EPFO to help subscribers get allotment of homes left unsold by housing boards

Close on the heels of allowing withdrawals of 90 percent of provident fund (PF) corpus for housing, the Employees’ Provident Fund Organisation (EPFO) is now planning to help its subscribers to set up cooperative housing societies that would negotiate deals for its members for unsold homes built by state housing boards.

In a communication to its field offices, the EPFO has asked its Regional Provident Fund Commissioners (RPFCs) to establish contact with the state housing boards or other government authorities constructing houses to urge them to allot unsold units to provident fund subscribers.

“There are a number of state housing boards or other authorities owned by the government which construct and sell houses. In certain cases their houses remain unsold. Considering this it is advised that RPFCs in charge of Regional Offices should contact all such housing board/authorities in their jurisdiction and persuade them for allotment of such unsold houses directly to the PF Workers’ Cooperative societies,” the communication has said.

It has, however, said that the EPFO shall not recommend or be associated in the agreement with any particular housing agency/housing society in any way.

The communication also asks the RPFC to take up the issue directly with workers and employers registered with it. “RPFCs should also discuss the issue with PF Workers;’ Unions and employers of establishment for formation of cooperative societies so that the concerned society may also negotiate with such housing board/authorities,” it said.

The EPFO had recently relaxed its withdrawal norms to allow subscribers to fund housing requirements out of their accumulated PF corpus. As per the new norms, a PF subscriber can withdraw up to 90 percent from his or her PF accumulation for purchase of a house or flat or construction of a house and acquisition of a site. However, this will be allowed only if the subscriber is a member of a co-operative or housing society with at least 10 members.

Also, the person who is seeking withdrawal has to be a member of EPFO for at least three years and accumulation in the member's PF account (single or together with the spouse) has to be more than Rs 20,000 including interest. The EPFO has specified that the facility will be provided only once for a subscriber.