NHPC LTD.

EMPLOYEES' PROVIDENT FUND RULES

CHAPTER - I
PRELIMINARY
1.

NAME OF THE FUND

1.1

The Fund shall be called "National Hydroelectric Power Corporation

Limited Employees' Provident Fund" New Delhi, to be briefly named as
"NHPC EP Fund". These Rules will come into force with effect from
1.4.1985 (existing Rules recognised under Income Tax Act, 1961 upto
31.3.1985)

2.
2.1

DEFINITIONS
"Corporation" means the National Hydroelectric Power Corporation
Limited (including the Projects/Units/Offices) and any of its duly
authorised Officers acting for and on behalf of the Corporation;

2.2

"Fund"/"Provident Fund" means the National Hydroelectric Power

Corporation Limited Employees' Provident Fund;

2.3

"BOARD" means the Board of Trustees;

2.4

"Trustee" means a member of the Board of Trustees;

2.5

"Chairman" means the Chairman of the Board of Trustees;

2.6

"Secretary" means the Secretary of the Board of Trustees;

2.7

"Member" means a member of the Fund;

2.8

"Basic Wages" means all emoluments which are earned by an

employee, while on duty or on leave with wages in accordance with the
terms of the contract of employment and which are paid or payable in
cash to him, but does not include :
The cash value of any food concession;
Any Dearness Allowance (that is to say, all cash payments by whatever
name called, paid to an employee on account of a rise in the cost of
living), house rent allowance, overtime allowance, bonus, commission or
any other similar allowance payable to the employee in respect of his
employment or of work done in such employment;
Any presents made by the employer.

2.8.1.
2.8.2.

2.8.3.

2.9.

"Contribution" means a contribution payable in respect of a member of

the Fund by the member and the Corporation;

2.10
2.10.1

"Family" means :
In the case of a male member his wife, his children, whether married or
unmarried, his dependent parents and his predeceased son's widow and
children;
Provided that if a member proves that his wife has ceased, under the
personal law governing him or the customary law of the community to
which the spouses belong, to be entitled to maintenance she shall no
longer be deemed to be a part of the member's family for the purpose of
these Rules, unless the member subsequently intimates by express
notice in writing to the Board of Trustees that she shall continue to be so
regarded; and
In the case of a female member, her husband, her children, whether
married or unmarried, her dependent parents, her husband's dependent
parents and her deceased son's widow and children;
Provided that if a member by notice in writing to the Board of Trustees
expresses her desire to exclude her husband from the family, the
husband and dependent parents shall no longer be deemed to be a part
of the member's family, for the purpose of these Rules, unless the
member subsequently cancels in writing any such notice;
EXPLANATION
In any of the above two cases, if the child of a member. or as the case
may be, the child of a deceased son of the member has been adopted
by any other person and if, under the personal law of the adopter,
adoption is legally recognised such a child shall be considered excluded
from the family of the member;

2.10.2

2.11

"Children" means legitimate children and includes adopted children if the

Trustees are satisfied that under the personal law of the member,
adoption of a child is legally recognised;

2.12

"Financial Year" means the year commencing on the first day of April;

2.13

"Apprentice" means a person , who according to the certified Standing

Orders of the Corporation is an apprentice or who is declared to be an
apprentice by the authority specified in this behalf by the appropriate
Government;
"Chairman and Managing Director" means the Chairman and Managing
Director of the Corporation;

2.14

2.15

"Commissioner" means a Commissioner for Employees Provident Fund

appointed under the Employees Provident Fund Scheme, 1952.

2.16

"Continuous Service" means uninterrupted service under the Corporation

and includes service which is interrupted by sickness, accident,
authorised leave, strike which is not illegal or cessation of work not due
to the employee's fault;

2.17

"Employee" means any person who is employed for wages in any kind of
work manual or otherwise in or in connection with the work of the
Corporation and who gets his wages directly or indirectly from the
employer and includes any person employed by or through a Contractor
in or in connection with the work of the Corporation;

2.17.1

The terms "Employee" will include "Daily Rated Employees" and

Apprentices (not being one engaged under the Apprentices Act, 1961 or
under Industrial Employment (Standing Orders) Act, 1946. He/She shall
be entitled and required to become a member of the fund from the date
of joining the Corporation.
The terms 'Employee' shall not include employees of Government
Departments and other Industrial concerns working with the Corporation
on deputation or on foreign service terms;

2.17.2

2.18

"Excluded Employees" means an employee who having been a member

of the Fund withdrew the full amount of his accumulations in the Fund
under the Rules governing final settlement of accounts in respect of
superannuation , or migration for permanent settlement abroad;

2.19

"Employer" shall mean Head of the Project/Unit/Office concerned or any

other officers so authorised to act on behalf of any of the above
mentioned officers by the Chairman & Managing Director;

2.20

"Family Pension Fund" means the Family Pension Fund established

under the Family Pension Scheme;

2.21

"Family Pension Scheme" means the Employees Family Pension

Scheme, framed under section 6-A of the Employees Provident Funds
and Miscellaneous Provisions Act 1952;
"Insurance Fund" means the Deposit-Linked Insurance Fund established
under sub section (2) of Section 6-C of Employees Provident Funds &
Miscellaneous Provisions Act, 1952;

2.22

2.23

"Insurance Scheme" means the Employee' deposit Linked Insurance

Scheme framed under Sub-section(1) of Section-6-C of Employees
Provident Funds & Miscellaneous Provisions Act, 1952;

2.24

"Scheme" means the Employees Provident Fund Scheme framed under

Section-5 of Employees Provident Funds & Miscellaneous Provisions
Act, 1952;

2.25

"Act" means Employees' Provident Funds & Miscellaneous Provisions

Act, 1952;

2.26

"Government Security" shall have the meaning assigned to it in the

Public Debt Act, 1944.

2.27

"Quarter" means a period of three months commencing on the first day

of January, the first day of April, the first day of July and the first day of
October of each year;

2.28

All other words and expressions not defined herein shall have the
respective meaning assigned to them in the Employees' Provident Funds
& Miscellaneous Provisions Act, 1952 and the Employees' Provident
Fund Scheme, 1952.

3.
3.1

FUND CONSTITUTED UNDER AN IRREVOCABLE TRUST

The Fund shall be constituted under a Trust which shall be irrevocable
save with the consent of all the beneficiaries and save in the cases
prescribed by Section 58 (c) (1) (f) of the Income Tax Act. No money
belonging to the Fund in the hands of the Trustees shall be recoverable
by the Corporation under any pretext whatsoever nor shall the
Corporation have any lien or charge of any description on the same,
save as herein provided.

3.2
3.2.1
3.2.2
3.2.3

The fund shall consist of;

Contributions to be paid by the members under these rules.
Contributions to be made by the Corporation under these rules.
Interest and dividend which the investment of money forming the Fund
from time to time may yield;

3.2.4

Balance transferred from any other Provident Fund recognised by the

Commissioner of Provident Fund/Commissioner of Income Tax including
transfer of G P F, where such transfers are acceptable under these rules;
Sums forfeited to the Fund under these Rules;
Any contributions of a contingent nature made by the Corporation,
subject to the provisions of the Employees' Provident Funds and
Miscellaneous Provisions Act, 1952 and
Any capital gain arising from the sale, exchange or transfer of capital
assets.

3.2.5
3.2.6
3.2.7

CHAPTER - II
BOARD OF TRUSTEES
4.
4.1

MANAGEMENT
The custody, control and management of the Fund shall be vested in a
Board of Trustees constituted by the Corporation, which shall operate
centrally at the Corporate Office. The Board of Trustees may delegate
powers to any employee of the Corporation for day to day operation of the
Trust at the Corporate Office/Projects/Units.

4.1.1 Wherever separate Trusts have been formed/set-up in any of the

Projects/Units of the Corporation, the same will automatically get merged /
amalgamated in the Board of Trustees being constituted centrally under

these Rules.
4.2(a) The Board of Trustees shall consist of, an equal number of representatives
of the employer and the employees; provided that total number of Trustees
will neither be less than 4 nor more than 12. The exact number of seats
and the manner in which seats will be distributed amongst various
Projects/Units of the Corporation (including the Corporate Office) shall be
decided by the Chairman of Board of Trustees and the same will be
notified. The number of Trustees of the Board shall be so fixed as to afford
as far as possible representation to workers in Projects/Units Offices of the
Corporation. In case of dispute, if any, the decision of the Regional
Provident Fund Commissioner will be final.
4.2(b) Representatives of the employer shall include an executive of the Finance
and Accounts Department at Corporate Office not below the rank of Senior
Manager, who shall be the Chairman and the Officer-in-Charge of the
Provident Fund at Corporate Office shall be the Secretary of the Board of
Trustees. The remaining Trustees will be nominated by the Chairman &
Managing Director.

4.2.(c) Representatives of the employees shall be elected by the members of the

Fund in an election to be held for the purpose on any day;
Provided that wherever there is a recognised Union under Code of
Discipline or under any Act, such Unions shall nominate the employees
representatives;
Provided further wherever there is no recognised Union under Code of
Discipline or under any Act, and more than one Registered Unions are
functioning, only the Union with the largest number of members but with
minimum of 15% membership shall have the right to nominate employees
representatives and in case there is only one Registered Union
functioning, it shall have the right to nominate the employees'
representatives on the Board of Trustees if it has a minimum of 15%
membership.
4.3

The Board of Trustees shall employ or nominate an "Executive Officer" at

each Project/Unit who subject to its general superintendence and control,
shall function as their executive officer to deal with such matters pertaining
to administration, management, accounting etc. of the Fund as are
authorised by the Board of Trustees under these Rules. The "Executive
Officer" may be invited to any meeting of the Board of Trustees to
participate in its deliberations but shall not be entitled to vote.

5.

PROCEDURE OF ELECTION OF EMPLOYEES' REPRESENTATIVES

5.1

TO ACT AS TRUSTEES
For election of employees' representatives as Trustees, the under noted
procedure shall be followed.

5.1.1 PROCEDURE FOR ELECTION

The employer shall fix a date for receiving nominations from the
candidates for election as employees' representatives. He shall also fix a
date for withdrawal of nominations and the date of election which shall not
be earlier than three days or later than ten days after the closing of the
date for withdrawal of nominations. The date so fixed shall be notified to
the members at least seven days in advance. The notice shall be affixed
on the Notice Board(s) of all the Projects/Units/Offices of the Corporation
(including the Corporate Office). The Notice shall also specify the number
of seats to be filled by the employees representatives. The election notice
and procedure shall be published/conducted in the regional language
besides in English. A copy of such notice shall also be sent to the
recognised Trade Unions(s) concerned in the Corporation and to the
Regional Provident Fund Commissioner concerned.
5.1.2 QUALIFICATIONS OF CANDIDATES FOR ELECTION
Any employee of the Corporation who is a member of the Fund and who is
not less than 21 years of age may, if nominated as hereinafter provided
under these Rules, be a candidate for election as an employees'
representative. An outgoing Trustee shall be eligible for re-election or renomination, as the case may be.

5.1.3 NOMINATION OF CANDIDATES FOR ELECTION

Every nomination shall be made in the Form annexed to these Rules
(Appendix-I). Each nomination shall be signed by the candidate to whom it
relates and attested by atleast two members of the Fund, other than the
proposey. This form, duly completed, should reach the Returning Officer to
be appointed by the employer on or before the closing date fixed for
receiving the nominations.
5.1.4 SCRUTINY OF NOMINATION PAPERS
The Returning Officer shall scrutinise the nomination papers so received,
on the next working day following the closing date of nominations. The
candidate or his representative may be present, if they so desire.
Incomplete/invalid nomination papers shall be rejected.
5.1.5 VOTING IN ELECTION

i.

If the number of candidates who have been validly nominated is equal

to the number of seats, the candidates shall forthwith be declared
duly elected.
ii. If the number of candidates is more than the number of seats,
election shall be conducted by the Returning Officer appointed for the
purpose by the employer.
iii. The election shall be conducted in the presence of an Officer, if so
deputed by the Regional Provident Fund Commissioner, to whom a
formal intimation will be sent about such election.
iv. Every member of the Fund shall have as many votes as there are
seats of the employees' representatives to be filled on the Board;
Provided that each member shall be entitled to cast only one vote in favour
of any one candidate.
5.1.6 The voting shall be by secret ballot.
6.
6.1

TERM OF OFFICE
The term of office of the Trustees shall be three years commencing from
the date of their nomination/election provided that any such Trustee shall,
notwithstanding the expiry of the said period of three years, continue to
hold office until the nomination of his successor is made.

6.2

An outgoing Trustee shall be eligible for re- nomination/re-election.

7.
7.1

CHANGE OF TRUSTEES
In the event of a Trustee resigning his office, or a Trustee being unable to
continue in office, consequent upon death, retirement, resignation of
service, transfer or otherwise, his vacancy shall be filled in, and any
Trustee so nominated/elected in such a vacancy shall hold office for the
remainder of the term of office of the Trustee in whose place he is so
nominated/elected.
In the event of a Trustee elected or nominated, ceasing to be a Trustee
during the tenure of the Board, his successor shall be elected or
nominated as the case may be, in the manner, hereinbefore provided for
nomination or election; Provided that the Trustee so elected / nominated,
shall hold office for unexpired term of the Board of Trustees.

7.2

8.
8.1

RESIGNATION
A Trustee may resign his office by a letter in writing addressed to the
Chairman and his office shall fall vacant from the date on which his
resignation is accepted by the Chairman.

9.
9.1

CESSATION AND RESTORATION OF TRUSTEESHIP

A Trustee ceases to be a Trustee on the Board if he;
i. ceases to be an employee of the Corporation;
ii. ceases to be a member of the Fund;
iii. incurs any of the disqualifications mentioned in Rule 10;
iv. fails to attend three consecutive meetings of the Board without
obtaining leave of absence from the Chairman of the Board of
Trustees;
is a nominee of representative or recognised Union or Union ceases
v.
to be representative or recognised;
Provided that the Chairman of the Board of Trustees may restore him to
trusteeship if he is satisfied that there were reasonable grounds for such
absence.

10.
10.1

DISQUALIFICATIONS FOR TRUSTEESHIP

A person shall be disqualified for being nominated as or for being a
Trustee;
i. If he is declared to be of unsound mind by a competent court.
ii. If he is an undischarged insolvent; or
iii. If before or after the commencement of these Rules he has been
convicted of an offence involving moral turpitude; or
iv. If he ceases to be an employee of the Corporation.

10.2

In case of any dispute or doubt, the matter shall be referred to the

Regional Provident Fund commissioner in whose region the Corporate
Office or the Project/Unit/Office is situated. His decision in the matter shall
be final and binding.

10.3

The employer may remove from office any Trustee, if in his opinion such
Trustee has ceased to represent the interest which he purports to
represent on the Board, after giving him a reasonable opportunity of
making any representation against the proposed action.

10.4. All matters not provided for in these Rules shall be regulated by the
approved NHPC EP Fund Rules and the decision of the Regional
Provident Fund Commissioner shall be final.

11.

"TRUSTEES"POWER TO EMPLOY ANY PERSON FOR MANAGING

11.1

THE AFFAIRS OF THE TRUST

The Board of Trustees shall have power to employ any person (including
any one or more of their members) to do any secretarial, legal,
accountancy or other work, which they may consider necessary or
expedient in connection with the management of the Fund or the funds
thereof.

12.
12.1

TRUSTEES' POWER TO OPERATE BANK ACCOUNT

Board of Trustees shall operate on the accounts of the fund with Banks,
Post Offices and discharge, receive or otherwise dispose of, as may be
necessary, Government Promissory Notes, Securities, Interest Warrants
etc. relating to the Fund and shall, on behalf of theBoard' reassign to
members in accordance with the Rules mentioned hereinafter, Life
Insurance Policies which the members might have assigned to the Board
as security for payment of withdrawals from the fund.

13.
13.1

INVESTMENT
All moneys belonging to the fund shall be deposited in the Reserve Bank
or State Bank of India or in such other Nationalized or Scheduled
Commercial Bank as may be approved by the Central Government from
time to time or shall be invested, subject to such directions as the Central
Government may issue from time to time or shall be invested, subject to
such directions as the Central Government may from time to time give in
the securities mentioned or referred to in clause (a) to (d) of Section 20 of
the Indian Trusts Act, 1882 (ii of 1882).
(Office Order No. 34/2003 dated 13.05.03)

13.1.1 Investments made, if any, by any of the Trust(s) of any of the

Projects/Units will be got transferred/assigned in favour of the Fund, being
constituted at the Corporate Office under these Rules.
13.2

The securities shall be obtained in the name of Board of Trustees and

shall be kept in the safe custody of Scheduled Bank under the credit
control of Reserve Bank of India.

