Jurisdiction to conduct inquiries to decide the applicability dispute in r/o municipal-councils and -corporations throughout India: EPFO

Jurisdiction to conduct inquiries to decide the applicability dispute in r/o municipal-councils and -corporations throughout India: EPFO Order dated 27.07.2022

EPFO, HEAD OFFICE
MINISTRY OF LABOUR & EMPLOYMENT,
GOVERNMENT OF INDIA
BHAVISHYA NIDHI BHAWAN, 14,
BHIKAIJI CAMA PLACE, NEW DELHI 110066

File No. C.I/4/1/Misc/MunicipalCouncils/Pt./9502

Dated-26.07.2022/27 Jul 2022

To

All ACCs (HQ) / ACCs,
Zonal Offices.

Subject: Jurisdiction to conduct inquiries to decide the applicability dispute in r/o municipal-councils and -corporations throughout India — Reg.

Ref.: (i) HO Circular no.: RRC.11/28(31)07/53677 to 53777 dated 17.10.2007
(ii) HO Circular no.: Coord./5(16)2009/Misc./5380 dated 29.10.2009
(iii) HO Circular no.: Coord.5(16)2009/Misc/11525 dated 11.09.2012
(iv) HO Circular no.: CAIU/011(75)16/DL/Adm.Guidelines/16222 dated 21.09.2016
(v) HO Circular no.: C-I/1(5)16/7A/MOL&E/6242 dated 22.06.2017

Sir/Madam,

During the review meetings of ZOs by the Compliance Division, it was pointed out that many 7A cases are pending in various ROs for over five years as many municipal-councils and -corporations have challenged the applicability of the EPF & MP Act, 1952 in view of the provisions of Article 243Q of the Constitution of India. Further, all 7A orders upholding the applicability of the Act on municipal-councils and corporations have subsequently been challenged before the appropriate High Courts.

2. Since, a substantial question of law is involved in deciding such applicability disputes, it has now been decided that all applicability disputes in respect of municipal-councils and -corporations covered in a Regional Office/District Office involving substantial question of law/Article 243Q shall be heard and decided by a senior officer (RPFC-II/RPFC-I) of the RO as may be decided by the RPFC-in-charge of the RO concerned.

3. It is further directed that such disputes may be decided after thorough analysis of the facts of the matter and in light of the guidance issued by Head Office from time to time through speaking orders.

4. Once the applicability dispute is decided, the assessment of dues shall be done by an officer of the appropriate hierarchy in accordance with the extant guidelines.

(This issues with the approval of the CPFC.)

Yours faithfully,

Encl: As above

(Jag Mohan)
Additional Central PF Commissioner (HQ)(Compliance)

Source: EPFO