EMPLOYEES' PROVIDENT FUND ORGANISATION DRAFT MINUTES

Transcription

1 ~!Iftr/ ~ 3Pll~FT HECOflD CiJPY/COMEREIiICE SECTlaN EMPLOYEES' PROVIDENT FUND ORGANISATION DRAFT MINUTES 171 st MEETING OF CENTRAL BOARD OF TRUSTEES (EPF) MEETING Central Board of Trustees, Employees' Provident Fund. DATE VENUE Employees' Provident Fund Organisation 3 rd Floor; Conference Hall, Bhavishya Nidhi Bhawan, Bhikaiji Cama Place, New Delhi The 171 5t meeting of the Central Board of Trustees (Employees' Provident Fund) was held under the Chairmanship of Shri K.Chandra Shekhar Rao, Hon'ble Union Minister for Labour and Employment and Chairman, Central Board of Trustees (Employees' Provident Fund). The following members attended the meeting: Shri K.M.Sahni Secretary (Labour & Employment), Ministry of Labour, New Delhi. Shri J.P.Pati, Joint Secretary, Ministry of Labour & Employment Government of India. Shri UKSinha, Joint Secretary, Ministry of Finance, North Block, Govt,. of India, New Delhi Central Government Representatives Ms. Rama Murali, J.S. & FA, Labour,& Employment Ministry of Labour & Employment 1

2 3f~ mfr; ~ 3f1.rrr<T RfCGRD CGPy/CO;JfEllHICE SECTiGrJ Shri Ajay Pal, Labour Officer Chandigarh Shri Vatsala Watsa Principal Secretary Labour Karnataka. Shri N.S.Madhavan Principal Secretary (Labour) Government of Bihar. Shri Manohar Kant Secretary Labour & Employment Government of Rajasthan Jaipur. State Government Representatives Shri Surjit K. Sandhu, Principal Secretary Labour Uttar Pradesh Or. Anmol Kumar, Dy. Special Commissioner New Delhi Shri Arvind K. Chugh Principal Secretary, Deptt. Of Labour Jharkhand Shri Pardurnan Singh Shri HHDave Shri A. Venkatram Shri AD. Nagpal Shri RN. Rai Employees' Representatives Shri Sankar Saha Shri Nirrnal Ghosh Shri W.RVarda Rajan Shri Ashok Singh Shri G.Sanjeeva Reddy 2

3 3~ ma/~ 3F];?WT RECOiUl CfJPV/CDrJffRENCE SECTlOill Shri V.P. Chopra Shri Ravi Wig Shri Ashwin Dani Shri J.P. Chowdhary Shri P.Rajendran Shri Sharad S.Patil Shri Ram Tarneja Shri Ajay Dua Employers' OG(ESIC) Representatives Special Invitee Shri Anirudh Rai CPFC & Ex-Officio Member The following members could not attend the meeting due to pre-occupation and were granted leave of absence: Addl. Secretary. L&E Ministry of Labour New Delhi (Post vacant) Secretary. Labour Government of Andhra Pradesh. Secretary. Labour Gujarat. Secretary. Labour Madhya Pradesh. Secretary. Labour Maharashtra. Secretary. Labour Uttranchal. Secretary. Labour Chhatisgarh Secretary. Labour Kolkatta Secretary, Labour Tamil Nadu. Central Government representative State Govt. Representatives 3

