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                                    l i n a                                                    1 2 , -for       read               'tiolidays"1 6 ,                i 'a g g  z 6 ,                                      l i n e                                                  3 3 , -f o r           " 8 3  t o  g b "                                        r a a d                                                       " 8 b  t o  b g "1 7                 r a g g  3 0 ,                                      l i n o  1 2 , -                                                                      'vf o r          ' 'a q u ijs n g n t •'                                r e a d                                            " g q u ip n g n t "1 6 ,                p a g g  3 1 ,                                      l i n e  3 , -                                                                                                                           |f o r             ' ^ t m p o v j ^ 'r s "                                        r a a d                                                       ' 'd n p o w g r s "1 9                 p a g e                            3 1 ,                                      l i n o  24,-f o r             ' ' f i l l i n o "                                     r s a d                                                   " f i l i n g "2 0                  p a g e  3 1 ,  l i n o                                               3 7 , -f o r            '' 1 4 5 ' »                            r o a d                                         '  1 4 3 "2 1                  p a g g  3 2 ,  l i n o  4 , -bgforg         clausg 2 3 "                         i n s » ^ r t                                  " 7  "2 2                p a g g  3 2 ,                                    l i n a s  8                                                       a n d  9 , -for       ''employes'' road                             "cnploygr'2 3                  p a g e                            3 2 ,  i i n a                                               1 0 , -f o r            ' c l a u s e  2 6 "                                        r e a d                                                      ' c l a u s s                                                                           2 5 "/ bill no 45 of 198s the employees' provident funds and miscellaneous provisions (amendment) bill, 1988billfurther to amend the employee^ provident funds and miscellaneous provisions aot^ 1962 and the indian penal code, be it enacted by parliament in the thirty-ninth year of the republic of india as follows;— {short title and commence ment1 (i) this act may be called the employees' provident funds and miscellaneous provisions (amendment) act, 1988(2) it shall come into force on such date as the central government may, by notification in the official gazette, appoint and different dates may be appointed for different provisions of this act2 in section 1 of the employees' provident funds and miscellaneous amend- provisions act, 1952 (hereinafter referred to as the principal act), for meat of jq sub-section (4), the following sub-section shall be substituted, namdy:—■ section 1" (4) notwithstanding anything contained in sub-section (3) of this section or sub-section (i) of section 16, where it appears to the central provident fimd commissioner, whether on an application made to him in this behalf or otherwise, that the employer and 1 5  the majority of employees in relation to any establishment hare agreed th a t the provisions of this a ct should be m ade applicable to the estabjishm ent, h e m ay, by notification in the officisd g azette, apply th e provisions of this a ct to th at establishm ent on and from  the date of such agreem ent or from  any subsequent date specified in such agreem ent" ^3 in  section 2 of the principal act,—amend ment of section 2(a) after clause (a), the following clause shall be inserted, nam ely:—' (aa) "authorised officer" m eans the c entral provident f und commissioner, a dditional c entral p rovident f und commission- 10 er, d eputy provident f und commissioner, regional provident f und com missioner or such other officer as m ay be authorised by the c entral g overnm ent, by notification in  th e official g azette;';(b) in clause (b), in the opening portion, for the w ords "on leave w ith w ages", the w ords "on leave or on'holidays w ith wages in either case" shall be substituted;(c) in clause (f), for the w ords "and includes any person em ­ployed by or through a contractor in or in connection w ith th e w ork of the establishm ent", the following shall be substituted, nam ely:— 20 "and includes any person,—(i) em ployed by or through a contractor in or in connec­tion w ith the w ork of the establishm ent;(ii) engaged as an apprentice, not being an apprentice ebgaged under th e a pprentices act, 1961 or under th e 25 52 of 1961 standing orders of th e establishm ent;";(d) after clause (fc), th e following clauses shau be insei1«d, nam ely:—'(ka) "prescribed" m eans prescribed by rules m ade im der this act; 3q(kb) "recovery officer" m eans any officer of the c entral g overnm ent, state g overnm ent or the board of trustees consti­tu ted  under section 5a, w ho m ay be authorised by th e c entral g overnm ent, by notification in the official g azette, to exercise th e powers of a recovery officer under this a ct;'; 35(e) after clause (i), the following clause shall be inserted, nam ely:—'(m) "t ribunal" m eans the em ployees' provident funds a ppellate t ribunal constituted under section td-'4 in section 5a of the principal act,— 40(a) in sub-section (i),—amend­ment of section 5a(i) in the opening portion, for the w ord "persons", th e words "persons as m em bers" shall be substituted;(ii) in clause (a ), for th e words "a c hairm an", the w ords "a c hairm an and a v ice-chairm an" shall be su b stitu t^ ; 45(hi) after clause (o), th e following clause shall be inserted, nam ely:—"(aa) ' the c entral provident f\m d comnilhian«r,£ x  officio";(iv) in claobes (d) and (e), for tb e w ords ^six persons", the w ords "ten persons" shall he substituted;(b) aftcar sub-section (4), the following sub-sections shall be inaerted, nam ely:—5 " (5) the c entral board shall m aintain proper accounts of itsincom e and expenditure in such form  and in such m anner as the c entral g overnm ent may, after consultation w ith the com­ ptroller and a uditor-g eneral of india, specify in the scheme(6) the accounts of the c entral b oard shall be audited an-10 nually by the com ptroller and auditor-g eneral of india and anyexpenditure incurred by him  in connection w ith such audit shall be payable by the central board to the com ptroller and auditor g eneral of india(7) the com ptroller and a uditor-g eneral of india and any25 person appointed by him  in connection w ith the audit of theaccounts of the c entral board shall have the sam e rights and privileges and authority in connection w ith such audit as the com ptroller and a uditor-g eneral has, in connection w ith the audit of g overnm ent accounts and, in particular, shall have th e ^  right to dem and the production of books, accounts, connectedvouchers, docimients and papers and inspect any of the offices of the c entral board(8) the accounts of the c entral board as certified by the c om ptroller and a uditor-g eneral of india or any other person25 appointed by him  in this behalf together w ith the audit reporttherieon shall be forw arded to the c entral board w hich shall for­ w ard the same to the central governm ent along w ith its "com­m ents on the report of the com ptroller and a uditor-g eneral(9) it shall be the duty of the central board to subm it also to the c entral g overnm ent an annual report of its w ork and acti­ vities and the c entral g overnm ent shall cause a copy of the annual report, the audited accounts together w ith the report of the com ptroller and a uditor-g eneral of india and the comments of the c entral board thereon to be laid before each house of35 p arliam ent " 5 a fter section 5a of the principal act, the following section shall be inserted, nam ely:—insertion of new section 5aa40''5aa (1) the central governm ent may, by notification in the executive official grazette, constitute^ w ith effect from such date as m ay be specified therein, an executive committee to assist the central board in the perform ance of its functions(2) the executive com mittee shall consist of the following per­sons as m em bers, nam ely:—45(a) a chairm an appointed by the c entral g overnm ent from am ongst the m embers of the central board;(b) two persons appointed by the central governm ent from  am ongst the persons referred to in clause (b ) of sub-section(1) of section 5a;     (c)                three persons appointed by the central                                                                        govemineni from amongst the persons referred to in clause (c) of sub-section( 1 ) of section 5 a;     (5j) three persons representing the employers                                                                    elected                                                                               by the central board from amongst the persons referred to in clause                                                                                     5 (d) of sub-section (1) of section 5a;                                                                              i      (c) three persons representing the employees elected by thecentral board from amongst the persons referred to in clause (e) of sub-section (i) of section 5a;      (f) the central provident fund commissioner, ex officio 10    (3)               the terms and conditions subject to which a member of the central board may be appointed or elected to the executive commit­tee and the time, place and procedure of the meetings of the execu­tive committee shall be such as may be provided for in the scheme"amend- 6 in section 5d of the principal act,— 15(a) in sub-section (2 ), for th e w ords "as m any d eputy provident5d fund commissioners, regional provident f und commissioners and other officers w hose m axim um  m onthly salary is not less than five hundred rupees as it m ay consider necessary^', th e w ords "a f inan­cial a dviser and chief accovints officer" shall be substituted; 20(b) in sub-section (3), after th e w ords "m ay appoint", the w ords subject to th e m axim um  scale of p ay ,'as m ay be specified in the scheme, as m any a dditional c entral provident fund commissioners, d eputy p rovident f und commissioners, regional provident fund commissioners, a ssistant p rovident f und commissioners and" shall 25 be inserted;(c) in sub-section (4),—(i) for th e w ords "the post of the c entral provident f und oom m issioner o r d eputy ^provident fund com missioner or regional p rovident fim d com m issioner or to any other post 30 under th e c entral b oard carrying a m axim um  m onthly salary of not less than five hundred rupees'', the w ords and letters "the post of th e c entral provident fund commissioner or an addi­tional c entral p rovident fund csommissioner' dr a financial a dviser anji chief accounts officer or any other post under the 35 c entral board carrying a scale of pay equivalent to the scale of pay of any g roup 'a' or g roup 'b' post under the c entral gov­ernm ent" shall be substituted;(ii) in th e proviso, in clause (b) in sub-clause (ii>, for th e w ords and figures "class i or class it post'', the words and 40 letters "g roup 'a or g roup 'b' post" shall be substituted;(d) in sub-section (6), for th e w ords d eputy provident fund commissioner and reeional provident fund commissioner", the w ords "and the financial a dviser and chief accounts officer" shall be substituted; 4j(e) for sub-section (7), the following sub-section shall be sub­stituted, nam ely:—" (7) (a) the m ethod of recruitm ent, salary and allowancediscipline and other conditions of service of the a dditional cen­tral provident f und com m issitoer, d eputy provident fund commissioner, regional provident fund comnnssioner, assis­tan t provident fund commissioner and other oflbcers and em - 5 ployees of the c entral board shall be such as m ay be specified by the c entral board in accordance w ith the rules and orders applicable to the officers and em ployees of the c entral govern­m ent draw ing corresponding scales of pay:provided th at w here the c entral board is of the opinion that 10 it is necessary to m ake a departure from  the said rules or ordersin respect of any of the m atters aforesaid, it shall obtain the prior approval of the c entral g overnm ent(b) in determ ining the corresponding scales of pay of oflbcers and employees under clause (a), the c entral board shall have 15 regard to the educational qualifications, m ethod of recruitm ent,duties and responsibilities of such oflbcers and employees under the c entral g overnm ent and in case of any doubt, the c entral board shall refer the m atter to the c entral g overnm ent whose decision thereon shall be final," 20 7 a fter section 5d of the principal act, the following section shallbe inserted, nam ely:—insertioik of new section 5dd"5dd no act done or proceeding taken by the c entral board or the executive com mittee constituted under section 5aa or the state board shall be questioned on the ground m erely of the existence of 25 any vacancy in, or any defect in the constitution of, th e c entral board or the executive com mittee or the state board, as the case m ay be"acts and proceed­ings of the central