2016 amendment, upon cessation of employment or death of an employee or transfer, if an application for withdrawal under Paragraph 69 or 70, was not filed within a period of 36 months from the date when the accumulated fund becomes payable, it could have led to an account being declared Digitally Signed By:DEVANSHU JOSHI Signing Date:20.09.2021 17:25:23 inoperative. Whereas, post the 2016 amendment, an account would become inoperative only if a member has retired from service after attaining age fifty-five years or migrated abroad permanently or died, without having filed an application for withdrawal under Paragraph 69 or 70 within a period of 36 months from the date the accumulation becomes payable. Thus, prior to 2016, in case of cessation of employment from one employer to another or transfer of the employee from one establishment to another, where the latter employer or establishment is not covered under the Act, if an application for withdrawal of the amount was not filed within 36 months, the account would be rendered inoperative. Post-2016, if the employee, even in the case of transfer to an employer or establishment not covered by the Act, fails to file an application for withdrawal of the amounts in his account within 36 months, the account would not be rendered inoperative. The second proviso to Paragraph 72(6) also gave benefit to such persons who may have received supplementary contributions. If the claim sent to such employees is returned due to reasons not attributable to the said employee, then the account would not be treated as inoperative and would continue to earn interest. Thus, the 2016 amendment, extended benefit to only a class of persons and not to all persons whose accounts were rendered inoperative. It is clear that the Press Release which was issued was not fully given effect to in the amendments, as the amendments did not extend the benefit to all categories of persons, despite claiming so.
