law: Employee's Provident Funds Miscellaneous Provisions Act, 1952
  17. Power to exempt
  (1) The appropriate government may, by
  
  notification in the Official Gazette, and subject to such conditions as may be
  
  specified in the notification, 165[exempt, whether prospectively or
  
  retrospectively, from the operation] of all or any of the provisions of any
  
  Scheme:
  (a) any [establishment]
  
  to which this Act applies if, in the opinion of the appropriate government, the
  
  rules of its provident fund with respect to the rates of contribution are not
  
  less favorable than those specified in section 6 and the employees are also in
  
  enjoyment of other provident fund benefits which on the whole are not less
  
  favorable to the employees than the benefits provided under this Act or any
  
  Scheme in relation to the employees in any other 1establishment] of
  
  similar character, or
  (b) any
  
  [establishment] if the employees of such [establishment] are in enjoyment of
  
  benefits in the nature of provident fund, pension or gratuity and the
  
  appropriate government is of opinion that such benefits, separately or jointly,
  
  are on the whole not less favorable to such employees than the benefits
  
  provided under this Act or any Scheme in relation the employees in any other
  
  [establishment] of a similar character.
  [PROVIDED that no such exemption shall
  
  be made except after consultation with the Central Board which on such consultation
  
  shall forward its views on exemption to the appropriate government within such
  
  time limit as may be specified in the Scheme.]
  (1A) Where an exemption has been granted to an
  
  establishment under clause (a) of sub-section (1),
  (a) the provisions of sections
  
  6, 7A, 8 and 14B shall, so far as may be, apply to the employer of the exempted
  
  establishment in addition to such other conditions as may be specified in the
  
  notification granting such exemption, and where such employer contravenes, or
  
  makes default in complying with any of the said provisions or conditions or any
  
  other provision of this Act, he shall be punishable under section 14 as if the
  
  said establishment had not been exempted under the said clause (a);
  (b) the employer shall
  
  establish a Board of Trustees for the administration of the Provident Fund
  
  consisting of such number of members as may be specified in the Scheme;
  (c) the terms and
  
  conditions of service of members of the Board of Trustees shall be such as may
  
  be specified in the Scheme;
  (d) the Board of
  
  Trustees constituted under clause (b) shall-
  (i) maintain detailed
  
  accounts to show the contributions credited, withdrawals made and interest
  
  accrued in respect of each employee;
  (ii) submit such
  
  returns to the Regional Provident Fund Commissioner or any other officer as the
  
  Central Government may direct from time to time;
  (iii) invest the
  
  provident fund monies in accordance with the directions issued by the Central
  
  Government from time to time;
  (iv) transfer, where
  
  necessary, the provident fund account of any employee; and
  (v) perform such other
  
  duties as may be specified in the Scheme.
  (1B) Where the Board of Trustees established
  
  under clause (b) of sub-section (1A) contravenes, or makes default in complying
  
  with, any provisions of clause (d) of that sub-section, the Trustees of the
  
  said Board shall be deemed to have committed an offence under sub-section (2A)
  
  of section 14 and shall be punishable with the penalties provided in that
  
  sub-section.
  (1C) The appropriate government may, by
  
  notification in the Official Gazette, and subject to the condition on the
  
  pattern of investment of pension fund and such other conditions as may be
  
  specified therein, exempt any establishment or class of establishments from the
  
  operation of the Pension Scheme if the employees of such establishment or class
  
  of establishments are either members of any other pension scheme or propose to
  
  be members of such pension scheme, where the pensionary benefits are at par or
  
  more favorable than the Pension Scheme under this Act,]
  (2) Any Scheme may make provision for
  
  exemption of any person or class of persons employed in any [establishment] to
  
  which the Scheme applies from the operation of all or any of the provisions of
  
  the Scheme, if such person or class of persons is entitled to benefits in the
  
  nature of provident fund, gratuity or old age pension and such benefits,
  
  separately or jointly, are on the whole not less favorable than the benefits
  
  provided under this Act or the Scheme:
  PROVIDED that no such exemption shall be granted
  
  in respect of a class of persons unless the appropriate government is of
  
  opinion that the majority of persons constituting such class desire to continue
  
  to be entitled to such benefits.
  (2A) The Central Provident Fund Commissioner
  
  may, if requested so to do by the employer, by notification in the Official
  
  Gazette, and subject to such conditions as may be specified in the
  
  notification, exempt, whether prospectively or retrospectively, any establishment
  
  from the operation of all or any of the provisions of the Insurance Scheme, if
  
  he is satisfied] that the employees of such establishment are, without making
  
  any separate contribution or payment of premium, in enjoyment of benefits in
  
  the nature of life insurance, whether linked to their deposits in provident
  
  fund or not, and such benefits are more favorable to such employees than the
  
  benefits admissible under the Insurance Scheme.
  (2B) Without prejudice to the provisions of
  
