Hello,
I quit my previous company 4 years back. There I applied for PF transfer and they processed the transfer and sent a cheque to my current company at that time. However my current company has misplaced the chq and didnt deposit with the PF comissioner.
When I followed up with previous company(theirs was a pvt trust), they informed that the cheque was issued by them, but the amount was not deducted, since no one depsoted that cheque.
Now I have requested for PF withdrawal (instead of transfer) and my previous company is ready to pay me the same principal amount (same as 4 years back)
Now my question is who will pay my interest amount. My previous company (because amount has acrued interest in their account) or my current company (because they misplaced and didnt deposit cheque).
My previous company argues, that they processed their claim and settled and moved amount from their corporate account, so its not their fault and so will not pay me interest.
Please help me.
From India
1I quit my previous company 4 years back. There I applied for PF transfer and they processed the transfer and sent a cheque to my current company at that time. However my current company has misplaced the chq and didnt deposit with the PF comissioner.
When I followed up with previous company(theirs was a pvt trust), they informed that the cheque was issued by them, but the amount was not deducted, since no one depsoted that cheque.
Now I have requested for PF withdrawal (instead of transfer) and my previous company is ready to pay me the same principal amount (same as 4 years back)
Now my question is who will pay my interest amount. My previous company (because amount has acrued interest in their account) or my current company (because they misplaced and didnt deposit cheque).
My previous company argues, that they processed their claim and settled and moved amount from their corporate account, so its not their fault and so will not pay me interest.
Please help me.
From India
Dear Ganesh,
Need a clarification here. You are saying your PF cheque was given by your ex company. To my knowledge the Amount is transferred by the PF office and not the company. That to there is no cheque but a firtual transfer to your pf account in the new company. You just get an intimation letter for the same.
So please clarify what cheque is this?
In case of withdrawal too you need to apply for PF trust through your employer.
So please check.
Regards,
Viraj
From India, Pune
Need a clarification here. You are saying your PF cheque was given by your ex company. To my knowledge the Amount is transferred by the PF office and not the company. That to there is no cheque but a firtual transfer to your pf account in the new company. You just get an intimation letter for the same.
So please clarify what cheque is this?
In case of withdrawal too you need to apply for PF trust through your employer.
So please check.
Regards,
Viraj
From India, Pune
Hello viraj
Thank you for your prompt reply. My ex company had their own PF trust . I believe that is the reason the chq was issued by them and not by the PF comissioner.
So when I applied for PF transfer, my prev company sent a chq to my current company with appropriate amount.
At that time, I got internal mail from my current company saying we recieved xx amount chq from ur ex company. We will deposit it with PF comissioner office.
However they either delayed or misplaced the chq.
From India
Thank you for your prompt reply. My ex company had their own PF trust . I believe that is the reason the chq was issued by them and not by the PF comissioner.
So when I applied for PF transfer, my prev company sent a chq to my current company with appropriate amount.
At that time, I got internal mail from my current company saying we recieved xx amount chq from ur ex company. We will deposit it with PF comissioner office.
However they either delayed or misplaced the chq.
From India
Dear Ganesh,
Even though the previous company / PF Trust has issued the cheque, you didn't utilise the cheque and withdraw the amount. As the amount is still pending with them, they have to issue the amount with interest. There will be annual inspection by the EPFO for all PF Trusts. How can they show your accounts without accruing interest?
If the PF Trust is not ready to grant interest, please contact the RPFC.
Abbas.P.S
From India, Bangalore
Even though the previous company / PF Trust has issued the cheque, you didn't utilise the cheque and withdraw the amount. As the amount is still pending with them, they have to issue the amount with interest. There will be annual inspection by the EPFO for all PF Trusts. How can they show your accounts without accruing interest?
If the PF Trust is not ready to grant interest, please contact the RPFC.
Abbas.P.S
From India, Bangalore
Dear GAnesh,
I would suggest you get a certificate from your current company that the cheque was lost and submit the same to the Previous one. And you can get the amount.
As far as interest is concerned Abbas is right the company in possession of Money need to pay the interest.
Regards,
Viraj
From India, Pune
I would suggest you get a certificate from your current company that the cheque was lost and submit the same to the Previous one. And you can get the amount.
As far as interest is concerned Abbas is right the company in possession of Money need to pay the interest.
Regards,
Viraj
From India, Pune
The cheque is now date barred.
It is an error and as such the amount is still lying in your old companies trust account and usually trust invest the amount as per guidelines and earn intrest also.
Hence, you can take a letter from your current employer saying they have misplaced the cheque and have not deposited in the bank, which your ex-employer can verify from their bank.
You should ask for a fresh cheque. Interest will be paid as per trust rules for non operating accounts.
First thing is, you should try to get the cheque as early as possible, other than thinking too much about the interest, any way you are loosing interest now, and delay will add to it.
Vijay
It is an error and as such the amount is still lying in your old companies trust account and usually trust invest the amount as per guidelines and earn intrest also.
Hence, you can take a letter from your current employer saying they have misplaced the cheque and have not deposited in the bank, which your ex-employer can verify from their bank.
You should ask for a fresh cheque. Interest will be paid as per trust rules for non operating accounts.
