Tata Motors in legal battle with EPFO over pension fund transfer
Tata Motors, among a few companies having its own exempted pension fund, is locked in a legal battle with the Employees' Provident Fund Organisation (EPFO) over the transfer of pension funds.
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The automaker had sought to surrender the exemption status and transfer its employee provident fund corpus to the EPFO, but the pension funds body wants the company to provide details of documents and other information in relation to the pension corpus of all the employees. The EPFO has claimed that the information on certain accounts was deficient to allow the transfer, show court filing seen by ET.
Government sources told ET that while the EPFO has agreed to the transfer of the corpus related to provident fund, it is the pension scheme where it is seeking the details. The EPFO has asked Tata Motors to conduct a proper audit of its books and records of the pension funds while rejecting the company's right to surrender the exemption status.
Tata Motors did not comment.
Paragraphs 38 and 39 of the Employee Pension Scheme allows the government to grant exemption to an establishment from the operation of the pension scheme. The EPFO wants the criteria under this section to be complied with before it allows the company's plea, an official said.
Tata Motors had incurred losses for three consecutive years (2019-20, 2020-21 and 2021-22) and sought automatic
