Chapter IX — GPF_MANUAL

The Government contribution may be adjusted in proportion to the recovery of arrears of subscription in a year even in cases where it may not be possible to complete the recovery of arrears of subscription or any portion of interest on such arrears due to death, retirement, etc. Interest may also be allowed on the arrears of subscription as and when they are recovered and it is not necessary that the arrears subscription and interest thereon should be recovered completely before any interest is allowed.

GIMF Deptt.of Expenditure N.F. 25/3/EV 57 dt 23.4.59 The Comptroller & Auditor General has decided that the final withdrawals permitted Under:-

The authority who is competent to sanction temporary advance for can also sanction a non-refundable advance for the same purpose under

C & AG ‘s letter No.2217 N,II, dt.7.6.56. G.I.M.F.O.M.No.F-26 (16)- EV-54, dt. 28-12 and Dated 28-12- CR and SD No.PFR-1055-P, dated 16.1.56.

GI GAD PFR1066/ 98617 11.11.66 file C -134 Vol. II intimation to higher authority. No interest should be recovered on installments refunded in respect of a refundable advance the balance of which has been converted into nonrefundable advance.

Govt. of India,Finance Deptt U.No.84 R-II/41 dt. 9-5-41 to auditor General copy received with the Ar. Genl’ UOI No. 1050-NGE - 160-41,dt. 11.7.41

For the purpose of grant of advance under rule 12(1)

(c) of the General Provident Fund(Central Services) Rules, if the ceremony, which involves the expenses, is incumbent on the subscriber to perform in virtue of his religion, it matters not whether a direct descendant or a collateral basis is the object of the expenditure and the question of financial dependence does not enter into it.

Vacation combined with leave should Be treated as leave also for the purpose Of repayment of an advance. If the repayment is made either by Deduction from emoluments or the Amount is forwarded in cash before The 5th of the month, the last month Of excluded for purpose of calculating Interest as the advance has been

GIFD N0.1909 - F.E., dated 11.5.23 and No D.3677 -F.E the 4th January, 1962 (I nd) P.F. No. 134) 195s(Case File

(ii) Final withdrawals are Permissible when a subscriber Who has gone military duty, Resigns his civil appointment.

(iii) An Officer should be Treated as having quitted No.D-1684-RThe service when his Services are permanently Transferred to a colony.

(iv) The subscriber who is Granted refused leave shall Be deemed to have quitted Service from the date of Compulsory retirement or on The date of an expiry of an Extension of service. As the Date of proceeding on Refused Leave is the date of retirement The Government servant is Not eligible to subscribe during Refused Leave.

GIFD No.967- F.E.,dt.17.5.22 . GIFD II of 11.7.30 quoted in Bengal Manual. Govt.of Maharashtra GADR No.PFR/1059 -650/92/J, dt. 2.5.61.

(ii) In the case of subscriber who applies for refund while on leave preparatory to retirement the maximum interest that can be allowed in his case is up to six months following the month in which he applies for refund, and the maximum period should not be reckoned from the month following the date of his actual retirement.

(i) The title of widow, who is the nominee according to the declaration, to receive payment of GP F money at credit of GPF money at credit of her deceased husband is not affected by her subsequent remarriage, as the money vested in her at the time of the subscriber’s d eath.

Govt.of Bombay, P& SD letter No.PFR/ 1056/123912 -J, dt. 5.1 2.56. GIFD No.F. 20(3) -R.II/36,dt. 7.4.36.

(ii) When final withdrawal is proposed to be made under section 4

(i)

(b) of the Provident Fund Act, 1925, under discretion vested in the Accounts officer, the orders of the accountant General should be obtained before the payment is actually authorized. The discretion vested in the Accountant General is, however subject to the instructions of the Government from time to time.

(iii) The mere possession of succession certificate cannot affect the question of payment of the Provident Fund money as succession to money goes according to the Provident Act and the Rules made thereunder and not according to the law of succession applicable to subscriber.

(iv) According to Mohamedan Law it is not necessary that parties should have recourse to a judicial Court to obtain a divorce but this may be effected by a writing or even verbal declaration on the part of the husband of his intention to dissolve the marriage.

GIFD No.2106-K.E., dt. 18.9.23. Solicitor to Govt. No.2130, dt. 18.10.27 (Case File No. 172) (v)Under section 4 (1)

(b) of the Provident Fund Act of 1925 and Rule 17

(b) of the GPF Rules Government is bound to make payment to the person nominated in the declaration who has attained the age of majority, unless the executor to the will left by the deceased can prove by obtaining an authoritative judicial ruling that the executor has legal claim to the money. In such case the money should be kept for three months un-paid to enable the executor to bring a suit against the nominee for a declaration of the title to his client to the money(Mr.R.C. Zarapkar’s case).

