Chandigarh,May 13,2026: The Employees’ Provident Fund Organisation (EPFO) has been directed to pay ₹50,000 compensation to an employee after a delay of nearly 10 years in transferring his provident fund balance from an old account to a new one. The order was passed by the District Consumer Disputes Redressal Commission in Chandigarh.
The case involved an employee who worked at Tech Mahindra in 2009 and later joined Infosys in 2010. Separate PF accounts were opened during his employment with both companies. The employee later applied to transfer the PF balance from his previous account to the new account.
According to the complaint, the employee did not receive any response from EPFO despite repeated follow-ups. He filed a Right to Information application in September 2011 seeking details about the transfer process.
The matter continued for almost a decade. On April 16, 2020, EPFO transferred ₹6.21 lakh to the employee’s new PF account. However, the employee claimed he was entitled to ₹11.07 lakh based on his calculations.
EPFO later informed him that interest payments had stopped because the account was marked as inoperative from April 2011. As a result, interest for the period between 2012-13 and 2015-16 was not credited.
In May 2021, the employee filed another RTI application but reportedly received no response. He later approached the Chandigarh consumer commission seeking the remaining amount, interest, compensation and litigation costs.
During the proceedings, EPFO stated that a technical issue in the software system prevented interest from being credited for the financial year 2010-11.
In March 2026, the employee received an additional interest amount of ₹3.67 lakh. The commission, however, observed that there was an unexplained delay of nearly 10 years in transferring the PF accumulations.
The commission stated, “It is safe to hold that there is definitely an inordinate and unexplained delay of nearly a decade on the part of EPFO in transferring the provident fund accumulations of the complainant, which in itself amounts to deficiency in service and unfair trade practice.”
The consumer commission directed EPFO to pay a lump sum compensation of ₹50,000 for harassment and litigation expenses. It also ordered EPFO to comply within 60 days. Failing this, the amount will attract interest at 9 percent per annum until payment is completed.
The case highlights concerns related to delays in PF account transfers and interest credit issues faced by employees during account migration.
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