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Wednesday, Nov 17, 2004

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Opinion - Letters

EPFO performance

It is unfortunate that the issue regarding the interest rate on Employees Provident Fund has been politicised. The main idea to constitute a tripartite body, Central Board of Trustees, to administer the EPF is to save it from the bureaucratic and political strife. The CBT unambiguously stated that accreditation of interest higher than 8.5 per cent is unviable, given the reduced interest on other saving instruments.

Now, the politicians have blamed that the performance of EPF Organisation is poor. Pertinently, the annual audit of the Organisation by the Comptroller and Auditor General of India pointed out no such poor performance.

The main reason for non-recovery of Rs 200 crore outstanding from the Public Sector undertakings is the legal impediment against recovery action. The Central Government has seemingly issued specific instructions not to recover government dues from the National Textiles Mills. Similarly, the Sick Industrial Companies (Special Provisions) Act, 1985 also protects defaulting sick units.

The Central Government should allow the EPFO to attach the properties of all the Central/state public sector undertakings which are in default of labour dues.

C. Ramesh

Keeramangalam (TN)

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