A retired employee working in Fleet Maritime Services (India) Pvt Ltd submitted a PF claim on October 19, 2016 for an amount exceeding ₹14 lakh. As per the rules of EPF Scheme, 1952, EPFO has to settle the claim within 20 days, but in this case there was a delay of 35 days in settling the claim. So the former employee filed a complaint with the Mumbai Suburban District Consumer Commission.
The court rejected EPFO’s contention
EPFO defended itself by claiming that the original claim was returned on November 7, 2016, as it did not have the required joint declaration. After receiving the complete documents on December 2, the claim was settled on December 14 within a time limit of 20 days.
However, the Commission rejected this argument of EPFO. The court said that EPFO could not produce any such written rejection letter or any evidence informing about the incomplete document.
Court order and time frame
Terming the delay as a ‘deficiency in service’, the Commission ordered that the EPFO be liable to pay interest at the rate of 6% per annum on an amount of ₹14,06,272 for the delay of 35 days from November 9, 2016 to December 13, 2016. EPFO has been given 45 days to comply with this order.
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