Supreme Court Strikes Down 100-Year-Old GPF Limit, Upholds Nominee's Full Payout Right
India
M
Moneycontrol•31-01-2026, 21:04
Supreme Court Strikes Down 100-Year-Old GPF Limit, Upholds Nominee's Full Payout Right
- •The Supreme Court ruled that a valid nominee is entitled to the entire General Provident Fund (GPF) balance of a deceased employee, regardless of the amount.
- •The ruling eliminates the need for a succession certificate, probate, or letters of administration for nominees to receive GPF funds.
- •Justices Manoj Mishra and Manmohan dismissed the Central government's appeal, upholding the Calcutta High Court's decision.
- •The Court rejected the Centre's argument that the Provident Funds Act, 1925, overrides the General Provident Fund (Central Services) Rules, 1960, specifically Rule 33(ii).
- •The 100-year-old Rs 5,000 GPF limit was deemed irrelevant due to inflationary market forces, and the purpose of nomination was emphasized.
Why It Matters: Supreme Court ensures GPF nominees receive full payout without legal heir documents, striking down an outdated limit.
✦
More like this
Loading more articles...
