 corrigenda to the labour provident fund laws (amendl1ent) bill, 1976 (to be/as in t ro due ed in lok sablla)page 11, , line 18,-1 - after "ratio"insert rlof" 2 page 16, line 19\-fqj: "~ojillbcl'" ~ "number" 3 p"'-be 1{-'~ , 1ine 22,-for "37,000" ~ "37,800" page 16, line 26,-)j, ,  after "ratio" in sert "of" 5 page 1 9 , lin e 11,-fer "f<lling" ~ "following" 6 page 20, line 1,-read "in this act, unless the context otherwise requires'       - 7 page 21, line 34,-(i fo r "11" read -11 (1 )" 8 page 21 ,i in the marginal heading to ',11 sec11-pofter "contributions over" insert "other"  bhadra 2, 189 ( saka) bilj no 83 of, t87 the labour provident fund laws (amendment) blll,1976 it sillfurther to amend the coal mines provident fund, family pension and bonus schemes act, 1948, the employees' provident funds and family pension fund act, 1952, the wealth-tax act, 1957 and the income-tax act, 1961  be it enacted by parliament in the twenty-seventh year of the republic of india as follows:- chapter i preliminarys & (1) this a« maybe called the labour provident , fund laws (allmndlllent) act, 1976  - ! ; short title and coat medee - men' ~) 1he, pr~v~siol1s of secijans 30 aru:l 31 sh8!u come in,to ~,¥ce at one, and the remaining provisions of this act ~ be dee,me4 to have come into force on the 1st day of august, 1976  - ;1 cl;lapter ii  10 amennment 0)0' thf coal mtne~ provtd!nt fund family ~jon i ' -and bo\u!1i sch!mes act, 19482 l~ ~f l()j)j, title tq the coal mines providept fund, family ?~­amend· mento! 10d, tttle ai~n f4~d l;3011~s 5f;;~~ act, 1%1;1, (~erein~fter -x:~err¢ to ~ the c~ 46 of 11148 15 min'll; ~,ro"ident~dact) after the words "family ~~~ ~~'~, the words ",a deposit-linked insurance scheme" shall be inserted, __  amend-3 i'ol'-s\ll>-section (1) of section 1 of the coal mines provident fund· ment of act, the following sub-section shall be substituted, namely:-aection 1 "(1) this act may be called the coal mines provident fund and miscellaneous provisions act, 1948  4 in section 2 of the coal mines provident fund act,-s amendmentof section 2 (i) in clause (c), the words "or the contribution payable in respect of an employee to whom the insurance scheme applies" shall be inserted at the end: (ii) after clause (f), the following clauses shall be inserted, namely:-10 '(fa) "insurance fund" means the deposit-linked insurance fund established under sub-section (2) of section 3g; is (fb) "insurance scheme" means the coal mines depobitlinked insurance scheme framed under sub-section (1) of section 3g;'; (iii) clause (ff) shall be re·lettered as clause (fc) i in section 3a of the coal mines provident fund act,-amendment of section la, (a) in ,sub-section (3), after the word, figure and letter "section 3e", the words, figure and letter "and section 3g" shall be insel·ted; (b) in sub-section (4), for the words "and the coal mines family pension scheme", the words ", the coal mines family pension 20 scheme and the insurance scheme" shall be substituted amend_ ment of section 3c 6 in sub-section (3) of section 3c of the coal mines provident fund act, for the words "and the coal mines family peillsion scheme", the words ", the coal mines family pension scheme and the insurance 2, scheme" shall be substituted 1 after section 3f of the coal mines provident fund act, the following section shall be inserted, namely:-insertion of new aection ag '3g (1) the ceatrall governme~ may, by ligitiaeatioil in the oftlcial' gazette, frame a scheme to be called the nt mm 30 deposit-linked insurance scheme for the p1ll'pole of proviuu life insurllllce benefits to such edjptioyees as are covered by the coal  mines providedt fund scheme (2) there shall be established, as igon as may be after the framing of the insurance scheme, a deposit-linked laurence i'udd 3' into which shall be paid by the employer from time to tim ill 1'88-peet of every such employee, in relation to whom he is the employer, such amount, not beine more than one per cent of the aell'eeate of the basic waen, dearness allowance and retaadine allowance (if ady) for the time being payable in relation to such employee, as the 40 central government may, by notification in tbe 0ftle1a1 gazetfle, 'pecify:  explanation-for the purposes of this sub-section,-19 of 1912 (a) the expression "basic wagee" bas the meaning assiped to it in the employees' provident funds and miscellaneous provisioll8 act, 195!; (b) r'dearnels allowance" means all cash payments, by whatever name called, paid to an employee on account of a rise in the cost of living and shan be deemed to include also tbe cash value of any food concession allowed to tbe employee; 10 (e) "retaining allowance" means an allowance payable for the time being to aa employee of any coal mine during any period in' which the coal mine is not working, for retaining his services (3) the cen1ral government shall, after due appropriation made by parliament by law, contribute to the insurance fund in relation to each employee covered by the coal mines provident fund scheme, an amount representing one-half of the contribution which an employer is required, by sub-sedion (2), to make (4) (a) the employer shall pay into the insurance fund sucb further sums of money, not exceeding one-fourth of the contribution which he is requited to make under sub-section (2), as the centl'a1 government may, from time 10 time, determine, to meet au the expenses in connection with the administration of the insurance, scheme other than the expenses towards the cost of any benefits provided by or under that scheme 30 (b) the central government shall, after due appropriation made by parliament by law, pay into the insurance fund such further sums of money representing one-half of the sums payable by the employer under clause (a), to meet all the expenses in connection with the administration of the insurance scheme other than the expenses towards the cost of any benefits provided by or undel' that scheme (5) the insurance fund shall vest in the board and shall be administered by the board in such manner as may be specified in the insurance scheme 'i 35 (6) any scheme framed under the provisions of su~section (1) may provide for all or any of the matters specified in the third schedule' amend_ mentol lection 5 8 in su~ection (2) of section 5 of the coal mines provident fund act, for the words "third schedule" the words "fourth schedule" 40 shall be substituted amend_ ment of section 7, 9 in section 7 of the coal mines provident fund act after the words "amend or vary", the words "either prospectively or retrosppctively" shall be inserted amendmental section 7a 10 in section 7 a of the coal mines provident fund act, for the 45 words "two successive sessions, and if, before the expiry of the se~sion in which it is so laid or the sess-ion immediately following", the words "tw9 or jl1or~ s~cces~iv, s~sions and if, before th~ expi? of t~e session immediately fonowtngthe' ses!lio'n or the successive sessions aforesaid" , shall besubsmtuted, amendmentof section 8, 11 in sub-section (3) of section 8 of the' coal min4!!tl pfc!vident fund act, after the words "coal mines family pensio~ scheme", the words ''&it" hlsoin relation to any amount payableurl8ei' 'the 'insurance schenie" 5 sha~l be inserted 12 ;1n sul):section (1) of section ] 0 of 'the coal mili~s ptdvident fund act, ,afterthe wvrds "coal mines provident ,fund scheme", the words '!or the insurance scheme" shall be inserted amendment of ection 10 amendment of ection lob 13, in sub-section (1) of section toe of the coal nfin'es providellt fund 10 ·act, for the words and brackets "the amowlt of ~trlbution (that is to ny the emplo,er's contribution as well as the employee's (:oiltribution)", thewor6s ·and brackets "the amowlt of cqntribution, (that is to say the employer's 'contribution a! well as the employee'scontribuuoa in pursuance of the coal mines provident fund scheme and, the employer's is contribution in pursuance of the insurance scheme)" shall be substituted 14 after section llb of the coal mine!