Can My PSU Withhold My PF Over Housing Dispute After Resignation?

I am working under a PSU and availing housing provided by the PSU. I have resigned from the PSU, and as per company rules, I can retain the house for 7 months. However, the company is giving illogical reasons and forcing me to vacate the house. As per rules, I will not vacate. Can the PSU stop my PF amount by imposing undue penalty and force me to clear dues before releasing my PF amount?

It will be in your interest to pay 7 months' rent and allied charges in advance to the PSU. This will help you finalize your accounts well in time when you vacate the house. You need to check your housing rules as staying beyond the retirement date cannot be claimed as a matter of right. PF payment should not be held up, but some PSUs implement this kind of safety margin because people tend to delay vacating, especially in big metros.