EPF Settlement Excess recovery by employer after communication from PF Office

Dear Sir, I worked in a private concern and paid PF Contribution during the period from 2005 to 2012. Employer and Employee contributions were paid regularly. I resigned my job with them during 2012 and applied for PF Settlement with PF Office as per procedure through my employer. I am not aware the balance in my account since I have not received the statement slip up to date at that time. I have received a direct credit to my savings bank account from PF Office. I got a SMS from PF Office only for the total amount credited to my account. I have not checked whether it is correct or not and spent the money.

Now I received a phone call from my previous employer and they told me that they have received a communication from PF Office to recover about Rs.23,000/- from me which was excessively paid to me by PF Office on their settlement.

They also informed me if I have not paid the excess, the PF office authorities will file FIR with police and take action on the employer.

I have not received any communication directly from PF Office even though they have my address as per the Forms submitted by me for settlement. Now my previous employer urged me to pay the excess money.

Now, I am jobless and suffering for my day to day expenses. So, I want to know the answer for my following doubts:-

1. Is it possible to initiate police action on the employer instead of the employee who is actually received the excess money?

2. Is there any chance to pay the excess by PF Office?

3. Is there any chance to get a time to repay the money in installments? (Since now I am not in employment in anywhere)

4. Can we file a compliant with any forum like Consumer Court since the employer urged me to pay the excess money immediately? The excess is not due to my fault and I was not aware how the calculations are made by PF Office as there is no communication by them about the settlement calculations.

5.Can the employer get a relief if they give my address to PF Office and ask them to take action directly on me ?

I request you to clarify my doubts and guide me to solve this issue?

Thanks and Regards,

Anbu

If inadvertently excess money is given to you, same is to be refunded to the PF Department. You may ask for letter and challan for refund of money and I suggest that money must be deposited in Bank Account of EPF through the challan.
If you want to know the correct position of the funds, you may raise grievance at EPFO portal and ask for FORM-K which contains the details of funds at credit in your account alongwith pension service and funds at the time of settlement of account. If anybody calls you to refund the money, you can say that I have asked for Form-K to check and as soon as I receive the Form, I will manage to refund the amount.
After receiving the Form-K, you can check with funds received in your account.
Thanks
V K Gupta

Hello Anbu,

I have only heard of such a case twice in the last few decades. Can you let us know the PF office where your settlement was done ?

The claim forms (19 & 10C) are duly signed by your previous establishment's authorized signatory. It is the responsibility of this authorized personnel to check for the details related to your employment mentioned in the forms. You may kindly note that the remittance made by the PF Office to the member's account is after several checks (atleast by 3 people including the respective concerned clerk, the officer and the section head - & then signed-off by the respective Asst. Commissioner/Commissioner responsible for the Group under which your establishment is covered), inclusive of their manual records which they verify thoroughly. In case there is any mis-match in either the date/s or the contribution amount or for that matter the name imprint on the cancelled cheque, the forms are simply rejected and an intimation is sent - as a text message on the mobile number furnished in the form & - by post to the establishment on the address registered in their database.

In case there has been an goof up / mistake in calculation of the settlement amount, it's due to the fault of the PF Office and / or due to the incorrect information furnished by the authorized personal of your previous establishment. In other words, as your rightly said, it's because of no fault of yours. And they CANNOT threaten you for the same.

(Can you let me know the date when you submitted the claim form, the date when the amount was remitted into your bank account and the date when your previous employer called you ? I just want to see for how long was the PF Office / Your employer sleeping over this goof-up).

My advice to you is to sit calm and wait for an formal intimation from the PF Office. YOU NEED NOT HAVE TO WORRY OR LOSE YOU SLEEP OVER IT. Even if you realise that an excess amount has been paid to you (after being fully satisfied with the documental evidence sent to you by the PF Office), you can always send a polite reply seeking for payment in instalments / payment within a certain period of time owing to your unemployment in the current scenario.

Cheers & Stay tension free

A.B.

Can Any Senior make more comments on this issue ?
Whether EPFO can take responsible to Employer for such mistakes / errors which is made by EPFO itself and can recover it from Employer ?
In claim forms Form No. 19 & 10 employer's sign authentic the claimant. Employer not giving any new or additional information except current year's 3A. Under the circumstances if due to any calculation mistakes by EPFO if member gets short or excess payment how the Employer can be a responsible ? And why is responsible for it's recovery and that too from ex employee ?
I request seniors to give brief with legal grounds.
Thanks and Regards

""Whether EPFO can take responsible to Employer for such mistakes / errors which is made by EPFO itself and can recover it from Employer ?""
No.
The excess money has been received in your a/c by mistake or carelessness or what so ever reason.
Once the company or PF authorities confirm that excess has been paid and work sheet is shown how it is excess,you should return it to PF office.
Dont think can employer pay back or think of instalment recovery etc.
Money is not yours and return it to rightful owner.
Dont even have second thoughts.

Dear Sir,
Though the EPFO has my address and contact number, they have not yet contacted me directly regarding this recovery. They have sent letter to the employer only to recover from their ex employee.
Now due to the pressure of my employer only, I have to repay the excess money to EPFO.
Moreover, I am not in employment anywhere due to my higher studies. My ex-employer urge me to pay the money immediately. I made my request to pay by installment but they hesitated to permit it.
If it is excess we have to refund it. There is no doubt on it. But after more than 2 1/2 years of payment, they asked to refund it immediately.
Can we make compliant with any forum on employer and EPFO? please advise.
Thanks,
Anbu

Dear Anbu,
You already spent the money that you unknowingly received in your account long back and you currently are not in a position to repay the excess amount in one go. You have till date not received any official intimation from either the PF Office or from your Ex-employer.
Don't worry. Nobody is going to put you in a jail. You can think on the repaying process ONLY IF you receive an official intimation from the respective PF Office or a lawyer's notice on behalf of your company. And you have every right legally to respond saying that you do not have the money and that you can pay back only in instalments. However, that's only after detailed scrutiny / verification of your due amount. In the worst case, even if things get dirty, with average lawyer, it would take months for this case to get resolved.
So, focus on your studies and enjoy life. Come back only if you receive any form of written correspondence from either of the parties.
Cheers, A.B.

Thanks for the discussions going on and due to that knowledge is getting increased.
But still the one reply is awaited, How the Employer is responsible in this case and whether he is suppose to make the recovery from Ex-employee. If yes how he can ?.

It seems very strange to me that you are in panic after receiving a letter from your previous employer to return them the amount which PF Office has paid you in excess.
Have they given you any details of excess amount, monthwise amount deducted from you and paid to PF Office and how the excess is calculated?
Ask them all these details in writing and don't meekly submit to the demand of your employer? Why are you getting afraid for? Have you cheated anybody? They say that they have paid you excess without giving any proof. Why are you simply getting nervous. It is your employer who should have been nervous and not you. Don;t worry. Unless you get a detailed calculation proving the excess payment, nobody can harm you nor any complaint can be filed against you. They are only trying short cut methods to quickly recover from you.

I feel something is amiss. The PF authorities, in the first place, should have informed you of the excess payment, if any. You may inform the ex-employer, in writing, that you would take appropriate action once the PF authorities inform you of the excess to be refunded.
No criminal action lies, in the circumstances stated.
By the way, other than the phone calls, has the ex-employer given anything in writing?