13.3

Failure to make investment as per direction of the Government shall make

the Board of Trustees severally and jointly liable to surcharge as may be
imposed by the Central Provident Fund Commissioner or his
representatives.

13.4

The Corporation shall transfer to the Board of Trustees the contribution

payable to the Fund by the corporation and the employees by fifteenth of
each month following the month for which the contributions are payable.
The Corporation is liable to pay damages to the Board of Trustees for any
delay in payment of contribution in the same manner as an un-exempted
establishment is liable under similar circumstances.

13.5

All expenses incurred in respect of, and loss, if any, arising from, any
investment shall be charged to the Fund.

13.6

The Board of Trustees, shall maintain a script wise register and ensure
timely realisation of interest and redemption proceeds.

14.

POWER OF TRUSTEES FOR SALE AND HYPOTHECATION ETC OF

THE INVESTMENTS
The Board of Trustees may, from time to time, as and when necessary,
raise such sum or sums as may be required for the purposes of the Fund
by sale, hypothecation or pledge of the investments held by them or of a
sufficient part thereof.
RECEIPT FOR MONEY RECEIVED BY TRUSTEES
Receipt for moneys received by the Trustees and endorsement on
cheques, drafts and other documents received by the Trustees shall be
made by the Secretary and/or any other officer so authorised for an on
behalf of the Fund.

14.1

15.
15.1

16.
16.1

MEETING
The Board of Trustees shall meet at such place and time as may be
appointed by the Secretary.

16.2

The Board of Trustees shall meet at least once in three months.

16.3

The Secretary may, whenever he thinks fit, and shall, within fifteen days of
the receipt of a requisition in writing from not less than three members of
the Board call a meeting thereof.

17.
17.1

NOTICE OF MEETING AND LIST OF BUSINESS

Notice of not less than 15 days from the date of posting/issue of notice
indicating place of meeting, together with a list of business to be
conducted at the meeting, shall be sent to each Trustee; provided that
when the Secretary, with the approval of the Chairman, calls a meeting for
considering any matter which in his opinion is urgent, a notice giving such
reasonable time, as he may consider necessary, shall be deemed
sufficient.

18.
18.1

CHAIRMAN TO PRESIDE AT MEETINGS

The Chairman shall preside at every meeting of the Board at which he is
present. If the Chairman is absent at any time, the Trustees present shall
elect one of them to preside over the meeting and the Trustee so elected
shall exercise all the powers of the Chairman at the meeting.

19.
19.1

QUORUM
Fifty percent of the members of the Board with equal number of
representatives of Employer and the Employees shall form the quorum.
If at any meeting the number of Trustees is less than the required quorum,
the Chairman of the Board shall adjourn the meeting to a date not later
than seven days from the date of the original meeting, informing the
trustees of the date, time and place of the adjourned meeting and it shall
thereupon be lawful to dispose of the business at such adjourned meeting,
irrespective of the number of Trustees present.

19.2

20.
20.1

DISPOSAL OF BUSINESS
Every question considered at a meeting of the Board shall be decided by a
majority of the votes of the Trustees present and voting. In the event of an
equality of votes, the Chairman shall have a casting vote;
Provided that the Chairman, may if he thinks fit, direct that any question
shall be decided by the circulation of necessary papers to the Trustees
and by securing their opinion in writing. any such question shall be
decided in accordance with the opinion of the majority of Trustees received
within the time limit allowed and, if the opinions are equally divided, the
opinion of Chairman shall prevail;
Provided that any Trustee may request that the question referred to
Trustees for written opinion be considered at a meeting of the Board and
thereupon the Chairman may, and if the request is made by not less than
three Trustees, shall direct that it be so considered.

21.
21.1

MINUTES OF MEETING
The records of the Minutes of each meeting shall be circulated to all
Trustees and shall be signed by the Chairman after confirmation with such
modification if any, as may be considered necessary at the next meeting.
The Secretary shall maintain records of the Minutes of the meetings of the
Board.
The Secretary shall take necessary steps for carrying out the decisions of
the Board.

21.2
21.3

22.

ACTS OF THE BOARD OF TRUSTEES NOT INVALID BY REASON OF

DEFECTS IN ITS CONSTITUTION ETC.

22.1

No act or proceeding of the Board shall be deemed to be invalid by

reasons merely of any vacancy in, or any defect in the constitution of the
Board.

23.
23.1

TRUSTEES' INDEMNITY
No Trustees shall be chargeable, otherwise than in respect of money and
securities actually received by him, notwithstanding his signature to any
receipt for the sake of conformity and he shall be answerable and
accountable only for his own acts, negligence or defaults and not for those
of any other Trustee nor of any Broker, Banker or other person with whom
any of the Fund or the investments representing the same may be
deposited or upon whose advise for opinion the Trustees may act nor shall
he be answerable for the insufficiency or deficiencies of any securities nor
for any other loss, howsoever arising, save such as happens through his
own willful default.

CHAPTER III
MEMBERSHIP
24.

CLASSES OF EMPLOYEES ENTITLED AND REQUIRED TO JOIN THE

FUND
24.1(a) Every employee employed in or in connection with the work of the
Corporation other than an excluded employee, shall be entitled and
required to become a member of the Fund from the day this rule comes
into force in the Corporation.
(b)
Every employee employed in or in connection with the work of the
Corporation other than an excluded employee shall also be entitled and
required to become a member of the Fund from the day this rule comes
into force in the Corporation, if on the date of such coming into force, such
employee is a subscriber to a Provident Fund maintained in respect of the
Corporation or in respect of any other factory or establishment to which
Employees
Provident
Fund
and
Miscellaneous
Provisions
Act,1952,applies under the Corporation.
Provided that on the expiry or cancellation of order of exemption under
Section 17 of the Employees Provident Fund Act and Miscellaneous
Provisions Act, 1952, every employee who but for the exemption would
have become and continued as a member of the Fund, shall become
member of the Fund forthwith.
24.2
After this rule comes into force in the Corporation every employee
employed in or in connection with the work of the Corporation, other than
an excluded employee, who has not become a member already, shall
also be entitled and required to become a member of the Fund from the
date of joining the Corporation.
24.3
An excluded employee employed in or in connection with the work of the
Corporation shall on ceasing, to be such an employee, be entitled and

24.4

24.5

24.6

25.
25.1

required to become a member of the Fund from the date he ceased to be

such employee.
On re-election of an employee or a class of employees exempted under
Paragraph 27 or Paragraph 27A of Employees Provident Fund Scheme,
1952, to join the Fund or on the expiry of cancellation of an order under
that Paragraph, every employee shall forthwith become a member
thereof.
Every employee who is a member of a private Provident Fund maintained
in respect of an exempted factory or other establishment and who but for
exemption would have become and continued as a member of the Fund
shall on joining the Corporation becomes a member of the Fund forthwith.
Notwithstanding anything contained in this rule, an officer not below the
rank of an Assistant Provident Fund Commissioner may, on the joint
request in writing, of any employee of the Corporation and his employer,
enroll such employee as a member or allow him to contribute on more
than Rupees three thousand five hundred of his pay per month if he is
already a member of the Fund and thereupon such employee shall be
entitled to the benefits and shall be subjected to the conditions of the
Fund, provided that the employer gives an undertaking in writing that he
shall pay the administrative charges payable and shall comply with all
statutory provisions in respect of such employee.
NOTE
The existing employees who are members of the "NHPC EP Fund"
recognised under Income Tax Act, 1961, shall automatically become
members of "NHPC EP FUND" being constituted under these Rules. The
membership of such employees,shall be deemed to be continuous and
uninterrupted
(Rule 24 amended vide Government of India, Ministry of Labour/ Shram
Mantralaya, Notification dated 19th October, 1990, Circulated vide letter
No.PPL- 700(Vol.III) dated 14.01.1992. The new Rule is effective from
1.11.1990.)

RETENTION OF MEMBERSHIP
A member of the Fund shall continue to be member until he withdraws
under Rule 48 the amount standing to his credit in the Fund.
EXPLANATION
In the case of claim for refund by a member under Rule 50.2 read with
Rule 50.10 the membership of the Fund shall be deemed to have been
terminated from the date payment is authorised to him, irrespective of the
date of claim.

25.2
RESOLUTION OF DOUBTS
25.2.1 If any question arises whether an employee entitled or required to
become or continue as a member. or as regards the date from which he is

so entitled or required to become a member, the decision of the Regional

Commissioner shall be final;
Provided that no decision shall be given unless both the employer and the
employee have been heard.

26.
26.1

26.2

27.
27.1

27.2

27.3

DECLARATION BY EMPLOYEES
Every employee who is required or entitled to become a member of the
Fund shall be asked forthwith to furnish and shall, on such demand
furnish to the employer, for communication to the Chairman, particulars
concerning himself and his nominee required for the Declaration Form in
the Form as at Appendix III. The employer shall enter the particulars in
the Declaration Form and obtain the signature or thumb impression of the
person concerned.
The employer shall before taking any person into employment, ask him to
state in writing whether or not he is a member of the Provident Fund and
if he is, ask for the Account Number and/or the name and particulars of
the last employer. If he is unable to furnish the Account Number he shall
require such person to furnish and such person shall, on demand, furnish
to him for communication to the Chairman particulars regarding himself
and his nominee required for the Declaration Form (Appendix III)
Employer shall enter the particulars in the Declaration Form and obtain
the signature or thumb impression of the person concerned.
Provided that in the case of any such employee who has become a
member of the Family Pension Fund under the Employees' Family
Pension Scheme, 1971, the aforesaid Declaration Form shall also contain
such particulars as are necessary to comply with the requirements of that
Scheme.

NOMINATION
Every member shall make a Nomination conferring on one or more
persons, the right to receive the amount that may stand to his credit in the
Provident Fund in the event of his death, before that amount becomes
payable, or having become payable, has not been paid. Such a
Nomination shall be made in the Form enclosed as Appendix III.
If an employee nominates more than one persons under Rule 27.1 above,
he shall, in his Nomination specify the amount of share payable to each of
the nominees in such manner as to cover the whole of the amount that
may stand to his credit in the Provident Fund.
Where the nomination is wholly or partly in favour of a minor, the member
may, for the purposes of these Rules, appoint a major person of his
family, as defined in Rule 2.10 to be the guardian of the minor nominee in
the even of the member predeceasing the nominee and the guardian so
appointed.

27.4

27.5

27.6

28.

Provided that where there is no major person in the family, the member
may at his discretion, appoint any other person to be a guardian of the
minor nominee.
Where an employee has a family at the time of making Nomination the
Nomination shall be in favour of one or more persons belonging to his
family. Any nomination made by an employee in favour of a person not
belonging to his family shall be invalid.
If at the time of making a Nomination, the employee has no family, the
Nomination shall be in favour of any person or persons, but if the
employee subsequently acquires a family, such Nomination shall forthwith
be deemed to be invalid and the employee may be allowed to make a
fresh Nomination in favour of one or more persons belonging to his family.
A Nomination made by an employee may, at any time, be modified by him
after giving as written notice to the Trustees of his intention of doing so in
Appendix IV. If the nominee predeceases the employee, the interest of
nominee shall revert to the employee, who may thereupon make a fresh
Nomination in respect of such interest.
27.7 A Nomination or its modification shall take effect to the extent that it
is valid on a date on which it is received by the Trustees.

ALLOTMENT OF ACCOUNT NUMBER

28.1 Each member of the Fund shall be allotted an Account Number
which will be communicated to him by the Secretary or any other Officer,
so authorised by him on his behalf.

CHAPTER - IV
CONTRIBUTION AND ACCOUNTS
29.
29.1

CONTRIBUTIONS
The contribution payable by the Corporation to the Fund shall be @ 12%
of the basic wages, Dearness Allowance (all kinds of Dearness Allowance
by whatever name called) including cash value of food concession and
retaining allowance, if any, payable to each employee and leave encashed
by the member employee during service and/or at the time of
resignation /separation/ superannuation/ VRS etc.

29.2 . The contribution payable by an employee under these rules shall be equal
to or more than the contribution payable by the Corporation in respect of
such employee with no upper limit on basic wage plus DA (All kinds of DA
by whatever name called) including cash value of food concession and
retaining allowance, if any, on which the recovery is to be made, provided
that the member's contribution shall be @ 12% of basic wages, DA (All
kinds of DA by whatever name called) including cash value of food
concession and retaining allowance, if any, unless the member intimates in
writing the increased amount which he/she chooses to contribute and
leave encashed by the member employee during service and/or at the time
of resignation / separation / superannuation/ VRS etc.
(vide office order No. 17/2005 dated 24.02.05)
Note
(1) The additional contribution on Leave Encashment shall be applicable
only in respect of HPL & Earned Leave w.e.f. 01.02.05
(2) It is clarified that the Special Increment granted for undergoing
sterilisation operation for promoting small family norms shall not count
for any other purpose including computation for Employees Provident
Fund Contribution.

29.3

(Added vide Circular No. 23/97 dated 24.4.97)

The contribution shall be calculated on the basic wages and dearness
allowance (al kinds of DA by whatever name called) including cash value
of food concession and retaining allowance, if any, actually drawn during

29.4
29.5
29.6

30.
30.1

30.2

30.3

the whole month)

Each contribution shall be calculated to the nearest rupee, fifty paise and
above being rounded to the next higher rupee and less than fifty paise
being ignored.
Notwithstanding any contract to the contrary, the Corporation shall not be
entitled to deduct the Corporation's contribution from the wage of a
member or otherwise to recover it from him.
The Corporation shall enhance the rate of Provident Fund Contributions
appropriately if the rate of Provident Fund Contribution for the class of
establishments in which the Corporation falls is enhanced under the
Employees' Provident Fund & Miscellaneous Provisions Act, 1952, so that
the benefits under the Provident Fund Rules of the Corporation shall not
become less favorable than the benefits provided under the said Act
favourable

RECOVERY OF A MEMBER'S SHARE OF CONTRIBUTION

The amount of a member's contribution paid by the Corporation shall,
notwithstanding the provisions in these Rules or any law for the time being
in force or any contract to the contrary recoverable by means of deduction
from the wages of the members and not otherwise;
Provided that no such deduction may be made from any wage other than
which is paid in respect of the period or the part of the period in respect of
which the contribution is payable;
Provided further that the employer shall be entitled to recover the
employee's share from a wage other than that which is paid in respect of
the period for which the contribution has been paid or is payable where the
employee has given in writing a false declaration regarding his last
employment and membership of Contributory Provident Funds in other
establishments.
Provided further that where no such deduction has been made on account
of an accidental mistake or a clerical error, such deduction may be made
from the subsequent wages with the consent in writing of the Provident
Fund Inspector;
Provided further that the Board of Trustees may authorise any employee
upon his specific request in writing to deposit any additional amount as a
voluntary contribution in the Provident Fund.
Any sum deducted by the Corporation from the wages of an employee
under these Rules shall be deemed to have been entrusted to it for the
purpose of paying the contribution in respect of which it was deducted.
In respect of employees employed by or through a Contractor, the
Contractor shall be liable to recover the contribution payable by such
employees in terms of provisions of Employees' Provident Fund &
Miscellaneous Provisions Act, 1952 and Scheme framed thereunder and

shall deposit the same alongwith matching contribution thereon before the
expiry of 15 days following the wage period, and such amount shall be
deposited by the contractor with his Trust or Regional Provident Fund
Commissioner or Fund as the case may be. The Contractor will be liable
for remittance of the said contributions within the prescribed time alongwith
details thereof. Should the Contractor fail in remitting the amount in time,
the Corporation, as a principal employer, will have full right to recover the
due amount (alongwith penalty, if any) from the running bill/final bill of the
Contractor and to deposit the same with the Regional Provident Fund
Commissioner or Fund as the case may be.
30.3.1 It shall be the responsibility of the principal employer to pay both the
contribution payable by himself in respect of the employee directly
employed by him and also in respect of the employees employed by or
through a Contractor and also administrative charges.
31.
31.1

MOMENTS RECALLED FOR DEFENCE DUTY AND MEMBERS

VOLUNTEERING TO TAKE TO MILITARY SERVICE DURING
EMERGENCY
The Corporation employees will be allowed to contribute the Provident
Fund and their accounts will be credited with the Corporation's contribution
which would have been admissible, had they remained on duty with the
Corporation. The Corporation's contributions towards Provident Fund
during the period of Military Services will form a charge against the
Defence Services Estimates and would be recovered by the Corporation
from the Defence Service.

