Delhi HC ruling sets boundaries for parents managing minor PPF accounts

A Delhi High Court ruling on a father who withdrew ₹8.6 lakh from his daughter's Public Provident Fund account has drawn a firm line around what parents can and cannot do with a minor's PPF savings. The court ordered the father to return the full amount with 8% annual interest, rejecting his argument that the withdrawal should count against his maintenance obligations.

The daughter sued her father after he closed her PPF account in 2016, claiming the funds were needed for her education and upkeep. She later testified the money never reached her, and that after her parents separated she struggled to pay for college. The father countered that the amount should be set off against the maintenance he had paid to his ex-wife and daughter. The court disagreed, ruling that a parent holds a child's PPF account in a fiduciary capacity and cannot divert those savings to meet a parental duty.

Aditya Chopra, Managing Partner at The Victoriam Legalis, said a parent or guardian can withdraw money from a child's PPF account but only for the child's education, medical treatment, or other legitimate needs. He stressed that the funds cannot be used for the parent's personal expenses or to discharge the parent's independent legal obligation to maintain the child.