- (1.)The Uttar Pradesh Avas Evam Vikas Parishad (hereinafter referred to as the 'Vikas Parishad') is a corporate body. It came into existence, consequent upon the promulgation of the Uttar Pradesh Avas Evam Vikas Parishad Adhiniyam, 1965 (hereinafter referred to as the '1965 Act'). The employees of the Vikas Parishad were members of a Contributory Provident Fund Scheme. The Vikas Parishad desired to grant its employees better retiral benefits. A proposal was made, to extend pensionery benefits to the employees of the Vikas Parishad, in place of the existing Contributory Provident Fund Scheme. In furtherance of the aforesaid objective, a resolution dated 21.2.1995 was passed, proposing to replace the existing Contributory Provident Fund Scheme, to the Pension/Family Pension and Gratuity Scheme. Before implementation of the resolution dated 21.2.1995, the Vikas Parishad considered it expedient to consult the State Government. In response to the afore-mentioned consultation, the State Government through a communication dated 16.5.1996 approved the afore-stated substitution conditionally. The conditions depicted in the aforesaid approval dated 16.5.1996, are being extracted hereunder:
"Kindly refer to your letter no. 213/P-1 dated 24.4.1995 on the aforesaid subject. In this regard, I have been directed to say that State Government has no objection to the proposal of implementing Pension/Family Pension & Gratuity Scheme in place of C.P.F. Scheme in Uttar Pradesh Avas Evam Vikas Parishad. But subject to condition that no financial assistance will be given by the State Government for implementation of this Scheme and this Scheme will be run by the Board itself from the revolving funds created by it. "

(2.)Consequent upon the receipt of the aforesaid approval from the State Government, the Vikas Parishad circulated a letter dated 9.7.1996 requiring its employees to submit their options, as to whether they were desirous of shifting to the Pension/Family Pension and Gratuity Scheme, in place of the existing Contribution Provident Fund Scheme.
(3.)At the instant juncture, a very vital letter came to be issued by the State Government on 30.09.1997. Relevant extract of the aforesaid letter is being reproduced hereunder:
"I have been directed to say that in order to implement the subject scheme, it is not necessary to initiate any proceedings required under Clause (c) of the Employees Provident Fund & Miscellaneous Provisions Act, 1952 of the Central Government. Because Avas Evam Vikas Parishad is governed by the provisions of Uttar Pradesh Avas Evam Vikas Parishad Act, 1965 and specific provisions to this effect have been laid down in Section 95 of the said Act, 1965 according to which necessary proceedings are to be initiated for obtaining option from the employees for accepting and/or not accepting the proposed Pension Scheme."

A perusal of the aforesaid letter reveals, that even though the State Government had granted conditional approval to the Pension/Family Pension and Gratuity Scheme, through its communication dated 16.5.1996, the State government expressed the opinion, that the Vikas Parishad did not need the approval of the State Government for the implementation of the Pension/Family Pension and Gratuity Scheme. Insofar as the instant aspect of the matter is concerned, the State Government in its letter dated 30.09.1997 clearly informed the Vikas Parishad, that it had the power to deal with the above issue of its own, under Section 95 of the 1965 Act.