board or its execu­tive com­mittee or the state board not to be in­ validated on certain groundsamend­ment of section 5rs in section 5e of the principal act, for the w ords "the c entral board may, w ith the prior approval of the central g overnm ent and a state board may, w ith the prior approval of the state gtovemmeni con- 30 cem ed, delegate to its chairm an or to any of its officers", the w ords "the c entral board m ay delegate to the executive committee or to the chair­m an of the board or to any of its officers and a state board may delegate to its chairm an or to any of its oflbcers'' shall be substituted9 in section 6 of the principal act,—(a) in the opening paragraph,—amend­ment of section 6(i) for the words ''six and a quarter per cent", the words "eight and one-third per cent" shall be substituted;(ii) for the words and ' brackets "if any employee so desires and if the scheme makes provision therefor, be an am ount not exceeding eight and one-third p er cent, of his basic wages, dearness allow ance and retaining allow ance (if a n y )", th e w ords and brackets "if any em ployee so desires, be an am ount exceed­ing eight and one-third per cent, of his basic wages, dearness allow ance and retaining allowance (if any), subject to th e con- 5 dition th at the em ployer shall not be im der an  obligation to ;pay any contribution over and above his contribution payable under this section'' shall be substituted;(b) for the first proviso, th e follow ing proviso shall be substitut­ed, nam ely;— jo'provided th a t in its application to any establishm ent or class of establishm ents w hich the c entral grovemment, after m aking such inquiry as it deems fit, m ay, by notification in  the oflbcial g azette specify, this section shau be subject to th e modification th at for the w ords "eight and one-third p er cent", at both th e 15 places w here they occur, th e w ords "ten per cent" shall be substituted: "amend 10 in section 7a of the principal act,—meat oc sub-section (1), th e following sub-section shall be substi­tuted, nam ely:—  20section7a" (1) the c entral provident  fund commissioner, any a dditional c entral provident fund commissioner, any d eputy provident fim d commissioner, any regional provident f und commissioner, or any a ssistant provident fund commissioner m ay, by order,— 25(a) in a case w here a dispute arises regarding the applicability of this act to an establishm ent, decide such dispute; and(b) determ ine the am ount due from  any em ployer under any provision of this act, th e schem e or the fam ily pension 30 schem e or the insurance scheme, as the case m ay be, and for any of the aforesaid purposes m ay conduct such inquiry as he m ay deem necessary";(b) in sub-section (3),—(i) the w ords "determ ining the am otm t due from  any 3 5  em ployer" shall be om itted;(ii) fo r'th e  w ords "the em ployer", the w ords "the em ployer concerned" shall be substituted;(c) after sub-section (s), the following sub-section shall be in­serted, nam ely: —40"(3a ) w here the em ployer, em ployee or any other person required to attend the inquiry under sub-section (1) fails to attend such inquiry w ithout assigning any valid reason or fails to produce any docum ent or to file any report or retu rn  w hen called upon to do so, the officer conducting the inquiry m ay 45 decide the applicability of';the act or determ ine the am ount due from  any em ployer as th e case m ay be, on the basis of th e evidence adduced during such inquiry and other documents available on reco rd ";(d) for gub-section (4), the following sub-sections shall be sub­stituted, nam ely: —10" (4) w here an order under sub-section (i) is passed against an em ployer ex parte, he m ay, w ilhin three m onths from  the date of commimication of such order, apply to th e officer for setting aside such order and if he satisfies the officer th a t the show cause notice was not duly served or th at he was prevent­ ed by :any sufficient cause from  appearing w hen the inquiry was held, the officer shall m ake an order setting aside his earlier order and shall appoint a date for proceeding w ith the inquiry:15provided th at no such order shall be set aside m erely on the ground th at there has been an irregularity in the service of th e show cause notice if the officer is satisfied th at the em ployer had notice of the date of hearing and had sufficient tim e to appear before the officer20explanation—^where an appeal has been preferred im der this a ct against an order passed ex parte and such appeal has been disposed of otherw ise than on the groim d th at the appellant has w ithdraw n the appeal, ;no application shall lie under this sub­section for setting aside the ex parte order(5) no order passed under this section shall be set aside on any application im der sub-section (4) unless notice thereof has been served on the opposite party"ix, a fter section 7a of the principal act, the following sections shall 25 be inserted, nam ely: —30insertionofnewsections7b to 7qreview oforderspassedunderseclion7a"7b (i) a ny person aggrieved by an order m ade under sub­section (1) of section 7a, but from  w hich no appeal has been pre­ ferred im der this act, and who, from  the discovery of new  and im portant m atter 1 or evidence which, after the exercise of due diligence was not w ithin his knowledge or could not be produced by him  at the tim e w hen the order was made, or on account of some m istake or error apparent on the face of the record or for any other sufficient reason, desires to obtain a review  of such order may apply for a review  of th a t order to the officer who passed the order:35provided that such officer m ay also on his own m otion review his order if he is satisfied th at it is necessary so to do 'on any such groimd(2) every application for review  im der sub-section (1) diall be filed in  such form  and m anner and w ithin such tim e as m ay be spe­cified in the scheme40(3) w here it appears to the officer receiving an application for review  th at there is no sufficient ground for a review, he shall reject thei application(4) w here the officer is of opinion th at the application for review should be granted, he shall grant the same:45provided that,—(a) no such application shall be granted w ithout previous notice to all the parties before him  to enable them  to appear and be heard in  support of th e order in respect of w hich a review  is applied for, and(b) no such application shall be granted on th e ground of ^ discovery of new  m atter or evidence w hich th e applicant alleges was not w ithin his know ledge or could not be produced by him  w hen the order was made, w ithout proof of such allegation(5) no appeal shall lie against th e order of th e officer rejecting an application for review , b u t an appeal under this a ct shall lie against an order passed under review  as if the order passed under review  w ere the original order passed by him  under section 7a7c w here an  order determ ining th e am oim t due from  an em ployer under section 7a or section 7b has been passed and if th e officer who passed the order— 15determi­nation of escaped amount(a) has reason to believe th a t by reason of the omission or failure on the p art of th e em ployer to m ake any docum ent or report available, or to disclose, fully and truly, all m aterial facts necessary for determ ining the correct am oim t due from  th e em ployer, any am ount so due from  such em ployer for any 20 period has escaped his notice;(b) has, in consequence of inform ation in his possession, reason to believe th at any am ount to be determ ined under section 7a or section 7b has escaped from  his determ im tion for any period notw ithstanding th at there has been no omission 25 or failure as m entioned in clause (a) on the p art of the em ployer, he may, w ithin a period of five years from  the date of commxmication of the order passed under section 7a  or section 7b, re-open the case and pass appropriate orders re-determ ining the am bim t due from  the em ployer in accordance w ith the provisions of this act:provided th at no order re-determ ining the am oim t due from  the em ployer shall be passed under this section unless the em ployer is given a reasonable opportunity of representing his case7d (1) the c entral g overnm ent m ay, by notification in the official gazette, constitute one or m ore a ppellate tribunals to be know n as the employees' provident funds a ppellate t ribunal to 35 exercise the powers and discharge the functions conferred on such t ribunal by this act and every such tribim al shall have jurisdiction in respect of establishm ents situated in such area as m ay be specifi­ed in the notification constituting the tribunal(2) a t ribunal shall consist of one person only to be appointed by the c entral governm ent(3) a person shall not be qualified for appointm ent as the presi­ding officer of a t ribunal (hereinafter referred to as the presiding officer), unless he is, or has been, or if qualified to be, a judge of a high courttermofoffice7e the presiding officer of a tribunal shall hold office for a term  of five years from  the date on w hich he enters upon his office or until he attains the age of sixty-two years, w hichever is earlierresigna­tion7f the presiding officer may, by notice in w riting under his hand addressed to the c entral governm ent, resign his office:1015provided that the presiding officer shall, unless he is perm itted by the c entral g overnm ent to relinquish his office sooner, continue to hold office until the expiry of three m onths from  the date of receipt of such notice or until a person duly appointed as his successor enters upon his office or until the expiry of his term  of office, w hich­ever is the earliest7g the salary and allowances payable to, and the other terms and conditions of service (including pension^ gratuity and other re­tirement benefits) of, the presiding officer shall be such as may be prescribed , provided that neither the salary and allowances nor the other terms and conditions of service of the presiding officer shall be vari­ed to his disadvantage after his appointment20salaryandallowancesandothertermsandcon­ditionsofservice of pre­siding officei staff of the tribunal7h (1) the central government shall determine the nature and categories of the officers and other employees required to assist a tribunal in the discharge of its functions and provide the tribunal with such officers and other employees as it may think fit25(2) the officers and other employees of a tribunal shall dt^- charge their functions under the general supeirintendance of the presiding officer(3) the salaries and allowance and other conditions of service of the officers and other employees of a tribunal shall be such as may be prescribed30appeals to the tri­bunal3571 (1) any person aggrieved by a notification issued by the cen­tral governm ent, or an order passed by the central g overnm ent or any authority, under the proviso to sub-section (5), or sub-section(4), of section 1, 'or section 3, or sub-section (1) of section 7a, or section 7b [except an order rejecting an application for review  referred to in sub-section (5) thereof], or section 7c, or section 14b, m ay prefer an appeal to a tribunal against such order40procedure of tribunals(2) every appeal under sub-section (1) shall be filed in such form  and m anner, w ithin such tim e and be accompanied by such fees, as m ay be prescribed7j (i) a tribunal shall have power to regulate its own p ro ­cedure in all m atters arising out of the exercise of its powers or of the discharge of its functions including the places at which the tribunal shall have its sittings(2) a tribunal shall, for the purpose of discharging its func­tions, have all the powers which are vested in the officers refer­red to in section 7a and any proceeding before the tribunal shall be deem ed to be a judicial proceeding w ithin the m eaning of sections 193 and 228, and for th e purpose of section 196, of th e indian p enal code and the t ribunal shall be deem ed to be a civil court for all th e purposes of section 195 and c hapter x xv i of the code of cri­ m inal procedure, 1973$ 2 of 19747k (1) a  person preferring an appeal to a t ribunal under this a ct m ay either appear in  person or take th e assistance of a legal practitioner of his choice to present his case before th e tribunal(2) t he c entral g overnm ent or a state g overnm ent or any other authority under this a ct m ay authorise one or m ore legal prac- lo titioners or any of its officers to act as presenting officers and every person so authorised m ay present the case w ith respect to any appeal before a tribunalright of appel­lant to take assistance of legal practi­ tioner and of govern meat, etc, to appoint present­ing officersorders of tri bunal7l (1) a  t ribunal m ay, after 'giving the parties to the appeal, an opportunity of being heard, pass such orders thereon as it thinks 15 fit, confirming, m odifying or annulling the order appealed against or m ay refer the case back to the authority w hich passed such order w ith such dipections as the t ribunal m ay think fit, for a fresh adjudication or order, as the case m ay be, after taking additional evidence, if necessjiry 20(2) a t ribunal may, a t any tim e w ithin five ' years from  the date of its order, w ith a view  to rectifying any m istake apparent from  th e record, am end any order passed by it under sub-section (i) and shall m ake such am endm ent in the order if the m istake is brought to its notice by the parties to the appeal: ?sp rovided th a t an am endm ent w hich has