Written by: Harpreet Bajwa
2 min readChandigarhFeb 19, 2011 01:01 AM IST
First published on: Feb 19, 2011 at 01:01 AM IST
Anticipating massive withdrawals from General Provident Fund (GPF),the cash strapped Punjab government has tightened rules to countercheck all premature withdrawals. An advisory has been issued that claims of employees withdrawing GPF for housing loans should be properly verified.
Sources said the Finance Department has told its Treasury Wing to go slow on payment of gratuity,leave encashment and the final payment of GPF to retirees. Employees will also find it difficult to get loans from their GPF accounts for housing,daughter’s marriage and vehicle purchase,as the government has indicated that proper procedure will have to be followed.
Applicants for housing loans will need to attach details of the property; for vehicle loans,a copy of the registration certificate,and for daughter’s marriage,a wedding card. “Payment of bills of housing loans have been stopped,as per the latest instructions. Many officers have applied for loans from GPF as they have to pay the installment of the housing loan,as they have taken plots at Mullanpur in the IAS-PCS Officers’ Society and these requests have been turned down,’’ said an officer.
The financial crisis in the state is obvious from the fact that the government has not been making payments of arrears of the past many months of the revised pay scales,as it has stated that arrears will be given in three installments. The first installment due in May 2011 will cover 40 per cent arrears. The next two to be paid in May 2012 and May 2013,will account for 30 per cent each of the arrears.
Sources pointed out that the state government stands to gain by delaying GPF payouts as it can seek bigger loans from financial institutions if it has more money to show in its accounts.
But an officer in the finance department pointed out that in many cases employees were taking these loans just saying they are buying a car or there’s a marriage in the family but in reality it was not so.
Finance department figures show,in 2009-10 employees contributed Rs 2,140 crore in GPF and withdrew Rs 1,320 crore.
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