Public Provident Fund

Sushubh

Administrator
[OP]
Oct 29, 2004
420,515
13,130
Gurugram
Although structurally nothing will change with the PPF, one of the major advantages of the scheme may be jeopardised. PPF currently enjoys the freedom from court attachment (but not attachment under any order of income tax and estate duty authorities), i.e., the balance to the credit of a subscriber in his account is not subject to attachment under any order or decree of a court in respect of any debt or other liability incurred by him. This provision may not exist as the PPF Act itself is being repealed. "The deposits of investors in the PPF account before the commencement of the proposed amendment shall enjoy the current protection against attachment as is available. However, with respect to any deposits made by the investors in the PPF schemes after the proposed amendment is legislated, there seems to be currently no provision proposed for protection against attachment. There is no provision under the Government Savings Banks act 1873 with respect to protection from attachment against any decree as was available under the PPF Act," said Suresh Surana, Founder, RSM Astute Consulting Group.
 

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