Clarification – Recovery or Attachment of GP Fund – AG 15.07.2004
OFFICE MEMORANDUM
Subject: Recovery or Attachment
Kindly refer to this office letter No. 1346 /CGA/165-Vig/C/2003 dated 10.7.2004 and find enclosed herewith a copy of decision received from Law, Justice and Human Rights Division, Islamabad for necessary action at your end.
Mr. Muhammad Riaz, Senior Accounts Clerk, Directorate of Accounts, Pakistan Post Office was dismissed from service on 7-3-2002 on account of allegedly withdrawing G.P. Fund amount worth Rs.8,35,315/- whereon his G.P Fund Account No. IV/P-19436 amounting to Rs.1,85,125/- was frozen by the Directorate General Pakistan Post Office for the adjustment of loss to the exchequer.
The referring department has mentioned that separate proceedings against Mr. Muhammad Riaz are still pending in the court which were instituted by the FIA, Lahore. The said official also filed an appeal before the Federal Service Tribunal for release of his G.P Fund accumulation, which has not yet been decided. On 18-3- 2004, the said official expedited and his widow has now made an application for release of G.P Fund balance.
2. In this regard section 3(1) of the Provident Fund Act, 1925 (XIX of 1925) is relevant which provides that compulsory deposit in any Government Provident Fund shall not in any way be capable of being assigned or charged and shall not be liable to adjustment under any decree of any civil, revenue or criminal court in respect of any debt or liability incurred by the subscriber.
Further, it is contained in Para 10.29 of chapter X on G.P Fund of Drawing & Disbursing Hand Book that the Government in not bound by or to recognize any assignment or encumbrance executed or attempted to be created which affect the disposal of the accumulations of a subscriber, who dies before retirement.
The accumulations of subscribers are not liable to forfeiture on dismissal or on conviction by a criminal court except for an offence for which the penalty of forfeiture of the offender’s property is prescribed by law. The accumulations are also protected from attachment by a Court of Law.
3. Thus in view of the above, the G.P Fund balance of late Muhammad Riaz could not be frozen by the Directorate General Post office for adjustment of any alleged loss and it seems to be free from any charge or encumbrance. Further, no forfeiture thereof could be made. It appears that a blanket projection has been given to the accumulation of G.P Fund and is not liable to any charge.