th e effect of enhancing the am ount due from, or otherw ise increasing th e liability of, th e em ployer shall not be m ade under this sub-section, unless the t ri­bunal has given notice to him  of its intention to do so and has allow­ed him  a  reasonable opportunity of being heardj 30(3) a t ribunal shall send a copy of every order passed under this section to the parties to the appeal(4) a ny order m ade by a ' t ribunal finally disposing of an appeal shall not be questioned in any court of lawfilling up <rf vacancies7m if, for any reason, a vacancy occtu^ in the office of the 35 presiding officer, th e c entral g overnm ent shall appoint another per­son in accordance w ith th e provisions of this act, to fill th e vacancy and the proceedings m ay be continued before a t ribunal from  th e stage at w hich th e vacancy is filledfinality of orders constita ting a tribanal7n no order of the c entral g overnm ent appointing any person ^  as the presiding officer shall be called in  question in any m anner, and no act or proceeding before a t ribunal shall be ' called in ques­ tion in  any m anner on the ground m erely of any defect in th e constitution of such tribunal :70 no appeal by the em ployer shall be entertained by a t ribunal unless he has deposited w ith it seventy-five per cent, of the am ount due from  him  as determ ined by an officer referred to in section 7a:depositofamount due, on filing appealprovided th at the tribunal m ay, for reasons to be recorded in w riting, waive or reduce the am ount to be deposited under this section10transfer of certain applica­tions to tribunals7p all applications which are pending before the c entral gov­ernm ent under section 19a, shall stand transferred to a tribunal exercising jurisdiction in respect of establishm ents in relation to which such applications had been made as if such applications w ere appeals preferred to the tribunal157q the em ployer shall be liable to pay simple interest at the rate of tw elve per cent, per annum  or at such higher rate as m ay be specified in the scheme on any am ount due from  h im 'u n d er this act from the date on w hich the am ount has become so due till the date of its actual paym ent:provided th at higher rate of interest specified in the scheme shall not exceed the lending rate of interest charged by any scheduled bank"20amend­ ment of section 812 in section 8 of the principal act, for the w ords ''by the c entral p rovident fund commissioner or such other officer as m ay be authorised by him, by notification in the official gazette, in this behalf, in the same m anner as an arrear of land revenue", the words, figures and letters 25 "in the m anner specified in sections 8b to 8g" shall be substituted13 in section ba of the principal act, in sub-section (i), the words "on the basis of such contribution' shall be om ittedamend­ment of section 8a14 a fter section 8a of the principal act, the following sections shall be inserted, nam ely:—insertion of new sections sb to 8gissue of certifi­cate to therecoveryofficer3 q sb (1) where any amount is in arrear under section 8, theauthorised officer may i&siie, to the recovery officer, a certificate under his signature specifying the amount of arrears and the re­covery officer, on receipt of such certificate, shall proceed to recover the amount specified therein from the establishment or, as the case 35 may be, the employer by one or more of the modes mentioned be­low:—(a) attachment and sale of the movable or immovable pro­perty of the establishment or, as the case may be, the employer;(b ) arrest of the employer and his detention in prison;40 (c) appointing a receiver for the management of the mov­able or immovable properties of th^ establishment or, as the case may be, the employerprovided th at the attachm ent and sale of auy property under this section shall first be effecied against th e properties of th e estab­lishm ent and w here such attachm ent and sale is insufficient for re ­covering the w hole of the am ount of arrears specified ii» the certi­ficate, the recovery officer m ay take such proceedings against the property of the em ployer foi- recovery of the w hole or any p art of such arrears10(2) the authorised officer m ay issue a certificate under sub­section (i), notw ithstanding th at proceedings for recovery of the arrears by any other m ode have been taken8c (1) the authorised officer m ay forw ard the certificate refer­red to in section 8b to the recovery officer w ithin whose jurisdic' tion the em ployer—(a) carries on his business or profession or w ithin whose ijurisdiction the principal place of his establishm ent is situate; or 15rficovery officer to whom certifi­cate is to be forwarded(b) resides or any m ovable or im m ovable property of the establishm ent or the em ployer is situate(2) w here an establishm ent or the em ployer has property w ithin the jurisdiction of m ore than one recovery officers and the recovery officer to w hom  a certificate is sent by the authorised officer— 20(a) is not able to recovery the entire am ount by the sale of the property m ovable or immovable, w ithin his jurisdiction; or(b) is of the opinion that, for the purpose of expeditin,g or securing the recovery of the whole or any p art of the am ount, it is necessary so to do, 25he m ay send the certificate or, w here only a p art of the am ount is to be recovered, a copy of the certificate certified in the prescribed m anner and specifying th e am ount to be recovered to the recovery officer w ithin whose jurisdiction the establishm ent or the em ployer has property or the em ployer resides, and thereupon that recovery officer shall also proceed to recover the am ount due under this section as if the certificate or the copy thereof had been the certificate sent to him  by the authorilsed officervalidity of certi­ficate, and amend­ment thereof8d (1) w hen the authorised officer issues a certificate to a re­covery officer under section sb, it shall not be open to the em ployer to dispute before the recovery officer the correctness of th e am ount, and no objection to the certificate on any other gfround shall also be entertained by the recovery officer ((2) notwithstandinpt the issue of a certificate to a recovery officer, the authorised officer shall have pow er to w ithdraw  the certi- 40 ficate or correct any clerical or arithm etiral m istake m the certifi­cate by sendin?^ an intim ation to the recovery officer(3) the authorised officer shall intim ate to the recovery officer any orders w ithdraw ing or cancelling a certificate or any correction m ade by him  under sub-section (2) or any am^nfjrnent m ade under sub-section (4) of section 8f8e (1) n otw ithstanding th at a certificate has been issued to the recovery officer for the recovery of any amount^ the authorised officer m ay grant tim e for the paym ent of the amount, and thereupon the recovery officer shrill stay the proceedings until the ex­piry of the tim e so grantedstay of proceed­ings under certificate andamend­ment or with­drawal thereof(2) w here a certificate for the recovery of am ount has been issued, the authorised officer shall keep the recovery officer inform ­ed of any am ount paid or tim e granted for paym ent, subsequent to the issue of such certificate1015(3) w here the order chiving rise to a dem and of am ount for w hich a certificate for recovery lias been issued has been modified in appeal or other proceeding under this act, and, as a consequence thereof, the dem and is reduced but the order is the subject-m atter of fu rth er proceeding under this act, the authorised officer shall stay the recovery of such p art of the am ount of the certificate as pertains to the said reduction for the period for which the appeal or other pro­ceeding rem ains pending20(4) w here a certificate for the recovery of am ount has been issued and subsequently the am ount of the outstanding dem and is reduced as a result of an appeal or other proceeding under this act, the authorised officcr shall, when the order w hich was the subject m atter of such appeal or other proceeding has become final and con­clusive, am end the certificate or w ithdraw  it, as the case m ay be25othermodes of recoverysf (1) n otw ithstanding the issue of a certificate to the recovery officer under section 8b, the c entral provident fund commis­sioner or any other officer authorised by the c entral board m ay recover the am ount by any one or m ore of the modes provided in this section3035(2) if any am ount is due from  any person to any em ployer who is in arrears, the central provident fund commissioner or any other officer authorised by the c entral board in this behalf m ay re ­quire such person to deduct from  the said am ount the arrears due from  such em ployer under this act, and such person shall comply w ith any such requisition and shall pay the sum  so deducted to the credit of the c entral providenf fund commissioner or the officer so authorised, as the case m ay be:5 1908provided that nothing in this sub-section shall apply to any part of the am ount exem pt from  attachm ent in execution a decree of a civil court under section fift of the code of civil procedure, 190840t5(3) (i) the c entral provident fund commissioner or any other officer authorised by the central board in this behalf may, at any tim e or from  tim e to time, by notice in w riting, require any person subsequently hold m oney for or on account of the em ployer or, as the case m ay be, the establisl?ment or any person who holds or m ay subsequently hold money for or on account of the em ployer or as the case m ay be, the establishm ent, to pay to the central provident fund commissioner either forthw ith upon the money becoming due or being held o r''at or w ithin the tim e specified in the notice (not being before the money becomes due or is held) so m urh of the money as is sufficient to pay the am ount due from the employer in50rcspect of arrears or the w hole of the m oney w hen it is equal to or less than th a t am ount(ii) a notice under this sub-section m ay be issued to any person w ho holds or m ay subsequently liold any m oney for or on account of the em ployer jointly w ith any other person and for the purposes of this sub-section, the shares of the joint-holders in such account shall be presum ed, until the contrary is proved, to be equal10(hi) a  copy of the notice shall be forw arded to the em ployer at his last address know n to the c entral p rovident fund commis­sioner or, as the case m ay be, the officer so authorised and in th e case of a joint account to all the joint-holders at th eir last addresses know n to the c entral provident fund commissioner or th e officer so authorised(iv) save as otherw ise provided in this sub-section, every person to whom a notice is issued u n d er this sub-section shall be bound to comply w ith such notice, and, in particular, w here any such notice is issued to a post office, bank or an insurer, it shall not be necessary for any pass book, deposit receipt, policy or any other docum ent to be produced for the purpose of any entry, endorsem ent or the like being m ade before paym ent is m ade notw ithstanding any rule, prac- 20 tice or requirem ent to the contrary(v) a ny claim  respecting any property in relation to w hich a notice under this sub-section has been issued arising after the date of the notice shall be void as against any dem and contained in the notice 25(vi) w here a person to whom  a notice under this sub-section is sent objects to it by a statem ent on oath th at the sum  dem anded or any p art thereof is not due to the em ployer or th at he does not hold any money for or on account of the em ployer, then, nothing contained in this sub-section shall be deemed to require such person to pay 30 any such suim or p art thereof, as the case m ay be, b u t v it is dis­covered th at such statem ent w as false in any m aterial particular, such person shall be personally liable to the c entral provident fund commissioner or th e officer so authorised to the extent of his own liability to the em ployer on the date of the notice, or to the extent 35 of the em ployer's liability for any sum due under this act, w hich­ever is less(vii) the c entral provident fund com missioner or the officer so authorised may, at any tim e or from tim e to time, amend or revoke any notice issued under this sub-section or extend the tim e 40 for m aking any paym ent in pursuance of such notice(m it) the c entral provident f und commissioner or the officer so authorised shall grant a receipt for any am ount paid in compliance w ith a notice issued under this sub-section, and the person so paying shall be fully discharged from  his liability to the em ployer to the ex- 45 tent of the am ount so paid(ix) any person discharging any liabilitv to the em ployer after the receipt of a notice under this sub-section shall be personally liable to the c entral provident fund commissioner or the officer so autho­rised to the extent of his own liability to the em ployer so discharged or to the extent of the em ployer's liability for any sum due under this act, w hichever is less5 (x) if the person to whom  a notice under this sub-section issent fails to m ake paym ent in pursuance thereof to the c entral pro­vident fund commissioner or the officer so authonsed he shall be deemed to be an em ployer in default in respect of the am ount speci­fied in the notice and further proceedings m ay be taken again^st him  10 for the realisation of the am ount as if it w ere an arrear due from  him,in the m anner provided in sections 8b to 8e and th e notice shall