A fresh controversy has emerged over the management of the National Pension System (NPS), with an employees’ organisation calling for an independent investigation into the NPS Trust’s functioning, investment decisions and accountability. Manjeet Singh Patel, president of the All India New Pension Scheme Employees Federation (AINPSEF), has written to Prime Minister Narendra Modi seeking a detailed probe into alleged financial irregularities, delays in investment and possible conflicts of interest.
The federation has urged the Comptroller and Auditor General of India (CAG) to conduct an audit of the NPS Trust and examine whether those responsible for any irregularities should be held accountable. Patel also raised concerns about market-linked losses affecting employees’ retirement savings and called on the government to consider a minimum annual return of 8.25% on employee contributions, similar to the rate associated with the Employees’ Provident Fund Organisation (EPFO).
However, an assured annual return of 8.25% is currently a demand raised by the federation, not a guaranteed benefit under the NPS. The allegations and figures cited in the letter have not been independently verified.
NPS Investment Concerns: Questions Over ₹17,000 Crore Allocation
AINPSEF has questioned the reported decision to invest around ₹17,000 crore in alternative investment funds (AIFs), private equity, venture capital and startups. The issue was raised in connection with NPS Day on October 1, 2026.
Patel expressed concern about the risks associated with such investments, particularly because they do not provide assured returns to pension subscribers. The federation also referred to Alteria Capital and Trifecta Capital and sought an investigation into the investment decisions.
The letter reportedly questioned a symbolic cheque of ₹400 crore presented by the NPS Trust for investments involving Trifecta Capital and Alteria Capital on the occasion. AINPSEF has called for transparency regarding the investment terms, approvals, risk assessments and safeguards used before allocating pension funds to these ventures.
The organisation argues that the investment strategy requires closer scrutiny while employees continue to seek greater certainty about their retirement savings. The claims and details of the investments require confirmation from the relevant authorities.
₹800 Crore UPS Investment Delay Raises Accountability Questions
Another major concern raised by the federation relates to an alleged delay in investing ₹800 crore deposited by the Finance Ministry into the Unified Pension Scheme (UPS) pool corpus.
According to the letter, the amount was deposited on July 8, 2026, but was not invested until July 16. AINPSEF has claimed that the delay resulted in an interest loss of more than ₹2 crore and has demanded an explanation regarding responsibility for the alleged loss, along with appropriate compensation.
The organisation has also questioned the fees paid to the NPS Trust, pension fund managers and central recordkeeping agencies. It argues that substantial amounts are collected annually from pension funds, while concerns remain over investment monitoring and accountability.
These claims are allegations raised by the federation and would require verification through an independent audit or an official response.
Conflict of Interest Allegations and Pending Pension Issues
The letter also seeks scrutiny of potential conflicts of interest involving NPS Trust Chairman Dinesh Kumar Khara and his roles in organisations including CRISIL and K-Fintech. The federation has called for an examination of whether connections involving pension fund supervision, benchmarking and recordkeeping could create conflicts of interest.
AINPSEF has separately raised concerns about the non-implementation of the Minimum Assured Return Scheme (MARS). It has called for the publication of findings from the high-level committee formed in January 2026 to examine the scheme.
The organisation has also highlighted delays in UPS pension payments caused by minor discrepancies in employees’ files. It has urged authorities to simplify the process, resolve pending cases faster and ensure that eligible retired employees receive their pensions without unnecessary delays.
AINPSEF’s Six Demands to the Prime Minister
In its letter to Prime Minister Narendra Modi, the federation has put forward six key demands:
- Independent audit: The CAG should conduct an impartial audit of the NPS Trust, appointments of private advisers and investments in alternative investment funds.
- Changes to pension oversight: The NPS Trust should be dissolved, with pension fund supervision transferred to a statutory public body or the CAG.
- Compensation for alleged losses: The federation wants compensation for the claimed loss resulting from the delay in investing the ₹800 crore UPS pool corpus.
- Minimum annual return: The government should consider ensuring an annual return of 8.25% on employees’ contributions, along the lines of EPFO-related returns.
- Choice between NPS and UPS: Employees should be allowed to choose between the National Pension System and the Unified Pension Scheme during their service.
- Action on possible conflicts of interest: The federation wants accountability measures to address any conflicts involving officials and private institutions.
The demands remain proposals made by the employees’ organisation. The next steps will depend on responses from the government, the NPS Trust and the relevant regulatory authorities, as well as any official action taken following a review of the allegations.
Disclaimer: This article is intended for informational purposes only and reports claims and demands made by AINPSEF. The allegations and financial figures cited have not been independently verified and should not be treated as established findings. NPS investments are market-linked, and an annual return of 8.25% is a demand raised by the federation, not a currently guaranteed NPS return. Readers should consult official government and pension authorities for confirmed updates.