Report No. 137

4.3. Payment not to be withheld on the ground of pendency of disciplinary proceedings.-

Pendency of disciplinary proceedings is one of the causes for the delay in the settlement of provident fund claims. The employers normally stop processing the claims till the disciplinary proceedings are concluded. This course is inconsistent with the provisions of the Act and the Scheme framed thereunder. Even if, as a result of the enquiry, the employee is found guilty of misconduct and some amount is found recoverable fromshim, such amount cannot be deducted from his provident fund accumulations in view of the specific provisions contained in section 10 of the Act.

Though the recommendation made by the Commission in para 4.1.5 above for the amendment of clause (d) of sub-paragraph (5) of Paragraph 72 providing for direct submission of the claim application by the claimant to the Trust or the Regional Provident Commissioner will to a great extent minimise the delay caused on such a the Commission feels that it needs to be clarified by way of an Explanation under section 10 that the amount of provident fund accumulations shall not be withheld on the ground of pendency of disciplinary proceedings.