Can a company hold the provident fund of an employee?
My father was worked in co-operative bank in Tamil Nadu and deceased during his service period. the bank is holding his pf amount for last five years, because of some loan he has sanctioned as supervisor is having issues. How can i approach here? is the bank having rights to hold the pf money?
Am tired of asking their reasons .. :'(
Asked 2 years ago in Labour from chennai, Tamil Nadu
Issue a legal notice for release of Pf as this amount can not be held up and also ask for interest for delay.Regarding some loan which appears was sanctioned by him and is under dispute, then on final decision thereon, if any recovery is to be made that can be done in accordance with law at that point of time.
Advocate, New Delhi
Dear Client serve a Legal Notice to bank for PF amount and you are also eligble for interest becuse that amount has been blocked last five years and if you need more clarification then contact us.
Advocate Anurag Bhatt
Allahabad High Court,
1. Even if he is found responsible for the bad loan, his PF account can not be attached or delayed,
2. Send the Bank a legal notice to this effect immediately.
Provident Fund amount of your deceased father can not be illegally held by the bank even if there is a bad remark against him for any deviation in sanctioning a loan. You, alongwith other legal heirs of your father are entitled to the PF money + interest till the date it is disbursed. Did the bank had served your father a notice when he was in service? Did the bank conducted any inquiry proceedings regarding the loan sanctioned by your father while working as a supervisor.? What is the outcome of the proceedings? Was your father held guilty? If the answer is NO, then the bank has no right to unilaterally take a decision to keep his PF money without disbursing it to his legal heirs all these years thereby creating mental trauma to all of you. Issue a legal notice to the bank, through a lawyer and also meet the jurisdictional Provident Fund Commissioner and apprise him of the case and I am confident that he would definitely interfere in the matter and gets you justice.
Thanks all for your answers.
Did the bank had served your father a notice when he was in service? Did the bank conducted any inquiry proceedings regarding the loan sanctioned by your father while working as a supervisor.?
Answer : No, they raised this issue, when we started the asking his benefit.
Was your father held guilty?
Answer : Initially they were pointed the secretary for this.But now they are pulling in my father also in this.
If i approach this legally, approximately how long it will take to complete this?
Asked 2 years ago
So long any finding is arrived at through inquiry proceedings or other judicial or quasi-judicial authority against your father, he can not be held guilty and hence no liability for recovery arises.As already advised, send legal notice and then file case, you will get the dues.
Advocate, New Delhi
1. Without conducting an enquiry no body can be held guilty,
2. The co-operative is acting arbitrarily,
3.No body can predict about the time to be taken for getting relief from Court in .ur Country.
Any inquiry after the death of an employee shall be devoid of natural justice as he can not defend the charges. So Bank is not justified in looking in to any misconduct of an employee after his death. Further no deductions can be made from Provident Fund notwithstanding any loss suffered by the employer. Any proven loss can be recovered from Gratuity only.
The Provident Fund is governed by law and employer can not act arbitrarily in withholding the PF amount if it is being kept by him in a trust or disallow documents to facilitate payment of PF by the Regional Provident Fund office if the PF is being deposited with it. You issue a notice to employer if the PF is in a trust operated by bank for release of PF and in case the Bank does not reply file a complaint with the Regional Provident Fund Commissioner.
Advocate, New Delhi
Issue a legal notice through an Advocate to the bank to immediately release the PF amount of your father to the legal heirs, alongwith the interest and also complain against the bank to the Regional Provident Commissioner about the bank's unilateral decision of keeping the deceased person's money without giving it to the legal heirs. It would be difficult to quantify the time to be taken for getting relief from Court