REGISTERED No. D-(D)-72
The Gazette of India
PART II—Section 2
PUBLISHED BY AUTHORITY
No. 9] NEW DELHI, SATURDAY, JUNE II, 1977/JYAISTHA21,1899
Separate paging is given to this Part in order that it may be filed as a separate compilation
LOK SABHA
The following Bill was introduced in Lok Sabha on the 11th June,
1977: —
BILL NO, 47 OF 1977
A Bill further to amend the Additional Emoluments (Compulsory Deposit)
Act, 1974.
BE it enacted by Parliament in the Twenty-eighth Year of the Republic
of India as follows:—
1. (1) This Act may be called the Additional Emoluments (Compulsory
Deposit) Amendment Act, 1977.
Short title and com- mence- ment.
(2) It shall be deemed to have come into force on the 6th day of May,
1977.
37 of 1974.
Amend- ment of section 6.
2. In clause (b) of sub-section (1) of section 6 of the Additional
Emoluments (Compulsory Deposit) Act, 1974 (hereinafter referred to as
the principal Act>, for the words "three years", the words "two years and
ten months" shall be substituted.
3. In section 9 of the principal Act,—
Amend- ment of section 9.
(a) in sub-section (1), for the words, brackets and figure
"provisions of sub-section (2)", the words "other provisions of this
section" shall be substituted;
(117)
n8 THE GAZETTE OF INDIA EXTRAORDINAEY [PART II—(b) to sub-section (3), the following provisos shall be added, namely: —
"Provided that repayment of the second annual Instalment
due on the 6th day of July, 1877, to the employees who subscribe
to any provident fund shall not be made in cash but the amount
payable towards the said instalment together with Interest
payable under this sub-section shall be credited to the provident
fund account of the concerned employee:
19 of 1952.
Provided further that the employer shall not be required to make any contribution undei the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, or under any other law for the time being in force, in relation to the amounts so credited to the provident fund account of the concerned employee.";
(c) in the first proviso to sub-section (4), after the words "Employees' Provident Funds", the words "and Miscellaneous Provisions" shall be inserted.
4. (1) The Additional Emoluments (Compulsory Deposit) Amendment
7 ol 1977.
Ordinance, 1977 is hereby repealed.
Repeal and saving.
(2) Notwithstanding such repeal, anything done or any action taken under the principal Act, as amended by the said Ordinance, shall be deemed to have been done or taken under the principal Act as amended by this Act.
SEC. 2] THE GAZETTE OF INDIA EXTRAOflDINARV u9STATEMENT OF OBJECTS AND REASONS
The Additional Emoluments (Compulsory Deposit) ^.c*, 1P74, read with the Additional Emoluments (Compulsory Deposit) Amendment Act, 1976, provided for the compulsory deposit of one-half of the additional dearness allowance for a period of three years from 6th July, 1974.
2 With a view to ensuring that one-half of the adjitional deamess allowance is not impounded any longer, the Additional Emoluments (Compulsory Deposit) Amendment Ordinance, 1977, was promulgated by the Vice-President acting as President on the 9th May, 1977. The Ordinance provides for the discontinuance of the compulsory deposit of one-half of the additional dearness allowance with effect from the bth May, ,1977. As any large addition to the stream of spending m the present delicate siate of economy may accentuate inflationary pressures, the Ordinance further provides that repayment of the second instalment of the impounded additional dearness allowance together with accrued interest, due on 6th July, 1977, shall be made by crediting the amount due to the provident fund account of the employee if he has any such account, The Ordinance also makes it clear that in respect of such credit to the provident fund account, there will be no matching contribution from the employer under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952. Where, however, an employee does not subscribe to any provident fund, the repayment of the said instalment will be made in cash
3. The Bill seeks to replace the said Ordinance.
NEW DELHI; H M PATEL.
The 24th May, 1977.
T2Q THE GAZETTE OF INDIA EXTRAORDINARY LPART I I- S E C. 2]FINANCIAL MEMORANDUM
Clause 2 of the Bill provides that compulsory deposit of one-half of the additional dearness allowance under the Act will now be only for a period of two years and ten months from the appointed day, instead of three years. This reduction in the period of compulsory deposit wili correspondingly reduce the quantum of total compulsory deposits, by approximately Rs. 84 crores. Since deposits under the Act carry a rate of interest which is 2\ per cent, over and above the maximum bank deposit rate, the total interest liability of Government will consequently be reduced by Rs 31 crores, approximately.
2. Sub-clause (b) of clause 3 of the Bill provides that repayments, along with accrued interest, due on 6th July, 1977, of the second annual instalment of the additional dearness allowance deposits, will be credited to the provident fund account of the employee, if he has any such account It is estimated that the total repayments due as above will be approximately Rs 326 croret. (Rs 220 crores towards principal and Rs, 106 crores towards accrued interest) A major portion of this amount will be credited to the provident fund accounts of the employees, though some amounts will also be paid in cash to employees who do not subscribe to any provident fund.
3 The Bill, if enacted, will not involve any other recurring or
non-recurring expenditure.
S. L. SHAKDHER,