+s 'provident furid ' act, the following sections shall be inserted, namely:-wriod of dew ectiodi ~c and 11d power to toqrnpt, 'ltc (1) the central govemmentmay, if requeste<iso to do by the employer, by notification in the official gazette, and subject 20 to such conditions as may be specified in the notification, exempt any coal mine from the operation of all or any of the provisions of the insurance scheme, if it is satisfied that the employees of such coal mine are, without making any separate contribution or payment of premium, in enjoyment of benefits in i the n~ture of life 25 insurance, whether linked to their deposits ·in provident flmd or not, and such benefits are more favourable to such employ~  than the benefits admissible under the insurance sojaeme (2) without prejudice to the provisions of sub-section (1), the insurance scheme may provide for the exemption of any person or 30 class of persons employed in any coal mine and covered by that scheme 'from the operation of all or any of the provisions thereof, if the benefits in the nature of life insurance admissible to such person or, class of persons are more favourable than the benefits provided under the insurance scheme 35 (3) where, in respect of any person or class cd persons emplo1ed in any coal mine, an exemption'is granted under this section from the operation of all or any of the provisions of the insurance scheme (whether such exemption is granted to the coal mine wherein such person or class of persons is employed or to the person ~elass of 40 -'persons as such), the employer in relation to such coal mine-(a) shall, in relation to the benefits tn'the natureo! "life assurance, to which any such person or class of persons is entitled, or any insuran~e fwicl, riiain'tatn s'u~h aeeounts, submit such returns, make such investment, pl'o'ridefor ueh facilitiel for inspection and pay such inspection charges, 8& the central government may direct; (b) shall not, at any time after the exemption, without the leave of the central government, reduce the total quantum ofbeneftts in the nature of life insuranee to wbkth  any such person or classaf persons was entitled immediately before the date of the exemption: and (c) shall, where any such person leaves his employment '10 and obtains re-employment in any other coal 'mine, transfer within such time as may be specified in fbis behalf by the central government, the amount of accumulations to the credit of that person in the insurance fund ot 'the coal tttfne left by him to the credit of that person's account in the insurance fund is of the coal mine in which he is re-employed or as the case may be, in the deposit-linked insurance fund explanation-for the purposes of this sub-section "insurance fund" means any fund established by an employer under ahy scheme for providing benefits in the nature of life insurande to employees, whether linked to their deposits in provident fund or not, without payment by the employees of any separate contribution of premium in that behalf (4) any exemption granted under this sectionmay be cancelled by the authority which granted it, by order in writing, if8i1 employer 25 fails to comply-(a) in the case of an exemption granted tmder sub-section (1), with any of the conditions imposed under that sub-section or with any of the provisions of sub-section (3); (b) in the case of an exemption granted under sub-section (2), with any of the provisions of sub-section (3) 35 (5) where any exemption granted under sub-section (1) or sub-section (2) is cancelled, the amount of accumulations to the credit of every employee to whom such exemption applied ill ,the insurance fund of the coal mine in which he is employed shall be transferred within such time and in such manner as may be specified in the insurance scheme to the credit of his account in the insurance fund lld the provisions of this act shall have effect notwithstand-'fng anything inconsistent therewith contained in the "life insurance corporation act, 1956' act to have effect notwith_ nnding at'lythin, centained in act 31 ot 195' 15 the third schedule to the coal mines provident fund act shall be renumbered as the fourth schedule and before the fourth schedule ·as so renumbered, the following schedule shall be inserted, namely:- "the third schedule (see 8ection 3g) ma'l"l'ilrs to be provided !'or in thj: coal mini's depostt-lind:d insurance scheme1 the employees or 'class of employees who shall be covered by the insurance scheme 2 the manner in which the accounts of the insurance fund 10 shah be kept and the inyestment of moneys belonging to the insurance fund, subject to such pattern of investment as may be determined, by order, by the central government 3 the form in which an employee shall furnish particulars about himself and the members of his family whenever required is 4 the nomination of a person to receive the insurance amount due to the employee after his death and the cancellation or variation of such nomination 5 the registers and records to be maintained in respect of employees; the form or design of any identity card, token or disc 20 for the purpose of identifying any employee or his nominee or member of his family entitled to receive the insurance amount 6 the scales of insurance amount which shall not be less than the average balance in the account of the employee concerned in the fund during a period of three years immediately preceding hil 25 death or more than rupees ten thousand 7 the minimum average balance to be maintained by an employee in the fund to make him eligible for the benefits under the scheme 8 the manner in which the amount due to the nominee or the 30 member of the family of the employee under the scheme is to be paid including a provision that the amount shall not be paid otherwise than in the form of a deposit in a savings hank account, in the name of such nominee or member ot family in any corresponding new bank specified in the first schedule to the banking companies 35 ,(acquisition and transfer of undertakings) act, 1970 9 any other matter which is to be provided for in the insurance scheme or which may be necessary or proper for the purpose of implementing that scheme"  chapter iii amendment of the employees' provident funos and family pension fund act, 19521901 19112 amendmentof 10n title 18 in the long title to the employees' provident funds and family pension fund act, 1952 (hereinafter referred to as the employees' provident funds act), for the words "and family pension fund", the words 45 ",family pension fund and deposit·linked insurance fund" shall be sub  stituted 1'1 for 8ub-aection (1) of section 1 of the employees' provident fudda act, the following sub-section shall be substituted, namely':-amend-ment of lection'1   (1) this act may be called the employees' provident funds and miscellaneous provisions act, 1952" s 18 in section 2 of the employees' provident funds act,-amendment of lection 2 (a) in clause (c), the words "or the contribution payable in