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Section 17B, EPF & MP Act 1952: Liability in case of transfer of establishment

Section 17B (Liability in case of transfer of establishment) of the Employees’ Provident Funds and Miscellaneous Provisions Act 1952

❝Where an employer, in relation to an establishment, transfers that establishment in whole or in part, by sale, gift, lease or licence or in any other manner whatsoever, the employer and the person to whom the establishment is so transferred shall jointly and severally be liable to pay the contribution and other sums due from the employer under any provision of this Act or the Scheme or, the Pension Scheme or the Insurance Scheme, as the case may be, in respect of the period up to the date of such transfer:

 Provided that the liability of the transferee shall be limited to the value of the assets obtained by him by such transfer.❞




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Notes:

The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 has been amended several times since its enactment.
The last two amendments were by the Employees' Provident Funds and Miscellaneous Provisions (Amendment) Act, 1998 (Act No. 10 of 1998) and the Finance Act, 2017 (Act No. 7 of 2017).

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