EMPLOYEES STATE INSURANCE CORPORATION

PANCHDEEP BHA WAN, C.I.G. ROAD

NEW DELHI - 110 002
Website - esic.in Ph : (011) 23234092
ESlC
Chinta s. I Mukti
No. P-1L14/32/2013-Rev-II
Dated : 28/2/2014
31~\~~
The Regi nal Director/Director IICI
J oint Din.ctor l/C
ESl Corporation
Regional Office/Sub-Regional Office/Divisional Office
Sub: The New Amnesty Scheme 2014, for withdrawal of criminal cases
tilt;d against the Insured Persons and Employers under Sec 84, 85
arul 85A of ESI Act 1948 and settlement of cases filed by employers
un(:ter Sec 75 ofESI Act 1948
Sir/Mada n,
Th Corporation in its 161st meeting held on 28/1/2014 and 1412/2014 has
approved thelaunching of Amnesty Scheme 2014
1. to J educe the number of litigation by providing a mechanism for resolution of
dis iutes outside the court.
2. To earn goodwill of stakeholders and thus enhance the brand image of the
Co poration,
Keeping in view above factors, the New Amnesty Scheme 2014 provides for
the withd 'awal of all prosecution cases filed uls 84 and 85 of ESl Act and court cases
u/s 75 anc. 82 of the ESl Act upto 31st December 2013 subject to following terms and
condition: :.
A. SE'I'TLEMENT OF COURT CASES FILED UIS 75 AND APPEAL UIS 82
L . DISPUTE OF COVERAGE The Scheme shall include all cases filed
in which the employer has disputed the coverage which may be settled
subject to the following conditions:
, In case o(closed units,
, Unit is closed for more than 5years as on 31st December 2013
, Case ispending for more than 5years as on 31st December 2013
~ffR ~ ~-~ < .! I assessment has been made for the period under dispute and
I'i'i.", ;:.;Contents Mar' Im~~. litigation period upto the date of commencement of Amnesty
?"H" V./Oltlry No..,,:~. \.~ ........u:.Scheme2014.
i~;J im/ DJ t~L ,D,.')./9..~~?/..l ..t_, .
: 2 :
It In case o(running units
" If the factory is functioning and the employer produces genuine
records to substantiate his plea regarding non-coverage or
coverage fromlater date.
2. DISPUTE OF CONTRIBUTION This Scheme shall also include cases
in which the employer has disputed the determination or recovery of
contribution in the Employees' State Insurance Court, uls 75 of the ESI
Act and appeal u/s 82 Upto 31st December 2013, subject to the
fulfillment of the following conditions :-
1. The employer shall file a petition before the court where he has
raised the dispute and seek permission of Hon'ble Court for out of
settlement of matter under litigation. If court allows, then the
matter shall be settled as per this Scheme. The employer/IP shall
apply for the scheme inthe enclosed proforma of Annexure 'A',
11. The employer shall pay both the Employees' and Employers' share
of contribution in full as per their records, which he shall produce
before the assessing officers if the contribution has been assessed
on assumed wages and he shall comply with other provisions of
theAct.
iii. In case the relevant records are not available with the employer,
they shall produce alternative records such as Income Tax Record
etc and shall pay the contribution accordingly as per that record.
iv. However, if the employer is not able to produce any records and
the assessment has been made in respect of wages other than the
wages shown in Regulation 32 Register, he shall pay the
contribution which shall not be less than 30% of the assessed
amount of contribution. The cases where assessment has already
been made as per Hqrs instruction NO. P-11l13/97-Ins-IV dated
26/5/2003 or where the contribution has been assessed on actual
bases will not fall under thepurview of this Scheme.
v. The employer pays the Interest infull
vi. No damages shall be levied.
vii. The employer shall also furnish an undertaking to the
Corporation to the effect that he/she shall beregular in compliance
in the provisions of ESI Act in future or else he/she shall forfeit
the right to avail of such amnesty scheme.
. 3 .
. .
B. Cfl:SES WHERE EMPLOYER HAS DISPUTED THE LEVY OF
Dfl:MAGES
'~ There are cases where employer has disputed levy of damages in the
court of law after making payment of contribution and interest. These
cases filed upto 31st December 2013 may also be considered for
withdrawal with benefit of 50% waiver in damages since court insist on
proof of contumacious conduct for upholding orders passed under 85-B
(Proof of which is difficult).