respect of an employee to whom the insurance scheme applies" shall be inserted at the end; (b) in clause (if), after the words "a scheme", the words "or 10 the insurance scheme, as the case may be," shall be inserted; (c) in clause <fff), after the words "any scheme", the words "or the insurance scheme, as the case may be" shall be inserted; (d) clause (ia) shall be re-iettered as clause (ie) and before clause (ic) as so re-iettered, the following clauses shall be inserted, is namely:-'(14) "insurance fund" means the deposit-linked insurance fund established under sub-section (2) of section 6c; (ib) "insurance scheme" means the employees' depositlinked insurance scheme framed under sub-section (1) of iec-:ao tion 6c;' 19 in section 5a of the employees' provident funds act,-amendmentof section sa (a) in sub-section (3), after the word, figure and letter "section 6a", the words, figure and letter "and section 6e" shall be inserted; (b) in sub-section (4), for the words "and the family pension scheme", the words '" the family pension scheme and the insurance scheme" shall be substituted 20 in sub-section (3) of section 5d, and section 5e, of the employees' provident funds act, for the words "and the family pension scheme", the words ", the family pension scheme and the insurance 30 scheme" shalf be substituted  amendmentof aections 5d and 5e d after section 6b of the employees' provident funds act, the following section shall be inserted, namely:-insertion otnew section 6c 3' employ_ ees' depositlinked insurance scheme '&c (1) the central government may, by notification in the oftlcial gazette, frame a scheme to be called the employees' depositlinked 100u1'ance scheme for the purpose of providide life insurance benebt to the employees of any establishment or class of establishments to which this act applies (2) there shall be established, as soon as may be after the framinl of the insurance scheme, a depositlinked insurance fund into which shall be paid by the employer from tim to time in respect of every such employee in relation to whom he is the employer, such amount, not being more than one per cent of the aillepte of the bsic wages, dearness allowance  d retaidin, allowance (if any) for the time being payable in relation to sqch employee as exp14nation-for the purposes of this sub-section, the expres liods "deamess allowadce" add "ret~in~ all~w8dce" have ~ s&o:'e jdebdidp as ill seetiod 6 s (3) the ceiltral go""'  tshall after due app~p«iatioa aw by parliamedt by law, contribute to the insurance fund in relation to ea::!l employee, of any establishment or class of establishments to witich this act applies, an amount representing 'one-half of the contribution which an employer is required, by sub-section (2), to 10 qlike (4) (c) the employer shall pay i114e the i_urance fun sut!h further sums of modey, not exceediag one-fourth of the contri~ution whi~ he is required to make under sub-section (2), as tbe' central government may, from time to time, determine to meet ail the 'ex- 15 peans ia connection with the admiristration ijf tile innrant'e sebeme other than the expenses towards <the colit of any beneftts provided by or under that scheme (b) the central government shad, after due appropntion made by parli  ent by law, pay into the ins~e fund such futher 20 s~ of money represeuti~ one-half of the sums payable by the e  ploy,r undu clause (a) to meet au the expenses in  connection with the administration of the insurance scheme other th~n the expenses towards the cost of any benefits provided by or under that ficheme 2s (5) ftel_urlulce fuddshab vest in the central qoard alpd be mnai-idel'ed  it in such liuulder as may be specifiet in ~ insurance scheme (6) the insurance scheme may provide for all or any ot ijlie matters specified in schedule iv 30 (7) the insurance scheme may provide that any of its provisions shall take effect either prospectively or retrospectively on such date as may be specified in this behalf in that scheme' amendment (iff section 'i 22 in sub-section (1) of section 7 of the employees' provident funds act  for 1he words "amend or vary the scheme or t4e ~amil,y pedslqs 35 scheme, as the case may be", the words "amend or vary, eitberprospectively or retrospectively, the scheme, the family pension scheme or the insurance scheme, as the case may be" shall be substituted zs 1119ub-section(1) of section 7a of the employees' provident funds act, afterthe ·words "family pension scheme", the words "or tile 40 insurance scheme" €halt he ineerted amendment of secti()n 7a  at in clause (til) of section 8 of the employees' provident funds act;-amendmentol  section 8 (a) for the word "scheme", wherever it occurs, the words "scheme or the insurance scheme" shall be substituted; 4s (b) for the words "the fund", the words "'the fund or, as tile case may be, the {·nsutance fund"shall be subatituted  , 15 in section sa of the employees' provident funds act,-adiend; mento! section sa ( , (a) in sub-section (1), for the words and brackets "the amount of contribution (that is to say the employer's contribution as well as the employee's contribution)", ~he words and brackets "the limount of contribution (that is to say the empioyer's contribution as well as the employee's contribution in pursuance of any': scheme ind the emplo),er's contribution in pursuance of the insurance scheme)" shim be substituted; 1'1 (b) in sub-section (2}1, after the words "employee's coiitribuiion';, u the words "under any scheme" shah he inserted | mnerid    ||-----------|| mentof    || section   || 10       |!i in sub-section (3) of section 10 of tile employees; provident funds act, after the words "family pension scheme", the words "and also ih i'elation to any amount payable under the insurance scheme" shaii be ihsetteci ' • ts 21 in sub·section (1) of section 11 of the employees' provident funds act,~ amendmentol section 11 (a) in clause (a),-20 (i) for the word "scheme", in both the places where it occurs, the words "scheme or the insurance scheme" shall be substituted; (ii) after the words "the fund", the words "or, as the case may be, the insurance fund" shall be inserted; (b) in clause (b), for the words "the provident ~und", in both the places where they occur, the words "the provident fund or any insurance fund" shall be substituted; (c) the following explanation shall be inserted at the end, namely:-'explanation-in this sub-section and in section 17, "insurance fund" means any fund est&blf$hcd by an employer under any scheme for providing benefits in the nature of life insurance to employees, whether linkecil to their deposits in provident fund or not, without payment by the employees of any separate contribution or premium in that behalf' 21 in section 12 of the employees' provident funds aqt,-35 (a) for the word "scheme", wherever it occurs, thlel wo!l'ds "scheme or the insurance scheme" shall be subsmtuted; amend_ mentol iection 12 (hi) for the words "the fund", the words "the fund or the insurance fund" shall be substituted; (c) for the words "or provident fund", the words ", provident 40 fund or life insurance" shall be substituted, amendmentol section 13 45 29 in section 13 of the employees' provident funds act,-(a) in sub-section (1), for the words "or the family pension scheme", the words ", the family pension scheme or the insurance scheme" shall be substituted; (b) in sub-section (2), for the word "scheme", wherever it occurs, the words "scheme or the insurance scheme" shall be substituted 30 in s~ctioh 