Section 17
Transfer Of Capital
(1) The capital and liabilities of the civil provident fund,
military monetary fund and employee’s provident fund operated by the
Government of Nepal by the date prior to the commencement of this Act
shall be deemed to have been transferred to the Fund after the
commencement of this Act. The Government of Nepal shall hand over the
records, documents relating to the capital and liabilities of these funds and
the business to be carried out under this Act to the Fund within Six months
after the commencement of this Act; and after so receiving the capital,
liabilities and concerned records and documents, moneys already in deposit
in the name of employees prior to the commencement of this Act shall be
deemed to have been deposited in the name of employees, and such moneys
shall be operated under this Act.
(2) In receiving the capital and liabilities pursuant to Sub-section (1), if the
Fund finds that all or some of the principal or interest or both out of the
capital invested by the civil provident fund, military monetary fund and
employee’s provident fund cannot be recovered, the Fund shall be deemed to
have received such capital investment only by the price/value as valuated by
the Fund in relation to the capital and investment. Despite receipt by the
Fund of such capital, investment, such money as remaining shortfall in that
capital, investment shall be available to the Fund from the Consolidated
Fund of the Government of Nepal.
(3) Prior to receiving the capital, investment as held to be of lesser value or
unrecoverable pursuant to Sub-section (2), the Fund shall give a report
indicating the actual statements, condition of such capital, investment and
valuation thereof according to the market value, to the Government of
Nepal.
(4) Upon receipt of a report pursuant to Sub-section (3), the Government of
Nepal may send a directive to the Fund within Three months that the
Government of Nepal shall take over such capital, investment, and that
money of such capital and investment shall be immediately available to the
Fund from the Consolidated Fund of the Government of Nepal. The Fund
shall abide by such a directive.
military monetary fund and employee’s provident fund operated by the
Government of Nepal by the date prior to the commencement of this Act
shall be deemed to have been transferred to the Fund after the
commencement of this Act. The Government of Nepal shall hand over the
records, documents relating to the capital and liabilities of these funds and
the business to be carried out under this Act to the Fund within Six months
after the commencement of this Act; and after so receiving the capital,
liabilities and concerned records and documents, moneys already in deposit
in the name of employees prior to the commencement of this Act shall be
deemed to have been deposited in the name of employees, and such moneys
shall be operated under this Act.
(2) In receiving the capital and liabilities pursuant to Sub-section (1), if the
Fund finds that all or some of the principal or interest or both out of the
capital invested by the civil provident fund, military monetary fund and
employee’s provident fund cannot be recovered, the Fund shall be deemed to
have received such capital investment only by the price/value as valuated by
the Fund in relation to the capital and investment. Despite receipt by the
Fund of such capital, investment, such money as remaining shortfall in that
capital, investment shall be available to the Fund from the Consolidated
Fund of the Government of Nepal.
(3) Prior to receiving the capital, investment as held to be of lesser value or
unrecoverable pursuant to Sub-section (2), the Fund shall give a report
indicating the actual statements, condition of such capital, investment and
valuation thereof according to the market value, to the Government of
Nepal.
(4) Upon receipt of a report pursuant to Sub-section (3), the Government of
Nepal may send a directive to the Fund within Three months that the
Government of Nepal shall take over such capital, investment, and that
money of such capital and investment shall be immediately available to the
Fund from the Consolidated Fund of the Government of Nepal. The Fund
shall abide by such a directive.