Section 16A. Authorising certain employers to maintain provident fund accounts

(1) The Central Government may, on an application made to it in this behalf by the employer and the majority of employees in relation to an establishment employing one hundred or more persons, authorise the employer, by an order in writing, to maintain a provident fund account in relation to the establishment, subject to such terms and conditions as may be specified in the Scheme: Provided that no authorisation shall be made under this sub-section if the employer of such establishment had committed any default in the payment of provident fund contribution or had committed any other offence under this Act during the three years immediately preceding the date of such authorisation. (2) Where an establishment is authorised to maintain a provident fund account under sub-section (1), the employer in relation to such establishment shall maintain such account, submit such return, deposit the contribution in such manner, provide for such facilities for inspection, pay such administrative charges, and abide by such other terms and conditions, as may be specified in the Scheme. (3) Any authorisation made under this section may be cancelled by the Central Government by order in writing if the employer fails to comply with any of the terms and conditions of the authorisation or where he commits any offence under any provision of this Act: Provided that before cancelling the authorisation, the Central Government shall give the employer a reasonable opportunity of being heard.] Note: 1. Subs. by Act 94 of 1956, s. 3, for “factory”. Note: 2. Subs. by Act 37 of 1953, s. 14, for certain words. Note: 3. Subs. by Act 94 of 1956, s. 3, for “a factory”. Note: 4. Subs. by Act 46 of 1960, s. 5, for sub-section (1) (w.e.f. 31-12-1960). Note: 5. Subs. by Act 33 of 1988, s. 21, for clause (b) (w.e.f. 1-8-1988). Note: 6. The word “or” omitted by Act 10 of 1998, s. 5 (w.e.f. 22-9-1997). Note: 7. Omitted by s. 5, ibid. (w.e.f. 22-9-1997). Note: 8. Ins. by Act 37 of 1953, s. 15. Note: 9. Subs. by Act 94 of 1956, s. 3, for “factories”. Note: 10. Ins. by Act 33 of 1988, s. 21 (w.e.f. 1-8-1988). Note: 11. Section 16 A shall stand ins (date to be notified) by s. 22, ibid.