4 3~ ~/~ 3c'"";:['iTFT ~E C'C:~::; COpy /CC{~'fERENCE ~.' '--' 1f:Jr~ Shri R.K.Somani Shri Virender Uppal Shri S.MDewan Employers' Representatives The list of officers of the Ministry of Labour & Employment and the Officers of the Employees' Annexure I. Provident Fund Organisation who attended the meeting is given at The Chairman at the first instance welcomed all the respected members of the CBT to the meeting of the Board Shri Parduman Singh, Hon'ble member pointed out that he had received the agenda book of the meeting very late. He suggested that the despatch of the agenda book should be so arranged that it reached the members atleast 15 days in advance. Shri Nirmal Ghosh supported the above views of Shri Parduman Singh and advised that the agenda book should reach the members atleast one week in advance so that the members were in a position to go through the items for proper deliberations during the course of meeting. CPFC explained the position for the delay and assured the members to make the best efforts in future for implementing the suggestions of the members. The Secretary, Labour & Employment initiated the proceedings of the meeting and proposed to take up the Agenda items. Item No. 1: Confirmation of minutes of 170th Meeting of Central Board of Trustees(EPF}. The item was deferred as the members pointed out that the comments - - on the draft minutes were to be submitted by 27 th February 2005, ie after the date of this meeting. Hence, the confirmation cannot be accorded in the meeting. 4

5 ~~ ~/~ 3l1. 1WT!;C',;;t} C[JPYlCQ[mRENCE SECTION Item No. 2: Action taken statement Approved as contained in the Memoranda. It was further pointed out that the Action Taken Statement was not complete. It was suggested that a comprehensive action taken statement be placed before the Board during the next meeting. Central P.F. Commissioner assured to do so. Item No. 3: Modernisation Project (Re-inventing EPF India) - Status Report Shri S.K.Khanna, Leader of the Core Team&ACC (Compliance). made the Powerpoint presentation of the item, explaining thereby the reasons for delay in achieving the target of "Reinventing EPF India" project. Shri Venkatram stated that the reasons for delay should be properly examined and somebody should take the responsibility to implement the program. Siemens Information Services Limited, being the multinational company may be allowed to continue. Shri Ravi Wig also supported the above view. Shri W.R.Wardarajan stated that there were so many Technical Committees as sub- Committees to Central Board of Trustees which were required to examine the viability of the Scheme so it cannot be said that the Re-inventing w~s not viable. There appears to be some laxity in the execution of the project which has caused delay in implementing it within the targeted time. Shri A.D.Nagpal stated that staffware (software) has been purchased at a cost of Rs crores but the same has not yet been put to use. Similarly civil works worth of Rs. 70 crores was taken up for Dwarka Project. After incurring heavy expenditure if we fail to achieve the target then as a Trustee we feel cheated in the name of BPR. It is suggested that a Committee should be constituted to go into the viability of the. Project. Shri Ram Tarneja also supported the constitution of a Committee for putting the project at right track as it is very much required to bring improvement in the Services to the Subscribers. 5

6 Shri Parduman Singh wanted to fix the responsibility if the report regarding the nonviability of the Project was true. He further stated that the project should continue. The coverage campaign started at present is giving very good result and it should continue on a permanent basis. Shri B.N.Rai stated that Un-organised workers, especially the Construction workers should be brought under EPF. ShriV.P;Chopradesiredthat member in the matter of BPR. responsibility should be fixed for cheating' the Boards' Shri Sankar Saha desired that the programme should continue as we have also given a lot of publicity of Project Reinventing EPF India. He also suggested that recruitments should be made to fill the vacant posts. Shri Sharad S. Pail desired that a Sub-Committee of CBT should evaluate the status of the project and suggest the ways and means for mid-term corrections in the implementation procedures.. Shri Sanjeeva Reddy recommended that a Committee may be appointed to find the facts as the facts given in the status report need to be verified. The status paper appears to be biased. After ascertaining the facts, remedial actions have to be suggested by the sub-committee. Shri J.P.Choudhary and Shri Hasu Bhai Dave also supported the constitution of the Commltteefor evaluating the status of the Project. The Chairman agreed to appoint a sub-committee comprising the members of the CBT, EPF which will go into the details and submit the Report before the zo" of March Item No. 4: Revised Procedure for allotment of Social Security Number (SSN) and issue of cards to the members 6

