For section 17 of the principal Act, the following section shall besubstituted, namely: — "17. Power to exempt.—(1) The appropriate Government may, by notification in the Official Gazette and subject to such conditions as may be specified in the notification, exempt from the operation of all or any of the provisions of any Scheme—
(a) any factory to which this Act applies if, in theopinion of the appropriate Government, the rules of Its provident fund with respect to the rates of contribution are not less favourable than those specified in section 6 and theemployees are also in enjoyment of other provident fund benefits which on the whole are not less favourable to the employees than the benefits provided under this Act or any Scheme in relation to the employees in any other factory of a similar character; or
(b) any factory if the employees of such factory are in enjoyment of benefits in the nature of provident fundr
8EO. 11 THE GAZETTE OF INDIA EXTBAOEDINAEY 339 pension or gratuity and the appropriate Government is of opinion that such benefits, separately or jointly, are on the whole not less favourable to such employees than the benefits provided under this Act or any Scheme in relation to employees in any other factory of a similar character.
Explanation.—The following conditions shall be deemed to be • always included in the conditions which may be specified in a notification under clause (a), namely: —
(i) the amount of accumulations in the provident fund shall be invested in such manner as the Central Government may direct;
(ii) the amount of accumulations to the credit of an employee in the provident fund shall, where he leaves his employment and -obtains re-employment in another factory to which this Act applies, be transferred, within such time as may be specified in this behalf by the Central Government, to the credit of his account in the provident fund of the factory in which he is reemployed or, as the case may be, in the Fund established under the Scheme applicable to the factory.
(2) Any Scheme may make provision for exemption of any person or class of persons employed in any factory to which the Scheme applies from the operation of all or any of the provisions of the Scheme, if such person or class of persons is entitled to benefits in the nature of provident fund, gratuity or old age pension and such benefits, separately or jointly, are on the whole not less favourable than the benefits provided under this Act or the Scheme:
Provided that no such exemption shall be granted in respect of a class of persons unless the appropriate Government is of opinion that the majority of persons constituting such class desire to continue to be entitled to such benefits.
(3) Where any person or class of persons employed in a factory is exempted from the operation of all or any of the provisions of any Scheme under sub-section (2), the employer in relation to such a factory—
(a) shall, in relation to the provident fund old age pension and gratuity to which such person or class of persons is entitled, maintain such accounts, submit such returns, make such investments, provide for such facilities for inspection and pay such inspection charges, as the Central Government may direct; and
(b) shall not, at any time after the exemption, without the leave of the Central Government, reduce the total quantum of benefits in the nature of old age pension, gratuity or provident fund to which such person or class of persons was entitled at the time of the exemption," 340 THE GAZETTE OF INDIA EXTEAOEDINAEY [PAST II