have the sam e effect as an attachm ent of a debt by the recovery officer in exercise of his pow ers under section 8b(4) the c entral provident fund commissioner or the officer15 authorised by the c entral board in this behalf m ay apply to thecourt in w hose custody there is m oney belonging to the em ployer for paym ent to him  of the entire am ount of such money, or if it ism ore than the am ount due, an am ount sufficient to discharge theam ount due2025(5) the c entral provident fund commissioner or any officer not below the rank of assistant provident fund commissioner m ay, if so authorised by the c entral g overnm ent by general or special order, recover any arrears of am ount due from  an em ployer or, as the case m ay be, from  the establishm ent by distraint and sale of his or its m ovable property in the m anner laid down in the third sche-43 of 1961 dule to the incom e-tax act, 196130appucationof certain provisions ofincometax act8g the provisions of the second and third schedules to th e in­come-tax act, 1961 and the incci(me-tax (certificate proceedings) 43 of 1961 rules, 1962, as in force from  tim e to time, shall apply w ith necessary modifications as if the said provisions and the rules referred to the arrears of the am ount m entioned in section 8 of this act instead of to the income-tax:provided th at any reference in the said provisions and th e rules to the "assessee" shall be construed as a reference to an em ployer as defined in this act" i3515 in section 10 of the principal act, in sub-section (2), the following shall be added at the end, nam ely: —amend­ment of section 10''and shall also not be liable to attachm ent under any decree order of any court" oramend­ment of section 1116 in section 11 of the principal act, in sub-section (2) , for the words and brackets "in respect of the em ployee's contribution (deducted from  the wages of the employee) for a period of m ore than six m onths", the words and brackets w hether in respect of the employee's contribution (deducted from  the wages of the employees) or the em ployer's contribu- 45 tion" shall be substituted17 in section 13 of the principal act, sub-section (5) shall be omittedamend­ment of section 1318 in section 14 of th e principal act,—anmdment of section 14,(a) in sub-section (i), for the w ords "six m onths, or w ith fine w hich m ay extend to one thousand rupees, or w ith both,", th e w ords"one year, or w ith fine of five thousand r u j ^ s , or w ith  both" ^ a l l  5 be substituted; ,(b) in sub-section (la ),— ,(i) in the opening portion, for th e w ords "six m onths"^ th e w ords "three years'' sliall be substituted:(ii) in clause (a), for the w ords "three m onths", the w ords jq"one year and a fine of ten thousand rupees" shall be substituted;(iii) for clause (b), the follow ing clause shall be substi­tuted, nam ely: —" (b) w hich shall not be less than six m onths and a fine of five thousand rupees, in any other case: "; ^(iu) the w ords "and shall also be liable to fine w hich m ay extend to two thousand rupees" shall be om itted;(v) in  th e proviso, the w ords "or of fine only in lieu of im prisonm ent" shall be om itted;(c) in  sub-section (ib),— 20(i) for the w ords "six m onths", the w ords "one year" shall be substituted;(ii) for the w ords "one m onth", the w ords "six m onths" shall be substituted;(iii) for th e w ords "two thousand rupees", the w ords "five 25 thousand rupees" shall be substituted;(iv) in the proviso, the w ords "or of fine only in lieu of im prisonm ent" shall be om itted;(d) in sub-section (2 ), for the w ords "six m onths, or w ith fine which m ay extend to one thousand rupees, or w ith both", th e w ords "one year, or w ith fine w hich m ay extend to four thousand rupees, or w ith both" shall be substituted;(c) in sub-section (2a), for the words "three m onths, or w ith fine w hich m ay extend to one thousand rupees, or w ith both", th e w ords "six m onths, b u t w hich shall not be less than one m onth, and shall also be liable to fine w hich m ay extend to five thousand rupees" shall be substitutedamend­ment of •ection 14aa19 in section 14aa of the principal act, for th e w ords "one year b u t w hich shall not be less than three m onths and shall also be liable ^ to fine w hich m ay extend to four thousand rupees", the w ords "five years, but w hich shall not be less than tw o years, and shall also be liable to a fine of tw enty-five thousand rupees" shall be substituted 20 in section 14b of the principal act,—amend­ment of sectkm 14b(c) for the w ords "from  the em ployer such damages, not exceeding the am ount of arrears as it m ay think fit to impose", th e w ords "from  the em ployer by w ay of penalty such damages, not exceeding' th e am ount of arrears, as m ay be specified in the scheme" shall be substituted;(b) after the proviso, the following proviso shall be inserted, nam ely: —"provided fu rth er th a t the c entral board m ay reduce or waive the dam ages levied under this section in relation to an establish- 5 m ent w hich is a sick industrial com pany and in respect of w hich aschem e for rehabilitation has bjeen sanctioned by th e board for industrial and fintm cial reconstruction established nnfjor section 4 1 of 1986 of the sick industrial companies (special provisions) act, 1985, subject to such term s and conditions as m ay be specified in the 10 scheme"21 in section 16 of the principal act,—ameadment of wctiob 16(i) in sub-section (i), for clause (b), the following clauses shall be substituted, nam ely:—" (b) to any other establishm ent belonging to or under th e 15 control of th e c entral g overnm ent or a state 'g overnm ent andw hose employees are entitled to the benefit of contributory provident fund or old age pension in  accordance w ith any schem e or rule fram ed by the c entral g overnm ent or th e s tate g overnm ent governing such benefits: or20 (c) to any other establishm ent set up under any central,provincial or state a ct and whose employees are entitled to the benefits of contributory provident fund or old age pension in accordance w ith any scheme or rule fram ed tm der th a t act governing such benefits; or25 (d) to any other establishm ent new ly set up, until theexpiry of a period of three years from  the date on w hich such establishm ent is, or has been, set up";(ii) in sub-section (2 ), after the w ord "exem pt", th e w ords w hether prospectively or retrospectively," shall be inserted30 22 a fter section 16 of the principal act, the following section shall be inserted, nam ely: —inser­tion of new section 16a"16a (1) the c entral g overnm ent may, on an application m ade to it in this behalf by the em ployer and the m ajority of employees in relation to an establishm ent em ploying one hundred or m ore 35 persons, authorise the em ployer by an order in w riting, to m aintain a  provident fund account in relation to the establishm ent, subject to such term s and conditions as m ay be specified in the scheme:autho­rising certain em­ployers to maintain provi­dent fund accounts1 provided th at no authorisation shall be m ade under this sub­section if the em ployer of such establishm ent had com m itted any 40 default in the paym ent of provident fund contribution or had com­m itted any other offence under this act during the three years im m ediately preceding the date of such authorisation(2) w here an establishm ent is authorised to m aintain a provi­dent fund account under sub-section (j), the em ployer in relation 45 to such establishm ent shall m aintain such account, subm it such re­turn, deposit the contribution in such m anner, provide for such facilities for inspection, pay such adm inistrative charges, and abide by such other term s and conditions, as m ay be specified in th e scheme(3) a ny autl^orisation m ade under this section m ay be can­celled by the c entral g overnm ent by order in  w riting if th e em ­ployer fails to comply w ith any of the term s and conditions of th e authorisation or w here he com m its any offence u n d er smy provision of this act: i 5^ o v id e d  th a t before cancelling the authorisation, the c ^ itra l g overnm ent shall give the em ployer a reasonable opportunity of being heard"amend 23 in section 17 of the principal act,—ment of section (a) in sub-section (1),^— ^017({) for the w ords "exem pt from  the operation", the w ords "exem pt, w hether prospectively or retrospectively, from  the operation" shall be substituted;(ii) the following proviso shall be added a t the end, nam ely:— 15"provided th a t no such exem ption shall be m ade except a fte r consultation w ith th e c entral board w hich on such consultation shall forw ard its view s on exem ption to th e appropriate g overnm ent w ithin such tim e lim it as m ay be specified in the schemcu" ; 20(b) for sub-section (la), the follow ing sub-sections shall be substituted, nam ely:— "(la) w here an exeraptioii has b e e i granted to an  estab­lishm ent im der clause (d) of sub-section (i),—(o) th e provisions of secticms 6, 7a, 8 and 14b shall, 25 so fa r as m ay be, apply to th e « n p lo y er of ^ e  exem pted establishm ent in  addition to such other conditions as m ay be specified in the notification granting such exem ption, and w here such em ployer contravenes, or m akes default in com plying w ith any of the said provisions or conditions or 3d any other provision of this act, he shall be punishable under section j4 as if the said establishm ent had not been exem pted under the said clause (a );(b) th e em ployer shall establish a b oard of tnastees for ttie adm inistration of th e provident femd oonsistihg of 35such num ber of m an b ers as m ay be spedfied in the scheme;(c) the term s and conditions of service of m em bers of the bp^rd of trustees shall be such as m ay be specified in the schem e;(d) the b oard of trustees constituted undor clause (b) 40 shall—(i) m aintain detailed acooimts to show the gonfcributjons creditgd^ w ithdraw als m ade and interest accrued in respect of each employee;(ti) subm it such returns to the regional provident fund com missioner or any other officer as the central g overnm ent m ay direct from  tim e to tim e;(iii) invest the provident fund monies in acco5 ance w ith the directions issued by the c entral govern­m ent from  tim e to tim e; ,(it?) transfer, w here necessary, the provident fund account of any em ployee; and(v) perform  such other duties as m ay be specified10 in the scheme(ib) w here the board of trustees established under clause(b) of sub-section (la) contravenes, or m akes default in comply­ing w ith, any provisions of clause (d) of th a t sub-section, the t rustees of the said b oard shall be deemed to have com m itted an15 offence under sub-section (2a) of section 14 and shall be pimishable w ith the penalties provided in th at sub-section20(ic) the c entral provident fund commissioner m ay, by notification in the official gazette, and subject to such conditions as m ay be specified therein, exem pt, w hether prospectively or retrospectively, any em ployee or class of employees or any establishm ent from  the operation of all or any of the provisions of the fam ily pension scheme, if such employee,, class of employees or the employees of such establishm ent is or are in enjoym ent of benefits in  th e n ature of fam ily pension, and 25 the c entral provident fund commissioner is of fee c ^ i o n  th a t such benefits are on the w hole not less favourable to su d i em ployees than the benefits provided un<ter this a et o r the fam i­ly pension schem e in relation to employees in any other estab­ lishm ent of a sim ilar character" ;30 (c) in sub-section (2a ) , for the words "the c entral g overn­m ent may, if requested so to do by the employer, by notification in the official gazette, and subject to such conditions as m ay be specified in the notification, exem pt any establishm ent from  the operation of all or any of the provisions of the insurance scheme, 25 if it is satisfied", the words "the central provident fund com­m issioner m ay, if requested so to do by the employer, by notifica­tion in th e official gazette, and subject to such conditions as m ay be specified in the notification, exempt, w hether prospectively or retrospectively any establishm ent from  the operation of all or any of the provisions of the insurance scheme, if he is satisfied" shall 40 be substituted;(d) in sub-section (3a) in clause (b),the w ord "and" occurring at the end and clause (c) shall be om itted;(c) in sub-section (4),—(i) in clause (a), after the words "under that sub-section", the words, brackets, figure and letter "or sub-section (la )" shall be inserted:(ii) in clause (aa), for the brackets, figure and letter " (la )", th e brackets, figure and letter " (1c )'' shall be substituted;(/) in sub-section (5),—(i) for th e brackets, figure and letter " (j-a)'', the brackets, figure and letter " (1c) shall be substituted; 5(ii) after the w crds "he is em ployed", th e w ords "together w ith any am ount forfeited from  the em ployer's share of contri­bution to the credit of the em ployee who leaves th e em ploy­m ent before th e com pletion of the full period of service" shall be inserted; 10(g) in sub-section (6), for the brackets, figure and letter the brackets, figure and letter shall be substituted24 for section 18 of the principal act, the following sections shall be substituted, nam ely: —substitu­tion of new sec­tions for section 18protec­ tion of action taken in good faith"18 no suit, prosecution or other legal proceeding shall lie against th e c entral g overnm ent, a state g ovem m ent, th e presid­ing