31.2

A member may, at his option, continue to contribute to the Fund, after he is

called up for training, muster or any services, but contribution shall be
credited to his account and interest shall be allowed as per Rule 38. Such
a member may make withdrawals as per Rules 42 to 47. If such member
desires to have his Provident Fund Account settled finally, it may be
allowed in accordance with provisions contained in Chapter-VI of these
Rules, and he shall cease to be a member of the Fund thereafter.

31.3

Where a member ceases to be employed in the corporation and takes up

employment in any other establishment to which the Employees' Provident
Funds and Miscellaneous Provisions Act, 1952 does not apply, the balance
in his account shall be transferred to the credit of his account in the
Provident Fund of the establishment in which he is employed, if the
member so desires and Rules in relation to that Provident Fund permit
such transfer.

32.
32.1

PAYMENT OF CONTRIBUTION TO THE FUND

The contributions of the employees collected by the Corporation as well as

33.
33.1

its own contributions shall be paid by the Corporation to the Fund within 15
days from the date of collection. The aggregate amount received as the
employer's and employee's contributions to the Fund shall be credited to
an account to be called "Provident Fund Account".
MEMBERS' ACCOUNT
An account consisting of members contributions, contributions made by
the Corporation and interest accrued thereon, shall be opened in the Office
of the Fund in the name of each member and it shall include the particulars
show in in Appendix V.

33.2

All items of account shall be calculated to the nearest Rupee. Fifty paise
and above being rounded to the next higher Rupee and less than 50 paise
being ignored.

34.
34.1

ANNUAL STATEMENT OF MEMBER'S ACCOUNT

Within six months of the close of each financial year, the Secretary shall
send to each member a statement of his account in the Fund, showing the
opening balance at the beginning of the period, amount contributed during
the year, the total amount of interest credited at the end of the period, or
debited in the period and the closing balance at the end of the period or
the members may be issued pass books which shall remain with them and
may be updated on presentation.

34.2

Members should satisfy themselves with the correctness of the annual

statement and any error should be brought to the notice of the Secretary
within six months of the receipt of the statement.

35.

TRUSTEE'S POWER TO ACCEPT TRANSFER OF ACCUMULATIONS

FROM OTHER FUNDS
In the event of any employee who has previously in the service of another
Government Company or local body or Government of India or
Government of State or was a member of any Provident Fund recognised
under Employees" Provident Fund and Miscellaneous Provisions Act, 1952
or under the Income Tax Act, 1961, it shall be lawful for the Fund to receive
from such Company etc. the accumulated balance in his account of the
Provident Fund, provided the break in service of the employee concerned,
if any, does not exceed six months; Provided that in case of an employee
who was member of a Provident Fund covered under the Employees'
Provident Fund and Miscellaneous Provisions Act, 1952, it shall be
obligatory for the Fund to accept for credit to the member"s account, his
accumulations in such a Fund.

35.1

36.
36.1

TRANSFER OF MEMBER'S ACCOUNTS

Where a member ceases to be employed in the Corporation and takes up
employment in any other Organization, including those owned or controlled
by Government or any Government Department, the amount of his
contributions and the amount of employers contributions, if any, together
with interest thereon, irrespective of length of his service in this
Corporation shall be transferred with the consent of that body/department
to the credit of his account in case the Provident Fund maintained by that
body is recognised under the Income Tax Act /Employees Provident Fund
and Miscellaneous Provisions Act, 1952. In the event of non-acceptance of
his Provident Fund accumulations by that body / Department, as also in
the case of those Organizations / Departments where recognised
Provident Fund does not exist, the same shall, subject to the provisions
contained in Rule 48.7 be paid to him.

37.
37.1

INTEREST RECEIVED ACCOUNT

All interest and other income realised or accrued shall be credited an
Account called the "Interest Received Account", Brokerage and
Commission on the purchase and sale of securities and other investments
shall be included in the purpose or sale price, as the case may be and not
separately charged to the "Interest Received Account".

38.
38.1

INTEREST
Interest shall be credited to the account of each member t such rate as
may be determined by the Board of Trustees which shall not be lower than
the rate determined by the Central Government under the Employees
Provident Fund Scheme, 1952.

38.2

The interest for the currency of the financial year shall be credited to the
account of each member immediately on the close of the financial year on
the amount standing to his credit.

38.2.1 In the case of a claim for the refund under Rules 48 and 49, interest shall
be payable upto the end of the month preceding the date on which the final
payment is authorised irrespective of the date of the receipt of the claim
from the claimant concerned;
Provided that interest upto and for the current month shall be payable on
the claims which are authorised on or after the 25th day of a particular
month along with actual payment after the end of the current month;
Provided further that the rate of interest to be allowed on claims for refund
for the broken currency period, shall be the rate fixed for the financial year
in which the refund is authorised.

38.3

The aggregate amount of interest credited to the accounts of the members

shall be debited to "Interest Paid Account".

38.4

Interest shall not be credited to the account of a member if he informs the

Trustees in writing that he does not wish to receive it. If, however, the
member subsequently asks for interest, it shall be credited to his account
with effect from the first day of the period of currency in which he makes
request therefor.

38.5

If the Board of Trustees are unable to pay interest, at the rate declared by
the Central Government as mentioned in Rule 38.1 above, for the reason
that the return on investment is less or for any other reason, then the
deficiency, if any, shall be made good by the Corporation.

39.
39.1

COST OF ADMINISTERING THE FUND

The costs, charges and expenses of administering the Fund and the
determination of any question arising under these Rules or otherwise and
expenses incurred on maintenance of accounts, submission of returns,
transfer of accumulations, including all expenses incurred by Trustees in
the discharge of their duties, shall be paid by the Corporation.

39.2

The Corporation shall make good any other loss that may be caused to the
Provident Fund due to theft, burglary,deflation, misappropriation or any
other reason.

40.
40.1

ACCOUNTS AND AUDIT

The Secretary shall cause the accounts of the Fund to be maintained in
such a manner as the Board may, from time to time, decide.

40.2

At the end of each financial year, an Income and Expenditure Account,

together with a Balance Sheet of the Fund's assets and liabilities shall be
laid before the Board, at a meeting to be held within six months of the
close of the financial year.

40.3

Every year the Board shall appoint firm(s) of Chartered Accountants i

practice as Auditor and fix the remuneration for audit which will be borne
by the Corporation.
40.3.1 A copy of the audited annual provident fund account together with the
audited balance- sheet of the Corporation for each accounting year shall
be submitted to the Regional Provident Fund Commissioner within 6
months after the close of the financial year. For this purpose the financial
year of the Fund shall be from 1st of April to 31st March.
40.4 The Board shall cause the accounts of the Provident Fund to be
maintained in such a manner and submit return to the Regional Provident

Fund Commissioner/Commissioner of Income Tax as the Central

Government directs from time to time.
40.5

Secretary
shall
furnish
to
the
Regional
Provident
Fund
Commissioner/Commissioner of Income Tax such accounts relating to the
Provident Fund of the Corporation which shall include annual statement of
accounts of each member as the Central Government may prescribe from
time to time.

40.6

The employer as well as the Board of Trustees shall submit such returns to
the Regional Provident Fund Commissioner as the Central
Government/Central Provident Fund Commissioner may prescribe from
time to time.

41.
41.1

INSPECTION OF CARDS BY MEMBERS

Any member making a written request in this behalf to the Secretary shall
be permitted to inspect his account card himself or to have the same
inspected by any person duly authorised by him in writing to do so, within
72 hours of making such request, provided that no such request shall be
entertained more than once in every two calendar months.

CHAPTER - V A
TEMPORARY - REFUNDABLE ADVANCES
42. PURPOSES FOR WHICH TEMPORARY/REFUNDABLE ADVANCES MAY
BE PERMITTED

42.1 FOR ILLNESS/DISABILITY

To pay expenses in connection with the illness or disability (including where
necessary, the travelling expenses) of the member himself or any member of
his/her family.
42.2 FOR HIGHER EDUCATION
To meet the cost of higher education, (including where necessary, the
travelling expenses) of the member himself or any member of his family
actually dependent on him/her in the following cases, namely ;
a) for education outside India for academic, technical, professional or
vocational course beyond the High School stage, and
b) for any medical, engineering or other technical or specialised course in
India beyond the High School stage provided that the course of study is
for not less than one year.
42.3 COST OF PASSAGE
To pay for the cost of passage to a place out of India of an employee or any
member of his/her family.
42.4 FOR MARRIAGES/FUNERALS/CEREMONIES
To pay expenses in connection with marriages, funerals or ceremonies
which by the religion of the employee it is incumbent upon him to perform.
42.5 FOR THE PURCHASE OF A DWELLING HOUSE OR A DWELLING SITE
OR FOR CONSTRUCTION OF A DWELLING HOUSE OR EXTENSION OF
AN EXISTING DWELLING HOUSE
The secretary, may on an application from a member in such form as may
be prescribed and subject to the conditions prescribed in this Rule sanction
from the amount standing to the credit of the member in the Fund, an
advance :
a) for purchasing a dwelling house/flat, including a flat in a building owned
jointly with others (out right or on hire purchase basis), or for
constructing dwelling house, including the acquisition of a suitable site
for
the
purpose
from
the
Central
Government/State
Government/Cooperative Society/an Institution/a Trust/Local Body or a
Housing Finance Corporation (hereinafter referred to as the
Agency/Agencies)
OR
b) for purchasing a dwelling site for the purpose of construction of a
dwelling house or a ready-built dwelling house/flat from any individual.
OR
c) for the construction of a dwelling house on a site owned by the member
or the spouse of a member or jointly with any other member of family
and the spouse or for completing/continuing the construction of a

dwelling house already commenced by the member or the spouse, on

such site or for purchase of a house/flat, in the joint name of the
member himself and any other member of family, under sub-rule (a) or
(b) above.
EXPLANATIONS
1. In this paragraph, the expression, 'Cooperative Society' means a society
registered or deemed to be registered under the Cooperative Societies
Act, 1912 (2 of 1912) or under any other law for the time being in force
in any State relating to cooperative societies.
2. Where the construction of a house has been commenced with the
amount withdrawn from the Fund under old Rules, a further withdrawal
shall be allowed under these Rules, after reducing the amount already
withdrawn.
42.5.1 The amount of advance shall not exceed the member's basic wages and
DA (all kinds of DA by whatever name called) for 36 (thirty six) months or
the members own share of contributions with interest thereon together
with employer's share of contribution with interest thereon in this account
in the Fund, or the actual cost towards the acquisition of the dwelling site
together with cost of construction thereon, or the purchase of the dwelling
house/flat or the construction of the dwelling house, whichever is the
least.
(Rule 42.5.1. amended vide part-I office order No. 27/91 dated 29.7.91
revised rule 42.5.1. effective from 1.1.1990)
EXPLANATION
The actual cost towards the acquisition of the dwelling site or the
purchase of dwelling house/flat shall include charges payable towards
registration of such site, house or flat.
42.5.2 No advance under this Rule shall be granted unless :
a. the member has completed Five years membership of the Fund
including the period membership as covered under explanation below
Rule 48.7;
b. the member's own share of contributions with interest thereon in the
amount standing to his credit in the Fund, is not less than one
thousand rupees.
c. the dwelling site or the dwelling house/flat or the house under
construction is free from encumbrances;
Provided that where a dwelling site or a dwelling house/flat is mortgaged
to any of the agencies, referred to in Rule 42.5(a) and/or Life Insurance
Corporation of India or any other Financial Institution, so recognised by
the Government for these purposes, including NHPC solely for having
obtained funds for the purchase of a dwelling house/flat or for the
construction of a dwelling house including the acquisition of a suitable

site for the purpose, such a dwelling site or dwelling house/flat as the
case may be, shall not be deemed to be an encumbered property;
Provided further that a land acquired on a perpetual lease or on lease for
a period of not less than 30 years for constructing a dwelling house/flat,
or a house/flat on such a leased land, shall also not be deemed to be an
encumbered property;
Provided also that where the site of the dwelling house/flat is held in the
name of any agency, referred to in Rule 42.5 (a) read with Rule 42.5.2 (c)
and the allottee is precluded from transferring or otherwise disposing of,
the house/flat without the prior approval of such agency; the mere fact
that the allottee does not have absolute right of ownership of the
house/flat and the site is held in the name of the agency, shall not be a
bar to the giving of an advance under Rule 42.5 if the other conditions
mentioned in this Rule are satisfied.
42.5.3 No advance shall be granted for purchasing a share in a joint property or
for constructing a house on a site owned jointly except on a site owned
jointly with any other member of the family.
42.5.4 Subject to the limitation prescribed in Rule 42.5.1 where the advance is
for the purchase of a dwelling house/flat or dwelling site from an agency
referred to in Rule 42.5.(a) , the payment of advance shall not be made to
the member but shall be made direct to the agency in one or more
instalments as may be but shall be made direct to the agency in one or
more instalments as may be authorised by the member. Where the
advance is for the construction of a dwelling house, it may be sanctioned
in such number of instalments as the Secretary may deem fit. Where the
advance is for the acquisition of a dwelling site for the purpose of
construction of a dwelling house thereon from any individual or any
agency, the amount shall be paid in not less than two equal instalments,
the first instalment at the time of acquisition of the dwelling site and the
remaining at his request at the time of the construction of a dwelling
house on such dwelling site.

42.5.5 Where an advance is sanctioned for the construction shall commence

within six months of the withdrawal of the first instalment and shall be
completed within twelve months of the withdrawal of the final instalment.
Where the advance is sanctioned for the purchase of a dwelling
house/flat or for the acquisition of a dwelling site, the purchase or
acquisition as the case may be, shall be completed within six months of
the withdrawal of the amount;
Provided that this provision shall not be applicable in case of purchase of
a dwelling house/flat on hire purchase basis and in cases where a
dwelling site is to be acquired or house are to be constructed by a

cooperative society on behalf of its members with a view to their

allotment to the members.
42.5.6 Except in the cases specified in Rule 42.5.7. below, no further advance
shall be admissible to a member under this Rule.
42.5.7 An additional advance upto twelve months basic wages and dearness
allowance (all kinds of DA by whatever name called) or the member's
own share of contributions with interest thereon, in the amount standing
to his credit in the Fund, whichever is less, may be granted once and in
one instalment only for additions, substantial alterations or improvements
necessary to the dwelling house owned by the member or by spouse
and/or jointly with any other member of the family;
Provided that the advance shall be admissible only after a period of five
years from the date of membership of the Fund and after completion of
the dwelling house.
42.5.8 The member shall produce the title deed, and such other documents as
may be required for inspection which shall be returned to the member
after the grant of advance.
42.5.9 If the advance granted under Rule 42.5 exceeds the amount actually
spent for the purpose for which it was sanctioned, the excess amount
shall be refunded by the member to the Fund in one lump sum within
thirty days of the finalisation of the purchase, or the completion of the
construction of, or necessary additions, alterations or improvements to a
dwelling house, as the case may be. The amount so refunded shall be
credited to the employer's share of contributions in the member's account
in the Fund to the extent of advance granted out of the said share and the
balance, if any, shall be credited to the member's share of contribution in
his account.

42.5.10 In the event of the member not having been allotted a dwelling
site/dwelling house/flat, or in the event of the cancellation of an allotment
made to the member and of the refund of the amount by the agency,
referred to in Rule 42.5(a)or in the event of the member not being able to
acquire the dwelling site or purchase the dwelling house/flat from any
individual or to construct the dwelling house, the member shall be liable
to refund to the Fund in one lumpsum and in such manner as may be
specified by the Secretary, the amount of advance remitted under this
Rule to him or as the case may be to the agency referred to in Rule 42.5
(a).
The amount so refunded shall be credited to the employer's share of
contribution in the member's account in the Fund, to the extent of

advance granted out of the said share, and the balance if any shall be
credited to the member's own share of contributions in his account.
42.5.11 If the Secretary is satisfied that the advance granted under this Rule has
been utilised for a purpose other than that for which it was granted or that
the member refused to accept an allotment or to acquire a dwelling site or
that the conditions of advance have not bee fulfilled or that there is
reasonable apprehension that they will not be fulfilled wholly or partly; or
that the excess amount will not e refunded in terms of Rule 42.5.(a) will
not be refunded in terms of rules 42.5.10, the Secretary shall forthwith
take steps to recover the amount due with penal interest thereon at the
rate of two per cent per annum from the wages of the member in such
number of instalments as the Secretary may determine. For the purpose
of such recovery, the Secretary may with prior approval of Chairman,
direct the employer to deduct such instalments from the wages of the
member and on receipt of such direction, the employer shall deduct
accordingly.
The amount so deducted, shall be remitted by the employer shall deduct
accordingly. The amount so deducted, shall be remitted by the employer
to the Fund within such time and in such manner as may be specified in
this direction. The amount so refunded, excluding the penal interest, shall
be credited to the employer's share of contributions in the member's
account in the Fund to the extent of advance granted out of the said
share and the balance, if any, shall be credited to the member's own
share of contributions in his account. The amount of penal interest shall,
however, be credited to the Interest account.
42.5.12 Where any advance granted under this Rule has been misused by the
member, no further advance shall be granted to him under this Rule
within a period of three years from the date of grant of the said advance
or till the full recovery of the amount of the said advance, with penal
interest thereon, whichever is later.
42.6

ADVANCE FOR MEETING EXPENSES IN LEGAL PROCEEDINGS

Secretary may sanction an advance to a member to meet the cost of
legal proceedings instituted by the employee for vindicating his position in
regard to any allegations made against him in respect of any action done
or purporting to be done by him in the discharge of his official duty or to
meet the cost of his defence when he is prosecuted by the employer in
any court of law in respect of any official misconduct on his/her part.