Auditor-General‘s, letter No. 1164-E-899-20, dt. 11.3.21. Advocate General’s opinion communicated by the solicitor to Govt. in his letter No. 1501, dt. 13-08-11. (Ind PF 1706)

(vi)The payment on account of the General-Provident Fund should be made to the person nominated on behalf of the minor in the declaration from disregarding any other person whether appointed a guardian of the property of a minor beneficiary or not, so long as the person, whom the deceased has appointed to receive the money on behalf of the minor is alive and capable or receiving the money. (vii)The payment of Provident fund money Resol.No.PFRfrom the GPF C.P.F.(Central) can be made to the Hindu Widow mother in respect of her own minor children irrespective of the amount involved without production of Indemnity

Bond or the Guardianship certificate unless there is anything concrete to show that the interest of the mother are adverse to those of her minor children. the Government of India have made applicable these orders in the case of widower he being the natural guardian in respect of his own children. in cases where the natural guardian is other than Hindu widow or widower the payment up to Rs.5000/- (or the first Rs.5,000/- where the amount payable exceeds Rs. 5000/-) on the behalf of th e minors should be allowed to be made to his/their natural guardian without insisting for an indemnity Bond and also guardianship certificate. In respect of payments above Rs.5,000/ - production of guardianship Certificate should be in sisted upon.

In cases where the payments on behalf of the minors are to be made to the persons (other than those mentioned above) considered fit by the head of Office to receive payment on behalf of the minor

(s) the payment up to Rs,5 000/ - (or the first Rs.5,000/ - where the amount payable exceedsRs.5,000/ - ) should be madeto them on production of an Indemnity Bond signed by two sureties but without insisting for a guardianship certificate. The persons receiving money should also be called upon to produce an Affidavit that he is in -charge of the property of the minor, is looking after it or that if the minor has no property other than the Provident Fund money, the minor is in his custody and care. The payment above Rs.5,000/- should be made to such other persons after production of Guardianship certificate. (viii)For payment of Provident Fund money to the persons (other than the family members) considered fit by the Accounts Officer please refer to the provisions of Section 4 of the PF Act of 1925 reproduced at Appendix A to the GPF(CS) Rules 1960.

G.I.F.D.No. 33 dt.22nd October 1933.

(ix) The indemnity bond referred to above should be stamped F-XXV-III-R-IIunder Article 34 read with 57

(a) and 15 in schedule I to the Indian Stamps Act, 1899.

(x) In cases where the natural guardian is a Hindu widow/widower the payment of Provident Fund money on behalf of her/his minor children shall be made to her/him irrespective of the amount involved without production of the guardianship Certificate or Indemnity Bond unless there is

(Govt. of India, Ministry of Finance(D.E.) O.M.No.F-35(3) with O.M. No.F-25(2)- EV(B)-65 EV-68 dated 17.1.1969, read anything concrete to show that the interests of the mother/father are adverse to those of the minor children. Under the State Provident Fund rules, similar orders have been issued in respect of a Hindu widow only.

A scheduled caste person, on conversion to Buddhism ceases to be Hindu, but the change of religion by the husband does not operate as a dissolution of his marriage with his wife. The change of religion does not affect the right of guardianship. Even if all members of the family were converted to Buddhism the provision of Hindu Minority and Guardianship Act, 1956 would apply to them as they apply to Buddhist also. According to the provisions of the above Act, the natural guardian of a minor sons property is the father and after him, the mother. in view of the above provisions, there will be no objection to treat the mother as natural guardian of their minor sons or

Govt of Mah. GAD Circular No.PER-1061-1246-J, dated 17-5-62. daughters after expiry of the father, in case of these families who are converted Buddhist irrespective of whether only the father or both the father and mother or the whole family is so converted.

(xi)The father and the mother can be the natural guardian of a minor. The step -mother is not the natural guardian of her minor step -children(her husbands minor children by another wife) even though she may be a de facto guardian.

(xii)In the case of a deceased, minor ch ild alive on the date of death of a subscriber payment due to the minor child may be made without asking for a succession certificate to the mother on its behalf as the payment due to such a minor child would have been made to the mother as guardian and the child after its’ death can

Solicitor to Govt No.541,dt. 6.3.1931.Case File 200 - R -L.A. No.571, dated the 1 6 th March 1923. Case File 93 & Correspondence Ending with solicitor to Govt No.1502 -of11.7.52 (P.F.5 -41).