7 ~ 'gfu/~ 3P"ilFf REeDiUl COpy/cmJffRENCE S [1,al\! The Members were of the view that this agenda item was related with the agenda item no. 3 and desired that the sub-committee of CBT would also consider this issue. Item No. 5: Roll-out of SSN (EPF--5SN) programme in additional centres - administrative and financial approval in respect of outstanding bills - regarding The item as contained in the Memorandawas approved. Item No. 6: Change in nomenclature - regarding The members did not agree for any change in the nomenclature and the Board unanimously decided that the unique social security number being issued by the EPFO will be known as "National Social Security Number (NSSN)". The Board desired that the matter may be taken up with the Ministry of Labour & Employmentfor reconsideringtheir decision in this regard. Item No. 7: Parallel implementation of the "Re-inventing EPF, India" Project in 25 additional centres - administrative and financial approval for deployment of IT Layer requirements The item as containedin the Memorandawas approved. Item No. 8: Administrative & Financial approval for deployment of technical layer for central site of the Re-inventing EPF India project The item as contained in the Memorandawas approved., Item No. 9: Portfolio management of EPF money -charges payable to State Bank of India for the year Central Provident Fund Commissioner introduced the item and explained the salient features of the agenda item. The Vice Chairman, CBT asked Shri U.KSinha, Joint Secretary,"Ministry of Finance to narrate his experience in the managementof new Pension Scheme. Shri Sinha narrated in detail about the system of working of the SBI after computerization. 7

8 He stated that there were about 750 pay and account offices spread all over the country. He also clarified that the SBI, which is the fund manager, is required to pay the interest from the day the money goes into the SBI system rather than waiting for the money to go from place X to place Y, which, in his judgement, was an internal matter of the fund manager. In new pension system there would be multiple fund managers. Shri Praduman Singh expressed his concern on allowing other banks for collection of contribution. He stated that SBI was the largest Public Sector Bank having branches all over the country. As tong as SBt Was the Bankertheworkers' money was safe and secure. Shri JP. Chowdhary stated that there is considerable delay in collection of the contribution by SBI and their transfer to Mumbai Main Branch. At any given point of time a huge float money is available to SBI but SBI does not pay interest on this money to EPFO. SBI should start paying interest from the date the contributions are collected by them. Shri Ram Tarneja stated that there are two roles of State Bank of India, one as a Banker and the other as Investment Manager/Consultant Portfolio ManagerlTreasury Manager. We are concerned about the 2 nd role of the State Bank of India in this agenda item. Shri Sanjeeva Reddy stated that we must explore the services of other Banks especially public sector banks for maximizing the interest without compromising on the safety and security of the fund. ' Shri AVenkatram expressed thanks to Shri Sinha for clarifying the date from which the interest is to be paid by the Bank. He was worried on this issue as huge amount used to be in pipeline without any interest. Shri Sankar Saha also supported the above views. Central PF Commissioner clarified that w.e.f State Bank of India will be transferring the amount daily from Link Branches to SBI Main Branch: Mumbai so 8

9 ~ m'fr/~ 3f111FT REeDIU) COPY/COMFfRHJCE SECTION that the money would be available for investment on the next day. reduce the problem of float money. This will greatly Shri Wardarajan stated that the State Bank of India may under the above circumstances be allowed to continue as our Fund Manager. approved. With the above deliberations the item as contained in the Memorandum was Item No. 10: Selection of Investment Consultant to conduct study for identifying new avenues for investment of social security funds and to establish a road map for investment after studying national/internationalbest practices. Shri B.N.Rai desired that the expertise for investment should be developed in EPFO itself. Shri Ravi Wig and Shri Wardarajan also participated in the deliberations and they opposed the appointment of any consultant. Shri Wardarajn also wanted that there should be in-house Investment cell and its functioning should be under the Supervision of Finance & Investment Committee. Shri J.P.Choudhary said that it is one time exercise and there is no harm if the experience of the consultant is utilized for obtaining the alternate investment avenues as available in other developed countries. Shri A.Venkatram issued by the Government. stated that this issue may be deferred till the investment pattern is Shri A.D.Nagpal s~ated that CBT has pointed out several times to have an in house committee for investment. Shri G.Sanjeeva Reddy stated that even in foreign countries several expert financial institutions have appointed consultants to explore the possibility of better investment yield. 9

