Section 16 – Employees State Insurance Corporation (General Provident Fund) Rules, 1995

16. Wrongful use of advance

Notwithstanding anything contained in these rules, if the sanctioning authority has reason to doubt that money drawn as an advance from the fund under rule 14 has been utilized for a purpose other than that for which sanction was given to the drawal of the money, he shall communicate to the subscriber the reasons for his doubt and require him to explain in writing and within 15 days of the receipt of such communication whether the advance has been utilized for the purpose for which sanction was given to the drawal of the money. If the sanctioning authority is not satisfied with the explanation furnished by the subscriber within the said period of 15 days, the sanctioning authority shall direct the subscriber to repay the amount in question to the fund forthwith or, in default, order the amount to be recovered by deduction in one sum from the emoluments of the subscriber even if he be on leave. If, however, the total amount to be repaid be more than half the subscriber’s emoluments, recoveries shall be made in monthly installments of moieties of his emoluments till the entire amount is repaid by him.

Note: The term ’emoluments’ in this rule shall not include subsistence grant.

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