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ravit (n/a)     04 August 2011

Non-payment of esi contributions

Dear Team,


One of my friend company covered under ESI from 2006 June. At the time of covering there were 12 employees covered under ESI and other excluded because they were drawing more than limitation.

But after one month these 12 employees also exclued from the coverage because of salary hike.

After that none of the employees covered under ESI due to higher salary. From July 2006 company not filed these details ESI Office.

Now ESI authorities asking to pay Rs. 1,91,000/- for 12 employees who were there at the time of ESI registration.

We explained the ESI authorities about the fact, but there are asking that then why comapny taken ESI Code when no employees comes under the Act.

Even our contractors (Security & House Keeping) filing the details from June, 2006.


Please suggest me on this, how can we convince the ESI authority.


Ravi Kumaar T.






 4 Replies


when a company having registered under the ESI Act, they should pay the amount  to the regional office. but in this case even for 12 employee for one month period they should have payed the amount and after that they should have given a letter/copy of the salary hike details of this 12 employees to the regional office for no more contribution and after they should filed half-yearly retrun with  enclosed the end of registration copy submitted to regional office. requesting to remove the company form ESI act.

ESI autorities are issuing penality , fine and asking for contributions form 12 and company side from 2006 when it is covered to till now, so their is no fult from their side. 

so, now the company legally send a copy to the HEAD OFFICE OF ESI. requesting  them for reduction in payment amount and submitting a proof of the salary hike period of the 12 employee in 2006, that is maintained in register form XX1V. 

ravit (n/a)     04 August 2011

Thanks for the information Praveen, is there any chance to get leavy from the contribution as well as Interest & Penalty. Because including interest & Penalty it coming neary Rs. 5 Lakhs.



Ravi Kumaar T.



Take a chance in Forwarding a letter to the Regional Commisioner regarding this issue, then after you can take the future-step.

V. VASUDEVAN (LEGAL COUNSEL)     06 August 2011

The ESIC Regional authorities are considerate and would guide you with proper course of action. It would be advisable to meet the Regional Director/his team who would give proper assistance. I am sharing my experience.


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