oflbcer of a t ribunal, any authority referred to  in  section 7a, an inspector or any other person for anything w hich is in good faith done or intended to be done in  pursuance of this act, the scheme, the fam ily pension schem e or the insurance scheme 2018a the presiding officer of a tribunal, its officers and other employees, the authorities referred to in sertion 7a and every inspector shall be deem ed to be public servants w ithin the m eaning of section 21 of the indian penal code"45 of 18^presiding oflficer and other officers to be public servants25 for section 19a of the principal act the following sections shall 25 be substituted, nam ely: —substitu­tion of new sec­tions for section 19a"20 the c entral grovernment may, from  tim e to time, give such directions to the c entral board as it m ay think fit for th e efficient adm inistration of this act and w hen any such direction is given, the c entral board shall comply w ith such direction 30power of central govem­ment to five direc­ tions21 (1) the c entral g overnm ent may, by notification in the official gazette, m ake rules to carry out the provisions of this actpower to make rules(2) w ithout prejudice to the generality of the foregoing power, such rules m ay provide for all or any of the following m atters, nam ely: —(a) the salary and allowances and other term s and conditions of service of the presiding officer and the employees of a tribunal;10(b) the form and the m aim ef in which, and the time within which, an appeal shall be filed before a t ribunal and the feespayable for filing such appeal:(c) the m anner of certifying the copy of the certificate, to be forw arded to the recovery officer under sub-section (2) of section 8c; and15(d) any other m atter which has to be, or m ay be, prescribed by rules under this act2025(3) every rule made under this act shall be laid, as soon as m ay be after it is made, before each house of parliam ent, w hile it is in session, for a total period of th irty  days w hich m ay be com prised in one session or in tw o or m ore successive sessions, and if, before the expiry of the session im m ediately following the session or the succes­sive sessions aforesaid, both houses agree in m aking any modification in the rule or both houses agree that the rule should not be made, the rule shall thereafter have effect only in  such modified form  or be of no effect, as thie case m ay be; so, however, th at any such modi­fication or annulm ent shall be w ithout prejudice to the validity of anything previously done under th a t rulepower to remove difficul­ties3022 (1) if any difficulty arises in giving effect to the provisions of this act, as amended by the em ployees' provident fim ds and miscellaneous ptovisions (amendment) act, 1988, the central go­vernm ent may, by order published in the official gazette, m ake such provisions, not inconsistent w ith the provisions of this a ct as appear to it to be necessary or expedient for the removal of the difficulty:35provided th at no such order shall be made after the expiry of a period of three years from  the date on which the said am endm ent act receives the assent of the president(2) every order m ade under this section shall, as soon as m ay be after it is made, be laid before each house of parliam ent"26 in schedule iv to the principal act, for item s 6 and 7, the follow- 40 ing item  shall be substituted, nam ely: —amend­ment of schedule iv"6 the scales of insurance benefits and conditions relating to the grant of such benefits to the employees"amend­ment of act 45 186027 in section 405 of the indian penal code, in explanation 1, after the words "being an employer", the words and figures "of an establish-45 m ent w hether exem pted under section 17 of the employees' provident19 of 1951 funds and miscellaneous provisions act, 1952 or not" shall be insertedthe em ployees' p rovident f unds and m iscellaneous provisions act, 1952 provides for the institution of com pulsory provident fund, f am ily pension fund and d eposit l inked insurance fund, for the benefit of the em ployees in factories and other establishm ents the act is a t present applicable to 173 industries and classes of establishm ents em ploying tw enty or m ore persons as on 31-3-1987, about 166 lavh establishm ents w ith about 138 crore subscribers w ere covered under the act2 the act was last am ended in 1976 the g overnm ent had set up a high level c om m ittee in april, 1980 to review  the w orking of the em ployees' p rovident funds organisatio!i and to suggest im p rovanents the c om m ittee had m ade a num ber of recom m endations involving am endm ent of the act the c entral b oard of trustees, em ployees' provident fund had also, from  tim e to tim e, m ade certain recom m enda­tions for am endm ent of the act the s tanding l abour c om m ittee had at its m eeting held in septem ber, 1986 considered inter alia the question of enhancem ent of the ra te  of provident fund contribution and recom ­m ended suitable enhancem ent3 based on the above recom m endations, it is proposed to carry out certain am endm ents in th e act some of the m ore im portant am end­m ents are:—(i) the num ber of representatives of the organisations of th e em ployers and the em ployees on th e c entral b oard of t rustees is being raised from  6 each to iq each, so as to provide greater re- {oesentation to the em ployers and em ployees on the board a  provis i ^  is also being maefe fbr setting up  an bxeeutive cthnmittee to assist the board in the discharge of its functions;(ii) the c entral board is being given enhanced powers in th e m atter of appointm ent of officers and staff, creation of posts, specify­ing m ethods of recruitm ent, salary and allowances, etc, of its officers and staff, for the sm ooth functioning of th e schemes adm inistered by it;(iii) the m inim um  ra te of provident fund contribution is being enhanced from  6-1/4 to 8-1/3 per cent, of b a^c wages a n enabl­ing provision is also being m ade for raising the rate of contribution from  8-1/3 per cent, to 10 per cent;(iv) a provision is being m ade for setting up an independent m achinery, for recovery of the outstanding am ount of provident fund and other dues under the act;(v) a provision is being m ade for setting up one or m ore single­m em ber tribunals, for hearing of appeals filed against the order of provident fund authorities in the m atter of applicability of the provisions of the act, assessment of dues and levy of d a m a ^ , etc;(vi) a provision is being made for treating the entire amount of arrears of provident fund dues as first charge on the assets of an establishment in the event of its liquidation;(vii) the existing jjenal provisions are being made more stringent a suitable provision is also being made for charging of simple interest on belated payment of any amount due under the act;(viii) the existing legal and penal provisions, as applicable to imexempted establishments, are being made applicable to exempt­ed establishments, so as to check the defaults on their part;(ix) the establishments belonging to or under the control of the c^tt£^ qovmuo/ent or ctoyenumqnt and e^tablisbineiits set vp under either an act of parliam ent or state legislature^ whose emp­loyees are entitled to the benefit of contributory provident fund or old age pension under any rule or scheme governing them are being excluded from the purview of the act, so as to enable the employeies' provident funds organisation to concentrate on establishments whose employees are not entitled to the benefit of provident fund or pen­sion under any otho- law or scheme;(x) a provision is also being made for authorising the unex­empted establishments employing 100 or more persons to m aintain the provident fund accounts of their employees subject to certain conditions, so as tc ensure prompt service to the memberst te  notes on clauses explain in detail the provisions of the bill4 'kie bui seeks to achieve the above objectsn e w  d e l h i;the 13th april, i m  jagdish tytlerclause 1 relates to short title and com m encem ent of the proposed legislationclause 2 seeks to am end section 1 of the act so as to em pow er the c entral provident fund commissioner, instead of the c entral g overn­m ent, for extending the provisions of the a ct to an establishm ent on and from  th e date of agreem ent betw een the em ployer and th e em ployees or from  any subsequent dateclause 3 seeks to in sert new  definitions of "authorised officer", "pres­cribed", "recovery office" and "tribunal" in section 2 of the act and also proposes to am end the definition of "basic w ages" to include th e em olu­ments paid to an employee oh holiday, and the d^uoition of "employee"to include a person em ployed by or through a contractor or engaged as an apprenticeclause 4 seeks to am end section 5a of the a ct to efeect certain changes in the constitution of the c entral b oard and provides for the appointm ent of a v ice-chairm an and also to increase the num ber of persons represent­ing the em ployers and the employees from  six to ten it also seeks to insert sub-sections (5) to (9) sub-section (5) seeks to provide th at the c entral b oard shall m aintain proper accounts of its income and expendi­ture, in  such form  and in such m anner, as m ay be specified in the scheme sub-section (6) provides th a t the accounts of th e c entral b oard shall be audited annually by the c om ptroller and a uditor-g eneral of india sub­ section (7) provides th a t th e c om ptroller and a uditor-g eneral of india and any person appointed by him  in this behalf shall have the sam e rights and privileges and authority in connection w ith such audit as th e c om ptroller and a uditor-g eneral has in  connection w ith the audit of g overnm ent accounts sub-section (8) provides th at th e accounts of th e c entral board, as certified by the com ptroller and a uditor-g eneral of india or any other person appointed by him  in this behalf, together w ith the audit report thereon shall be forw arded to the c entral board, w hich shall forw ard the sam e to the c entral g overnm ent together w ith the com m ents on the report of the com ptroller and a uditor-g eneral sub­section (9) provides th a t th e c entral b oard shall subm it an  annual report to the c entral g overnm ent about its w ork and activities and the c entral g overnm ent shall cause a copy of th e annual report, the audit­ed accounts, together w ith th e report of the com ptroller and a uditor- g eneral of india and the com m ents of th e c entral b oard thereon, to be laid before each house of parliam entclause 5 seeks to insert new  section 5aa for constituting an executive com mittee to assist th e c entral board in the discharge of its functions the composition of the said com m ittee shall be as specified in  sub-section(2) of th at section sub-section (3) provides th a t th e term s and condi­tions, subject to w hich the m em ber of th e executive com m ittee m ay be appointed or elected; th e tim e, place and procedure of th e m eetings of the com m ittee shall be as specified in the schemeclause 6 seeks to am end sub-sections (2), (3), (4), (6) and (7) ot •ection 5d w ith a view  to vesting the c entral g overnm ent w ith tlte pow er to appoint the m nancial a dviser and chief accounts officer and the c entral board w ith pow er to appoint other officers and regulate their m ethod of recruitm ent, salary and allowances and other conditions of service subject to the restrictions provided thereinclause 7 seeks to insert new  section 5dd providing th at the acts done or proceedings taken by the c entral board or the executive committee or the s tate board shall not be questioned on the groim d m erely of the existence of any vacancy in, or defect in th e constitution of, such boards or committeeclause 8 seeks to am end section 5e to em pow er the c entral board to delegate its pow ers and functions to the executive com mittee, th e chair­m an of the board or to any of its officersclause 9 seeks to am end section 6 of the a ct to increase the rate of contribution payable by the em ployer to eight and one-third per cent, and also giving option to the employee, if he so desires, to increase his ra te of contribution a t a rate exceeding eight and one-third per cent, of his basic wages and allowances in respect of the establishm ents notified by the c entral governm ent, the ra te of contribution payable by the em ployer is being increased from  eight per cent, to ten per centclause 10 seeks to am end section 7a of the a ct to em pow er certain additional authorities to decide disputes relating to the applicability of the act a  new  provision as sub-section (3a) is being inserted to provide th at w here an employer, em ployee or any other person required to attend the inquiry fails to attend such inquiry w ithout any valid reason or fails to produce any document, the com petent authority m ay pass an order d ^ id in g  the applicability of the a ct or determ ining the am ount due from  the em ployer on the basis of evidence adduced and the records available sub-section (4) of section 7a is being substituted by a new  sub-section to provide th at w here an order is passed under sub-section (1) against an em ployer ex parte, he may, w ithin the tim e­lim its specifiedr therein, apply to the officer to set aside the same, and if he satisfies the officer, about the conditions referred to therein, the said officer shall m ake an order, setting aside his earlier order and shall appoint a date for proceeding w ith the inquiry sub-section (5) pro­vides for giving notice to the other