42.7

ADVANCE IN CASE OF LEAVE WITHOUT PAY

Secretary may sanction an advance to enable the member to meet
his/her expenses in case the member goes on leave without pay for a
period of a month or more for reasons, such as, higher studies/illness.

42.8

ADVANCE FOR REPAYMENT OF OUTSTANDING LOAN

The Secretary may on application from a member, sanction from the
amount standing to the credit of the member in the Fund, an advance for
the repayment, wholly or partly, or any outstanding principal and interest
of a loan obtained from the Corporation, State Government, Cooperative
Society, HUDCO, Housing Municipal Corporation or a body similar to the
Delhi Development Authority or Housing Finance Corporation solely for
the purpose specified in Rule 42.5 above, provided that ;

42.8.1 The amount of advance shall not exceed the member's basic wage and
dearness allowance (all kinds of DA by whatever name called) for thirty
six months or his own share of contributions together with the employer's
share of contributions as provided in Rule 48.7 with interest thereon in
the member's account in the fund or the amount of outstanding principal
and interest of the said loan whichever is the least.
42.8.2 No advance shall be sanctioned under this Rule unless
the member has completed fifteen years' membership of the fund;
(a)
and
(b) the member's own share of contribution with interest thereon, in the
amount standing to his credit in the Fund, is one thousand rupees or
more; and
(c) the member produces a certificate or such other documents, as may
be prescribed by the Trustees from such Agency, indicating the
particulars of the member, the loan granted, the outstanding principal
and interest of the loan and such other particulars as may be
required.
42.8.3 The payment of the advance under this Rule shall be made direct to such
Agency on receipt of an authorisation from the member and in no event
the payment shall be made to the member.
42.9
GRANT OF ADVANCE IN SPECIAL CASES
42.9.1 In case the Corporation or any of its Projects/Units has been locked up or
closed down for more than 15 days for reasons other than strike and
when the affected employees are rendered unemployed without any
compensation or if an employee does not receive his wages for a
continuous period of two months or more, the Secretary on being
satisfied that no compensation to the employee is likely to be paid by the
employer within a reasonable time, may authorise payment to a member
who was employed in the Corporation, one or more refundable advances
from his Provident Fund account not exceeding his total contribution
including interest thereon upto the date the payment has been
authorised. In case the Corporation or any of its Projects/Units continues

to remain locked up or closed down for more than six months and the
Secretary on being satisfied that a member who has already been
granted one or more refundable advances to the full extent from his
provident fund account under the Rule continues to be unemployed and
no compensation is likely to be paid to him at an early date, may
authorise payment to the member, one or more refundable advances
from his provident fund account not exceeding hundred per cent of the
employee's contribution including interest thereon upto the date payment
has been authorised
(Rule 42.9.1 amended vide Part I Office Order No. 27/91 dated 29.7.91,
Revised rule 42.9.1 effective from 1.1.1990)
42.9.2 The recoverable advance drawn under this Sub-Rule shall be interest
free, and shall be recovered by deductions from the wages of the
member in such instalments as may be determined by the Secretary,
after re-start of the Project/Unit/Office of the Corporation. Recovery shall
commence from the first wage paid to the member immediately after restart of the Project / Unit/ Office concerned of the Corporation.
42.9.3 The employer shall remit the amount so deducted to the Fund within the
time specified in Rule 32 of these Rules. The amount on receipt shall be
credited to the member's account in the Fund.
EXPLANATION
For the purpose of grant of advance under Rule 42.9, the Corporation or
any of its Projects/Units may be closed legally, illegally, with permission or
without permission, so long as the Corporation or any of its Projects/Units
is closed.
CHAPTER - V B
PERMANENT/NON-REFUNDABLE WITHDRAWALS
43.
43.1

43.2

PURPOSES FOR WHICH PERMANENT NON REFUNDABLE

WITHDRAWALS MAY BE PERMITTED
FOR MEETING THE COST OF POST MATRICULATION EDUCATION
OF CHILDREN OF THE MEMBER
The Secretary may on an application from a member authorise
payment to him or her of a non-refundable advance from his/her
Provident Fund Account, not exceeding fifty per cent of his or her own
share of contribution with interest thereon, standing to his/her credit in
the Fund, on the date of such authorisation for post matriculation
education of his/her son or daughter.
FOR MARRIAGE
The Secretary may on an application from a member authorise
payment to him of a non-refundable advance from his/her Provident
Fund account not exceeding fifty per cent of his/her own total

contribution including interest thereon, standing to his/her credit on the

date of such authorisation for his/her daughter's or son's marriage,
his/her own marriage or the marriage of his/her sisters and brothers.
NOTES TO RULES 43.1 & 43.2
No advance under above Rules 43.1 and 43.2 shall be sanctioned
1.
unless :
a member has completed seven years membership of the Fund
including the period of membership of a recognised EPF from where
the accumulations have been transferred to the Fund and the
amount of his total contributions with interest thereon standing to his
credit in his account in the Fund is Rupees One Thousand or more.
2. Not more than three advances shall be admissible under these
Rules, If the Secretary is satisfied that the advance granted under
these Rules has been utilised for a purpose other than that for which
it was granted or that the conditions for the grant of advance have
not been fulfilled within a reasonable time, the Secretary shall
forthwith take steps to recover the amount due with penal interest,
thereon at the rate of 2% per annunm above the rate of interest to
be specified as per Rule 38.1 from the wages of the member in such
number of instalments as the Secretary may determine and direct
the employer to deduct each such instalment from the wages of the
member and on receipt of such direction, the employer shall act
accordingly. The amount refunded excluding the penal interest shall
be credited to the account of the member in the Fund and the
amount of penal interest shall be credited to the Interest Account.
43.3
IN CASE OF ILLNESS IN CERTAIN CASES
43.3.1
A member may be allowed non-refundable advance from his account in
the Fund in case of :
a) Hospitalisation lasting for one month or more; or
b) major surgical operation in a hospital; or
c) suffering from T.B. leprosy, paralysis, cancer, mental derangement,
asthma and heart ailments, dialysis (blood transfusion), kidney
transplantation and having been granted leave by his employer for
the treatment of the said illness.
43.3.1.1 The advance shall be granted if the Authorised Medical Attendant or a
Doctor of Hospital certifies that a surgical operation or as the case may
be, hospitalisation for one month or more had or has become
necessary, or a Registered Medical Practitioner, or in the case of
mental derangement or heart ailment, a specialist, certifies that the
member is suffering from T.B., leprosy, paralysis, cancer, mental
derangement or heart ailment, dialysis (blood transfusion), kidney
transplantation.

43.3.2

A member may be allowed non-refundable advance from his account in

the fund for a treatment of a member of his family who has been
hospitalised or requires hospitalisation for one month or more for any
surgical operation or for treatment of TB, leprosy, paralysis, cancer,
mental derangement, heart- ailment, asthma, dialysis (blood
transfusion), kidney transplantation;
Provided that no such advance shall be granted to a member unless he
has produced :
43.3.2.1 a certificate from a Doctor of the hospital that the patient has been
hospitalised or requires hospitalisation for one month or more or that a
major surgical operation had or has become necessary; and
43.3.2.2 a certificate from the Corporation that the benefits are not available to
the member for the treatment of the patient in the hospital concerned.
43.3.3
the amount advanced under this Rule shall not exceed the member's
basic wages with DA (all kinds of DA/ADA by whatever name called) for
three months or his own share of contribution with interest thereon in
the Fund, whichever is less.
43.3.4
where the Secretary is not satisfied with a Medical Certificate furnished
by the member under Rule 43.3.2.1, he may before granting an
advance under this Rule demand from the member, another Medical
Certificate, to his satisfaction.
43.4
GRANT OF ADVANCE TO MEMBERS AFFECTED BY CUT IN THE
SUPPLY OF ELECTRICITY AND IN ABNORMAL CONDITIONS
43.4.1
A member may be allowed a non-refundable advance from his account
in the Fund, if there is a cut in the supply of electricity to the
Corporation on the following conditions, namely ;
a) the advance may be granted to a member whose total wages for
any one month commencing from the month of January, 1973 were
three-fourth or less than three-fourth of wages for a month;
b) the advance shall be restricted to the amount of wages for a month
or Rs. 300/- or the amount standing to the credit of the member in
Fund as his share of contribution with interest thereon, whichever
is less;
c) No advance shall be paid unless the State Government certifies
that the cut in the supply of electricity was enforced in the area in
which the Corporation is located and the employer certifies that the
fall in the member's pay was due to cut in the supply in electricity;
d) Only one advance shall be admissible under this rule.
EXPLANATION
"Wages" means for the purpose of this Rule, basic wages and dearness
allowance excluding lay off compensation, if any.
43.4.2
The Secretary may on an application from a member whose property
movable or immovable, has been damaged by a calamity or
exceptional nature, such as floods, earthquakes, or riots, authorise
payment to him from the Provident Fund Account, a non-refundable

43.5
43.5.1
43.5.2

43.5.3

43.5.4

43.6

advance of Rupees five hundred or fifty per cent of his own total
contribution including interest thereon standing to his credit on the date
of such authorisation whichever is less, to meet any unforeseen
expenditure;
NOTE
No advance under the above Rule shall be paid unless :
The State Government has declared that the calamity has affected
I
the general public in the Area;
The member produces a certificate from the appropriate authority to
II the effect that his property (movable or immovable) has been
damaged as a result of the calamity ; and
The application for advance is made within a period of 4 months
III
from the date of declaration referred to in Note-I above.
GRANT OF ADVANCE TO MEMBERS WHO ARE PHYSICALLY
HANDICAPPED
A member, who is physically handicapped, may be allowed a nonrefundable advance from his account in the Fund, for purchasing an
equipment required to minimise the hardship on account of handicap.
No advance under Rule 43.5.1 shall be paid unless the member
produces a medical certificate from a competent medical practioner to
the satisfaction of the "Secretary or such other Officer as may be
authorised by him in this behalf to the effect that he is physically
handicapped.
The amount advanced under this Rule shall not exceed the member's
basic wages and dearness allowance (all kinds of DA by whatever
names called) for six months or his own share of contributions with
interest thereon or the cost of the equipment, whichever is the least.
No second advance under this Rule shall be allowed within a period of
three years from the date of payment of an advance allowed under this
Rule.

FOR THE PURCHASE OF A DWELLING HOUSE/FLAT OR FOR THE

CONSTRUCTION OF A DWELLING HOUSE INCLUDING THE
ACQUISITION OF A SUITABLE SITE FOR THE PURPOSE
43.6.1
The Secretary may on an application from a member in such form as
may be prescribed and subject to the conditions prescribed in this Rule
sanction from the amount standing to the credit of the member in the
Fund, a withdrawal;
43.6.1.1 for purchasing a dwelling house/flat, including a flat in a building owned
jointly with others on outright or on hire purchase basis, or for
constructing dwelling house including the acquisition of a suitable site
for the purpose from the Central Government, the State Government, a
Co-operative Society, Corporation, an Institution, a Trust, a Local Body
or a Housing Finance Corporation (hereinafter referred to as the
Agency/Agencies);

43.6.1.2 for purchasing a dwelling site for the purpose of construction of a

dwelling house or a ready-built dwelling house/flat from any individual;
OR
43.6.1.3 for the construction of a dwelling house on a site owned by the member
or the spouse of the member or jointly by the member and the spouse
or for completing/continuing the construction of a dwelling house
already commenced by the member of the spouse, on such site or for
purchase of a house/flat in the joint name of the member and the
spouse under Sub Rule 43.6.1.1 and 43.6.1.2 above.
EXPLANATION
In this Rule, the expression, 'Co-operative Society' means a society
registered or deemed to be registered under the Co-operative Societies
Act, 1912 (2 of 1912) or under any other law for the time being in force
in any State relating to Co-operative Societies.
43.6.2
The amount of withdrawal shall not exceed the member's basic wages
and DA (all kinds of DA by whatever name called) for 36 (Thirty six)
months or the member's own share of contributions, together with
employer's share of contribution with interest thereon in this account in
the Fund or the actual cost towards the acquisition of the dwelling site
together with the cost of construction thereon, or the purchase of the
dwelling house/flat or the construction of the dwelling house, whichever
is the least.
EXPLANATION
The actual cost towards the acquisition of the dwelling site or the
purchase of dwelling house/flat shall include charges payable towards
registration for such site, house or flat.
43.6.3
No withdrawal under this Rule shall be granted unless:
43.6.3.1 the member has completed five years' membership of the Fund,
including the membership as covered by the explanation below Rule
48.7
43.6.3.2 the member's own share of contribution with interest thereon in the
amount standing to his credit in the Fund is not less than one thousand
rupees;
43.6.3.3 the dwelling site or the dwelling house/flat or the house under
construction is free from encumbrances;
Provided that where a dwelling site or a dwelling house/flat is
mortgaged to any of the Agencies, referred to in Rule 43.6.1.1, solely
for having obtained funds for the purchase of a dwelling house/flat or
for the construction of a dwelling house including the acquisition of a
suitable site for the purchase, such a dwelling site or a dwelling
house/flat as the case may be, shall not be deemed to be an
encumbered property;

Provided further that a land acquired on a perpetual lease or on lease

for a period of not less than 30 years for constructing a dwelling
house/flat, flat or a house/flat built on such a leased land, shall also not
be deemed encumbered property;
Provided also that where the site of the dwelling house/flat is held in the
name of any Agency, referred to in Rule 43.6.1.1 and the allottee is
precluded from transferring or otherwise disposing of, the house/flat
without the prior approval of such agency, the mere fact that the allotee
does not have absolute right of ownership of the house/flat and the site
is held in the name of the Agency, shall not be a bar for allowing the
withdrawal under Rule 43.6.1.1, if the other conditions mentioned, are
satisfied.
43.6.4
No withdrawal shall be granted for purchasing a share in a joint
property or for constructing a house on a site owned jointly except in a
site owned jointly with the spouse.
43.6.5
Subject to the limitation prescribed in Rule 43.6.2:
43.6.5.1 Where the withdrawal is for the purchase of a dwelling house/flat or a
dwelling site from an agency referred to in Rule 43.6.1.1, the payment
of withdrawal shall not be made to the member but shall be made direct
to the Agency in one or more instalments, as may be authorised by the
member;
43.6.5.2 Where the withdrawal is for the construction of a dwelling house, it may
be sanctioned in such number of instalments as the Secretary thinks fit;
43.6.5.3 Where the withdrawal is for the acquisition of a dwelling site for the
purpose of construction of a dwelling house thereon from any individual
or any Agency the amount shall be paid in not less than two equal
instalments, the first instalment at the time of the acquisition of the
dwelling site and the remaining at his request at the time of construction
of a dwelling house on such dwelling site.
43.6.6
Where a withdrawal is sanctioned for the construction of a dwelling
house, the construction shall commence within six months of the
withdrawal of the first instalment and shall be completed within twelve
months of the withdrawal of the final instalment. Where the withdrawal
is sanctioned for the purchase of a dwelling house/flat or for the
acquisition of a dwelling site, the purchase or acquisition, as the case
may be, shall be completed within six months of the withdrawal of the
amount;
Provided that this provision shall not be applicable in case of purchase
of a dwelling house/flat on hire-purchase basis and in cases where a
dwelling site is to be acquired or houses are to be constructed by a
cooperative society on behalf of its members with a view to their
allotment to the members.
43.6.7
Except in the cases specified in Rule 43.7 and 43.8 below, no further
advance shall be admissible to a member under this Rule.

