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Our hard earned money is collected in the Employees Provident Fund Organization (EPFO) and whenever needed, we withdraw our money from here and carry out our work. But in one case, EPFO ​​has received a big blow from the Telangana High Court. The court has clearly said that the provident fund (PF) money of a retired employee cannot be asked back, even if the company has violated the rules in paying that amount. The court cancelled the recovery notice of ₹2.5 crore issued by EPFO.

What is the whole matter?
According to media reports, this case concerns retired employee JV Nripendra Rao, who retired in 2023. At the time of retirement, he received ₹2.5 crore from his PF account. He was also supposed to receive approximately ₹70 lakh, but this amount was stuck in Yes Bank bonds. Due to banking and regulatory action, these bonds were frozen, preventing payment.

The dispute began when the company revoked the exempt status of its PF trust effective March 1, 2023. According to regulations, after a PF trust loses its exempt status, it must transfer all its PF funds to the EPF. The EPFO ​​alleged that instead of doing so, the company paid Rao ₹2.5 crore on July 21, 2023, which was against the provisions of the EPF Act. Subsequently, on February 17, 2025, the EPFO ​​sent a notice to Rao, asking him to return the ₹2.5 crore amount along with 12 percent annual interest within seven days. Distressed by this notice, Rao approached the Telangana High Court.

PC- Upstox.com