party before setting aside an order as referred to in sub-section (4) i clause 11 seeks to insert new  sections 7b to 7q:section 7b empowers the authorities w ith the pow er to review th eir orders passed by them  im der sub-section (1) of section 7a sub­ject to the lim itations provided in the new  sectionsection 70 em powers the authorities to determ ine the escaped am ount w hich is payable by an employersection 7i> provides for the constitution of one or m ore emplo­yees' provident funds a ppellate tribunals to entertain appealssection 7e provides th at the term  of office of the presiding officer of a  t ribunal shall be five years or until he attains the age of 62 yearssection 7f relates to resignation and rem oval of th e presiding officer-5 isection 7g seeks to provide for the salary and allowances and other term s and conditions of service of the presiding officersection 7h em powers the c entral g overnm ent to determ ine the n atu re and categories of the staff of the tribunalsection 7-1 provides for the filing of appeals before t ribunals and the procedure to be follow ed in prefering such appeals and other connected m attersj section 7j provides for thte procedure to ble follow ed b j  af t ribunal in  discharging its functions i asection 7k seeks to provide th a t the person m aking an application to a t ribiinal m ay either appear in person or through a legal practitioner and, sim ilarly, the c entral g overnm ent or th e state g overnm ent m ay re p re ^ n t their case through any presenting officersection 7l lays down the procedure to be followed by a t ribunal in passing orders and also am ending its orders to rectify any m istakes apparent from  the recordsection 7m em powers the c entral g overnm ent to fill up the vacancy occurring in the office of the presiding officersection 7n seeks to provide th at the orders of the c entral g overm nent appointing any person as the presiding officer shall not be called in question in  any m anner nor the proceedings of a t ribunal shall be called in question on the grounds referred to thereinsection 7-0 provides for the deposit of seventy-five p er cent, of the am oim t due from  the em ployer before an appeal is entertained by the tribunal the t ribunal is, how ever, em pow ered to w aive or reduce the said am oim t for reasons to be recorded in  w ritingsection 7p provides for the transfer of certain applications relat­ing to disputes regarding applicability of the a ct to certain establish­ m ents, now  pending before the c entral g overnm ent, to a tribunal on its constitutionsection 7q provides for paym ent of interest at the ra te specified therein in respect of any am ount due from  the em ployerclause 12 seeks to am end section 8 to provide th a t any am oim t due from  the em ployer shall be recovered in the m anner specified in  the new  sections 8b to 8bclause 13 seeks to am end section 8a to om it the words "on the basis of such contribution" from  sub-section (1) of th at section so th at the charges for m eeting the cost of adm inistering the fund are no longjer calculated on the basis of contributionsclause 14 seeks to insert new  sections 8b to 8g sections sb to 8e provide for th e detsuled procedure for recovering the am ount due from the em ployer by attaching and selling the m ovable or im m ovable property if the establishm ent or the em ployer or by effecting arrest and detention of the em ployer or by appointing a receiver for the m anagem ent of the properties of the establishm ent or the em ployer on the issue of a certificate by the authorised officer to the recovery officer the pro­visions also lay dow n the detailed procedure to be followed by the authorised officer to issue the certificate and the recovery officer who would effect the recovery of the am ount due from  the employer:section 8f em powers the c entral provident funds commissioner to recover the am ount due from  the employer, from  any other person and from  whom  the money is due to the em ployer and provides for detailed procedure to be followed and for other connected m atterssection 8g seeks to apply the provisions of the second and third schedules of the incom e-tax act, 1961 and the incom e-tax (certi­ficate proceedings) rules, 1962 for the purpose of effecting the recovery of any am ount due from  the employerclause 15 seeks to am end section 10 of the act to provide th at an am ount standing to the credit of any m em ber referred to in that section shall not be liable to attachm ent under any decree or order of any courtclause 16 seeks to am end sub-section (2) of section 11 of the act to m ake it clear th at the priority for paym ent of the am ount w ill extend to the contribution payable by the em ployer alsoclause 17 seeks to amend section 13 of the act to effect certain conse­quential changesclauses 18 arid 19 seek to am end sections 14 and 14aa of the act to m ake penal provisions m ore stringentclause 20 seeks to am end section 14b of the act to make it clear that power to recover damages is by w ay of penalty and the damages to be recovered w ill not exceed the am ount of arrears payable by the employer it also seeks to provide for reduction or w aiver of damages by the central board in cases of sick industrial companiesclause 21 seeks to amend section 16 of the act to m ake it clear th at the act shall have no application in respect of an establishm ent belong­ing to or under the control of the central g overnm ent or a state govern­ m ent and an establishm ent set up under any act of parliam ent or of a state legislature subject to the conditions specified therein it also seeks to provide for uniform  infancy period of three years for coverage of establishm ents under the act and taking powers to grant exemptions w hether prospectively or retrospectivelyclause 22 seeks to insert new section 16a to em power certain em­ployers to m aintain the provident funds accounts themselves subject to the conditions specified thereinclause 23 seeks to amend section 17 to provide for consultation w ith the central board before granting exemptions by the appropriate govern­ m ent and taking power to grant exemption w hether prospectively or retrospectively new provisions are being inserted which provide that in case of exem ption granted under clause (a) of sub-section (1) of section 17, the em ployer shall establish a board of trustees for the adm inistration of th e provident f und and such b oard shall perform  the duties specified in clause (d) of new  sub-section (la ) and they w ill be liable to punishm ent under section 14 (2a) for contravention of any of the provisions of th e said clause (d) sub-section (1c) seeks to con­fer pow ers for granting exem ption from  the operation of the em ployees' fam ily pension schem e and th e em ployees' d eposit-linked insurance schem e on the c entral p rovident fim d commissioner instead of the c entral g overnm ent it also provides for transfer of the am ount forfeit­ed from  the em ployer's share of contribution to the board by the exem pted establishm ents in the event of cancellation of th eir exem ptionclaiise 24 seeks to substitute section 18 of the a ct by new  sections 18 2nd isa section 18 provides th at no suit or prosecution or other legal proceeding shall lie against the c entral g overnm ent, state g overnm ent, th e presiding officer of a tribunal, any authority referred to in section 7a, an inspector or any other person for anything w hich is done or intended to be done in good faith in pursuance of the act or various schemes section 18a provides th a t th e presiding officer of a t ribu­nal and other officers under the a ct shall be public servants w ithin the m eaning of section 21 of the indian p enal codeclause 25 seeks to substitute section 19a of the a ct by  new  sections20, 21 and 22 section 20 em powers the c entral g overnm ent to issue directions to the c entral b oard for the efficient adm inistration of the act section 21 em powers th e c entral g overnm ent to m ake rules to carry out th e provisions of th e act section 22 em pow ers the c entral g overnm ent to rem ove any dif&cultles arising in  giving effect to i3ie provisions of th e a ct as am ended by th e proposed legislation by  issuing an order in  th e official g azette |clause 26 seeks to am end schedule iv of the a ct to substitute a new  item  for item s 6 and 7 the new  item  relates to scales of insurance bene­fits and conditions relating to th e g ran t of such benefits to the employees w hich m ay be specified in the em ployees' deposit-linked insurance schemeclause 27 seeks to am end explanation 1 of section 405 of the indian p enal code to m ake it clear th a t the em ployer referred to therein w ill include smy em ployer of establishm ent exem pted under section 17 of the actclause 4 of the bill seeks to am end section 5a of the act to provide interdlia for raising the num ber of representatives of employers and employees on th e c entral board of trustees, em ployees' provident fund, from  six each to ten each and entrusting the audit of the accounts of the c entral board to the com ptroller and a uditor genera] of india the non-official m em bers of the c entral board would have to be paid travelling allowance and daily allowance for attending the m eetings of th at board, w hich norm ally m eets twice a year the com ptroller and a uditor g eneral of india will have to be paid necessary fees for auditing the accoints the recurring expen­d itu re involved on these accounts is estim ated at rs 12,000 and rs 14 lakhs per annum  respectively2 clause 5 of the bill seeks to insert a new section 5aa for setting up cf an executive com mittee to assist the central board this com­m ittee is expected to m eet at least once in every quarter there will be six non-official m em bers on this committee these m em bers 'vill have to be paid travelling allowance and daily ellow'i'ice for attending the m eetings of the committee the recurring expenditure involved on this accoimt is estim ated at rs 20 000 per annum3 clause 11 of the bill seeks to insert new  sections 7b to 7q the new section 7d provides for setting up one or more aope-late tribu-' nals for hearing appeals against the orders of the re?'onal provident fund commissioners in the m atter of applicability of the act assess­m ent of dues, etc a t ribunal w ill be headed by a presiding officer, who m av be a serving or retired judge of a high court the new  section 7h provides for appointm ent of supporting staff of a tribunal to begin with, there m ay be one tribunal w ith headquarters in new delhi the estim ated recurring expenditure on paym ent of salary and allowances to the presiding officer and his supporting staff, rent, office expenses, etc, is estim ated at rs 6 lakhs per annum  in addition, there m av be non-recurring expenditure of rs 50000 on the purchase of furniture and other office equipm ent for the tribunal4 clause 14 of the bill seeks to insert new  sections 8b to 8g these sections em power the provident fund authorities to recover the arrears of provident fund dues for this purpose, suitable m achinery will have to be set up in all the sixteen regional offices of the emrjlovpes' provi­dent funds organisation and the headquarters office in delhi the recovery m achinerv in u ttar pradesh, m adhva pradesh, west bengal, m aharashtra, tamil nadu, b ihar and orissa regions, where the arrears exceeds rs 3 crores, m ay be headed by regional provident fund com­missioner grade-ii, in the scale of pay of rs 3000—4'500 and in the rem ain­ing 9 reffions the recovery m achinery m ay be headed bv an officer of the rank of assistant provident fund commissioner in the scale of pay of rs 2200—4400 the headquarters office in d elhi w ill have an officer in the grade of rs 3700—5000 to supervise the w orking of recovery m achineries in th e states a ll these officers w ill have to be provided suitable supporting staff like enforcem ent officers, personal a ssistants, u pper division clerks, l ow er division clerks and peons the total posts required, including those of officers, w ill be about 180 and the total recurring expenditure on paym ent of salary and allowances of the otficers and staff is estim ated at about rs 57 lakhs per annum  the recurring expenditure on travelling allow ance and office expenses is estim ated a t rs 6 lakhs per annum  in addition, there m ay be non­recurring expenditure of about rs 340 lakhs on purchase of furniture and office aquipm ent for the office of the recovery officers t here w ill be no additional expenditure on paym ent of ren t as recovery m achine­ries will function from  the existing offices of the regional provident fund commissioner5 the total expenditure on enforcem ent of the provisions of clauses4, 5, 11 and 14 is estim ated at rs 8332 lakhs (recurring) and rs 390 lakhs (non-recurring) a bout ninety per cent, of the expenditure in­volved is likely to be m et from  the adm inistrative charges payable by the em ployers under the em ployees' provident fund scheme and the em ployees' d eposit-linked insurance scheme the rem aining ten per cent, of the expenditure w ill be m et by the c entral g overnm ent from  the consolidated fund of india by w ay of adm inistrative cost tow ards the em ployees' fam ily pension schem e and the em ployees' depositlinked insurance scheme i t6 the bill does not involve any other expenditure of a recurring or non-recurring naturesub-clause (b) of clause 4 of the bill seeks to insert sub-sections (5) to (9) in section 5a new eub-section (5) tm pow ers the c entral gov­ernm ent to specify in  the scheme, after