Section 8F of EPFMA : Section 8F: Other Modes Of Recovery

Explanation using Example

Imagine a company, XYZ Pvt. Ltd., has failed to deposit the provident fund contributions deducted from its employees' salaries. The Employees' Provident Fund Organization (EPFO) issues a certificate to the Recovery Officer to recover the outstanding amount from XYZ Pvt. Ltd. However, despite this, the Central Provident Fund Commissioner (CPFC) learns that a client, ABC Corp., owes a substantial payment to XYZ Pvt. Ltd. for services rendered.

To recover the provident fund arrears, the CPFC, using the powers granted under Section 8F of The Employees Provident Funds and Miscellaneous Provisions Act, 1952, directs ABC Corp. to deduct the amount XYZ Pvt. Ltd. owes to the EPFO from the payment due to XYZ Pvt. Ltd. ABC Corp. must comply with this directive and pay the deducted amount directly to the EPFO, thus helping to settle the arrears XYZ Pvt. Ltd. owes to its employees' provident fund accounts.