Employees Provident Fund Scheme
Membership of the Fund
Section 28: Transfer of accumulations from existing Provident Funds
(1) Every authority in charge of, or entrusted with the management of, any Provident Fund in existence , the accumulations wherein are to be transferred to the Fund under sub-section (2) of section 15 of the act, or sub-section (5) of section 17 thereof, as the case may be shall,
(i) send to the Commissioner a statement showing the amount standing to the credit of each subscriber on the date of the transfer the total accumulations to the credits of subscribers generally on that date and the advances, if any, taken by the subscribers within twenty-five days of the application of the Scheme, or cancellation of the exemption, as the case may be;
(ii)transfer to the fund in the manner specified in sub-paragraph (2) the total accumulations standing to the credit of the subscribers in relation to each factory within ten days of the application of the Scheme, or cancellation of exemption , as the case may be, in case of liquid cash in bank and within thirty days in case of securities; and
(iii) transfer to the Central Board all pass-books, books of account and other documents relating to the said accumulations.
(2) All accumulations standing to the credit of the subscribers, howsoever invested, shall be transferred to the fund by the authority aforesaid in cash :
Provided that where the whole or any part of such accumulations consists of investments in Government securities or in securities guaranteed by appropriate Government as regards repayment of principal and payment of interest or in both the authority making the transfer to the Fund shall transfer those securities at the price for which they were actually purchased or transfer a sum equivalent to such price . In case, however, the whole or any part of such accumulations is invested in National Savings Certificates or National Plan Savings Certificates, the appreciated value of such certificates at the time of the transfer will be taken into account in determining the amount of the accumulations to be transferred, provided that the difference between the face-value of such certificate and their appreciated value at the time of the transfer has already been credited to the accounts of the subscribers :
Provided further that where the whole or any part of such accumulations consists of investments in securities bearing no guarantee of an appropriate Government as regards repayment of principal and payment of interest the Central Government may, in exceptional cases, allow acceptance of the transfer of such securities from the authority making the transfer to the Fund at the price for which they were actually purchased.
Explanation.- The total amount of provident fund accumulations includes interest thereon and the authority in charge of the Fund shall transfer in cash any balance of interest on investments which happens to be undistributed on the date of transfer , or realised or realisable for the period prior to the registration of the securities in the name of the Central Board of Trustees, Employees' Provident Fund.
(3) Any cash transferred under sub-paragraph (2) shall be deposited in any office or branch of the Reserve Bank of India or the State Bank of India to the credit of the Central Board , and the receipt obtained in respect thereof shall be forwarded to the Commissioner :
Provided that where there is no office or branch of either of the two Banks at the place where the factory or other establishment is situated the amount shall be credited to the Central Board by means of a Reserve Bank of India Governmental draft at par.
(4) The accumulations transferred to the Fund in accordance with this paragraph shall be credited to be account of each of the members of the Fund, to the extent to which he may be entitled thereto having regard to the statement furnished by the authority aforesaid.
(5) When the accumulations in any such Provident Fund as is referred to in sub-paragraph (1) have been so transferred to the Fund, the Commissioner may, by notification in the Gazette of India, declare that the subscribers of such Provident Fund have now become members of the Fund and that the accumulations aforesaid have now become vested in the Central Board.