New Delhi: A retired employee will receive 6% interest after the Employees’ Provident Fund Organisation delayed settling his provident fund claim, the Mumbai Suburban District Consumer Disputes Redressal Commission has ruled.
The commission directed EPFO to pay interest on the claim amount of ₹14,06,272 for a 35-day delay, covering November 9 to December 13, 2016. The order must be implemented within 45 days.
Claim filed after retirement
The case concerns a former employee of Fleet Maritime Services (India) Pvt Ltd. After retiring, he submitted his provident fund claim to EPFO on October 19, 2016.
Under the Employees’ Provident Funds Scheme, 1952, claims must be processed within the prescribed period. The complainant alleged that EPFO failed to settle his dues on time, prompting him to approach the consumer commission.
EPFO disputes delay allegation
EPFO argued that the employee had not submitted a required joint declaration with the original application. It said the claim was consequently returned on November 7, 2016.
According to EPFO, the complete set of documents was received only on December 2, 2016. The organisation said it settled the claim on December 14, maintaining that there was no delay attributable to it.
Commission rejects defence
The consumer commission rejected EPFO’s argument because the organisation could not produce a written rejection letter or any communication identifying deficiencies in the initial claim.
It observed that the available evidence did not establish that the application submitted on October 19 was incomplete. EPFO was therefore expected to process and settle it within the stipulated timeframe.
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Delay termed service deficiency
The commission held that failure to settle the provident fund claim within the required period amounted to deficiency in service. It ordered EPFO to pay 6% annual interest on ₹14,06,272 for the 35-day period.
The ruling also underlines the importance of preserving claim forms, acknowledgements and correspondence. Such records can help provident fund members establish submission dates and challenge unexplained processing delays.
