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In event establishment is availing exemption under EDLI scheme, then
• Such establishment are supposed to file Form No. 5IF (along with Form 19) or not
• What is purpose of Certificate to be issued by exempted establishment (page 3 of Form 5IF)
• In case Form 5IF attested by establishment (PF & Pension : un-exempted, EDLI : exempted) along with Form 19, and EPFO disburse EDLI claim then who is responsible for over payment and what are the repercussions:
EPFO is supposed to exercise due diligence before settling EDLI claim or they will simply treat this as wrong attestation of claims and initiate recovery proceedings
against establishment.
Even if responsibility lies with establishment and over payment has occurred due to wrong attestation of claim by establishment, whether EPFO is supposed to explore all possibilities of recovering overpayment from nominee of deceased employee, before initiating recovery proceedings against establishment.
Is there any source to access case laws with regards to overpayment by EPFO
May I request senior’s to guide us
With best regards
Deepak Marathe

From India, Pune

PF & Pension : un-exempted, EDLI : exempted
This line itself explains that form 5If can not be accepted by EPFO, and it is very rare case when EDLI exemption is granted to any establishment, such establishments are administrated at higher level officials.
attestation of form 5If in case of EDLI exempted establishment by employer is a offence and department can go against establishment signatory against him
no money can be paid towards such form as the file records have no corpus under the insurance against this establishment, so recovery matter does not comes in picture

Thanks for your time and swift response.
Do understand content of your reply. Query posed above is based on fact. Brief, background of this unusual case is as below:
Compliance is done centrally by Company having multiple PF codes. Barring one, rest of establishments codes are un-exempted for PF, Pension and EDLI scheme. One establishment code is un-exempted for PF, Pension and exempt for EDLI scheme.
Common SOP is drawn for all establishment codes, which state that withdrawal form (Form 19) along with Form 5IF is to be submitted in case of deceased employee. Accordingly, Form 19 along with Form 5IF was filed in respect of deceased employee of establishment code which is un-exempted for PF, Pension and exempt for EDLI scheme. This is classic case of following SOP without any discretion on the part of one who attested forms.
To the best of my understanding, noting of EDLI exemption for all / class of employees is supposed to be available on Form No. 9, besides corpus under insurance is to be verified.
As a matter of fact upon realization of mistake, company approached EPFO on their own and appraised overpayment. Besides, Company also inform insurance company to hold settlement of claim to nominee of deceased employee, to avoid double payment. Neither dealing clerk / supervisor / AC nor their internal audit could make out mistake, until they were told.
Company has taken a stand that:
• At the outset attestation of Form 5IF on the part of signatory is erroneous. Likewise, there was no due diligence on the part of concern staff of EPFO
• Claim amount is received by nominee of deceased employee and not by the company
• Company cannot approach nominee of deceased employee, as the transaction is between EPFO and nominee of deceased employee
• Since, EFPO has disbursed the payment and it has wide powers, they are supposed to explore all possibilities of recovery of excess payment
• Company will instruct insurance company to settle claim pay to nominee of deceased employee, upon confirmation by EPFO that nominee of deceased employee has refunded over payment
• In the event nominee of deceased employee does not pay to EPFO, then demand may be raised on Company
• Company has no inclination to shy away from their responsibility
What is happening on ground level is that,
• it is common experience of every one who deals with EPFO, that dealing clerk and supervisor reject claims on flimsy ground in the name of due diligence and display least respect for attestation done by establishment.
• On the other hand when over payment occurs, they shy away from their responsibility and take stand that claim was settled because employer attested Form 5IF.
• Sending letters / demand / show cause notice (and if required freezing bank account of employer) is easy way to recovery over payment than pursuing nominee of deceased employee.
In view of above may I request to guide with regards to:
1. EPFO and Company has to work together for years to come. Hence instead of arguing who is at fault, best way is to work jointly and recovery over payment
2. Position taken by company is fair and right in eyes of law.
3. Is there any other way overcome this situation
4. Is there any case laws with regards to overpayments
With best regards
Deepak Marathe

From India, Pune
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