14 of ,the employees' provident funds act,-, amendmento! sectioji 14, (a) for the words "or the family pension scheme", wherever they occur, the words " the family pension scheme or the insurance scheme" shall be snbstituted; (b) after sub-section (la), the following sub-section shall be s inserted, namely:-"(1s) an employer who contravenes, or makes default in eomplying with, the provisions of section sc, or clause (a) of sub-section (3a) of section 17 in so far as ~t relates to the pay ment of inspection charges, shall be punishable with imprison- 10 ment for a term which may extend to six months but which shall not be less than one month and shall also be liable to fine which may extend to two thousand rupau: provided that the court may, for any adequate and special reasons to be recorded in the judgment impose 4, sentence of im- is prisonrnent for a lesser term or of fine only in lieu of imprisonmentfi  3l in section 14a, section 14m, section hac and section 17b of the employees' provit1ent funds act, for the words "the family pension scheme", wherever they occur the words "the family pension scheme or 20 the insurance scheme" shall be· substituted, amend mental ectlona 14a 14m, 14ac add 17b, 32 in section 14b of the employees' provident funds act,-amend mentol section 14b, (a) for the words "or the family pension fund", the words ", the family pension fund or the insurance fund" shall be substituted; 25 (b) for the words "any scheme", the words "any scheme or insurance scheme" shall be substituted 33, in ~ub-section (1) qf section 14c of the employees' provident funds act, for the words "or the family pension fund", the words ", the, family pension fund or the insurance fund" shall be substituted 30 amendmentol section 14c  3ft in section 17 of the employees' provident funds act,-(a) after sul>section (2) th~ following sub-sections shall be inserted, namely:-amendmentol section 17,  ',' "(2a) the central government may, if requested so to do by the employer, by notification in the official gazette, and sub- 3s ject to sucb conditions as may be specified in the notification, exempt any establishment from the operation of allor, any of the provisions of the insurance s('heme, if ~t is satisfied that the employees of such establishment are, without making any separate contribution or payment of premium, in enjoyment of 40 benefits in the nature of life insurance, whether linked to· their de~ts in provident fund or not, and such benefits are more favourable to such employees than the benefits admissible under the insurance scheme, (2b) without prejudice to the provisions of sub-section (2a), 4s the  insurance scheme may provide for the exemption of any person or class of persons employed in any establishment and covered by that scheme from the operation of all or any of the provisions thereof, if the benefits in the nature of life insurance admissible to such person or class of persons are more favourable than the benefits provided under the insurance scheme"; (b) after sub-section (3), the following sub-section shall be in· serted, namely:-10 u(3a) where, in respect of any person or class of persons employed in any establishment, an exemption is granted under sub-section (2a) or sub-section (2b) from the operation of all or any of the provisions of the insurance scheme (whether such exemption is granted to the establishment wherein such person or class of persons is employed or to the person or class of persons as such), the employer in relation to such establishment-is (a) shall, in relation to the benefits in the nature of life insurance to which any such person or class of pen:ons is entitled, or any insurance fund, maintain: such accounts, submit such returns, make such investments, provide for such facilities for inspection and pay such inspection charges, as the central government may direct; 20 (b) shall not, at any time after the exemption without the leave of the central government, reduce the total quantum of benefits in the nature of life insurance to which any such person or class of persons was entitled immediately before the date of the exemption; and (c) shall, where any such person leaves his employment and obtains re-employment in any other estahlishment to which this act applies, transfer within such time as may be specified in this behalf by the central government the amount of accumulations to the credit of that person in the insurance fund of the establishment left by him to the credit of that person's account in the insurance !fund of the establishment in which he is re-employed or, 86 the case may be, in the deposit-linked insurance fund"; (c) in sub-section (4), after clause (b), the following clauses shall be inserted, namely:-3s "(c) in the case of an exemption granted under sub-section (2a), with any of the conditions imposed under that sub-section or with any of the provisions of sub-section (3a); (d) in the case of an exemption granted under sumection (2b) , with any of the provisions of sub-section (3a) ";  40 (d) in sub-section (5) ,-(i) for the words brackets and figure "or sub-section (2) ", the words, brackets, figures and letters ", sub-section (2), subsection (2a) or sub-section (2b) i, shall be substituted; (ii) for the words "or the family pension fund", the  words ", the family pension fund or the insurance fund" shall be substituted; (iii) after the wcrc1s "family pension scheme", the words "or the insurance scheme" shall be inserted; (iv) after the words "family pension fund", the words "or the insurance fund" shall be inserted 36 after section 17a of the employees' provident funds act, the !following section shall be inserted, namely:-insertion of new section 17aa "17aa the provisions of this act shall have effect notwithstand- s ing anything inconsistent therewith contained in the life insurance corporation act, 1956", act to have effect notwith_ standing anything contained in act 31 of 1956 38 in section 18 of the employees' provident funds act, the words "or the insurance scheme" shall be inserted at the end amend ment of section 18 amend mentol section 19 37 in section 19 of the employees' provident funds act, in the open-10 ing paragraph, for the words "or the family pension scheme", the words ", the family pension scheme or the insurance scheme" shall be substituted 38 after schedule iii to the employees' provident funds act, the following schedule shall be inserted, namely: -is  "schedule ivinsertion of new schedule iv,  (see section 6c) matters to be provided for in the employees' deposit-linked insurance scheme1 the employees or class of employees who shall be covered by the 20 insurance scheme 2 the manner in which the aceounts of the' insurance fund shall be kept and the investment of moneys belonging to the insurance fund subject to such pattern of investment as may be determined, by order, by the central government 2s 3 the !form in which an employee shall furnish particulars about himself and the members of his family whenever required 4 the nomination of a pers:>n to receive the insurance amount due to the employee after his death and the cancellation or variation of such nomination 30 5 the registers and records to be maintained in respect of employees; the form or design of any identity card, token or disc for the purpose of identifying any employee or his nominee or member of his family entitled to receive the insurance amount 6 the scales of insurance amount which shall not be less than the 35 average balance in the account of the employee