10 -' Shri Ashwin Dani pointed out that Marsh & Mclean, the parent organization of Mercer Human Resource Consulting was reported to be involved in the frauds related to NYSE in USA. So while making the appointment of the consultant th'is point also may be kept in view. Shri Ajay Dua, D.G. ESIC stated that expert advise from time to time for the investment of a huge fund like ours is required. The consultants must advise within the framework of investment pattern. He further suggested that the terms of reference to the consultants should be well defined and permanent consultant be appointed for giving expert advice on investments. Shri Parduman Singh stated that the pattern of investment is prescribed by the Government of India in accordance with the provisions of the paragraph 52 of the EPF Scheme, So the Consultant of the EPFO will have no role to play in the present context. Smt Rama Murali, JS & FA Labour & Employment stated that it was recommended as one time measure by the Finance & Investment Committee. The consultants will not be permanent consultants of EPFO. Shri Nirmal Ghosh made certain queries about the documents checked for shortlisting of the consultants. The Chairman observed that it appeared from the deliberations that the members were not in a position to come to a consensus decision. The Vice Chairman accordingly put the proposal to vote and the proposed was approved by majority votes. Item No. 11 to item No. 19 were deferred 10

11 3~ llfff/ ~ 3Fj'm7T f:rccf;l) CDPUCOilifERENCE SECTlrm Item No. 20: Waiver of damages in respect of M/s. Eddy Current Controls Ltd.-KRl4139 Pvt.,- The Board considered the item and observed that the case did not qualify for waiver of damages and hence the claim was rejected. Item No. 21: Waiver of damages in respect of M/s. K.N.K.Sons & Co., ORl758 The case of waiver was examined by the Board in compliance of the Order dated of the Hon'ble High Court of Orissa. It was found that the case of waiver of damages in respect of this establishment was not covered by the legal provisions contained under Section 14BoHheEPF& MP Act, 1952 read with paragraph 32 of the EPF Scheme, Hence the claim was rejected. The interest payable under Sec. 70 on belated remittances of PF dues cannot be waived in the absence of any provisions under the Act. Item No. 22 Waiver of damages in respect of M/s. Petrofils Co-operative Ltd- GJ/5938 The Board observed that the case was not covered under the lega/ provisions for waiver of damages. waived. Hence the claim was rejected. Interest levied under Section 70 could not be Item No. 23: Waiver of damages M/s. Webelsen Capacitor Ltd., Calcutta Code No.WB/25767, Waiver of damages to the extent of Rs. 2,53,780 Rehabilitation Scheme was approved by the AAIFR. - approved as the doing so. But 70 interest not waived in the absence of any legal provisions for Item No. 24: Waiver of damages in respect of M/s. Ganges Mfg. Co., Ltd.,- WB/67. 11

12 ~llftr/~~~ RE&;ORDCDPY/CONfERENCE SECTION This case was not covered under the provisions of Sec. 14B read with paragraph 32B of the EPF Scheme, Hence the claim was rejected by the Board. Item No. 25: Waiver pf damages in respect of M/s. Tungabhadra Industries Ltd., AP/160 Since BIFR has sanctioned a Rehabilitation Scheme on , the case qualified for the waiver of damages levied under Section 14B of the EPF & MP Act, 1952 in accordance with the provisions contained in the paragraph 32B of the EPF Scheme, 1952 read with 2nd proviso to Section 14B of the EPF & MP Act, The Board accordingly waived the damages amounting to Rs. 22,593/-. The interest payable under Sec. 70 on belated remittances of PF dues cannot be waived in the absence of any provisions under the Act. Hence the claim was rejected. Item No. 26: Waiver of damages in respect of M/s. Ferro Alloys Corporation Ltd. AP/759 The Board examined the case as contained in the Memorandum and approved the waiver of damages amounting to Rs. 40, 13, 625/- as the scheme of Rehabilitation for the establishment has been sanctioned by the BIFR on However, the interest levied under Sec: 70 of the EPF & MP Act, 1952 amounting to Rs. 13, 10, 772/- could not be waived in the absence. of the legal provisions for waiver of interest Item No. 27: Waiver of damages in respect of M/s. Ferro Alloys Corporation Ltd. MH/5085 The Board examined the case as contained in tlte Memorandum and approved the waiver of damages amounting to Rs. 51,.894/-as the scheme of. Rehabilitation for the establishment has been sanctioned by the BIFR on