43.7

43.8

43.8.1
43.8.2

An additional withdrawal upto twelve months' basic wages and DA (all

kinds of DA by whatever name called) or the member's own share of
contributions with interest thereon together with that amount of
employer's share of contributions, may be granted once and in one
instalment only, for additions, substantial alterations or improvements
necessary to the dwelling house owned by the member or by the
spouse or jointly by the member and the spouse;
Provided that the withdrawal shall be admissible only after a period of
five years from the date of membership of the fund and after completion
of the dwelling house.
(Rule 43.7 amended vide Part-I Office Order No. 27/91 dated
29.7.1991. Revised Rule 43.7 effective from 1.1.1990)
A further withdrawal equivalent to the amount of difference between the
amount of withdrawal admissible to a member under Rule 43.6.2 above
as on the date of fresh application and the amount of withdrawal that
was drawn by a member earlier with respect to the corresponding
Rules as were applicable prior to 1.4.1985, may be granted to such a
member;
a) who had availed the earlier withdrawal for purchase of a dwelling
site and has now proposed to construct a dwelling house on the
land so purchased;
OR
b) who had availed the earlier withdrawal for making initial payment
towards the allotment/purchase of a house/flat from any Agency as
referred to in sub-rule 43.6.1.1, above and has now proposed to
avail a withdrawal for completing the transaction to get the sole
ownership of the house/flat so purchased;
OR
c) who had availed the earlier withdrawal for construction of a house
but could not complete the construction in the time due to lack of
funds.
The member shall produce the title deed and such other documents as
may be required for inspection which shall be returned to the member
after the grant of withdrawal.
If the withdrawal granted under this Rule exceeds the amount actually
spent for the purpose for which it was sanctioned, the excess amount
shall be refunded by the member to the Fund in one lump sum within
thirty days of the finalisation of the purchase, or the completion of the
construction of, or necessary additions, alterations or improvements to
a dwelling house, as the case may be. The amount so refunded shall
be credited to the employer's share of contributions in the member's
account in the Fund to the extent of withdrawal granted out of the said
share and the balance, if any, shall be credited to the member's share
of contributions in his account.

43.8.3

43.8.4

43.8.5

43.8.6

43.8.7

43.9

In the event of the member not having been allotted a dwelling

site/dwelling house/flat, or in the event of the cancellation of an
allotment made to the member and of the refund of the amount by the
agency, referred to in Sub-Rule 43.6.1.1 or in the event of the member
not being able to acquire the dwelling site or to purchase the dwelling
house/flat from any individual or to construct the dwelling house, the
member shall be liable to refund to the Fund in one lumpsum and in
such manner as may be specified by the Secretary, the amount of
withdrawal remitted under this Rule to him or, as the case may be, to
the agency referred to in Sub-Rule 43.6.1.1.
The amount so refunded shall be credited to the employer's share of
contributions in the member's account in the Fund, to the extent of
withdrawal granted out of the said share, and the balance, if any, shall
be credited to the member's own share of contributions in his account.
If the Secretary is satisfied that the withdrawal granted under Rule 43.6,
43.7 and 43.8 has been utilised for a purpose other than that for which
it was granted or that the member refused to accept an allotment or to
acquire a dwelling site or that the conditions of withdrawal have not
been fulfilled or that there is reasonable apprehension that they will not
be fulfilled wholly or partly; or that the excess amount will not be
refunded in terms of Rule 43.8.2 above or that the amount remitted
back to the member by any Agency referred to in Rule 43.6.1.1 will not
be refunded in terms of Rule 43.8.3, the Secretary shall forthwith take
steps to recover the amount due with penal interest thereon at the rate
of two per cent per annum from the wages of the member in such
number of instalments as the Secretary may determine. For the
purpose of such recovery, the Secretary may direct the employer to
deduct such instalments from the wages of the member and on receipt
of such direction, the employer shall deduct accordingly.
The amount so deducted, shall be remitted by the employer to the
Secretary within such time and in such manner as may be specified in
this direction. The amount so refunded, excluding the penal interest,
shall be credited to the employer's share of contributions in the
member's account in the Fund to the extent of withdrawal granted out
of the said share and the balance, if any, shall be credited to the
member's own share of contributions in his account. The amount of
penal interest shall, however, be credited to the Interest Account.
Where any withdrawal granted under this Rule has been misused by
the member, no further withdrawal shall be granted to him under this
Rule within a period of three years from the date of grant of the said
withdrawal or till the full recovery of the amount of the said withdrawal,
with penal interest thereon, whichever is later.
WITHDRAWAL FROM THE FUND FOR REPAYMENT OF LOANS IN
SPECIAL CASES.

43.9.1

43.9.2

43.9.3

The Secretary may on an application from a member, sanction from the

amount standing to the credit of the member in the Fund, a withdrawal
for the repayment, wholly or partly, of any outstanding principal and
interest of a loan obtained from the Corporation, a State Government,
Co-operative Society, Housing Board, Municipal Corporation or a body
similar to the Delhi Development Authority solely for the purposes
specified in Rules 43.6, 43.7 and 43.8 above.
The amount of withdrawal shall not exceed he member's basic wages
and dearness allowance for thirty six months or his own share of
contributions together with the employer's share of contributions, with
interest thereon, in the member's account in the Fund or the amount of
outstanding principal and interest of the said loan, whichever is least.
No withdrawal shall be sanctioned under this Rule unless:

43.9.3.1 The member has completed ten years' membership of the Fund.
(Rule 43.9.3.1 amended vide Part I Office Order No. 27/91 dated
29.7.1991 - Revised Rule 43.9.3.1 effective from 1.1.1990)
43.9.3.2 The member's own Share of contributions, with interest thereon, in the
amount standing to his credit in the Fund, is one thousand rupees or
more; and
43.9.3.3 The member produces a certificate or such other documents, as may
be prescribed by the Secretary from such Agency, indicating the
particulars of the members, the loan granted, the outstanding principal
and interest of the loan and such other particulars as may be required.
43.9.3.4 The payment of the withdrawal under this Rule shall be made direct to
such Agency on receipt of an authorisation from the member in such
manner, as may be specified by the Secretary and in no event the
payment will be made to the member.
43.10.
43.10.1

43.10.2

43.10.3

FINANCING OF MEMBER'S LIFE INSURANCE POLICIES

Where a member desires that premium due on a policy of Life
Insurance taken by him on his own life should be financed from his
Provident Fund Account, he may apply in such form and in such
manner as may be prescribed by the Chairman.
On receipt of such application the Chairman, or where so authorised by
the Chairman, any other Officer subordinate to him may make payment
on behalf of the member to the Life Insurance Corporation of India
towards premium due on his policy;
Provided that no such payment shall be made unless the premium is
payable yearly.
Any payment made under Rule 43.10.2 above shall be made out of and
debited to the member's own contribution with interest thereon standing
to his credit in the Fund.

43.10.4

43.10.5
43.10.6

43.10.7

No payment shall be made under Rule 43.10.2 above, unless the

member's own contribution in his Provident Fund Account with interest
therein is sufficient to pay the premium and where the payment is to be
made on the first premium,sufficient to pay the premium for two years.
No payment shall be made towards policy unless it is legally assignable
by the member to the Board.
The Chairman shall before releasing payment in respect of existing
policies, satisfy himself by reference to the Life Insurance Corporation
that no prior assignment of the Policy exists and the policy is free from
all encumbrances.
No educational endowment policy or marriage endowment policy shall
be financed from the Fund, if such policy is due for payment in whole or
in part before the member attains the age of 55 years.

43.11

CONVERSION OF POLICY INTO A PAID-UP ONE AND PAYMENT OF

LATE FEE ETC.
43.11.1 Where a policy of Life Insurance of a member is financed from his
Provident Fund Account, the Chairman may,
43.11.1.1 convert the Insurance Policy into a paid up one when the credit in his
Provident Fund on account of his share becomes inadequate for
payment of any premium;
43.11.1.2 pay late fee and interest out of the member's own contribution in his
Provident Fund Account, if any premium cannot be remitted to the Life
Insurance Corporation in time because of delay in sending to the
Chairman, the policy duly assigned to the Board or any other reasons
for which member or the employer may be responsible.
43.12
43.12.1
43.12.2

43.12.3

43.12.4

ASSIGNMENT OF POLICIES
The policy shall within six months of the first payment under Rule 43.10
be assigned by endorsement thereon to the Board and shall be
delivered to the Chairman.
Notice of assignment of the policy shall be given by the member to the
Life Insurance Corporation and the acknowledgment of the said notice
by the Life Insurance Corporation shall be sent to the Chairman, within
three months of the date of assignment.
The tenure of policy shall not be altered nor shall the policy be
exchanged for another policy without the prior consent of the Chairman
to whom the details of alteration or of the new policy shall be furnished
in such form as he may specify.
If the policy is not assigned and delivered as required under Rule
43.12.1 or is assigned other wise than to the Board or is charged or
encumbered or lapses, any amount paid from the Fund in respect of
such policy shall, with interest thereon at the rate provided in Rule 38,
be repaid by the member forthwith to the Fund. In the event of default
the Corporation, shall, on receipt of such directions as may be issued

by the Chairman in this behalf, deduct the amount in lump sum or in

such instalments as the Chairman may determine from the emoluments
of the member and pay it to the Fund within such time and in such
manner as may be specified by the Chairman. The amount so repaid or
recovered shall be credited to the member's account in the Fund.
43.13
43.13.1

43.14
43.14.1

43.14.2

BONUS ON POLICY TO BE ADJUSTED AGAINST PAYMENT MADE

FROM THE FUND
So long as the policy remains assigned to the Board, any bonus
accruing on it may be drawn by the Board or where authorised by the
Board by the Chairman and adjusted against the payment made on
behalf of the member under Rule 43.10.
REASSIGNMENT OF POLICIES
Where accumulations standing to the credit of the member are
withdrawn under Rule 48 or when the member repays to the Fund the
amounts of premium paid by the Board with interest thereon at the rate
provided in Rule 38 the Board or where authorised by the Board, the
Chairman shall reassign by endorsement thereon the policy to the
member together with a signed notice of reassignment addressed to
the Life Insurance Corporation.
If the member dies before the policy has been reassigned under Rule
43.14.1 above, the board or where authorised by the Board the
Chairman, shall reassign by the endorsement thereon, the policy to the
nominee of the member if a valid nomination subsists and if there be no
such nominee, to such person as may be legally entitled to receive it
together with a signed notice of reassignment addressed to the Life
Insurance Corporation.

43.15
43.15.1

RECOVERY OF AMOUNTS PAID TOWARDS INSURANCE POLICIES

If a policy matures or otherwise falls due for payment during the
currency of assignment, the Board or, where as authorised by the
Board, the Chairman shall realise the amount assured together with
bonus, if any accrued thereon, place to the credit of the member the
amount so realised, or the whole of the amount paid from the Fund in
respect of the policy with interest thereon, whichever is less, and refund
the balance, if any, to the member.

44.

CONDITIONS FOR WITHDRAWALS FOR VARIOUS PURPOSES

AND REPAYMENT OF AMOUNTS WITHDRAWN
The withdrawals in connection with expenses on marriage as specified
in Rule 42.4 shall not exceed 50% of the member's contributions, with
interest thereon.
The withdrawal for any other purpose specified under Rule 42 and SubRules thereunder, where the limit of advance has not been specified,

44.1
44.1.1

the advance shall not exceed three month's basic wages and dearness
allowance (all kinds of DA by whatever name called) or half the
member's contributions with interest thereon, whichever is less.
44.2

RESTRICTION ON GRANT OF ADVANCE

A member may be granted an advance either under Rule 42 or Rule 43
and Sub-Rules thereunder for the same purpose.

44.3
44.3.1

REPAYMENT OF AMOUNTS WITHDRAWN

Where a withdrawal is allowed under Rule 42.4, 42.5.7 the amount
withdrawn shall be repaid in not more than sixty, one hundred and
twenty and sixty equal monthly instalments, respectively.
Where a withdrawal are allowed for any other purpose the amount
withdrawn shall be repaid in not more than thirty equal monthly
instalments.
In respect of withdrawals for the purpose mentioned in Rule 44.3.1 and
44.3.2 above, the interest shall be paid in accordance with the following
table ;

44.3.2
44.3.3

a) Where the amount is repaid in a)

One additional instalment of 4%
not more than 12 monthly
on the amount withdrawn
instalments.
b) Where the amount is repaid in b) Two additional instalments of
more than 12 but not more than 4% on the amount withdrawn
24 monthly instalments.
c) Where the amount is repaid in c) Three additional instal-ments of
more than 24 instalments but 4% on the amount withdrawn
not more than 36 monthly
instalments
d) Where the amount is repaid in d) Four additional instal-ments of
more
than
36
monthly 4% on the amount withdrawn
instalments but not more than
48 monthly instalments.
e) Where the amount is repaid in e) Five additional instal-ments of
more
than
48
monthly 4% on the amount withdrawn
instalments but not more than
60 monthly instalments.
f) Where the amount is repaid in f) Six additional instalments of 4%
more than 60 instalments.
on the amount withdrawn.
44.3.4

The employer shall deduct the instalments aforesaid from the

employees salary and pay them regularly to the Fund. The interest so
recovered, will be credited to the member's account. These deductions

shall commence from the second monthly payment of salary made after
the withdrawal orin the case of any employee on leave without pay,
from second monthly payment of salary made after return to duty.
44.3.5

On receipt of a written request from a member, the Secretary may allow

to revise the number of instalments to repay the balance amount of
advance drawn by the member, for any purpose, under these rules.

44.3.6

Secretary may also permit refund of the balance amount of advance

alongwith interest by the member, if he so requests, in one lump sum.

45.
45.1

SECOND WITHDRAWAL
A second refundable advance shall not be permitted until 50% of the
amount already withdrawn has been fully repaid in the course of regular
instalments as mentioned in the withdrawal application. In all such
cases, the balance of previous loan with interest thereon shall be
adjusted against the second refundable withdrawal sanctioned and the
balance paid.
A second refundable withdrawal, may however, be permitted even
before, 50% of the sum first withdrawn has been fully repaid in case the
member has been on leave without pay, as specified in Rule 42.8
provided the member repays in cash the balance of the loan together
with interest due thereon. However, if the Secretary so decides the
repayment in cash may be waived and the balance of previous loan
with interest thereon shall be adjusted against the second refundable
withdrawal sanctioned and the balance paid.

45.2

46.

UTILISATION OF AMOUNT WITHDRAWN

46.1 In respect of any amount withdrawn under Rules 42 and 43 and
Sub-Rules thereunder, if the Secretary is not satisfied that the amount
withdrawn was actually spent for the specified purpose, the Secretary
shall with prior approval of the Chairman, order recovery of the amount
withdrawn in one or more instalments with interest at 2% over and
above the existing rate from the pay of the member, to be credited to
the member's account.
46.2 In case of default of repayment of instalments due under Rules
44.3.1 and 44.3.2 or where the amount withdrawn is not utilised for the
purpose for which it is withdrawn, the Commissioner of Income Tax may
at his discretion order that the amount of the withdrawal or the amount
outstanding shall be added to the total income of the employee for the
year in which the default occurs or the withdrawn amount is finally held
not to have been utilised for the purpose for which it is withdrawn and
the Income Tax Officer shall assess the employee accordingly.

47.

COMPUTATION OF PERIOD OF MEMBERSHIP

47.1

47A

In computing the period of membership for the purpose of drawal of

advances/withdrawals under Chapter 5A and Chapter 5B of these
Rules, the period of service rendered in previous organizations the
accumulated Provident Fund balance in respect of which, has been
received by the Fund as mentioned under Rule 35, shall be taken into
account/included.
WITHDRAWAL WITHIN ONE YEAR BEFORE THE RETIREMENT
A member on application in the prescribed proforma, may be permitted
to withdraw up to 90% of the amount standing at his credit, at any time
after attainment of the age of 54 years or within one year before his
actual retirement on supperannuation, whichever is later.

CHAPTER - VI
FINAL SETTLEMENTS
48.

