14 hrs ago
Consumer court orders EPFO interest over delayed provident fund claim
A retired worker asked EPFO to pay his provident fund money.
The money was worth more than ₹14 lakh.
A consumer court said EPFO took too long to settle the claim.
EPFO said the first set of papers was incomplete.
The court said EPFO did not prove that it had formally rejected or returned the claim at that time.
It ordered EPFO to pay 6% yearly interest for the 35-day delay.
EPFO has 45 days to follow the order.
People can check their claim status online or complain through the EPFO grievance website.
The Mumbai Suburban District Consumer Disputes Redressal Commission found EPFO deficient in service over a 35-day delay.
The delayed claim was worth ₹14,06,272 and was submitted by a former Fleet Maritime Services employee.
The commission ordered EPFO to pay 6% annual interest for the delay period from 9 November to 13 December 2016.
EPFO argued the original claim was incomplete and that a complete document set arrived on 2 December 2016.
Members can check claims through the Umang app, EPFO portal, SMS, missed call or toll-free numbers, and file grievances through EPFiGMS.
- Who
- The Employees' Provident Fund Organisation and a former employee of Fleet Maritime Services (India) were involved; the Mumbai Suburban District Consumer Disputes Redressal Commission issued the order.
- What
- The commission ordered EPFO to pay 6% annual interest on ₹14,06,272 for a 35-day delay in settling a provident fund claim.
- Where
- The case was decided by the Mumbai Suburban District Consumer Disputes Redressal Commission in Mumbai.
- When
- The claim was submitted on 19 October 2016; the delay period was 9 November to 13 December 2016, and the order was reported last week.
- Why
- The commission found that EPFO had not satisfactorily shown that the original claim was incomplete or that it had communicated a rejection to the claimant.
Consumer commission’s findings
EPFO’s defence
Whether the claim was incomplete
Consumer commission’s findings
The commission said EPFO failed to satisfactorily establish that the claim was incomplete when submitted on 19 October 2016.
EPFO’s defence
EPFO said the claimant did not submit a joint declaration with the original claim, so it was returned on 7 November 2016.
Responsibility for the delay
Consumer commission’s findings
The commission held that EPFO should have settled the claim within the 20-day period under the EPF Scheme, 1952, and that the delay was a deficiency in service.
EPFO’s defence
EPFO argued that the complete set of documents was received only on 2 December 2016 and that the claim was settled on 14 December, within 20 days of that submission.
Proof of communication
Consumer commission’s findings
The commission noted that EPFO did not show a written rejection letter or other communication proving that the original claim had been returned as incomplete.
EPFO’s defence
EPFO maintained that the original claim had been returned because the required joint declaration was missing.
Key facts
- Claim amount
- ₹14,06,272
- Interest ordered
- 6% per annum
- Delay period
- 35 days, from 9 November to 13 December 2016
- Initial claim date
- 19 October 2016
- Settlement date
- 14 December 2016
- Compliance deadline
- 45 days
- Grievance portal
- EPFO Grievance Management System at epfigms.gov.in
Quotes
Mumbai Suburban District Consumer Disputes Redressal Commission
Consumer dispute commission that adjudicated the retired employee’s complaint against EPFO
“On the evidence available on record, the Opposite Party has failed to satisfactorily establish that the claim was incomplete on 19.10.2016.”
livemint.com
Sources
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