13 ~ JifcJ/~ 3l1.1WT RECORD COPY/CONfERENCE SECTION Item No. 28: Waiver of damages in respect of M/s. Volga Air Techniques Ltd.,- GJ/ The Board examined the case as contained in the Memorandum and approved the waiver of damages amounting to Rs. 17,61,931/- as the scheme of Rehabilitation for the establishment has been sanctioned by the BIFR on with a cut off date as 31 st the said period 10/96 to 03/2002. March, 2002 and the damages being waived pertained to Item No. 29: Waiver of damages in respect of M/s. Feno Fibres Ltd In the light of the directions of Hon'ble High Court of Andhra Pradesh to consider the request for waiver of damages in this case within 3 months, the Board examined the issue and found that this case was not covered for waiver under the existing provisions of law. The Board accordingly rejected the proposal for waiver of damages. Regarding the waiver of interest levied under Section 70 of the EPF & MP Act, 1952 the Board rejected the proposal in the absence of any legal provision in this behalf. Item No. 30: Waiver of Damages in respect of M/s. Kamarhatty Co. Ltd WB/17 The proposal as contained in the Memoranda was considered by the Board and the Board authorized Central PF Commissioner to give an opportunity of hearing to the establishment and place his comments in the form of a reasoned order for approval of the Board in the next meeting. Item No. 31: Financial powers of Executive Committee, CBT, EPF The-proposal as contained in the Memoranda was approved. The Chairman declared that the next meeting of Central Board of Trustees will be held on at this very place.. The meeting ended with a vote of thanks to the Chair. 'J

14 ~ llffr/xf~ ~<n'l RECORDCDPY/CfiNffRfNCE SH:m:m List of officers of Ministry of Labour & Employment and Employees' Provident Fund Organisation, who attended the 171 st meeting of the Central Board of Trustees (EPF) held on Shri K.C. Jain, Director, Ministry of Labour & Employment 2. Shri H.C. Bhanot,_Under Secretary, Ministry of Labour & Employment 3. Shri M.L.Dhar. Information Officer, Ministry of L&E 4. Shri S.K.Khanna, ACC (Compliance) 5. Shri Ka/yan Chand, ACC (Pension) 6. ShriM.L.MeenCl,AddJ.CPFC (HR) 7. Shri S.S. Dhankar, ACC (IS) 8. Shri S.K.Pandey, RPFC (Cont) 9. Shri U.C.Tewari, RPFC (Publicity) 10. Shri K.C.M.Kasim, RPFC (Finance) 11. Shri V.N. Ramakrishnan. RPFC (HRD) 12. Shri K..L.Taneja, RPFC (Investment) 13. Shri P.K.R.Nair, Director (IS) 14. Shri P.K.Udgata, RPFC (ASD) 15. S~ri Megha Ram, RPFC 16. Shri Chandermouli Chakraborty, DD( IS) 17. Shri K.Ganesh Babu, DD (IS) 18. RPFC. Gurgaon 19. Shri R.K.Kondru, APFC (ASD) 20. Srnt. Manisha Sinha, APFC{ASD) 21. Shri Vineet Gupta, APFC (Cont) 14