48.1

48.2

48.3
48.4

CIRCUMSTANCES IN WHICH ACCUMULATIONS IN THE FUND ARE

PAYABLE TO A MEMBER
A member may withdraw the full amount standing to his credit in the
Fund:
On retirement from service after attaining the age of 55 years, provided
that a member who has not attained the age of 55 years at the time of
termination of his services shall also be entitled to withdraw the full
amount standing to his credit in the Fund, if he attains the age of 55
years before the payment is authorised.
On retirement on account of permanent and total disability and total
incapacity for work due to bodily or mental infirmity duly certified by the
medical officer of Corporation or where the Corporation has no medical
officer, by a registered medical practitioner designated by the
Corporation.
Immediately before migration from India for permanent settlement
abroad.
On termination of service in the case of mass or individual retrenchment;
Provided that in the case of mass retrenchment the payment shall be
made immediately and in the case of individual retrenchment payment
shall be made if the member has not be employed in any factory or other
establishment to which the Employees Provident Funds and
Miscellaneous Provisions Act, 1952 applies for a continuous period of
not less than six months immediately preceding the date on which the
member makes the application for withdrawal.
Provided further that in the case of an individual retrenchment pending
final withdrawal the member may at his option, be paid for the period
during which the member is out of employment, monthly withdrawals, not
exceeding six, of a non-refundable advance from the Fund of an amount
equal to :
i) the basic pay, dearness allowance (all kinds of DA by whatever
name called), cash value of any food concession and retaining
allowance, if any, drawn by him in the month immediately preceding
the month in which he was retrenched;
OR
ii) one sixth of the amount standing to his credit (including interest) in
the Fund, whichever is less and on the expiry of the period of six
months, referred to in the foregoing provison, the balance amount, if

any, shall:

48.5

48.6

48.6.1
48.6.2
48.6.3

a) In any case where the member secures employment in any

establishment to which Employees Provident Funds and
Miscellaneous Provisions Act, 1952 applies, be transferred to the
new Provident Fund Account of that establishment;
b) in any case where the member secures employment in any
establishment which is not covered by the Act ibid, be paid in
cash to him after the expiration of the said period of six months
or be transferred under Section 17(A) of the said Act to the credit
of the account of such member in the provident fund of the
Corporation in which he is re-employed, provided that it shall be
so done only if the member so desires and such transfer is
permissible under the Rules of that Provident Fund.
c) in any case where the member does not secure employment be
paid in cash.
On termination of service under voluntary scheme of retirement framed
by the employer and the employees under a mutual agreement
specifying inter-alia that notwithstanding the provisions contained in subclause (a) of clause (OO) of Section 2 of the Industrial Disputes Act,
1947, excluding voluntary retirement from the scope of definition of
"retrenchment" such voluntary retirement shall for the purpose be treated
as retrenchments by mutual consent of the parties.
In any of the following contingencies, provided the actual payment shall
be made only after completing a continuous period of not less than two
months immediately preceding the date on which a member makes the
application for withdrawal;
where the Corporation is closed but certain employees who are not
retrenched, are transferred by the employer to other factory or
establishment, not covered under the Act;
where a member is transferred from the Corporation to another factory or
establishment not covered under the Employees Provident Funds &
Miscellaneous Provisions Act, 1952, but is under the Corporation; and
where a member is discharged and is given retrenchment compensation
under the Industrial Disputes Act, 1947.
NOTE
For the purpose of Rule 48.2 :
i)

where the Corporation has been closed, the certificate of any

registered medical practitioner may be accepted;

ii) where there is no medical officer in any Project/Unit/Office of the

Corporation, the employer shall designate a registered medical
practitioner stationed in the vicinity of the concerned
Project/Unit/Office of the Corporation; provided that it shall be open

to the Chairman to demand from the member a fresh certificate from

a Civil Surgeon or any doctor acting on his behalf where the original
certificate produced by him gives rise to suspicion regarding its
genuineness; provided further the entire fee of the Civil Surgeon or
any doctor acting on his behalf shall be paid from the Fund in case
the findings of the Civil Surgeon or any doctor acting on his behalf
agree with the original certificate and that where such findings do
not agree with the original certificate, only half of the fee shall be
paid from the Fund and the remaining half shall be debited to the
member's account.
iii) A member suffering from tuberculosis or leprosy or cancer if
contracted after leaving the service of the Corporation on grounds of
illness but before payment has been authorised, shall be deemed to
have been permanently and totally incapacitated for work.
48.7

48.8
48.8.1

49.
49.1

In cases other than those specified above, the Board, or whereso

authorised by the Board, the Chairman, or where so authorised by the
Chairman any Officer subordinate to him, may permit a member to
withdraw the full amount standing to his credit in the Fund on ceasing to
be an employee of the Corporation provided that he has not been
employed in any factory or other establishment to which the Act applies
for a continuous period of not less than 2 months immediately preceding
the date he makes an application for withdrawal. The requirement of two
months waiting period shall not, however, apply in cases of female
members resigning from the services of the Corporation for the purpose
of getting married.
NOTE
A declaration in writing made by a member affirming the fact of nonemployment as aforesaid may be accepted as proof thereof.
(Rule 48.7 amended vide Part-I Office Order No. 27/91 dated 29.7.1991.
Revised Rule 48.7 is effective from 1.1.1990).
UNCLAIMED AMOUNT ON LEAVING SERVICE, RETRENCHMENT
OR DEATH
Amount unclaimed by a member or his nominee after his leaving service,
retirement or death shall on no account lapse to the Fund. Such
unclaimed accumulations shall be reviewed at the end of each financial
year and the amount relating to cases of more than 3-1/2 years old at the
end of year shall be transferred to "unclaimed deposit account". The
unclaimed accumulations, when refunded, shall be paid with interest up
to the date of settlement of account.
ACCUMULATIONS OF A DECEASED MEMBER - TO WHOM
PAYABLE
On the death of a member, before the amount standing to his credit has
become payable or where the amount has become payable before the
payment has been made:

49.1.1

49.1.2
49.1.3
49.1.3.1
49.1.3.2
49.1.3.3
49.1.3.4

49.1.4

50.
50.1

50.2

50.3

If a Nomination made by the member in accordance with Rule 27

subsists, the amount standing to his credit in the Fund or that part
thereof to which the nomination relates, shall become payable to his
nominee or nominees in accordance with such nomination(s); or
Where any of the nominees dies and if no fresh nomination is filed the
share of the deceased nominee or nominees shall be paid to the existing
nominee(s) in the proportion of their original share.
If no nomination subsists, the whole amount shall become payable to
members of his family in equal shares; Provided that no share shall be
payable to :
sons who have attained majority;
sons of a deceased son who have attained majority;
married daughters whose husbands are alive;
married daughters of a deceased son whose husbands are alive.
if there is any member of the family other than those specified in SubRules 49.1.3.1 to 49.1.3.4 above;
Provided further the widow or widows and the child or children of a
deceased son shall receive between them in equal parts only the share
which that son would have received if he had survived the member and
had not attained the age of majority at the time of the member's death.
In any case to which the provisions of above Sub-Rules do not apply, the
whole amount shall be payable to the person legally entitled to it.
EXPLANATION
For the purpose of this Rule a member's posthumous child, if borne
alive, shall be treated in the same way as a surviving child born before a
member's death.
PAYMENT OF PROVIDENT FUND
When the amount standing to the credit of a member under these Rules
becomes payable, it shall be the duty of the Secretary to make prompt
payment as provided in these Rules. In case there is no nominee in
accordance with these Rules or there is no person entitled to receive
such amount under Rule 49.1.3, the Secretary may, if the amount to the
credit of the fund does not exceed Rs. 10,000/- and if satisfied after
enquiry about the title of the claimant, pay such amount to the claimant.
(Rule 50.1 amended vide Part I Office Order No. 27/91 dated 29.7.91.
Revised Rule 50.1 effective from 1.1.1990)
If any portion of the amount which has become payable is in dispute or
doubt, the Secretary shall make prompt payment of the portion of the
amount in regard to which there is no dispute or doubt, the balance
being adjusted as soon as may be possible.
If the person to whom any amount is to be paid under these Rules, is a
minor for whose estate a guardian under the Guardians and Wards Act,
1890 ( 8 of 1890 ) has been appointed, the payment shall be made to
such guardian. Where no guardian under the Guardians and Wards Act,

50.3.1

50.4

50.5

50.6
50.7

50.8

1890 has been appointed, the payment shall be made to the natural
guardian and in the absence of a natural guardian, to such person, as
the Secretary where the amount does not exceed Rs. 10,000/- or the
Chairman of the Board of Trustees, if the amount exceeds Rs. 10,000/considers to be the proper person representing the minor and the receipt
of such person for the amount paid, shall be a sufficient discharge
thereof.
If the person to whom any amount is to be paid under these Rules is a
lunatic for whose estate a manager under the Indian Lunacy Act, 1912 (4
of 1912) has been appointed, the payment shall be made to such
Managers. If no such Manager has been appointed, the payment shall
be made to the Natural Guardian of the lunatic and in the absence of any
such natural guardian, such person as the Secretary, where the amount
does not exceed Rs. 10,000/- or the Chairman of the Board of Trustees,
if the amount exceeds Rs. 10000/- considers to be the proper person
representing the lunatic and the receipt of such person for the amount
paid shall be a sufficient discharge thereof.
If it is brought to the notice of the Secretary that the posthumous child is
to be borne to the deceased member he shall retain the amount which
will be due to the child in the event of its being borne alive and distribute
the balance. If subsequently no child is borne or the child is still borne,
the amount retained shall be distributed in accordance with the
provisions of Rule 49.
The employer shall at the time when a member of the Fund leaves the
service be required to get the claim application for payment of Provident
Fund in cases specified in Rules 48.1 and 48.5 duly filled in and attested
and to forward the said application to the Secretary or any other Officer
authorised by him in this behalf. employer shall at the time when the
member of the Fund leaves the service, be required to get the claim
application for payment of Provident Fund in cases specified in Rules
48.6.1, 48.6.2, 48.6.3 and 48.3.7 duly filled in and attested and to give
the said application to the member, for submission, on completion of the
period specified in Rule 48.7 duly completed declaration of nonemployment in the said application, either through post or in person with
proper identification, to the Secretary.
(Rule 50.5 amended vide Part-I office order No. 27/91 dated 29.7.1991.
Revised rule 50.5 effective from 1.1.1990.)
The Corporation shall, on the death of the member and on receipt of an
application for receiving the amount standing to the credit of such
member, forward forthwith the said application to the Secretary.
If the applicant is unable to send the claim application through the
employer or duly attested by him, for any reason whatsoever, he may
forward it to the Secretary and wherever necessary, the Secretary may
forward such application to the employer and the employer shall be
required to return it within five days of its receipt.
The payment may be made at the option of the person to whom payment

50.8.1
50.8.2

50.9
50.9.1

50.9.2

50.10.

50.11

is to be made :
by postal money order;
by deposit in the payees' bank account in any scheduled bank or a Cooperative Bank or any Post Office, or though the employer.
Provided that where the provident amount payable by Postal Money
Order exceeds Rs. 500/- shall be remitted at the cost of the payee.
Any amount becoming due to a member as a result of:
Supplementary contribution from the employer in respect of leave
wages/ arrears of pay, instalment of arrear contribution received in
respect of a member whose claim has been settled on account but which
could not be remitted for want of latest address; or
Accumulation in respect of any member who has either ceased to be
employer or died, but no claim has been prepared within a period of
three years from the date it becomes payable or if any amount remitted
to a person is received back undelivered and it is not claimed again
within a period of three years from the date it becomes payable shall be
transferred to an account to be called the "Unclaimed Deposit Account".
Provided that in the case of the payment of the said balance, the amount
shall be paid by debiting the "Unclaimed Deposit Account .
On written request of an employee, the Trust may retain the EPF
Accumulations upto 6 months on the prevalent rate of interest on
cessation of employment and allow one or more part withdrawal(s)
during this period if applied for by the employee.
Notwithstanding anything contained in these Rules, if the amount
payable to any member upon his ceasing to be an employee of the
Corporation or transferable on his transfer to any other Establishment by
way of employer and employees contribution payable under the Gratuity
or Pension Rules be less than the amount that would be payable under
as employer and employees' contribution plus interest thereon if he were
a member of the Fund the employer shall pay the difference to the
member as compensation or special contribution.

CHAPTER - VII
MISCELLANEOUS
51. CAPITAL RESERVE ACCOUNT
51.1 A Capital Reserve Account shall be maintained in the books of the Fund to

which shall be credited any profit arising from the sale of securities. There
shall likewise be debited to the capital Reserve Account any loss arising
from the sale of securities.

52. UTILISATION OF CAPITAL RESERVE ACCOUNT

Any amount lying in the Capital Reserve Account may be utilised for the
following purposes :52.1 To maintain a higher rate of interest on the members account atleast at par
with the rate of interest declared by the Government of India, under the
Employees Provident Fund Scheme, 1952;
52.2 To make good the capital loss to the Fund on account of
purchases/sale/redemption of securities;
52.3 To meet the money order commission in connection with remittance of
Provident Fund consequent on settlement of claims to the members or their
deceased family members; and
52.4 Ad-hoc payment of rs. 30/- to the heirs of deceased member as an aid for
procuring a succession/guardianship certificate.
Para 52 amended vide Part-I Office Order No. 48/97 dated 23.9.97.
NOTE
A separate account of the amounts forfeited in cases where an employee
ceases to be a member of the fund on the basis of Rule 48, shall be
maintained an may be utilised for such purposes as may be determined with
the prior approval of the Central Provident Fund Commissioner.
53. PROTECTION AGAINST ATTACHMENT
53.1 The amount standing to the credit of any member in the fund shall not in any
way be capable of being assigned or charged and shall not be liable to
attachment under any decree or order of any Court in respect of any debt or
liability incurred by the member neither the official assignee appointed under
the Presidency-Towns Insolvency Act, 1909 ( 3 of 1909) nor any receiver
appointed under the Provincial Insolvency Act, 1902 ( 5 of 1902) shall be
entitled to or have any claim on any such amount.
53.2 Any amount standing to the credit of a member in the Fund at the time of his
death payable to the nominee under the Rules of the Fund shall subject to
any deduction authorised by the NHPC E.P. Fund Rules, vest in the nominee
and shall be free from any debt or other liability incurred by the deceased or
the nominee before the death of the member.
54. INSPECTION OF CARDS AND RECORDS BY THE COMMISSIONER
54.1 The Secretary shall, whenever the Commissioner or any Officer authorised
by him in this behalf so requests either in person or by notice in writing,
produce before the Commissioner or Officer as the case may be, any
account books or records of the Fund, and if so required by the said
commissioner or officer, shall deliver such records to the said commissioner
or officer who may, if he thinks fit, retain the records provided that he shall

grant a receipt for every records retained by him.

55. ARBITRATION
55.1 Any dispute or difference between the member or his executors,
administrator, nominees, representatives and the employer or Trustees
regarding Provident Fund shall be referred to the Regional Provident Fund
Commissioner/Commissioner of Income Tax, whose decision shall be final. If
any dispute arises as to the meaning or applicability of any of the provisions
in these Rules such matter shall be referred to the Regional Provident Fund
Commissioner, whose decision shall be final in the matter.

56. DISPOSAL OF THE FUND

56.1 Subject to the provisions of these Rules, the Fund shall not be expended for
any purpose other than for the payment of sums standing to the credit of
individual members of the Fund or to their nominees or heirs or legal
representatives in accordance with the provisions of these Rules.

57. WINDING UP
57.1 It shall be lawful for the Trustees at any time on giving a month's notice in
writing to all members of the Fund, to wind up the Fund in which case the
Trustees shall on expiry of the period of such notice realise all securities and
make up the books and after payment of all costs and expenses of winding
up and otherwise the moneys of the Fund shall be distributed amongst the
persons who shall be members at the time of commencement of such
winding up in proportion to the balances at the time of making of the books
standing to their credit therein. In case of the Fund being wound up on
account of the Company going into liquidation, the employees' contribution
of the Provident Fund will have top priority over all other dues.
57.2 Provided that the winding up of the fund will not be made without the prior
approval of the Regional Provident Fund Commissioner/Commissioner of
Income Tax.

58. TRUSTEES' POWER TO AMEND RULES

58.1 The Trustees may in their discretion with the consent of the Corporation in
writing, add to, alter or repeal any of the provisions of these presents, but so
that no such additions or alterations shall adversely affect the rights of any
member of the Fund in respect of any Fund than in the hands of the
Trustees or result in the Corporation acquiring any beneficial interest
whatsoever in the funds of the Fund. All such additions or alterations shall,
however, be made with the prior approval of the Regional Provident Fund
Commissioner concerned / Commissioner of Income Tax. Where any

amendment is likely to affect adversely the interest of the employees of the

Trust, the Regional Provident Fund Commissioner shall, before giving his
approval give reasonable opportunity to the employees to explain their point
of view.

