GPF WITHDRAWL

[Rakesh Sharma]

can Government employee under suspension eligible to draw money from his GPF account?

[Dr. Ashok Dhamija]

As far as I understand, there is no restriction on a suspended Government employee from withdrawing money from his General Provident Fund or for taking temporary advance from his GPF.

However, a Government servant who is under suspension, need not pay subscription to his GPF account, during the period of his suspension. For example, see Rule 7 of the General Provident Fund (Central Services) Rules, 1960, lays down as under:

“7. Conditions of subscriptions (1) A subscriber shall subscribe monthly to the Fund except during the period when he is under suspension:

Provided that a subscriber may, at his option, not subscribe during leave which either does not carry any leave salary or carries leave salary equal to or less than half pay or half average pay:

Provided further that a subscriber on reinstatement after a period passed under suspension shall be allowed the option of paying in one lump sum, or in installments, any sum not exceeding the maximum amount of arrear subscriptions payable for that period.”

But, there appears to be no restriction on a Government servant under suspension from withdrawing money from his GPF or for taking temporary advance therefrom. He is subject to the same conditions, as any other regular employee, for the purposes of withdrawing money from GPF. For example, Rule 15 of the General Provident Fund (Central Services) Rules, 1960, which lays down provisions for withdrawal of money from GPF is reproduced as below:

“15. Withdrawals from the Fund –

(1) Subject to the conditions specified therein, withdrawals may be sanctioned by the authorities competent to sanction an advance for special reasons under sub-rule (2) of Rule 12, at any time-

(A) after the completion of fifteen years of service (including broken periods of service, if any) of a subscriber or within ten years before the date of his retirement on superannuation, whichever is earlier, from the amount standing to his credit in the Fund, for one or more of the following purposes, namely:-

(a) meeting the cost of higher education, including where necessary, the travelling expenses of the subscriber or any child of the subscriber in the following cases, namely:-

(i) for education outside India for academic, technical, professional or vocational course beyond the High School stage; and

(ii) for any medical, engineering or other technical or specialized course in India beyond the High School stage;

(b) meeting the expenditure in connection with the betrothal/ marriage of the subscriber or his sons or his daughters, and any other female relation actually dependent on him;

(c) meeting the expenses in connection with the illness, including where necessary, the travelling expenses of the subscriber and members of his family or any person actually dependent on him;

(d) meeting the cost of consumer durables such as TV, VCR/VCP, washing machines, cooking range, geysers and computers.

(B) During the service of a subscriber from the amount standing to his credit in the Fund for one or more of the following purposes, namely:

(a) building or acquiring a suitable house or ready-built flat for his residence including the cost of the site or any payment towards allotment of a plot or flat by the Delhi Development Authority, State Housing Board or a House Building Society;

(b) repaying an outstanding amount on account of loan expressly taken for building or acquiring a suitable house or ready-built flat for his residence;

(c) purchasing a house-site for building a house thereon for his residence or repaying any outstanding amount on account of loan expressly taken for this purpose;

(d) reconstructing or making additions or alterations to a house or a flat already owned or acquired by a subscriber;

(e) renovating, additions or alterations or upkeep of an ancestral house or a house built with the assistance of loan from Government;

(f) constructing a house on a site purchased under clause (c)

(C) within twelve months before the date of subscriber’s retirement on superannuation from the amount standing to the credit in the Fund, without linking to any purpose. (D) Once during the course of a financial year, an amount equivalent to one year’s subscription paid for by the subscriber towards the Group Insurance Scheme for the Central Government employees on self-financing and contributory basis.”

The rule does not contain any restriction for a suspended employee for withdrawing money from GPF.

     

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Dr. Ashok Dhamija is a New Delhi based Supreme Court Advocate and author of law books. Read more about him by clicking here. List of his Forum Replies. List of his other articles. List of his Quora Answers. List of his YouTube Videos.

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