First thing is, you should try to get the cheque as early as possible, other than thinking too much about the interest, any way you are loosing interest now, and delay will add to it.
Vijay
Hi Ganesh,
Few things are not clear :
1. PF is supposed to be deposited with PF office not with the company.
2. Old company's PF cannot be deposited by the New Company into the PF office.
3. What is the amount involved.
ANYWAYS -having seen the situation as you have given out my conclusion is >>
A. Your Ex company was not giving govt PF but just a localised version of savings.
B. Your ex company/ New Company is not wrong by any count.
C. You will not get any interest from anyone.
D. Even when PF office gives PF back, nobody pays any interest.
So be happy - nothing is going to come out of this
From India, Delhi
Few things are not clear :
1. PF is supposed to be deposited with PF office not with the company.
2. Old company's PF cannot be deposited by the New Company into the PF office.
3. What is the amount involved.
ANYWAYS -having seen the situation as you have given out my conclusion is >>
A. Your Ex company was not giving govt PF but just a localised version of savings.
B. Your ex company/ New Company is not wrong by any count.
C. You will not get any interest from anyone.
D. Even when PF office gives PF back, nobody pays any interest.
So be happy - nothing is going to come out of this
From India, Delhi
Dear Ganesh
The lost ch tantamount to non-settlement of your account. Therefore as it has been cancelled before issue of fresh ch your account is required to be settled again as if it was not settled earlier. The trust is liable to pay interest on the amount standing to your credit. If they do not agree you knock at concerned RPFC. If they do not hear lodge a complaint to ACC CSD CPFC Office EPFO Bhikaji Cama Place New Delhi
From India, Jaipur
The lost ch tantamount to non-settlement of your account. Therefore as it has been cancelled before issue of fresh ch your account is required to be settled again as if it was not settled earlier. The trust is liable to pay interest on the amount standing to your credit. If they do not agree you knock at concerned RPFC. If they do not hear lodge a complaint to ACC CSD CPFC Office EPFO Bhikaji Cama Place New Delhi
From India, Jaipur
Hi Ganesh,
There is a provision to provide Annual PF statement by the employer (in June every year) irrespective whether it is an exempted or unexempted establishment in which the status of carry forward amount with interest and the accumulation of last f.y's (March - Feb) account is clearly mentioned. Moreover, provision for the P.F. accumulation transferred from last orgn is also there. It is not clear as to why you did not cross check about transfer of your P.F accumulation with interest to your present employer in the succeeding year of your joining with present employer.
Pl clarify the above to advice further.
Thanks,
Gopal
From India, Jaipur
There is a provision to provide Annual PF statement by the employer (in June every year) irrespective whether it is an exempted or unexempted establishment in which the status of carry forward amount with interest and the accumulation of last f.y's (March - Feb) account is clearly mentioned. Moreover, provision for the P.F. accumulation transferred from last orgn is also there. It is not clear as to why you did not cross check about transfer of your P.F accumulation with interest to your present employer in the succeeding year of your joining with present employer.
Pl clarify the above to advice further.
Thanks,
Gopal
From India, Jaipur
@ Ganesh & dear all,
Two things to note here:
A) Its a normal practise to send the PF cheque to the new employer and typically, the employee requests the company consultant or concerned employees to deposit the same in the new PF account with the new organisation.
B) Most of the Private PF trusts (as is the case here) have rule that if you do not transfer or withdraw your PF with-in the specified period after you leave the organisation, you shall not be eligible for any Interest after the expiry of that period (you may note that govt PF has started this w.e.f. 1/4/2011 for all dormant accounts over 3yrs).
In view of the pt B, in my opinion, you need to:
1) Understand the period after which no interest was applicable from your previous employer trust
2) Demand the interest for the specified period as the DD was not cashed and request for a fresh D.D.
3) Since there is proof for receipt of the DD by your new employer (which they have misplaced), you should ask them to give you the interest for the remaining period till your previous employer issues a fresh DD.
I know, it will be difficult to fight with your current employer but atleast you should demand the same in writing and follow-up regularly to get the same or get alternate compensation i.e. increment, etc.
All the best n
Regards:
From India, Mumbai
Two things to note here:
A) Its a normal practise to send the PF cheque to the new employer and typically, the employee requests the company consultant or concerned employees to deposit the same in the new PF account with the new organisation.
B) Most of the Private PF trusts (as is the case here) have rule that if you do not transfer or withdraw your PF with-in the specified period after you leave the organisation, you shall not be eligible for any Interest after the expiry of that period (you may note that govt PF has started this w.e.f. 1/4/2011 for all dormant accounts over 3yrs).
In view of the pt B, in my opinion, you need to:
1) Understand the period after which no interest was applicable from your previous employer trust
2) Demand the interest for the specified period as the DD was not cashed and request for a fresh D.D.
3) Since there is proof for receipt of the DD by your new employer (which they have misplaced), you should ask them to give you the interest for the remaining period till your previous employer issues a fresh DD.
I know, it will be difficult to fight with your current employer but atleast you should demand the same in writing and follow-up regularly to get the same or get alternate compensation i.e. increment, etc.
All the best n
Regards:
From India, Mumbai
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