59. DISPLAY OF RULES

59.1The trust shall display these Rules in English and local language, on he
Notice Board(s) of all the Projects/Units/Offices of the Corporation including
at Corporate Office.

60. In case these Rules re silent on any matter or are not in conformity with the
provisions of Employees Provident Funds and Miscellaneous Provisions Act,
1952, and the Employees' Provident Fund Scheme 1952, the provisions of
the latter shall prevail.

61. The directions issued by the Regional Provident Fund Commissioner from
time to time will be final for all practical purposes and shall be complied with.

62. EMPLOYEES' FAMILY PENSION SCHEME

62.1 The Employees' Family Pension Scheme as contained in Employees'
Provident Funds and Miscellaneous Provisions Act, 1952, will be applicable
to the employees of the Corporation with effect from 1.4.1985. The
Corporation is responsible for the compliance of the Family Pension Scheme
with the Regional Provident Fund Commissioner concerned, subject to the
employer and the employees bearing their respective shares of contribution
towards the same.
NOTE
(i) The employees, who were members of any recognised Provident Fund,
prior to 1.3.1971 and the accumulations in respect of which have been
transferred to the NHPC Employees' Provident Fund constituted under
these Rules, will however, be exempted from the above Scheme,
provided a declaration is received from such employees that they had
not opted for the Family Pension Scheme earlier.
(ii) The employees, who joined the Corporation from Central/State
Government or Public Sector or an Autonomous Body and continue to
subscribe to the Family Pension Scheme in their previous
Organizations in terms of Rules of the concerned organization even
after their absorption in NHPC, will also be exempted from the above
scheme.
62.2 Employee Pension Scheme, 1995 as introduced by Government of India has

been introduced in NHPC w.e.f. 16.11.95.

CHAPTER - VIII
63. DEPOSIT LINKED INSURANCE SCHEME
63.1 Corporation shall frame a Group Term Insurance Scheme in consultation
with Life Insurance Corporation of India providing for insurance cover of a
sum not less than what would be admissible under Deposit Linked Insurance
Scheme framed under Employees' Provident and Miscellaneous Provisions
Act, 1952, and Scheme framed thereunder.
63.2 Details of the Scheme will be notified separately in consultation with the Life
Insurance Corporation of India.

64. Where in respect of any person or class of persons employed in the

Corporation an exemption is granted under Section 17 of the Act from the

operation of all or any of the provisions of any Scheme (whether such

exemption has been granted to the Corporation wherein such person or
class of persons is employed or to the persons or class of persons as such),
the employer shall in relation to the Provident Fund, Pension and Gratuity to
which any persons or class of persons is entitled maintain such accounts,
submit such returns, make such investments, provide for such facilities for
inspection, and pay such inspection charges within 15 days from the close of
every month as the Central Government may direct under clause (a) of SubSection (3) of Section 17 of the Act.
NOTE
The Corporation has since notified Group Insurance Scheme in lieu of EDLI
vide Part I Office Order No. 21/87 dated 18.3.1987. The detailed scheme is
placed at Appendix VI.

APPENDIX I
CORPORATION LIMITED

NATIONAL HYDROELECTRIC POWER

(A GOVERNMENT OF INDIA ENTERPRISE)
FORM OF NOMINATION PAPER
(Please seen Rule 5.1.3.)
I hereby nominated Shri............................(Name of the candidate being
proposed for nomination along with Provident Fund Account Number) as a
candidate for election to the Board of Trustees.
Signature of the proposer with
his Provident Fund Account
Number
...................................................
Full Name
...................................................
Employee No.
...................................................
Name of the Project/Unit
...................................................
Name
of
the
Circle
...................................................
Division/Deptt.where posted

Dated:
I here by declare that I agree to the above nomination.
Signature of the candidate
...................................................
Full Name
...................................................
Employee No.
...................................................
Name of the Project / Unit
...................................................
Name
of
the
Circle/Division/Deptt.where
...................................................
posted
Dated:
...................................................
ATTESTED BY;
1. .........................
2. .........................
(To be signed by two members of the Provident Fund)
CERTIFICATE OF DELIVERY
This nomination paper was delivered to me at my office on ............. by the
candidate/proposer.
Returning Officer

NATIONAL HYDROELECTRIC POWER

A GOVERNMENT OF INDIA ENTERPRISE

APPENDIX II
CORPORATION LIMITED

EPF Account No. NH/Fund/Co..............

APPLICATION FOR ADMISSION AS A MEMBER
(TO BE FILLED IN QUADRUPLICATE)
1. Name of the Applicant (in
...................................................................
block letters)
2. Father's Name/Husband's
...................................................................
Name
3. Date ofBirth
...................................................................
4. Designation/Employee No. ...................................................................
5. Department/Division with
...................................................................
name of the Project/Unit
6.
Name
of
appointment/permanent
...................................................................
absorption in NHPC
7. Basic Pay + DA + ADA
...................................................................
8.
Pay
Scale
on
appointment/Permanent

absorption
9. Where you previously a
member
of
any
other
recognised
contributory
Provident
Fund?
If so, give
the
particulars
and PF Account Number ...................................................................
and
state
whether
...................................................................
accumulations have been
transferred to NHPC EP Fund ...................................................................
Trust
...................................................................
10. Date of leaving previous
...................................................................
service
11. If re-employed in NHPC,
monthly rate of pension,
equivalent of Gratuity &
Relief in pension
...................................................................
I hereby declare that I have read/understood the Rules and Regulations
governing the NHPC EP Fund Rules and agree to be bound by the same
as well as by the amendments which may be made from time to time.
Signature/Thumb Impression of the Applicant
Witnesses with addresses :
1. ....................
2. ....................
PERSONNEL DEPARTMENT
1. Certified that the applicant has joined the Project/Unit/Corporate Office
of NHPC on the ......... day of ........ 199.. and is eligible to be admitted
as a member of NHPC Employees' Provident Fund with effect
from ..................... vide Rule..................
*2. It is further certified that Rules and Regulations of NHPC Employees'
Provident Fund have been explained to the applicant and he/she
understands them.
Personnel Officer
(Incharge of Establishment Section)
No.NH/FA/Fund Date
Admitted as a member of NHPC Ltd. EP Fund with effect from ...... The
arrears of contributions for the period from ........to......may be recovered
in ...... equal monthly instalments alongwith regular contribution.
Secretary
NHPCLtd.EmployeesProvident Fund

Copy to :
1. Personnel Officer
2. Accounts Officer for effecting recoveries accordingly.
3. Concerned employee.
(*This clause is applicable if the applicant is an illiterate)

NATIONAL HYDROELECTRIC POWER

(A GOVERNMENT OF INDIA ENTERPRISE)

APPENDIX III
CORPORATION LIMITED

DECLARATION AND NOMINATION FORM

(Please see Rules 26.1 and 27.1)
1. Name (in block letters) Surname ..................
2. Sex
.................................................................................
3. Religion
.................................................................................
4. Father's Name
.................................................................................
5. Husband's Name (for
.................................................................................
married women only)
6. Marital status (whether
unmarried/married/widow
.................................................................................
or
widower)
7. Date of Birth
.................Day...................Month ................... year
(Where exact particulars
of age are not available,
age as certified by the
Medical
Officer
so
authorised
by
the
Corporation
may
be
indicated.)
8. Permanent Address
.................................................................................
Village
Thana
.................................................................................
Taluk/Sub-Division

Post Office District

.................................................................................
State

I declare that I have not previously been a member of the Employees'

Provident Fund and I hereby nominate the person(s) mentioned below to
receive the amount standing to my credit in the Fund, in the event of my death
before that amount has become payable or having become payable has not
been paid and direct that the said amount shall be distributed among the said
persons in the manner shown below against their names :
Name
and Nominee'srelationship Age of Nominee
address of the with the member
Nominee
or
Nominees

Amount of share
of accumulation
in the Fund to be
paid
toeach
nominee

1.
2.
3.
*I hereby direct that in the event of my death during the minority of my above
named nominee(s), the person whose particulars are given below shall be
deemed to be the guardian of the minor nominee for the purpose of the NHPC
Employees' Provident Fund Rules:
Name and address of Age of the guardian
the guardian

Relationship
of
the
guardian with the member

Certified that I have no family as defined in Rule 2.10 of the NHPC

Employees' Provident Fund Rules and should I acquire a family hereafter
the above nomination should be deemed as cancelled.
2. Certified that my father/mother is dependent upon me.
Signature or left hand thumb
impression of the member
1.

Certified that the above declaration has been signed/thumb impressed by

Shri/Shrimati/Kum. ................employed in this Department before me after
he/she has read the entries.
Signature of the Head of Deptt.
or authorised Officer with
designation and name and
address of Project/Unit/Office
Date:
*Delete if not necessary

APPENDIX - VI
Subject : Group Insurance Scheme for the employees of National
Hydroelectric Power Corporation Ltd.
(Please see Rule 63)

1.

2.

3.
3.1
3.2
3.3.
3.4
3.5.
4.

In terms of the provisions of the Employees Provident Funds and

Miscellaneous Provisions Act 1952, employees of the Corporation who are
members of NHPC Employees Provident Fund are covered under the
Employees Deposit Linked Insurance Scheme, 1976.
The Corporation has since been allowed relaxation from the operation of
Employees Deposit Linked Insurance Scheme, 1976 by the Regional
Provident Fund Commissioner w.e.f. 1.1.1987 in lieu of which we have
obtained a Group Insurance Policy from LIC w.e.f. 1.1.1987. A copy of
Group Insurance Scheme has already been circulated to all
Projects/Units/Offices, vide letter No. NH/PER(P)/663 dated 8.9.1986.
In continuation of the Group Insurance Scheme already circulated a copy
each of the following papers are circulated for information/further necessary
action of all concerned.
Rules of Group Insurance Scheme of National Hydroelectric Power
Corporation ltd. Annexure-I
Guidelines to employer for settlement of claims under Group Insurance
Scheme set up in lieu of Employees Deposit Linked Insurance Scheme,
1976 - Annexure-II.
Claim form under Group Insurance Scheme in lieu of EDLI Scheme Annexure-III.
Guidelines to claimants to apply for payment of claim amount under the
Group Insurance Scheme set up in lieu of EDLI-Annexure-IV.
Application for payment of claim-Annexure-V.
The Project/Unit/Office concerned on receipt of applications for payment of
claim (Annexure-V) filled in by the nominees/Guardians of the minor
nominees/legal heirs of the deceased members alongwith information on
paras 2 and 3 of the claim from (Annexure-III) should send the same to
Senior Manger (Personnel) Corporate Office immediately for processing the
case further.
Scheme notified vide Part-I O/O No.21/87dated18.3.87.

ANNEXURE I
RULES
OF
GROUP INSURANCE
SCHEME
HYDROELECTRIC POWER CORPORATION LIMITED

OF

NATIONAL

1.

1.1
1.2
1.3
1.4
1.5
1.6

1.7
1.8

DEFINITIONS
In these Rules, where the context so admits, the masculine shall include the
feminine, the singular shall include the plural and the following words and
expressions shall, unless repugnant to the context have the following
meanings:
"the COMPANY" shall mean National Hydroelectric Power Corporation Ltd.
"the CORPORATION" shall mean the Life Insurance Corporation of India
established under Section 3 of the Life Insurance Corporation Act, 1956.
"the SCHEME" shall mean NHPC EMPLOYEES' GROUP INSURANCE
SCHEME.
"the FUND" shall mean the Provident Fund of the Company established in
terms of the Employees' Provident Funds and Miscellaneous Provisions Act,
1952;
"the RULES" shall mean the Rules of the Scheme as set out below and as
amended from time to time.
"the MEMBER" shall mean an employee of the Company who has been
admitted to the membership of the Scheme and or whose life assurance has
been effected in accordance with the rules.
"EFFECTIVE DATE" shall mean the 1st of January 1987, the date as from
which the Scheme commences;
"ENTRY DATE" shall mean
(a) in relation to a Member admitted to the Scheme on the Effective Date and

(b) in relation to a new Member to be admitted to the Scheme after the

Effective
Date,the
date
on
which
he
becomes a member of the Fund;
1.9 "ANNUAL RENEWAL DATE" shall mean in relation to the Scheme, the 1st of
January 1988 and the 1st of January in each subsequent year;
1.10 "the ASSURANCE" shall mean the assurance effected on the life of the
member;
1.11 "the NOMINEE" shall mean person or persons who has/have been
nominated by the Member under the Provident Fund to receive the benefits
in the event of his death;
2.

3.
3.1

The Company will act for and on behalf of the Members in all matters relating
to the Scheme and every act done by agreement made with the notice given
to the Corporation by the Company shall be binding on the Members.

ELIGIBILITY
The Employees of the Company who are within the following category shall
be eligible to join the Scheme:
3.1.1 All employees who are admitted s Members of the Provident Fund.
3.1.2 Present employees who on the Effective Date, are within the above
category,shall join the Scheme as from the date. Present employees who are

not within the above category on the Effective Date shall join the Scheme on
the relevant Entry Date.
3.1.3 It will be a condition of service for future employees that they shall become
Members of the Scheme on the relevant Entry Date.
3.2 No member shall withdraw from the scheme so long as he satisfies the
conditions of eligibility described above.
4.
4.1

EVIDENCE OF AGE
The Company shall arrange to submit to the Corporation evidence of age in
respect of each Member at the time of entry into the Scheme.

5.
5.1

PREMIUMS
The Company shall pay to the Corporation in respect of each Member on the
Entry Date and the relevant Annual Renewable Dates/Premium Due Dates
such premiums as are required to secure the benefits under the Assurance
effected on his life in accordance with these Rules.
If there is any default by the Company in payment of the premium within the
stipulated time, the Corporation will intimate that fact to the Regional
Provident Fund Commissioner.

5.2

6.
6.1

7.

ASSURANCES
On the Entry Date, an Assurance shall be effected on the Life of each
member under One Year Renewable Group Term Assurance Plan for a Sum
Assured equal to Rs.26000/-.
(Amount of Assurance increased to Rs. 26000/- vide RPFC letter No. PFRC
(10)IF/GENL./ DL-7717/DLI/Exempted dated 12.8.1990. Revised rate of
Assurance effective from 01.3.1990)
(The amount of assurance increased to Rs. 37,000/-)
6.2 The Master Policy incorporating the Assurances shall be held by the
Company upon Trust for the benefit of the persons entitled to in accordance
with these Rules.
RENEWABLE OF ASSURANCES
7.1 The Assurance shall be renewed automatically for the Sum Assured as
stated above on each Annual Renewable Date by payment of premium for
Members who continue to be in the service of the Company.

8.
8.1

BENEFITS ON DEATH WHILST IN SERVICE

Upon the death of a Member whilst in service, the Sum Assured under the
Assurance shall become payable to the Company for the Benefit of the
Nominee.

9.
9.1

TERMINATION OF ASSURANCES
The Assurance on the life of a Member shall terminate upon the happening

of any of the following events:

9.1.1 The member ceasing to be in the service of the Company, or
9.1.2 The Member ceasing to be an Eligible Member under the Provident Fund.
10.

REFUND OF PREMIUM ON LEAVING SERVICE

10.1 If the Member leaves the services of the Company, the Assurance
effected in respect of him shall terminate and the Corporation will refund to
the Company proportionate premium relating to the unexpired period for
which the premium is paid.

11. RESTRAINT ON ANTICIPATION OR ENCUMBRANCES

11.1 The benefits assured under the Scheme are strictly personal and cannot be
assigned, charged or alienated in any way.
12.

DISCONTINUATION OR AMENDMENT OF THE SCHEME

12.1 The Company reserves the right to discontinue the Scheme or to
amend, the Rules thereof on any Annual Renewal Date, subject to three
months notice being given to the Corporation. Provided that the scheme can
be discontinued or the Rules amended only after obtaining prior approval of
the Regional Provident Fund Commissioner.

13. JURISDICTION
13.1 All Assurances issued under the Scheme shall be subject to the provisions of
the Estate Duty Act, 1953, as amended, the Income Tax Act, 1961, and to
any legislation subsequently introduced.
14.

MASTER POLICY
14.1 The Corporation will issue to the Company a Master Policy
incorporating all the assurance effected under the Scheme.

15.

ESTATE DUTY
15.1 Where any liability to estate duty arises in respect of any benefits, the
Company may apply the benefits or part of it in payment of such duty
(including any interest thereon) and deduct the amount so paid from the
benefits or may postpone the payment of the benefits until the liability has
been provided for to their satisfaction. PROVIDED THAT where the Nominee
of a deceased Member claiming the benefits hereunder satisfies the
Company that duty has been paid or shall be paid or that no duty is due, the
Company shall have the discretion to pay the benefits subject to the
Nominee furnishing indemnity or indemnities in the form and manner
specified by them.

