Schedule iv of IT Act violation

This is a sensitive and important issue involving pension fund trustees not acting, leading to superannuated members not receiving their annuity. Here’s a breakdown of the situation and possible remedies:

Scenario:

• Trustees of the Pension Fund for bargainable staff are dormant/inactive.

• The Master Policy with LIC exists but is not effectively managed.

• The Commissioner of Income Tax is also inactive in this matter.

• Superannuated members are not receiving their due annuities.

• The employer is silent and not taking responsibility.

Possible Legal & Practical Remedies:

1. Invoke Trust Law / Trustees Act

• Trustees have fiduciary duties under the Indian Trusts Act, 1882, and possibly the Trustees Act, 1882.

• Members can demand the trustees to act or can move to remove defaulting trustees via a court petition.

• A Public Interest Litigation (PIL) or a writ petition may be filed in the High Court for enforcement of trustees’ duties.

2. Approach the Insurance Regulatory and Development Authority (IRDA)

• Since the pension scheme is linked to a Master Policy with LIC, IRDA can be approached for non-compliance or mismanagement complaints.

• IRDA has powers to intervene in insurance-related disputes.

3. Complaint to Income Tax Authorities

• Though the Commissioner of Income Tax seems inactive, filing a formal written complaint with higher authorities or the Principal Commissioner might trigger action.

• The pension fund may be enjoying tax benefits; inactivity might attract scrutiny under tax law provisions.

4. Labour & Employees Provident Fund Organisation (EPFO)

• If the pension fund has links with statutory bodies like EPFO or if there is a Employees Pension Scheme, the members can approach EPFO for grievance redressal.

• Labour courts may be engaged for enforcement of benefits.

5. Civil Suit for Recovery of Benefits

• Members may file a civil suit for recovery of the pension amounts due as per the terms of the fund.

• Injunctive relief can be sought against the employer or trustees to compel payment.

6. Seek Intervention via Consumer Protection Act

• If the pension fund services are considered as service under the Consumer Protection Act, members may approach Consumer Forums.

Immediate Steps You May Suggest to Members:

• Collect all relevant documents: Master Policy, trust deeds, previous correspondences.

• Formally write to trustees and employer requesting action.

• If no response, approach legal counsel for filing petitions (Writ/PIL/Complaint).

• Reach out to IRDA and higher income tax authorities.

• Publicize issue if necessary through media or social organizations for pressure.

Summary Table