Cutting across party lines, members in the Rajya Sabha on Tuesday criticised the Modi government’s decision to invest retirement funds with the Employees’ Provident Fund Organisation (EPFO) into the stock market.
Participating in a calling attention motion moved by Congress leader Ahmed Patel on “Alleged diversion of money from EPFO to the stock market”, BJP MP Satyanarayan Jatiya said the interest earned from stock markets was lower than the Centre’s 8.7 per cent interest to the PF amount.
Jatiya urged the Centre not to put the amount in stock markets.
“The amount is deducted from their (workers) salaries. The Centre should reconsider this move,” Jatiya said, while Opposition members thumped on their desks in approval.
Earlier, moving the motion, Patel said the Centre was playing with the hard-earned money of workers. He said the amount was put in stock markets without any guarantee from the Centre, adding that though some countries had invested their workers’ pension funds in stock markets, it was done with an assurance of interest with returns.
“The government did not take trade unions into confidence,” Patel added. CITU general secretary and CPI(M) MP Tapan Sen said the government had no right to decide when a worker withdraws his or her money from the EPFO.
Citing the Bengaluru garment sector protests, he said workers may be forced to turn violent, as the ruling BJP only understands the language of violence.
“Wherever a collective fund has been put in speculative markets, the result has been loss,” Sen added. Congress members termed the move as “dacoity” while nominated MP KTS Tulsi called it “daylight robbery”.
‘Positive direction’ Later, replying to the debate, Labour and Employment Minister Bandaru Dattatreya said the Centre’s decision was in the positive direction.
As the tripartite Central Board of Trustees Chairman, he said his paramount interest would be to safeguard workers’ interest.
“There is no question of diverting funds. This government is pro-poor, pro-worker and pro-progressive... We have made investments in Exchange Traded Funds (ETFs) and not in share markets,” he said.
“Till June 2016, a total of ₹7468 crore has been invested in ETFs. The total return on this investment as on June 30, 2016 was 7.45 per cent,” he added.
“World over, this pattern is giving positive returns. These funds are generally for 10 years or more period, so that’s why this will give encouragement in a positive direction and in a profitable manner,” he said.
Not satisfied with the reply, the Opposition members said they would move a resolution in House to urge the Centre to desist from investing EPFO money in stock markets.