16.

NOMINATIONS

16.1 Upon the death of the Member whilst in service, the sum assured under the
Assurance on his life will become payable to the Company for the benefit of
the Nominee or Nominees appointed by the Member under the Provident
Fund. If no nomination subsists or if the nomination relates only to part of the
benefits, then the whole sum assured or part thereof, as the case may be,
shall become payable to the member of his family in equal shares as
provided in the Employees' Deposit Linked Insurance Scheme, 1976.
17.

RATES OF PREMIUM AND CONDITIONS OF ASSURANCES

17.1 The rates of premium and conditions of Assurance under which the
Corporation if prepared to arrange the Scheme shall be subject to an
agreement between the Company and the Corporation. The conditions of
Assurance and rates of premium may be modified by the Corporation on any
Annual Renewal Date, subject to three month's notice being given to the
Company.

18. GENERAL
18.1 The Scheme is arranged to provide life assurance benefits to the employees
in lieu of the benefits envisaged under the Employees Deposit Linked
Insurance Scheme, 1976. The Scheme shall remain in operation as long as
the Company is exempted from the provisions of the said Employees'
Deposit Linked Insurance Scheme, 1976, and shall not be discontinued
without obtaining prior permission of the Regional Provident Fund
Commissioner. If at any time, the benefits under the Employees' Deposit
Linked Insurance Scheme are increased by the Government, then the
Company also will, in consultation with the Corporation,take steps to
increase the life assurance benefits under the Scheme to that level.

1.

ANNEXURE - II
GUIDELINES TO EMPLOYER FOR SETTLEMENT OF CLAIMS UNDER
GROUP INSURANCE SCHEME SET UP IN LIEU OF EMPLOYEES'
DEPOSIT LINKED INSURANCE SCHEME, 1976
Upon the death of a Member, the life insurance benefit payable under the
Group Insurance Scheme will be credited to the Savings Bank Account of the
claimant opened with one of the nationalised Banks, or the State Bank of
India or the subsidiaries of the State Bank of India or any Schedule Bank or a
Cooperative Bank or a Post Office. The Grantees' (Employer's) statement
contains the necessary particulars to be furnished by the Grantees for the
purpose of claim payment.

2.

3.
4.
4.1
4.2
4.2.1
4.2.2
4.2.3
4.2.4
4.2.5

5.

The employee would have made a nomination under the Provident Fund
Scheme of the Employer which nomination shall be treated as valid
nomination under the Group Insurance Scheme and the claim amount shall
therefore become payable to such nominee. If, however, the nominee is a
minor, the claim amount will become payable to the guardian of the minor
nominee. Where no nomination subsists or if the nomination relates only to
part of the claim amount, the whole amount or the part thereof as the case
may be, to which the nomination does not relate, shall, subject to the
provisions of Rule 23 of the EDLI Scheme, 1976 become payable to the
members of his family in equal shares. As such, the employer should give
relevant particulars in Col. 3 of the Grantees' statement after verification from
his records.
The employer must maintain a 'Claims Paid' Register in the prescribed form.
This will be helpful in connection with the inspection by the P.F. authorities.
The following steps will have to be taken by the Employer for expeditious
settlement of the claim.
Immediately on receipt of the death intimation, issue guidelines to the
claimant (The Employer is advised to get the application form and the
guidelines prepared in local language).
Obtain from the claimant.
Application form duly filled in by the claimant;and
Death certificate in respect of the employee.
Complete Grantees' Statement.
Enter particulars of death claim in 'claim paid' Register and
Forward to L.I.C.
a. Grantees statement, and
b. Death Certificate
When the claim is admitted, the LIC will draw an "Account Payee" cheque in
favour of the claimant and send the cheque to the concerned Bank/post
office for crediting the proceeds to the Claimant's account, under advise to
the claimant and the Employer. On receipt of the advice, the Employer
should enter the date of payment in the claims paid' Register.

ANNEXURE-III
LIFE INSURANCE CORPORATION OF INDIA
(Established by the Life Insurance Corporation Act, 1956)
CLAIM FORM UNDER GROUP INSURANCE SCHEME IN LIEU OF E.D.L.I.
INSURANCE SCHEME, 1976
GRANTEES' STATEMENT
(TO BE COMPLETED BY
EMPLOYER)

THE

MASTER

POLICY

HOLDER

i.e.

1.

2.

3.

i) NAME OF THE SCHEME ______________________________________

ii) MASTER POLICY NO. ______________________________________
iii)
FULL
NAME
&
ADDRESS
OF
THE
______________________________________
MASTER
POLICY HOLDER
i) Fullname of the deceased member ii) Date of Birth
_______________
_______________________________
iii) Date of joining service
iv) Date of Joining PF
_________________________
___________________________
v) P.F. Account No.
vi) Date of Entry to the Scheme
_____________________________ ___________________
vii) Date of death of member
viii) Cause of death of member
(enclose death certificate)
_____________________
i)
Name
and
address of the
nominee/heir to
whom
the
claim amount
is payable
______________________________________________
ii) If the nominee
is a minor state
name
and
address
of
the guardian
______________________________________________
iii) Name and
complete address
of the Bank/Post
Office
with which the
claimant
has
opened a Saving
Bank
Account
______________________________________________
NOTE
Please specify the shares of the Nominees/heirs if there are more than one
nominee/heir to whom the claim is to be paid and particulars of separate
Bank Account Nos., if any.
We hereby declare that the answers to all the questions are true in every
respect and that the above employee was a member of the Group Insurance
Scheme.
We hereby request the Corporation to credit the claim amount to the
claimant's above mentioned Saving Bank Account.
(Signature of the Master Policy Holder)

Place :________________
Date :________________

ANNEXURE - IV
GUIDELINES TO CLAIMANT TO APPLY FOR PAYMENT OF CLAIM
AMOUNT UNDER THE GROUP INSURANCE SCHEME SET UP IN LIEU
OF EMPLOYEESDEPOSIT LINKEDINSURANCE SCHEME, 1976
1.

According to the Rules of the Group Insurance Scheme set up in lieu of

Employees' Deposit Linked Insurance Scheme, 1976 the life insurance
benefit of Rs. 37,000/- (Rupees thirty seven thousand only) payable upon the
death of an employee while in service is payable to the nominee of the
employee. If, however, the nominee is a minor the claim amount will be
payable to the guardian of the minor nominee. Where no nomination
subsists, the claim amount shall be paid to the legal heirs i.e. the members of
the family. In order that the claim amount is paid expeditiously the claimant is
advised to make an application to the employer in the annexed form.

2.

3.

4.

Since the payment can be credited only to the SAVINGS BANK ACCOUNT
of the claimant, if the claimant does not have a Bank Account, he is advised
to immediately open a Savings Bank Account with any one of the
Nationalised Banks or State Bank of India or a Post Office, whichever is
convenient to the claimant and state the particulars of the account in the
application.
Original death certificate in respect of the deceased employee should be
sent along with the application. For this purpose, the certificate issued by the
Official Registrar of Deaths, Municipality or Local Board should be obtained
by the claimant.
Since the life insurance benefit will form part of the aggregate estate passing
on the death of the deceased employee, it will be the responsibility of the
claimant to pay such duty as may be payable to the Estate Duty authorities in
case a liability to pay duty arises under the Estate Duty Act, 1953.

ANNEXURE - V
APPLICATION FOR PAYMENT OF CLAIM
To
(Name of Employer)
________________________
________________________
________________________
I, being the nominee/guardian of the minor*/legal heir* of the deceased
employee, apply for the payment of the life insurance benefit payable in
respect of him under the Group Insurance Scheme set up by you in lieu of
the Employees' Deposit Linked Insurance Scheme, 1976. I give below the
necessary particulars:
1.
2.

Full name of the deceased employee_____________________

Name &addressof the Nominee/Legal heir*

3.
4.
5.

If the nominee is a minor, state name & address of the guardian

Name & Full address of the Bank with which I have a Saving BankAccount
Account No.
I enclose the original death certificate in respect of the deceased employee
and request that the claim amount be credited to my above mentioned Bank
Account. I also enclose the indemnity bond duly executed.
(Signature or the thumb impression of
the Nominee/guardian of the minor
nominee/legal heir)
Place :______________________
Date :______________________
Witness :
Signature
Full Name
Address
*Strike out if not applicable
IMPORTANT ORDERS / INSTRUCTIONS
COPY OF LETTER NO. PPL-663(VOL IX) DATED 5th APRIL, 1990.
SUBJECT: TRANSFER OF PROVIDENT FUND ACCOUNT

1.

2.

3.

In a recently concluded joint meeting of the Board of Trustees of NHPC Ltd.

several issues relating to Provident Fund came up for discussion. The most
important of these issues, however, was undue delay towards transfer of
Provident Fund Account of employees on their transfer/shifting to other
Projects.
During the meeting, it was informed by the officer in charge of the Provident
Fund Section of Projects/Units that while it is true that transfer orders are
issued and also come to the notice of PF Section but subsequent
cancellation or exact date of relief of an employee from the Project is not
intimated to the PF Section. The Section therefore being unaware of the
movement of the employee cannot take action in regard to transfer of PF.
Further it was also brought to notice that copies of joining report at the
Project/Unit is not endorsed to the PF Section as to from where the
employee concerned has joined.
It was also highlighted during this meeting that in a number of cases,
employees have not furnished their nomination papers which are required for
settlement of Provident Fund in case of a mishap. Absence of relevant
nomination papers, inordinately delay release of PF dues of deceased. This

needs to be curbed.
4.

5.

Keeping in view the difficulties faced by employees in the event of non

transfer of their PF Account in time as also by the Fund Section due to
absence of relevant nomination papers, it has been decided that:
(i) A copy of all transfer orders would be endorsed to the Fund Section of
the Project/Unit;
(ii) All transfer orders will bear the EPF Account No. of the employees
concerned.
(iii) A copy of all relieving orders would be endorsed to the Fund Section of
the Project/Unit;
(iv) A copy of all joining report would be endorsed to the Fund Section of
the Project/Unit;
(v) The Fund Section of Project/Unit would review all cases to ensure that
they have the relevant nomination papers from all employees of the
project/unit for whom Provident Fund deductions are being made.
NOTE:
In case there are employees who have not furnished their nomination
papers, it must be ensured that the same are furnished by the
employees concerned duly filled in immediately. If necessary, the local
Personnel Department and Fund Section may seek halp from the
Unions operating in the Projects/Units for getting the papers completed.
In case, however, certain employees refused to furnish nomination
papers, a list of such employees should be furnished to the Accounts
Officer (Funds) Corporate Office so that necessary action could be
initiated.
(vi) Nomination papers of employees would be immediately transferred to
the Project concerned in case of transfer/shifting of employees to other
Projects.
You will appreciate that Provident Fund is an important statutory
requirement where we can hardly afford to delay or overlook things. It is
therefore requested that you may kindly ensure that the decisions taken in
this meeting are implemented in totality to obviate possible inconvenience
to employees.
Thanking you,
Sd/-

COPY OF LETTER NO. PPL- 663(VOL.XI) DATED 24th APRIL, 1992.

SUBJECT: TRANSFER OF PROVIDENT FUND ACCOUNT
REF. :THIS OFFICE LETTER NO. PPL-663(Vol.IX) DATED 5.4.1990.
1.

2.

3.

4.

During the recently concluded meeting of the NHPC EPF Board of

Trustees at the Corporate Office, the issue regarding undue delay in
transfer of Provident Fund Account of employees came for discussion. It
was brought to the notice of the Trustees that in the event of transfer of
employees there was inordinate delay in transfer of Provident Fund
Account leading to unnecessary inconvenience to employees. This was
viewed seriously by the Chairman of the Trust who desired that all care
should be taken to ensure that the Provident Fund Account of such
employees is transferred without any delay.
The same subject had also come under active discussion during an earlier
meeting of NHPC EPF Board of Trustees. As a follow up action, necessary
instructions were issued to all the Projects/units to follow specific
guidelines contained in our letter dated 05.04.1990 (referred above and
copy enclosed for ready reference).
The same issue has again been raised after about a year and the Trustees
were of the opinion that the instructions given to the Projects/units in this
regard perhaps not been followed leading to the similar problem being
repeated.
You will appreciate that Provident Fund is an important statutory
requirement where we can hardly afford to delay or over look things. It is,
therefore, again requested that you may kindly ensure that the
decisions/instructions contained in our letter dated 5.4.1990 are
implemented in totality to obviate possible inconvenience to employees.

Thanking you,
Yours faithfully,

(KRISHNA MOHAN)
CHIEF (P&IR)

National Hydroelectric Power Corporation Limited

(A Govt. of India Enterprises)
NHPC OFFICE COMPLEX,
SECTOR 33, FARIDABAD,
No. PPL-663

Date: 23.02.2006
CIRCULAR NO. 04 /2006

Sub: Ensuring the statutory compliance with respect to Contractor's Employees

For quite sometime proceedings U/S 7A of EPF & MP Act, 1952 are underway at the
Office of Regional Provident Fund Commissioner, Faridabad. Provident Fund Authorities
have desired that a proper mechanism may be established in the Corporation to ensure
compliance of statutory provisions under different Labour Laws. Accordingly, Competent
Authority has directed to ensure the following in respect of contractors before processing
their bill for payment:
(i) The prime responsibility of checking bill and ensuring the compliance of all statutory
provisions shall remain with the executing Division. The contractor shall submit the bills
to the Engineer Incharge of the concerned Division along with necessary details such as
name, age, address, pay details, copy of attendance register, proof of PF deductions in
respect of each contractor employee. In case of employees who have worked
throughout the year, copy of statutory return i.e. F-6A and in case of employees who
have worked for fraction of the financial year F-3A should be obtained from the
contractor. To avoid fake challans in production of challans by the contractors to the
various employers, separate challans in respect of contractors' employees working in
NHPC should be taken. The Engineer (I/C) shall check the compliance of all statutory
provisions apart from EPF deductions in respect of each contractor employee and
compliance under Contract Labour (Regulation & Abolition) Act, 1970 and certify that the
bills have been checked and compliance have been made. The concerned Finance
Division shall check and ensure such certification at the time of passing bills.
(ii) A Committee consisting of one Senior Executive each preferably of the rank of AM
and above from Finance & HR, at each Project / Power Station / Unit/ Corporate Office,
shall make regular inspections of the records of the concerned divisions to ensure that
all statutory provisions of various labour laws including EPF & MP Act, 1952 and
Contract Labour (Regulation & Abolition) Act, 1970 are being complied with.
(iii) Respective Heads at Projects / Power Stations / Units shall accordingly constitute
the Committee comprising of Finance & HR Executives. At Corporate Office a similar
Committee of the representative of Finance & HR not below the rank of Manager shall
be constituted for this purpose with the approval of Director (HR).

(EKRAMUL HAQUE)
MANAGER (HR)
Distribution : Standard

NATIONAL HYDROELECTRIC POWER CORPORATION LTD.

(A Govt. of India Enterprise)
N.H.P.C. OFFICE COMPLEX
SECTOR -33, FARIDABAD
PPL-663

07.09.2001
CIRCULAR NO. 31/2001

Sub: EPF Code Number for Contractors Condition in NIT

The condition in NIT of having a separate EPF code Number by
Contractors in the case of Parbati H.E. Project was challenged by a few
Contractors before the Honble High Court of H.P. praying for:(a)

quashing the circulars issued by NHPC stating the contractors will not be
awarded to any contractor unless he is having EPF Code Number from
RPFC, and

(b)

allowing the contractors, contracts without insisting the EPF Code

Number

1.1

In the above case Honble High Court of H,.P. passed a judgement on

11.0.2001 directing NHPC no to insist upon the condition of separate EPF
Code Number for issuing tenders or allotting contract / work to the
Contractors.
2. NHPC challenged the judgement of Honble High Court of H.P. by filing a
SLP before the Honble Supreme Court of India. Honble Supreme Court
of India after arguments set aside the High Court of Shimla judgement
dated 11.01.2001 vide their order dated 30.07.2001.
3. This is circulated for information and guidance of all concerned. It is
reiterated that no contract / work be awarded to any contractor who does
not has EPF Code Number and necessary checks required by Principal
Employer be made the Officer -Incharge. Project may also see that the
interest of the employees employed by the Contractors are not
jeopardized.
Sd/OPINDER CHOPRA
GENERAL MANAGER (P&A)