Petitioners state that the 1st Petitioner is a company deemed to be registered under the Companies Act and is engaged in the business of manufacturing various engineering and allied products in its units situated all over India and it was exempted under the Employees Provident Funds and Miscellaneous Provisions Act, 1952 (for short, ‘the Act’), bearing Code No. AP/PTC/6330.

1.1. Petitioners state that the 1st Petitioner is a 45-year-old company running its own Provident Fund Trust through its Trustees under the name and style of NSL PF Trust No.6330, which is the 2nd Petitioner. The said Trust was duly approved by the EPF Authorities and since its inception, it maintained its activities with due diligence, without any issue, and has served all its members to their satisfaction without any complaint of any nature.

1.2. In accordance with the provisions of the EPF & MP Act, 1952, the 2nd Petitioner resolved vide Trustees' Resolution dated 10.02.2023 to surrender the exemption granted to the Trust and to transfer the management of Provident Fund accounts to the statutory authorities, namely the Regional Provident Fund Commissioner, Patancheru. Petitioners state that pursuant thereto, all details were transferred to the said Authority with effect from 01.03.2023 vide letter dated 16.02.2023, and from that date onwards, the PF subscriptions of all NSL Trust members were continuously remitted to the statutory authorities without any default.

1.3. Petitioners state that after resolving to surrender the exemption, the 2nd Petitioner approached the authorities concerned seeking guidance with regard to the process of surrendering the Trust's past accumulations of its members and also sought clarification regarding surrender of the invested funds of the NSL PF Trust in various Government bonds, mutual funds and other securities. The 1st Respondent, through departmental officials, furnished information vide letter dated 09.03.2023 specifying the required documentation and procedure. Accordingly, the 2nd Petitioner submitted the Trustees Resolution and other relevant documents to the 1st Respondent vide letter dated 10.03.2023. The Petitioners further state that the 1st Respondent issued another letter dated 29.03.2023 providing further details regarding surrender of the Trust and its properties.

1.4. Petitioners contend that after gathering the required information and understanding the formalities, the process took approximately two to three months as the 2nd Petitioner was advised by the Provident Fund Department authorities to liquidate all invested amounts in Government securities, banks and other instruments and thereafter deposit the consolidated amount into the account of the PF authorities. Meanwhile, the PF authorities issued another letter dated 09.05.2023 requiring the 2nd Petitioner to provide the statement of past accumulations within 30 days and to deposit 100% of the past accumulations within 15 days thereafter. In response thereto, the 2nd Petitioner submitted its reply dated 30.05.2023 along with statements of past accumulations and the minutes of the Trustees' meeting dated 27.05.2023.

1.5. Due to the statutory formalities involved and the process of liquidation of investments, the entire procedure took around three and a half months. It is stated, ultimately, the 2nd petitioner surrendered the past accumulated funds amounting to Rs.5,09,32,844/- towards PF contributions together with interest on contributions amounting to Rs. 16,76,400/- for the period from April 2023 to July 2023, vide Demand Draft dated 21.07.2023, and submitted the same on 04.08.2023 along with all relevant details, income and expenditure statements and balance sheets, and requested cancellation of the exemption granted to the 1st petitioner.

1.6. It is contended, as per the instructions of the PF Department to deposit all past accumulations in cash, the 2nd petitioner encashed all deposits, securities and bonds. On account of premature e