13 to 2015-16 was credited to his account.

The employee filed another RTI appeal on May 23, 2021 but received no response or payment of balance amount/interest from EPFO.

Employee files consumer complaint
Legal action

Alleging deficiency in service and unfair trade practices by EPFO, the employee filed a consumer complaint before the Chandigarh district commission on July 22, 2021.

In its defense, the EPFO admitted that while it was informed about the delay in PF transfer, it could not process it due to ongoing technical difficulties with claim processing.

What did the EPFO say?
Delay explanation

The EPFO explained that a technical error prevented the system's software application from crediting interest for the financial year 2010-11.

As a result, an amount of ₹64,841 was transferred to the employee's new PF account.

After reviewing his concerns about an incorrect amount, they credited his account with an updated interest amount of ₹3.67 lakh. The rest of the sum is yet to be transferred.