Inflation may be pinching the salaried class the most, but they seem to be missing out on some ready monetary help.
Inflation may be pinching the salaried class the most, but they seem to be missing out on some ready monetary help.
The provident fund (PF) amount in the inoperative accounts in Maharashtra has touched Rs3,461 crore, as per details given under the Right to Information (RTI) Act for a few of the regions.
“The money has been accumulating because of three main reasons: people do not know that they are members, employees migrating and there is no forwarding address and arrears and settlements returned due to various reasons,” said Pradip Kulkarni, regional provident fund commissioner (India).
But, advocate-activist Godfrey Pimenta who got the data under the RTI Act, disagreed.
“Despite having the personal data of all members, the PF office has failed to launch any special drive to trace the members and their legal heirs. No genuine efforts have been undertaken and that is the reason for this huge unclaimed amount. People are losing out on all the money,” said Pimenta.
Mumbai is divided into three regions and most of the inoperative PF accounts are in Bandra region, (Nariman Point-Andheri-Kurla), according to information provided to Pimenta.
In Bandra region, Rs1,478 crore has been lying in 18.4 lakh inoperative accounts until February 21, while Rs613 crore has been lying in the inoperative accounts in Kandivli region until January 31. Its jurisdiction spreads up to Gujarat. And, in Thane region (Kurla-Raigad), the amount has reached Rs636 crore until January 17.
While Rs559 crore has been lying in inoperative accounts in Pune region until January 16, in Nagpur region it is Rs175 crore until February 2.
Money is moved to inoperative account only there is no contribution from the employer or employee for three years.
As per a notification, said an official, no interest was given if there is no contribution for three years in the account by April 2011. That, he explained, was done as few employees did not withdraw their money out assuming there will be more.
But, what about reaching out to them?
“A decade ago, the government did hire enforcement officers and even issued advertisements but did not get a good response. So, we have stopped that drive,” added Kulkarni.
He added that the issue was of policy and only a higher-up can answer the question. When DNA tried to contact RC Mishra, Central PF Commissioner, on Wednesday, his staff claimed he was busy with a central board meeting and “had no time today.”
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