₹14 lakh PF claim delayed by 35 days: EPFO ordered to pay 6% interest

The Mumbai Suburban District Consumer Disputes Redressal Commission has directed the Employees’ Provident Fund Organisation (EPFO) to pay 6% annual interest on a provident fund claim of ₹14,06,272 after finding a 35-day delay in its settlement.

The commission held that EPFO’s failure to process the claim within the stipulated 20-day period amounted to a “deficiency in service”. The organisation has been given 45 days to comply with the order.

The case was filed by a retired employee of Fleet Maritime Services (India) Private Limited, who submitted his PF claim on October 19, 2016. The claim was eventually settled on December 14, 2016.

EPFO had argued that the original claim was incomplete because the required joint declaration had not been submitted. According to the organisation, the claim was returned on November 7, 2016, and the complete set of documents was received only on December 2, 2016. It maintained that the claim was then settled within the prescribed 20-day period.

The commission, however, rejected the defence, noting that EPFO failed to produce a written rejection letter or other communication showing that the claimant had been informed about deficiencies in the original submission.

Based on the evidence on record, the commission said EPFO had not satisfactorily established that the claim documents were incomplete.

The commission directed EPFO to pay 6% annual interest on ₹14,06,272 for the 35-day delay from November 9, 2016, to December 13, 2016.

The order comes in a case concerning the processing timeline for PF claims and the consequences of failing to meet the prescribed settlement period.