2000 - 01 - Epfo

The analysis and factual position suggested the following:
(i) The system of dividing jurisdiction amongst Inspectors on a territorial basis
was not meeting the required goals behind the procedure. If such large nonreporting
or under-reporting of liability was possible by the concerned
establishments without the same being brought to the notice of the authorities
concerned, it is obvious that the system was not delivering.
(ii) It was not prudent to rest the compliance function of such a large
Organisatior. with such serious responsibilities on the subjective satisfaction
of one individual within a territorial jurisdiction. It was upto such official to
report default/aberration or not. It is also possible that it was too much of a job
for one individual.
(iii) There was a crying need to retool the system and bring more focus to the
compliance function.
(iv) !t was 'mperative that as a first measure the full effort should be towards
securing compliance from non-complying establishments.
Mandate
for Change
• Central Board of Trustees (EPF) considered the findings of Computerised Verification
and mandated the Organisation to take all corrective steps to rectify the situation
brought out by the Computer Audit.
• As per the directive of the eBT, EPF, the Organisation identified the systemic shortcomings
in the traditional system of Enforcement and put in place a revamped
information driven "Compliance Machinery" with focus on customer care.
In response to the above, a special program "Compliance 2001" mandated by the
Central Board of Trustees was put in place. Under this program, the following steps were
taken:
(i) The concept of area jurisdiction being given to individual Inspectors (who are
not gazetted officers) was dispensed with.
(ii) The compliance function was consolidated at the level of Assistant Provident
Fund Commissioners. In every Regional/Sub-regional Offices, compliance
circles consistent with the volume of work were credited under the charge of
individual APFCs.
(iii) The Inspectors were deployed within the control of these compliance circles
in appropriate numbers. The compliance function was put into an information
driven mode.
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