Govt. of Bombay P&SD No.PFR -1058 - 615536.12689 - J, dt 27.11.1958 in the refund of PF of consultants Shri Renchod Raiji A/c No. PN(Bom) -8479.

have no legal successor except the mother.

(xvi) A certificate from the Administrator General under section 31 of Act III of 1913 will have the same authority as producing probate of the Will from a competent Civil Court, if the amount involved is less than Rs.2000/- (vide Section 4

(c)

(ii) of the Provident Fund Act,1925).

(xvii) Under section 32 of Act III of 1913 the Administrator- General can in his official capacity administer an estate if the amount is below Rs.2,000 without obtaining letters of administration.

(xix) Heir ship certificate granted by a Magistrate or a Mamlatdar shall not be RLA ‘s endorsement No.320-, dt.the25th January 1927(Case File No.191).

RLA ‘s No.4198 dated the 18th August 1932 in the case of refund of the Provident Fund Of late Mr. D. Costa. Govt. H.B. Circular No. 9976-2 of dated 26-9-39.

accepted for purpose of disposal of the Provident Fund assets under section 3

(i) of the PF Act, 1925, as the certificate contemplated by that section for determining the proper heir or heirs to receive the Provident Fund standing to the credit of the deceased subscriber either a succession certificate granted under the Indian Succession Act, 1925 or an heirship certificate granted under the Bombay Regulation VIII of 1827. Guardianship certificate or Succession certificates Granted by Court or other Authorities in India States Shall not be acted upon for Purposes of disposal of the Provident Fund Money. Each such certificate shall be referred to Government For orders which will be Passed a fter Government Satisfy themselves that The certificate is granted By the competent Civil Court and that it is Countersigned by the British Resident or other Political Officer in theState.

(xx) A dau ghter already divorced by her husband at the time of her parent’s death will be on the same footing as an unmarried daughter or a widow and will, th erefore, be entitled to a share in the subscriber’s Provident Fund.

(xxi) Children by marriage which is held void under the Hindu Marriage Act will fall Under the definition of ‘Fam ily’ And will be entitled to a share In the PF balance of the Deceased subscriber. The share due to minor Child in such cases can be Paid to the natural mother As natural guardian even Though the she may not Have the status of legal Wi fe of the deceased Subscriber without Insisting on guardian - -ship Certificate. However in such Cases the natural mother Of the child should be asked to Execute Indemnity Bond Prescribed under Govt. Resolution, GAD No.PFR -1067/66144 -J dt. 16.11.1973.

(i) PF Schedules are not transmitted with Form A.O. 3 even if received with the pay bills. Where the schedules are wanting they are not prepared on the basis of information given by the drawing officers in the pay bills.

(i) Transmission of PF schedules to PF section is inordinately delayed.

(ii) Totals in Form A.O. 3 are not actually taken and agreed with those appearing in the classified Abstract (including T.E’s Suspense Slips etc).

(iii) Misclassifications of Fund transactions relating to other funds, advances or other Heads of Accounts and other accounts circle and vice versa are not rectified.

(iv) Certificate of verification of entries in the schedules with the deductions made in the pay bills or their certificate of check of pay for March is not recorded. Sometimes, they are recorded without actually exercising the prescribed checks.

(v) Transfer Entries affecting the PF head are booked without the prior acceptance of PF Sections.

(vi) Requisition from the PF Sections are not amended to promptly.

1) The proposals should give full details about the individual items which are to be written off the period to which they relate, and the reasons for their remaining outstanding. 2) The correspondence in the pursuit of old outstanding balance is usually not current and only routine reminders over B.O. ‘s signature are issued without pursuing the matter at higher levels. The special efforts made in the direction of settling the outstanding items should be mentioned. 3) If the balances are outstanding due to non completion of records, defective procedure followed in the A.G.’s office or timely action not taken by the section concerned, the proposals should deal with the responsibility aspect. 4) In cases where the non-clearance of outstanding is due to loss of records in Audit Office, the circumstances thereof and the responsibility there for should be investigated. 5) In certain cases of out-standings under “ Unclassified Suspense” etc. no efforts appear to have been made to link them with possible out-standings under other Debt heads like PF suspense, House Building Advance, Motor Car Advance etc. This aspect should be properly looked into. 6) It should be categorically stated that the proposal had been thoroughly scrutinized by the I.T.A. section and write off recommended. 7) The proposals should be seen by the Accountant General personally who should be satisfied that a dead end has reached, rendering the write off an unavoidable necessity.

9) It should be certified that the proposal has been examined in the light of the instructions contained in this office circular letter No.1344.-AC/203-75 dated 30.6.76 and remedial measures have been taken to avoid recurrence of any lapses in future.