The Supreme Court of India, by an order dated August 28, 2019, dismissed the review petition in the matter of Surya Roshni Limited v. Employees Provident Fund. The review petition was filed against the decision in the matter of Regional Provident Fund Commissioner v. Vivekananda Vidyamandir,1 in which the Supreme Court held that certain allowances (particularly special allowance) given to employees would be considered a part of basic wages for the purposes for computation of provident fund contribution.

Additionally, the Employees' Provident Fund Organisation, by way of a Circular dated August 28, 2019 directed its officers to cease pursuing matters in the absence of prima facie evidence of arbitrary bifurcation of wages with the intention to avoid liability under the Employees' Provident Fund and Miscellaneous Provisions Act, 1952. The Circular also stated that such action would amount to roving inquiries/investigations which are impermissible under law. The Circular further directed officers to carry out investigations only with the permission of the Central Analysis Intelligence Unit and in accordance with administrative guidelines issued in this regard.


1 Regional Provident Fund Commissioner v. Vivekananda Vidyamandir; 2019 SCC OnLine SC 291.

Originally published September 30, 2019.

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