EPFO told to pay 6% interest for 35-day claim delay
The Employees' Provident Fund Organisation (EPFO) has been ordered to pay 6% interest on a retired employee's claim of over Rs 14 lakh due to a 35-day delay in processing. The Mumbai Consumer Commission held the EPFO guilty of deficiency in service for failing to communicate effectively regarding the joint declaration application, which caused the delay.
The complainant, a former employee of Fleet Maritime Services (India) Pvt Ltd, submitted his PF claim on October 19, 2016, but the EPFO did not settle the claim within the stipulated 20-day period under the EPF Scheme, 1952. The EPFO argued that the complainant had not submitted the required joint declaration, but the commission rejected this claim, stating that the organization failed to provide any written rejection letter or deficiency communication to the complainant. Consequently, the EPFO has been given 45 days to comply with the order.
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