  sub-section (2A), the Insurance Scheme may provide for the exemption of any
  
  person or class of persons employed in any establishment and covered by that
  
  Scheme from the operation of all or any of the provisions thereof, if the
  
  benefits in the nature of life insurance admissible to such person or class of
  
  persons are more favorable than the benefits provided under the Insurance
  
  Scheme.]
  (3) Where in respect of any person or class of
  
  persons employed in an establishment an exemption is granted under this section
  
  from the operation of all or any of the provisions of any scheme (whether such
  
  exemption has been granted to the establishment wherein such person or class of
  
  persons is employed or to the person or class of persons as such), the employer
  
  in relation to such establishment-
  (a) shall, in relation
  
  to the provident fund, pension and gratuity to which any such person or class
  
  of persons is entitled, maintain such accounts, submit such returns, make such
  
  investment, provide for such facilities for inspection and pay such inspection
  
  charges, as the Central Government may direct;
  (b) shall not, at any
  
  time after the exemption, without the leave of the Central Government, reduce
  
  the total quantum of benefits in the nature of pension, gratuity or provident
  
  fund to which any person or class of persons was entitled at the time of the
  
  exemption; and
  (c) shall, where any
  
  such person leaves his employment and obtains re-employment in another
  
  establishment to which this Act applies, transfer within such time as may be
  
  specified in this behalf by the Central Government, the amount of
  
  accumulations, to the credit of that person in the provident fund of the
  
  establishment left by him to the credit of that person's account in the
  
  provident fund of the establishment in which he is re-employed or, as the case
  
  may be, in the fund established under the Scheme applicable to the
  
  establishment.]
  (3A) Where, in respect of any person or class
  
  of persons employed in any establishment, an exemption is granted under
  
  sub-section (2A) or sub-section (2B) from the operation of all or any of the
  
  provisions of the Insurance Scheme (whether such exemption is granted to the
  
  establishment wherein such person or class of persons is employed or to the
  
  person or class of persons as such), the employer in relation to such
  
  establishment:
  (a) shall, in relation
  
  to the benefits in the nature of life insurance, to which any such person or
  
  class of persons is entitled, or any insurance fund, maintain such accounts,
  
  submit such returns, make such investments, provide for such facilities for
  
  inspection and pay such inspection charges, as the Central Government may
  
  direct;
  (b) shall not, at any
  
  time after the exemption without the leave of the Central Government, reduce
  
  the total quantum of benefits in the nature of life insurance to which any such
  
  person or class of persons was entitled immediately before the date of the
  
  exemption;
  (4) any exemption granted under this section
  
  may be cancelled by the authority which granted it, by order in writing, if an
  
  employer fails to comply, -
  (a) in the case of an
  
  exemption granted under sub-section (1), with any of the conditions imposed
  
  under that sub-section or sub-section(1A)or with any of the provisions of the
  
  sub-section (3);
  (aa) in the case of an
  
  exemption granted under sub-section (1C), with any of the conditions imposed
  
  under that sub-section; and
  (b) in the case of an
  
  exemption granted under sub-section (2), with any of the provisions of
  
  sub-section (3);
  (c) in the case of an
  
  exemption granted under sub-section (2A), with any of the conditions imposed
  
  under that sub-section or with any of the provisions of sub-section (3A);
  (d) in the case of an
  
  exemption granted under sub-section (2B), with any of the provisions of
  
  sub-section (3A).]
  (5) Where any exemption granted under
  
  sub-section (1), sub-section (1C), sub-section (2), sub-section (2A) or
  
  sub-section (2B)] is cancelled, the amount of accumulations to the credit of
  
  every employee to whom such exemption applied, in the provident fund, [the
  
  [Pension] Fund or the Insurance Fund] of the establishment in which he is
  
  employed together with any amount forfeited from the employer's share of
  
  contribution to the credit of the employee who leaves the employment before the
  
  completion of the full period of service] shall be transferred within such time
  
  and in such manner as may be specified in the Scheme or the [Pension] Scheme
  
  [or the Insurance Scheme] to the credit of his account in the Fund or the
  
  [Pension] Fund [or the Insurance Fund], as the case may be.]
  (6) Subject to the provisions of sub-section
  
  [(1C)], the employer of an exempted establishment to which the provisions of
  
  the [Pension] Scheme apply, shall, notwithstanding any exemption granted under
  
  sub-section (1) or sub-section (2), pay to the [Pension] Fund such portion of
  
  the employers contribution  to its provident fund within such time and in
  
  such manner as may be specified in the [Pension] Scheme.]