consultation w ith the comp­ troller and a uditor-g eneral of india, the form  and m anner in which the c entral board shall m aintain accounts of its income and expendi­ture2 clause 5 of the bill seeks to insert a new  provision as section 5aa relating to the constitution of executive committee sub-section (3) of the new  section 5aa provides th at the term s and conditions, subject to w hich the m em ber of the executive com m ittee m ay be appointed or elected, and the tim e, place and procedure for the m eetings of the ex­ecutive com m ittee shall be such as m ay be provided for in the scheme3 clause 8 of the bill seeks to am end section 5e of the a ct so as to em power the c entral board to delegate to th e executive com m ittee or to the chairm an of the board or to any of its oflbcers such of its powers and functions under the a ct as it m ay deem  necessary for the eflbcient adm inistration of the scheme, th e fam ily pension schem e and the insurance scheme sim ilarly, the s tate board m ay delegate its powers to its chairm an or to any of its officers4 clause 11 of the bill seeks to insert inter alia new  sections 7b, 7g, 7h and 7-1 the proposed sub-section (2) of section 7b empowers the c entral g overnm ent to specify in the scheme the form, m anner and tim e for filling an application for review  under sub-section (1) of th at section the proposed section 7g and sub-section (3) of section 7h em power the c entral g overnm ent to prescribe by rules the salary, allowances and other term s and conditions of services of the presiding officer and other employees of a tribimal sub-section (2)' of section 7-1 empowers the c entral g overnm ent to prescribe the form, m anner and the tim e w ithin w hich appeals shall be filed before the em ployees' provident funds a ppellate tribunal and the fees for filing such appeals5 clause 14 of the bill seeks to insert new  sections 8b to 8g sub­section (2) of new  section 8c provides th at the m anner of certifying the copy of the certificate to be forw arded to the recovery officer m ay be specified by rules ' j6 clause 20 of the bill seeks to am end section 14e of the act to enable the c entral provident fund commissioner or such other officer as m ay be authorised by the c entral g overnm ent to recover from  the employer, by w ay of penalty, such damages not exceeding the am ount of arrears as m ay be specified in the scheme the central board is also being em powered to reduce or w aive the damages levied under that section in relation to an establishm ent which is a sick industrial company l, ' - in respect of w hich a schem e for rehabilitation has been sanctioned by th e b oard for industrial and financial reconstruction, subject to such term s and conditions as m ay be specified in th e schemeclause 23 of the bill seeks to am end section 17 sub-clause (b) of th at clause seeks to substitute new  sub-sections for sub-section ( la )  clause (c) of new  sub-section (la ) em pow ers th e c entral g overnm ent to specify in the schem e the term s and conditions of service of m em ­bers of the board of t rustees w hich m ay be established by th e em ­ployes under clause (b) of th at sub-section '8 clause 26 of the bill seeks to insert new  sections 20 to 22 section20 em powers the c entral g overnm ent to give directions to the c entral board for the efficient adm inistration of the act section 21 em po­w ers the c entral g overnm ent to m ake rules to carry out the provisions of the act section 22 em pow ers th e central' g overnm ent to rem ove any difficulty v/hich arises in giving effect to any provision of the act as proposed to be am ended by this bill subject to th e condition th a t no order for rem oving the difficulty shall be m ade after th e expiiy of a period of three years from  the date of assent of the p resident to this legislation9 the m atters in respect of v/hich rules, schemes, directions or orders m ay be m ade under the aforesaid provisions are m atters of procedure and adm inistrative detail the said delegation of legislative pow er is therefore, of a norm al character e xtracts fro m  th e e m pl o y e e s' p rovident f unds and m iscellaneoot p rovisions a ct^ 1952(19 of 1952)♦ he ♦ «1 (1)     ♦short^^tottand n otw ithstanding anything contained in sub-section (3) of this application section or sub-section (i) of section 16, w here it appears to the central governm ent, w hether on an application m ade to it in this behalf or otherw ise, th at the em ployer and the m ajority of employees in relation to any establishm ent have agreed that the provisions of this act should be m ade applicable to the establishm ent, it may, by notification in the official gazette, apply the provisions of this act to that'establishm ent2 in this act, unless the context otherw ise requires,—defioi ^tiont ♦ - ♦ ♦ «(b) "basic wages'" m eans all em olum ents w hich are earned by an employee w hile on duty or on leave w ith wages in accordance w ith the term s of the contract of em ploym ent and which are paid or payable in cash to him, but does not include—(i) the cash value of any food concession;(ii) any dearness allowance (that is to say, all cash pay­m ents by w hatever nam e called paid to an employee on accoiiht of a rise in the cost of living), house-rent allowance^ overtim e allowance, bonus, commission or any other sim ilar allowance payable to the employee in respect of his em ploym ent or of w ork done in such em ploym ent;(iii) any presents made by the employer;(/) "employee" means any person who is employed for wages in any kind of work, m anual or otherwise, in or in connection with the w ork of an establishment^ 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 w ith the work of the establishm ent;centr? 5a (i) the central governm ent may by notification in the official board gazette, constitute, w ith effect from such date as may be specified therein, a board of trustees for the territories to which this act extends(hereinafter in this act referred to as the central board) consisting of the following persons, namely: —(a) a chairman to be appointed by the central government;   ♦ (d) six persons representing employers of the establishments to which the scheme applies, appointed by the central government after consultation with such organisations of employers as may be recognised by the central governntent in this behalf; and(e) six persons representing employees in the establishments to which the scheme applies, appointed by the central government after consultation with such organisations of employees as may be recognised by the central government in this behalf5d (i)   ♦ - -  appointment of(2) the c entral g overnm ent m ay also appoint as m any d eputy prooncersj vident f und commissioners, regional provident fund commissioners and other officers w hose m axim um  m onthly salary is not less than five hundred rupees, as it m ay consider necessary to  assist th e c entral p ro­vident fund com missioner in the discharge of his duties(3) the c entral b oard m ay appoint such other officers and em pl03rees as it m ay consider necessary for the efficient adm inistration of th e scheme, the fam ily pension schem e and the insurance scheme(4) no appointm ent to the post of th e c entral provident f und com­m issioner or d eputy provident f und com missioner or regional provi­dent f und com missioner or to any other post under the c entral board carrying a m axim um  m onthy salary of not less than five hundred rupees shall be m ade except after consultation w ith the union public service coiimiission:provided th at no such consultation shall be necessary in regard to any such appointm ent—13 (1)     (b) if the person to be appointed is at th e tim e of his appoint­m ent—♦   (ii) in the service of the c entral g overnm ent or a s tate g overnm ent or the c entral b oard in a class i or class ii post♦ ♦ ♦ ♦ (6) the m ethod of recruitm ent, salary and allowances, discipline and other conditions of service of the c entral provident f und commissioner, d eputy provident fund commissioner and regional provident fund commissioner shall be such as m ay be specified by the c entral g overn­m ent and such salary and allowances shall be paid out of the fund(7) the m ethod of recruitm ent, salary and allowances, discipline and other conditions of service of the other officers and employees of the c entral board shall be such as m ay be specified by the central board w ith the approval of the c entral g overnm ent  ♦ ♦ 5e the c entral b oard m ay, w ith the p o o r approval of the centaral g overnm ent and a s tate b oard may^ withf the prior approval of the state g overnm ent concerned, delegate to its chairm an or to any of its officers, subject to such conditions and lim itations, if any, as it may specify, such of its povsrers and functions im der this a ct as it m ay deem necessary for the efficient adm inistration of the scheme, the fam ily pension schem e and the insurance schemecontri­butions and matters which may be provided for in schemes6 the contribution w hich shau be paid by th e em ployer to the fund shall be six and a q uarter per cent, of the basic wages, dearness allow­ance and retaining allowance (if any) for the tim e being payable to each of the em ployees (w hether em ployed by him  directly or by or through a contractor), and th e em ployees' contribution shall be equal to the contribution payable by the em ployer in respect of him  and may, if any em ployee so desires and if the scheme m akes provision therefor, be an am ount not exceeding eight and one-third per cent, of his basic wages, dearness allowance and retaining allowance (if any); iprovided th at in  its application to any establishm ent or class of establishm ents w hich the c entral g overnm ent, after m aking such enquiry as it deems fit, m ay by notification in the official g azette specify, this section shall be subject to the modification th a t for the words "six and a quarter per (fent", the w ords "eight p er cent" shall be substituted:provided fu rth er th at w here the am ount of any contribution payable under this act involves a fraction of a rupee^ the scheme m ay provide for the rom iding off of such fraction to the nearest rupee, half of a rupee or quarter of a rupeeexplanation 1—^for the purposes of this section, dearness allowance shall be deemed to include also the cash value of any food concession allowed to the employeeexplanation 2—for th e purposes of this section, "retaining allow­ance" m eans an allowance payable for the tim e being to an employee of any factory or other establidm ient during any period in w hich the establishm ent is not working, for retaining his servicesi employ, ers7a (1) the c entral provident fxmd commissioner, any deputy provident f und commissioner or any regional provident fund com­missioner may, by order, determ ine the amoimt due from  any em ployer under any provision of this act, the scheme or the fam ily p enaoh schem e or the insurance scheme, as the case m ay be, and for this purpose m ay conduct such inquiry as he m ay deem  necessary(3) no order determ ining the am ount due from  any em ployer shall be m ade im der sub-section (i), unless the em ployer is given a reasonable opportunity of representing his casef(4) an order m ade xmder thi^ section shall be be questioned in any court of lawfinal and shall not 8 a ny am ount due—mode of recovery'ofmoneysduefrom em­ployers(a) from  the em ployer in relation to an establishm ent to w hich any schem e or th e insurance scheme applies in respect of any con­ tribution payable to the fund or, as the case m ay be, th e insurance fund, dam ages recoverable under section 14b, accuonulations re­quired to be transferred under sub-section (2) of section 15 or under sub-section (5) of section 17 or any charges payable by him under any other provision of this a ct or of any provision of th e scheme or the insurance schem e; or(b) from  the em ployer in relation to an exem pted ^tabk shm ent in respect of any dam ages recoverable under section 14b or any charges payable by him  to the appropriate g overnm ent xmder any provision of this act or under any of th e conditions q>ecified xm3er section 17 or in respect of the contribution payable by him  tow ards the fam ily pension scheme under the said section 17, may, if the am ount is in arrear, be recovered by the c entral provident fund commissioner or such other officer as m ay be authorised- by him , by notification in the official g azette, in this behak in th e sam e m anner as an arrear of land revenuerecov­ery of moneys by employ­ers and contrac­tors8a (i) the am ount of contribution (that is to say the em ployer's contribution as w ell as the em ployee's contribution in pursuance of any scheme and the em ployer's contribution in pursuance of the insurance schem e), and any charges on the basis of such contribution for m eeting the cost of adm inistering the fund paid or payable by an em ployer in respect of an em ployee em ployed by or through a contractor m ay be recovered by such em ployer from  the contractor, either by deduction from any am ount payable to the contractor under any contract or as a debt payable by the contractor10 (1) h:  ♦ ♦ protectionagainstattachment(2) any am ount standing to the credit of a m em ber in the fund or of an exem pted employee in a provident fund at the tim e of his death and payable to his nom inee under the scheme or thie rules of th e provi­dent fund shall, subject to any deduction authorised by the said scheme or rules, vest in the nom inee and shall be free from  any debt or other liability incurred by the