Retirement fund body EPFO paid lesser amount as interest on PF deposits of over five crore subscribers than its earnings between 2007-08 and 2010-11, government auditor CAG has said, reports PTI.

"EPFO (Employees' Provident Fund Organisation) has been paying lesser amount as interest to subscribers than it has been earning on the corpus (except in 2006-07 and 2011-12)," the Comptroller and Auditor General of India (CAG) has said in a report on EPFO for 2011-12, tabled in Parliament today.

The CAG has analysed data on interest earned and paid to subscribers by EPFO between 2006-07 and 2011-12.

It observed that EPFO earned less on investments and paid more to subscribers in 2006-07 and 2011-12.

CAG has said there were gaps between declared rate of interest and the rate at which it was earning on investments.

CAG also observed that "total amount of money under EPF corpus was more than cumulative balance with all its subscribers, and the difference was increasing over the years. The gap could be due to non-updation of accounts, unclaimed accounts, and moneys in transit, etc. which is reflective of inadequate services to its subscribers."

According to the report, the Interest Suspense Account balance was not a true reflection of sums available for distribution as interest to EPF subscribers, in the absence of non-updation of about 38.74 lakh subscribers' accounts as of March 2012.