concerned in the fund or any other provident fund during a period of three years immediately preceding his death or more than rupees ten thousand 7 the minimum average balance to be maintained -by an employee in the fund or any other provident fund to make him eligible for the 40 'benefits under the scheme 8 the manner in which the amount due to the nominee or the member of the family of the employee under the scheme is to be paid including a provision that the amount shall not be padd otherwise than in the form of a deposit in a savings bank account, in the name of such 5 nominee or member of family, in any corresponding new bank specified in the first schedule to the banking companies (acquisition and 5 ot 1970 transfer of undertakings) act, 1970 9 any other matter which is to be provided for in the employees' deposit-linked insurance scheme or which may be necessary or proper 10 for the purpose of implementing that scheme" chapter iv amendment of the wealth-tax act, 1957 and the income-tax act, 1961 39 in the wealth-tax act, 1957, in sub-section (1) of section 5, after amend-is clause (xviib), the following clause shall be inserted; namely:-~;t of co (xviiba) any property held-27 of 1957 46 of 1948 20 (a) by the board of trustees constituted under the coal mines provident fund and miscellaneous provisions act, 1948, on behalf of the deposit-linked insurance fund established under section 3g of that act; or 19 of 1952 (b) by the board of trustees constituted under the employees' provident funds and miscellaneous provisions act, 1952, on behalf of the deposit-linked insurance fund ,established under section 6c of that act;" 40 in the income-tax act, 1961,-25 (a) in section 10, in clause (25), after sub-clause (iv), the following sub-clause shall be inserted, namely:-co (v) any income received-amend_ ment of act 43 of 1961 (a) by the board of trustees constituted under the coal 30 mines provident fund and miscellaneous provisions act, 46 of 1948 1948, on behalf of the deposit-linked insurance fund established under section 3g of that act; or (b) by the board of trustees constituted under the employees' provident funds and miscellaneous provisions act, 19 of 1952 35 1952, on behalf of thp deposit-linked insurance fund established under section 6c of that act;"; (b) in section 17, in clause (2), in sub-clause (v), after the words "superannuation fund", the words, figures and letters "or a deposit-hnked insurance fund establish en under section 3g of the coal mines 46 of1948 40 provident fund and miscellaneous provisions act, 1948, or, as the case may be, section 6c of the employees' provident funds and 19 of 1952 miscellaneous provisions act, 1952" shall be inserted 41 (1) the labour provident fund laws (amendment) ordinance, 9 of 1976 1976, is hereby repealed repeal and saving, 4s (2) notwithstanding such repeal, anything done or any action taken under the coal mines provident fund act, the employees' provident funds act, the wealth-tax act, 1957 and the income-tax act, 1961, as amended by the ordinance so repealed (including any scheme framed or notification issued), shall be deemed to have been done or taken so under the corresponding provisions of the respective act aforesaid as amended by this act  statement of objects and reasonsthe labour provident fund laws (amendment) ordinance, 1976, was promulgated by the president to introduce a new social security scheme known as the deposit-linked insurance scheme to provide insurance cover to the members of the coal mines provident fund and the employees' provident fund, without payment of any premiwn by such members 2 the insurance cover provided by the scheme is linked to the amount lying in deposit in the provident fund to the credit of the employee concerned the salient feature of the deposit-linked insurance scheme is that in the event of the death of an employee, his dependants would be entitled to receive an additional payment equivalent to three years' avera:ge balance at the credit of the deceased employee in the provident fund account (provided that such balance is not less than one thousand rupees), subject to a maximum of rupees ten thousand for getting this facility, the employee will not be required to make any contribution to the insurance fund contribution to that fund will be made by the employers and the central government in the ratio 2: 1 a similar scheme is already in operation in respect o! centrol government employees trom the 8th january, 1975 i 3 the coal mines deposit-linked insurance scheme will be administered by the board of trustees constituted under the coal mines provident fund, family pension and bonus schemes mt, 1948 and the employees' deposit-linked insurance scheme will be administered by the-central board of trustees constituted under the employees' provident funds and family pension fund act, 1952 the cost of administration of the deposit-linked insurance scheme in both the cases will be borne by the employers and the central government in the ratio of 2 : 1 4 provision has also been lthlde for granting exemption from the provisions of the two deposit-linked insurance schemes in the case of such of the employees of the coal mine or, as the case may be, the estab-lishment as are in enjoyment of more favourable benefits in the nature of life insurance 5 consequential amendments are also proposed to be made in the wealth~tax act, 1957, and the income-tax act, 1961, so that the board of trustees are not assessed to tax in respect of any property held, or income received, on behalf of the deposit-linked insurance fund, and to prevent employees being assessed under the income-tax act, 1961, in respect of the contributions made into the deposit-linked insurance fund in relation to such employees 6 the bill 'seeks to replace the ordinance with the modification that the deposit-linked insurance scheme would also apply to the employees of establishments which were exempted from the operation of the employees' provident funds scheme new delhi; k v raghunatha reddy the 13th august, 1976 [copy of letter no s 35012(2) /76-pf ii, dated the 17th august, 19'16 from shni k v raghunatha reddy, minister of labou~ to the secretary-general, lok sabha_] (' the president of india having been informed of the subject matter of the above mentioned bill has, in pursuance of clause (1) of article 117 read with clause (1) of article 274 and also clause (3) of article 117 of the constitution recommended the introduction and consideration of the said bill by lok sabha clause 7 of the bill seeks to insert section 3g in the coal mines pro': vident fund, family pension and bonus schemes act, 1948 and clause 21 seeks to insert section 6c in the employees' provident funds and family pension fund act, 1952 the new section 3g envisages the framing of the coal mines deposit-linked insurance scheme for employees covered by the coal mines provident fund scheme and the new section 6c envisages the framing of the employees' deposit-linked insurance scheme for employees of establishments to which the employees' provident funds and family pension fund act, 1952, applies the contti~ butions to both these deposit-linked insurance funds are to be made by the employers and the central government in the ratio of 2: 1, the cost df administration of the two deposit-linked insurance schemes will also be paid by the employers and the central government in the same ratio i 2 the coal mines provident fund, family pension and bonus schemes act, 1948, is applicable to