deceased or the nom inee before the death of the m em ber of the exem pted employee11 (1) ^ o rity  of payment if countributions overotherdebts(s) without prejudice to the provisions of sub-section (i), if any amount is due from an employer in respect of thef employee's contribu­ tion (deducted from the wages of the employee) for a period of more than six months, the amoimt so due shall be deemed to be the first charge on the assets of the establishment, and shall, notwithstanding anything contained in any other law for the time being in force, be paid in priority to au other debts13 (j)   ♦       xc    ♦5 of 1860(3) every inspector shciu be deemed to be a public servant w ithin the m eaning of section 21 of the indiein p enal code14, (i) w hoever, for the purpose of avoiding any paym ent to be m ade by him self under this act, the scheme, the fam ily pension scheme or the insurance schem e or of enabling any other person to avoid such paymient, know ingly m akes or causes to be m ade any false statem ent or fal^e representation shall be punishable w ith im prisonm ent for a term w hich m ay extend to six m onths, or w ith fine w hich m ay extend to one thousand rupees, or w ith both(ia) a n em ployer who contravenes, or m akes default in com plying w ith, the provisions of section 6 or clause (a) of sub-section (3) of sec­tion 17 in so far as it relates to the pajonent of in^>ection charges, or paragraph 38 of the scheme in so far as it relates to the paym ent of adm inistrative charges, shall be punishable w ith im prisonm ent for a term  which m ay extend to six months, but—(a) which shall not be less than three m onths in case of default in paym ent of the employees' contribution which has been deducted by the em ployer from  th e em ployees' wages;(b) w hich shall not be less than one m onth, in any other case;and shall also be liable to fine w hich m ay extend to tw o thousand rupees:provided that the court may, for any adequate and special reasons to be recorded in the judgment, impose a sentraice of imprisonment for a lesser term or of fine only in lieu of imprisonment(ib) a n em ployer who contravenes, or m akes default in complying w ith, the pro'^sions of section 6c or clause (a) of sub-section (3a) of section 17 in so far as it relates to the paym ent of inspection charges, shall be punishable w ith im prisonm ent for a term  w hich m ay extend to six m onths but which shall not be less than one m onth and shall also be liable to fine w hich m ay extend to two thousand rupees:provided th at the court may, for any adequate and special reasons to be recorded in the judgm ent, impose a sentence of im prisonm ent for a lesser term  or of finie only in lieu o f im prisoim ent(2) subject to the provisions of this act, the scheme, the fam ily pension scheme or the insurance scheme m ay provide th a t any peraon w ho contravenes, or m akes default in complying with, any of the provi­sions thereof shall be pim ishable w ith im prisonm ent for a term  which m ay extend to six m onths, or with fine which m ay extend to one thousand rupees, or w ith both{za) "^wioever contravenes or m akes default in  com plying w ith  any provision of this a ct or of an y  condition subject to w hich ex « n p - tlon w as granted under section 17 shall, if no other penalty is elsew here provided by or under this a ct for such contravention or non-complianoe, be punishable w ith im prisonm ent w hich m ay extend to th ree m onths, or w ith fine w hich m ay extend to one thousand rupees, or w ith bothbnhanced punish­ment in certain cases after previous convic­tion14aa w hopver, having been convicted by a court of an  offence punishable vinder this a ct, th e schem e or th e fam ily pension schem e or the insurance schem e, com m its the same ofieenoe shall be subject for every such subsequent offence to im prisonm ent for a term  w hich m ay extend to one year b u t w hich shall not be less th an  th ree m onths and shall also be liable to fine w hich m ay extend to four thousand rupees 4: « « power to recover damages14b w here an em ployer meikes default in the paym ent of any con­tribution to  th e fim d, th e fam ily pension f und or th e insurance f und or in th e transfer of accum ulations required to be transferred by him  under sub-section (2) of section 15 or sub-section (5) of section 17 or in the paym ent of any charges payable under any other provision of this a ct or of any schem e or insurance schem e or under any of th e condi­tions specified under section 17, the c entral p rovident fund commis­ sioner or such other officer as m ay be authorised by th e c entral g ov­ernm ent, by notification in th e official g azette, in this behalf m ay recover from  the em ployer such dam ages, not exceeding the am ount of arrears, as it m ay think fit to impose:prov|ided th a t before levying and recovering such damages, the em ployer shall be given a reasonable opportunity of being heard16 (1) this a ct shall not apply— « «  act not to apply to certain establish­ments(b) to any other establishm ent em ploying fifty or m ore persons or tw enty or m ore, b u t less than fifty, persons until the expiry of three years in  th e case of th e formier and five years in  th e case of the latter, from  th e date on w hich th e establishm ent is, or has been, set upexplanation—^for the rem oval of doubts, it is hereby declared th at an establishm ent shall not be deem ed to be new ly set up m erely by reason of a change in its location(2) if th e c entral govemmjent is of opinion th at having regard to the financial position of any class of establishm ents or other circum ­stances of th e case, it is necessary or expedient so to do, it m ay, by notification in the official gazette, and subject to  such conditions as m ay be specified in th e notification, exem pt th at d a ss of establishm ents from  the operation of this a ct for such period as m ay be specified in  the notificationpower to ocempt17 (i) the appropriate g overnm ent m ay, by notification in  the o fficii g azette, and subject to such conditions as m ay be specified in  flxe notification, exem pt from  th e operation of all or any of the provisions of any schem e—13 (1)     (la) the c entral g overnm ent may, by notification in the official gazette, and subject to such conditions as m ay be specified in the noti­fication, exem pt from the operation of all or any of the provisions of the fam ily pension scheme, any establishm ent if the employees of such establishm ent are in enjoym ent of benefits in the natuj^ of family pension, and the c entral g overnm ent is of opinion th a t such benefits are on the whole not less favourable to such employees than the benefits provided under this act or the fam ily pension scheme in relation to employees in any other establishm ent of a sim ilar character(2a) the c entral g overnm ent may, if requested so to do by the em ployer, by notification in the ofibfial g azette, and subject to such conditions as m ay be specified in th e notification, exem pt any establish m ent from  the operation of all or any of th e provisions of the insurance scheme, if it is satisfied th a t the employees of such establishm ent are, w ithout m aking any separate contribution or paym ent of premium , in enjoym ent of benefits in the n ature of life insurance, w hether linked to their deposits in provident fund or not, and such benefits are m ore favourable to such em ploye^ than th e benefits admissible under the insurance scheme(3a) w here, in respect of any person or class of persons employed in any establishm ent, an exem ption is granted under sub-section (2a) or sub-section (2b) from  the operation of all or any of the provisions of the insurance schem e (w hether such exem ption is granted to the establishm ent w herein such person or class of persons is employed or to the person or class of persons as such), th e em ployer in relation to such establishm ent—(b) shall not, at any tim e after th e exem ption w ithout the leave of the c entral governm ent, reduce the total quantum  of benefits in the n ature of life insurance to w hich any such person or class of persons was entitled im m ediately before th e date of the exem ption; and(c) shall, w here any such person leaves his emplo3rm ent and obtains re-em plo3rm ent in any other establishm ent to w h ld i this a ct applies, transfer w itiiin such tim e as m ay be specified in  this behalf by the c entral government, the am oim t of accumulations to the credit of th at person in the insurance fund of the establishm ent left by him  to the credit of th at person's accoimt in the insurance fund of the establishm ent in  which he is re-em ployed^ 01^  as th e case m ay be, in the deposit-linked insurance funht(4) any exem ption granted under this section m ay be canceljed by the authority which granted it, by order in w riting, if an em ployer fails to comply,— i(a) in the case of an exemption granted under sub-section (j), w ith any of the conditions imposed under th at sub-section or with any of the provisions of sub-section (3);(aa) in the case of an exem ption granted under sub-section (m ), w ith any of the conditions im posed under th at sub-section; and(5) w here any exem ption granted under sub-section (1), sub-section (la), sub-section (2), sub-section (2a) or sub-section (2b) is cancelled, the am ount of accum ulations to the credit of eveiy em ployee to whom  such exem ption applied, in the provident fund, the fam ily pension fund or the insurance fund of th e establishm ent in w hich h e is em ployed shsill be transferred w ithin such tim e and in such m anner as m ay be specified in the schem e or the fam ily pension scheme or the insurance schem e to th e credit of his account in the fundi or the fam ily pension f und or tl ^  insurance fund, as th e case m ay be(6) subject to the provisions of sub-section (la), th e em ployer of an exem pted establishm ent or of an exem pted em ployee of an establishm ent to w hich the provisions of th e fam ily pension schem e apply, shall, notw ithstanding any exem ption granted under sub-section (i) or sub­section (2 ), pay to the fam ily pension f und such portion of th e em ployer's contribution as w ell as the em ployee's contribution to its provident fund w ithin such tim e and in such m anner as m ay b e s t i f l e d in th e fam ily pension schmne - - -18 no suit or other legal proceeding shall lie against an inspector or any other person in respect of anything w hich is in good faith done or intended to be done under this act, the schem e or th e fam ily pension schem e or th e insurance schemeprotec­tion for acts done in good faith19a if any difficulty arises in giving effect to the provisions of this act, and in particular, if any doubt arises as to—flower to remote difflcni tics(i) w hether an establishm ent w hich is a factory, is engaged in any industry specified in schedule i; or ,(ii) w hether any particular establishm ent is an  establishm ent falling w ithin the c l^ s  of establishm ents to w hich this a ct applies by virtue of a notification im der clause (b) of sub-section (3) of section 1; or(iii) the nim iber of persons em ployed in an establishm ent; or(iv) the niim bef of years w hich have elapsed from  the date on w hich an establishm ent has been set up; or(v) w hether the total quantum  of benefits to w hich an employee is entitled h as'b een  reduced by the employer^the c entral g overnm ent m ay, by order, m ake such provision or give such direction, not inconsistent w ith th e provisions of this act, as appear to it to be necessary or expedient for the rem oval of the doubt or difficulty; and the order of th e c entral g overnm ent, in such cases, shall be final ; , l i (see section 6c)m attiers to be provided for in  th e e m plo y ees' deposir-lxuked" i n surance s c h e m e6 the scales of insurance am ount w hich shall not be less than th e average balance in the account of the em ployee concerned in the f und or any other provident fund during a period of three years im m ediately preceding his death or m ore than rupees ten  thousand7 the m inim um  average balance to be m aintained by an employee in the fund or any other provident fim d to m ake hinn eligible for th e  benefits under the scheme e x t r a c t  trom t h e  in d ia n  p e n a l code, 1860 (45 o f 1860)of trustcrimi- 405 w hoever, being in any m anner entrusted w ith property, or w ith nal any dominion over property, dishonestly m isappropriates or converts to his own use th at property, or dishonestly uses or disposes of th at property in  violation of any direction of law  prescribing the mode in w hich such tru st is to be discharged, or of any legal contract, express or im plied, w hich he has m ade touching the discharge of such trust, or w ilfully suffers any other person so to do, commits "crim inal breach of tru st" explanation l ^ a  person, being an employer, who deducts the emplo­yee's contribution from  the wages payable to the employee for credit to a provident fund or fam ily pension fund established by any law  for the tim e being in force, shau be deemed to have been entrusted w ith the am ount of the contribution so deducted by him  and if he makes default in the paym ent of such contribution to the said fund in violation of the said law, shall be deemed to have dishonestly used the amoimt of the said contribution in violation of a direction of law  as afo resaii a billfu rth e r to am end th e em ployees' provident phmds and m iscellaneous provisions act, 1952 and the indian penal code(shri jagdish tytler, m inister of state of the m inistry of lahmtr)