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Madhya Pradesh High Court · body

2025 DIGILAW 618 (MP)

Narendra Prasad Tripathi v. State of M. P.

2025-10-13

VIVEK JAIN

body2025
ORDER 1. The petitioners in these petitions are employees of Janpad Panchayats and they are aggrieved by action of the respondents in not granting benefit of Contributory Provident Fund Scheme ('CPF' for short) to the petitioners. 2. It is the case of the petitioners that initially a Contributory Provident Fund Scheme for employees of Jila Panchayat and Janpad Panchayat which was made applicable w.e.f. 1.7.2012 for those employees who have atleast 10 years for more left in their superannuation. Thereafter another order was issued Annexure P-3 dated 13.7.2012 whereby a detailed scheme was announced by the State Government and it was decided that the scheme could be administered through NSDL (National Securities and Depository Limited) and it would be administered through Pension Fund Regulatory and Development Authority (PFRDA) and the Commissioner, Pension and Provident Fund and Insurance, Madhya Pradesh, would be the agency through which the correspondence would be made to PFRDA. 3. Thereafter vide another circular dated 17.4.2013 the condition of at least 10 years service remaining for superannuation was relaxed by the State Government. 4. It is not disputed that thereafter contribution of CPF started and the amount was deducted and also equal amount was remitted by the State Government which was remitted to the Bank and thereafter from the year 2020 the deduction as well as contribution by the State has been stopped realizing that the petitioners have not been made members of NPS administered by the PFRDA for want of approval of Finance Department to the orders issued by the Panchayat and Rural Development Department. 5. As per reply filed by the respondents for want of approval of the Finance Department the deduction of contribution from the petitioners and contribution of the employee has been stopped because the Finance Department has till now not given approval to the said scheme. 6. It is really surprising that the scheme which was framed 13 years ago has still not been approved by the Finance Department. The employer operated the scheme for 6-7 years and for want of Finance Department's approval the administration of the scheme has been stopped from 2020 and till date the contribution which has been deducted from the employees and contributed by the employer has not been remitted to the PFRDA for want of Finance Department's approval. The employer operated the scheme for 6-7 years and for want of Finance Department's approval the administration of the scheme has been stopped from 2020 and till date the contribution which has been deducted from the employees and contributed by the employer has not been remitted to the PFRDA for want of Finance Department's approval. Therefore, in the obtaining facts and circumstances of the case it is directed that the respondent No.1-Panchayat and Rural Development Department shall get approval of the Finance Department to the said scheme within 30 days. 7. It is made clear that if despite communication of the Panchayat Department, the Finance Department does not respond in the matter within 30 days then apart from the authorities of Panchayat Department, the authorities of Finance Department shall also be liable to be proceeded against in contempt of Court proceedings. 8. The petitioners are directed to communicate this order to Principal Secretary, Panchayat Department as well as to the Principal Secretary, Finance Department within 7 days and consequential action shall be completed within 30 days. 9. In case the Finance Department comes to the conclusion that benefit of NPS is not to be granted to the petitioners then they shall ensure coverage of petitioners under Employees Provident Fund and Miscellaneous Provisions Act 1952, as in terms of section 16 (1) (b) and (c) thereof the said Act would apply to Government undertakings or establishments under control of Government in vacuum of any other Scheme for Contributory Provident Fund. 10. With the aforesaid directions, the petitions stand disposed off.