about 6 lakhs of employees in coal mines the employees' provident funds and family pension fund act, 1952, is at present applicable to about 78 lakhs employees thus, the total member of employees, entitled to deposit-linked insuraq,ce benefits, would be about 84 lakhs it is estimated that the mortality would occur at the rate of 45 per thousand of the population and as such the mortality figure would be, approximately, 37,000 if the average balance of contribution of a worker is taken to be rs 5,000/-, the total expenditure which is likely to be involved under the two schemes would be of the order of rs 1890 crores per annum which would be shared by the employers and the central government in the ratio 2:1 as under:-(1) employers' contribution out of the proposed payment of rs 1890 crores 1890xf=rs 1260 crores (2) central government's contributionl890x l=rs 630 crores 3 the cost off administration of the ~o deposit-linked insurance funds which is estimated to be about rs 15 lakhs, which is also to be shared by the employers and the central government in the ratio of 2:1 the central government would thus be required to incur an expenditure of the order of rs 5 lakhs per annum 4 no other recurring or non-recurring expenditure would be involved from the consolidated fund of india if the bill is enacted and brought into operation clause 7 of the bill seeks to insert section 3g in the coal mines provident fund, family pension and bonus schemes act, 1948 to empower the central government to frame the coal mines deposit··linked insurance scheme for the purpose of providing life insurance benefits to the employees covered by the coal mines provident }4~und scheme the various matters which are to be provided in the coal mines depositlinked insurance scheme are enumerated in the 'rhird schedule proposed to be inserted in the act by clause 15 of the bill 2 clause 14 of the bill seeks to insert section hc in the act aforesaid to empower the central government to exempt any coal mine from all or any of the provisions of the coal mines deposit-linked insurance scheme in the circumstances specified in that section it also seeks to provide that the coal mines deposit-'linked insutance scheme may make provision for exemption of any person or class of persons employed in any coal mine to which that scheme applies from the operation of all or any of the provisions thereof on similar grounds 3 clauses 21, 34 and 38 of the bill seek to make similar provisions in the employees' provident fund's and family pension fund act, 1952 4 the delegation of legislative powers by the provisions of the bill relates to matters of detail and it is hardly practicable to provide for them in the bill itself the delegation of legislative power is, therefore,  of a normal character  extracts from the coal mines provident fund, family pusiox and bonus schemes act, 1948 (46 of 1948)an act to make provision for the framing of a provident fund scheme, a family pension scheme and a bonus scheme for persons employe in coal mines silort title and extent 1 0) this act may be called the coal mines provident fund, family pension and bonus schemes act, 1948 - - '" - '" - 2 in this act, unless there is anything repugnant in the subject or context,-in~erpre­tation '" '" '" '" '" - (c) "contribution" means the contribution payable in respect of a member qnder the coal mines provident fund scheme framed under this act; '" '" '" - - - (ff) "managing agent" has the meaning assigned to it in th4t  companies act, 1956; and , of , • '" '" '" '" '" - 3a (1) '" - -  - '" constitution of board of trustees (3) the board shall, subject to the provisions of sectiqn 3e, administer the fund vested in it in such manner as may be specified in the scheme aforesaid (4) the board shall perform such other functions as it may be required to perform by or under any provisions of the coal mines provident fund scheme and the coal mines family pension scheme '" '" '" '" '" - appointment of ofbcen 3c (1)   '" - '" '" (3) subject to the provisions of sub-sections (1) ana (2), the board may appoint such other officers and employees as it may consider necessary for the efficient administration of the coal mines provident fund' scheme and the coal mines family pension scheme   -  '" - '" '" '" i (1) - - - - - - - coal mine • " bonu scheme  (2) a scheme framed under the provisions of sub-section (1) may provide for all or any of the matters specified in the th'rd schedule - - - - - - 7 the central government may, by notification in the official gazette, add to, amend or vary a scheme framed under this act modification i()f a scheme schemes to be laid before parliament 'la every scheme made under this act shall be laid as soon as may be after it is made, before each house of parliament while it is session tor a total period of thirty days which may be comprised in one session or in two successive sessions, and if before the expiry of the session in which it is so laid or the session immediately falling, both houses agree in making any modification in the scheme or both houses agree that the scheme should not be made, the scheme shall thereafter have effect only in such modified form or be of no effect as the case may be; so, however, that any such modification or annulment shall be without prejudi'!e to the val:dity of anything previously done under that scheme - - - - - - 8 (1) - - - - - protection against auachment (3) the provisions of sub-section (1) and sub-section (2) shall, so far as may be, apply in relation to the family pension or any other amount payable under the coal mines family l;'ension scheme as they apply in relation to any amount payable out of the fund, - - - - - - 10 (1) the central government may by notification in the official inspectorl gazette, appoint such persons as it thinks fit to be inspectors {':>r the purposes of the coal mines provident fund sche~e or the coal mines bonus scheme and may define their jurisdiction - - - - - - recovery ofmoni by employer and contractora 10e (1) the amount of contribution (thnt is to say the employer's oontribution as well as the employee's contribution) alld any cha::ges referred to in section loa paid or payable by an employer in respect of an employee employed by or through a contractor and any bonus paid or payable under any coal mines bonus scheme in respect of any such employee may be recovered by such empk>yer from the contractor either by deduction from any amount payable to the contractor under any contract or as a debt payable by the contractor - -  - -  extracts from the employees',paovidi!nt funds and family pensionfund act, 1952 (19 of 1952) a n act to provide fo'r tm institution of provident funds and family pension fund for employees in factories and other establishments be it enacted by parliament as follows:-1 (1) this act may be called the employees' provident funds and family pension fund act, 1952 - - - - - short title, extent and appllea tion 2 - - - - - defidi-tina (c) "contribution" means a contribution payable \n respect, of a member under a scheme; - - - - - - (ff) "exempted employee" means an employee to whom a scheme would, but for the exemption granted under section 17, have applied; (fff) "exempted establishment" means an establishment in respect of which an exemption has been granted under section 17 from the operation of all or any of the provisions of any scheme, whether such exemption has been granted to the establishment as such or to any person or class of persons employed therein; - - - - -  (ia) "manufacture" or "manufacturing process" means any process for making, altering, repairing, ornamenting, finishing, packing, oiling, washing, cleaning, breaking up, demolishing or otherwise treating or adapting any article or substance with a view to its use, sale, transport, delivery or disposal; - - - - - - sa (1) - - - - - central board (3) the central board shall, subject to the provisions of seetion &a, administer the fund vested in it in such manner as nlay be specified in the scheme (4) the central board shall perform such other functions as it may be requiren to perform by or under any provisions of the scheme and the family pension scheme - - - - - - sd (1) - - - - - appointment of officers (3) the central board may appoint such other officers and employees as it may consider necessary for the efflcient administration of tl\e scheme and the family pension scheme - - - - - - delegation se the central board may, with the prior approval of the central government and a state board may, with the prior approval of the state government concerned, cielegate to its chairman or to any of its officers, subject to such conditions and limitations, if any, as it may specify, such of its powers and functions under this act as it may deem necessary for the efflcient administration of the scheme and the family pension scheme - - - - - - modification of 5dleme "i (1) the central government may, by notification in the omeial gazette, add to, amend or vary the scheme or the family pension scheme, as the case may be  - - - - determination of moneys due from employers 'la (1) the central provident fund commissioner, any deputy provident fund commissioner or any regional provident fund commissioner may, by order, determine the amount due from any employer under any provision of this act, the scheme or the family pension scheme, as the case may be, and for this purpose may conduct such inquiry as he may deem necessary  - - - - - &; any· amount due--mode of' recovery of moneys due from employers (a) from the employer in relation to an establishment to which any scheme applies in respect of any contribution payable to the fund, damages recoverable under section 14b, accumulations require!(\ to be transferred under sub-section (2) of section 15 or unc\er subsection (5) of section 17 or any charges payable by him under any other provision of this act or of any provision of the scheme; or -  - -  - sa (1) the amount of contribution (that is to say the employer's contribution as well as the employee's contribution), and any charges recovery 01 money byemployer and contractors oil the bais of such contribution for meeting the cost of administering ·the fudd paid or payable by an employer in respect of an employee employed by or through a contractor mlly be recovered by such employer from the oontractor, either by deduction from any amount payable to the -contrtict&r unltef any contract or as a debt payable by the contractor (2) a contractor from whom the amounts mentioned in sub-section (1) may be recovered in respect of any employee employed by or through him, may recover from such employee the employee's contribution by deduction from the basic wages, dearness allowance and retaining allowance (if any) payable to such employee |          |     ||-----------|------|| -         |      ||          |      || -         |      ||          |      || 10       | (1)  ||          |      || -         |      ||          |      ||          |      || -         |      || -         |      || protee-   |      || tion      |      || against   |      || atta'cll- |      || ment     |      |(1) the provisions of sub-section (1) and sub-section (2) shall, so :far  may be, apply in relation to the famlly pension or any other amount pa)'l&ble under the family pension scheme as they apply in !'elation to ,any amount payable out of the fund 1'1 where any employer is adjuc\icated i~solvent or, being a company, an order for winding up is made, the amount due-priority of payment of contributions over debts (g) from the employer in relation to an establishment to whieh any scheme applies in respect of any coiltrfbtition payable ~ the fund, damages recoverable under section 14b, accumulations required to be transferred under sub-section (2) of section 15 or any eharges payable by him under any other provisron of this ad or of any provision of the scheme, or (b) from the employer in relation to an exempted establishment in reapect of any contribution to· the provident fulld (in so far as it relates to exempted employees), under the rules of the provident fund, ally contribution payable by him towareis the family pension fund umler 8ubo-eection (6) of section 17, damagea recoverable under section 14b or any charges payable by him to the appl'opria~ geyernmeat under any provision of this act or under any of the conditions specifted under section 17 - - - - - - ilmployer dot to reduce vi  ft 12 no employer in relation to an establishment to which any scheme applies shall, by reason only of his liability for the payment of any coiltribution to the fund or any charges under this act or the scheme, reduce, whether curectly or indirectly, the wages of any employee to wbom the scheme applies or the total quantum of benefits in the nature of old age pension, gratuity or provident fund to which the employee is entitled under the terms of his employment, express or implied 1118pectora 13 (1) the appropriate government may, by notification in the official gazette, appoint such persons as it thinks fit to be inspectors for the purposes of this act, the scheme or the family pension scheme, and may define their jurisdiction (2) any qnspector appointed under sub-section (1) may, for the purpose of inquiring into the correctnes<; of any information furnished in connection with this act or with any scheme or for the purpose of ascertaining whether any of the provisions of this act or of any scheme have been complied with in respect of an establishment to which any scheme applies or for the purpose of ascertaining whether the provisions of this ad or any scheme are applicable to any establishment to which the scheme has not been applied or for the purpose of determining whether the conditions subject to which exemption was granted under section 17 are being complied with by the employer in relation to an exempted establishment-- - - - - penaltl 14 (1) whoever, for the purpose of avoiding any payment to be made by himself under this act, the scheme or the family pen~ion scheme or of enabling any other person to avoid such payment, knowingly makes or causes to be made any false statement or false representation shall be punishable with imprisonment for a term which may extend to six months or with fine which may extend to one thousand rupees, or with both (1a) an employer who contravenes, or makes default in complying with, the provisions of section 6 or clause (a) of sub-section (3) of section 17 in so far as it relates to the payment of inspection charges, or paragraph 38 of the scheme in so far as it relates to the payment of administrative charges, shall be punishable with imprisonment for a term which may extend to six months, but-(a) which shall not be less than three months in case of default in payment of the employees' contribution which has been deducted by the employer from the employees' wages; (b) which shall not be less than one month, in any other case; and shall also be liable to fine which mar extend to two thousand rupees: provided that the