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Report No. 137

4.6.1. Delay occasioned by non-warranted insistence on Succession Certificate.-

One of the major and frequent cause for the delay in the settlement of provident fund claims is the demand as to production of a Succession Certificate even though the same is not required under the law to be produced (see para 2.5.7). The employers as a matter of course call for the production of a Succession Certificate whenever a claim is preferred by the legal beneficiaries of an employee.

The Regional Provident Fund Commissioner or the Trust is bound to pay the provident fund accumulations in respect of a deceased employee in terms of Paragraph 70 of the Scheme of 1952, that is, to the nominee in case there is a valid nomination or to the absence of a valid nomination to the family members of the deceased as defined in clause (g) of Paragraph 2 of the Scheme, read with the provision to clause (ii) of paragraph 70, in equal shares.

In case there is not valid nomination and no family member of the deceased employee, the amount of provident fund is then payable to the person legally entitled to it. As observed earlier (para. 2.5.7), the Succession Certificate can be called for only in cases of genuine difficulty falling under clause (iii) of paragraph 70 of the Scheme. Besides, it is only the deciding authority, namely, the Regional Provident Fund Commissioner or the Trust, who can call for the production of Succession Certificate. The employers cannot stop processing the cases and call for production of a Succession Certificate.

4.6.2. In so far as the calling for a Succession Certificate by the Trust or the Regional Provident Fund Commissioner is concerned, though specific instructions are contained in paragraphs 115, 116 and 117 of Chapter III, Part II of Manual of Accounting Procedure (Vol. I), Employees' Provident Fund Organisation, such instructions are not being strictly complied with and it appears that a Succession Certificate is being called for in a routine manner ever in respect of the cases falling under clause (iii) of paragraph 72 of the Scheme of 1952.

The Commission recommends that the instructions contained in paragraphs 115, 116 and 117 of Chapter 3 of Manual of Accounting Procedure (Vol. I) should be incorporated in the Scheme of 1952 itself so as to give it statutory shape, and specifically provide that save and except in the cases falling under clause (iii) of paragraph 72 of the Scheme of 1952, a Succession Certificate shall not be called for.



Need for creating Office of Ombudsman and for Evolving Legislative - Administrative measures Inter alia to relieve hardships caused by Inordinate Delays in settling Provident Fund claims of Beneficiaries Back




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