court may, for any adequate and special reasons to be recorded in the judgment, impose a sentence of imprisonment for a lell8er term or of ftne i'n lieu of imprisonment t2) subject to the provisions of this act the scheme or th~ ~ami1y pension scheme may provicle that any person who contravenes, or makes default in complying with, any of the provisions thereof shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to one thousand rupees, or with both (2a) whoever contravenes or makes default in complying with any provision of this act or of any condition subject to which exemption was granted uncler section 17 shall, if no other penalty is elsewhere provided by or under this act for such contravention or non-compliance, be j?unishable with imprisonment which may extend to three months, or with fine which may extend to one thousand rupees, or with both (3) no court shall take cognizance of any offence punishable under this act, the scheme or the family pension scheme except on a report in writing of the facts constituting such offence made with the previous sanction of such authority as may be specified in this behalf by the appropriate government by an inspector appointed under section 13  - - - - ' 14aa whoever, having been convicted by a court of an offence punishable under this act, the scheme or the family pension scheme, commits the same offence shall be subject for every such subsequent offence to imprisonment for a term which may extend to one year but which shall not be less than three months and shall also be liable to fine which may extend to four thousand rupees - - - - - enhanced punishment in certain caaee after previoui conviction cognizance and trial ot oi!encel 14ac (1) no court shall take cognizance of any offence punishable under this act, the scheme or the family pension scheme except on a report in writing of the facts constituting such offence macle with the previous sanction of the central provident fund commissioner or such other officer as may be authorised by the central government, by notification in the official gazette, in this behalf, by an inspector appointed under section 13 (2) no court inferior to that of a presidency magistrate or a magis-trate of the first class shall try any offence under this act or the scheme or the family pension scheme power to recover dam,ei 1m where an employer makes default in the payment of any contribution to the fund or the family pension fund or in the trlulsfer of accumulations required to be transferred by him under sub-section (2) of section 15 or sub-section (5) of section 17 or in the payment of any charges payable under any other provision of this act or of any scheme or under any of the conclitions specified under section 17, the central provicient fund commissioner or such other officer as may be authorise(} oy the central government, by notification in the official gazette, in this behalf may recover from the employer such damages, not exceeding the amount of arrears, as it may think fit to impose power of court to make order • '-  uc (1) where an employer is convicted of an offence of making default in the payment of any contribution to the fund or the family pension fund or in the transfer of accumulations required to be transferred by him under sub-section (2) of section 15 or sub-section (5) of aection 17, the court may, in addition to awarding any punishment, br ordcll' in writing require him within a period specified in the order (wbicli the court may, if it thinks fit and on application in that behalf, from time' to time, extend), to pay the amount of contribution or tra!lsfer the accumulations, as the case may be, in respect of which the offenee was committed - - - - - i\)wer to exempt liability in catje of tran8-ter ot (·stablishment 11 (1) ~ - - - (5) where any exemption granted under sub-section (1), subsection (la) or sub-section (2) is cancelled, the amount of accumulations to the credit of every employee to whom such exemption applied, in the provident fund or the family pension fund of the establishment in which he is employed shall be transferred within such time and in such manner as may be specified in the scheme or the family pension scheme to the credit of his account in the funn or the family pension fund, as the case may be - - - - - 17b where an employer, relation to an establishment, transfers that establishment in whole or in part, by sale, gift, lease or licence 01' in any other manner whatsoever, the employer and the person to whom the establishment is so transferred shall jointly and severally be liable to pay the contribution and other sums due from the employer under any provision of this act or the scheme or the family pension scheme,  the case may be, in respect of the perion up to the date of sueh traaafer: provided that the liability of the transferee shall be limited to the value of the assets obtained by him by such transfer 18 no suit or other legal proceedings shall lie agatlult an inspector or any other person in respect of anything which is in goon faith done ortn-protectiod for actl done ib load faith ~nded to be done under this act, the scheme or thi! family penaiaa scheme dele,ation of pow  19 the appropriate govermnent may direlct that any pow«  attjo rity or jurisdiction exercisable by it under this act, the scheme or the family pension scfteme shall, in relation to such matters and subject to such conditions, if any, as may be specified in the direction, be exercisabl also-- - - - 17 "salary" ''perquisite" ad "proftt in lieu of salary" defined extract from tim incomb-tax act, 1961 (43 or 1961) - - - - - - - - - - - - (2) "perquisite" includes--  - - - (v) any sum payable by the employer, whether directly or through a fund, other than a recognised provident fund or an approved superannuation fund, to effect an assurance on the life of the assessee or to effect a contract for an annuity; - - - - - - besides drafting and consequential amendments, the following modifications have been made in the bill, namely:-(0 in the new section 6e sought to be inserted itt the employees' provident funds and family pension fund act, 1952, by clause 21 of the bill,--(a) in sub-section (1), for the words "bene8ts to such employees as are covered by any scheme", the words "benefits to the employees of any establishment or class of establishments to which this act applies" have been substituted; (b) in sub-section (3), for the words "employee covered by the scheme", the words "employee, of any establishment or class of establishments to which this act applies," have been substituted (ii) clause 31 has been inserted to make sections 14aa, 14ac and 17b also applicable to the insurance scheme (iii) a new clause 30 has been inserted to amend section 14 of the employees' provident funds and family pension fund act, 1952, to provide for a minimum sentence of imprisonment to employers who contravene the provisions of section 6c or the provisions of clause (a) of sub-section (3a) of section 17 in so far as it relates :to inspection charges (iv) new clauses 32 and 33 in the bill seek to amend sections hb and 14c(1) of the employees' provident funds and family pension fund act, 1952 to make them applicable to insurance fund and insurance scheme also  a billfurpler to amend the coal mines provident fund, family pension and  bonus schemes act, 1948, the' employees' provident funds and famuy pension fund act, 1952, the wealth-tax act, 1957 and the income-tax 'act, 1961 (shri k, v raghunatha reddy, miwister of labour) 