C. SCHEME TO WITHDRAW COURT CASES FILED U/S 84, 85, 85-A of
ES I: ACT, 1948
1. Cases filed against the Insured Person under section 84 of the ESI
Act.
Prosecution filed against the IPs U/S 84 of the ESI Act for giving
wrong declaration/statement resulting in excess payment to him/her may
bewithdrawn subject to the condition that
1. the entire amount paid in excess to the Insured person is refunded in
full behim/her to the Corporation
11. No interest will be claimed
iii. An undertaking is also given by Insured Person to the effect that
helshe would not give wrong declaration/statement in future.
;~.Cases filed against the employers under section 85 and 85-A of the
ESI Act upto 31st December 2013
Prosecution cases filed against the employers uls 85 and 85-A of
the ESI Act upto 31st December 2013 may be withdrawn subject to the
following conditions :-
1. The employer shall pay both the Employees' and Employers' share of
contribution in full as per his records, which he shall produce before
the assessing officers, if the contribution has been assessed on
assumed wages.
11. In case the relevant records are not available with the employer, he
shall produce alternative records such as Income Tax Returns etc and
shall pay the contribution as per that record. However, if the
employer is not able to produce any records, he shall pay contribution
on the basis of following, in the same order, (i.e only in cases where
the records as per option 'a' is not available, down below alternatives
inthe same order is to beexercised for assessing dues.)
c
: 4 :
a) The rate of monthly contribution paid for the month prior to the
month fromwhich default started.
OR
b) Monthly wages declared in form-Ol
OR
c) Monthly wages reported by SSO inthe Survey Report
OR
d) Minimum wages applicable inthe State/Region
iii. The employer pays the interest due for the period of prosecution in
full.
iv. No damages shall be levied.
v. The employer shall also furnish an undertaking to the Corporation to
the effect that he/she shall be regular in compliance with the
provisions of ESI Act in future or else he/she shall forfeit the right to
avail of such Amnesty Scheme.
I'hescope of Amnesty Scheme 2014 is enhanced to include cases as under:
1_. Cases file u/s 85 (a &g)
There are large numbers of old pending cases which are pending
for more than 15 years as on 31st December 2013. In many of
such cases the dues involved are very meager as compared to
expenditure and manpower involved in handling such cases in
court of law. These cases may also be considered for withdrawal
subject to the following conditions:
For closed units
, The unit isclosed or its whereabout is not known, and,
, The outstanding contribution (excluding Interest &Damages) is
upto Rs. 5000/-
For runnin~ units
, If unit is functioning, the unit should make upto date, and,
, The outstanding contribution (excluding Interest &Damages) is
upto Rs. 5000/- and,
, 30% of contribution only to bepaid
; "J ;
;~. eases filed u/ 85 (e) - non-submission of return of
contribution only
There are cases where ESIC has filed a criminal case against the
employer for non-submission of return of contribution. As these
cases do not have any financial implication and ESI has now done
away with submission of Return of Contribution, such cases filed
upto 31st December 2013 may be considered for withdrawal
subject to following conditions:
For closedunits
, The unit is closed or its whereabouts is not known, and,
, Employer has deposited contribution and interest for the
period of return
For running units
, If the unit is running and compliance is upto date, and,
, Employer has deposited contribution and interest for the
period of return.
(D) All cases are required to be settled as per this scheme, within 3 months
froIIIthe date of filling of application by the Principal Employer/Insured
Pei 'Son
(E) The Scheme will also be available to those employers/insured persons
wh ) have already availed of the benefits of earlier Amnesty Schemes.
(F) The New Amnesty Scheme-2014 will be in force from 28/1/2014 to
27/ll/2015.
(G) TheRegional Directors/Director lies/J oint Director lie of RO/SRO/D are
fully empowered to accord sanction for withdrawal/settlement of cases as
pel para (A) to (B) onreceipt of compliance as per the Scheme
(H) Th( Regional Directors/Director lies/J oint Director lie of RO/SRO/D.O
are requested to give vide publicity to the Scheme through
advertisement/press release in leading local newspapers and by holding
co tinuous interaction/meeting with Employer and Trade Union etc. The
co tents of the newAmnesty Scheme2014must also be posted on the
Re: :;ionalWeb Site. Themembers of Regional Board/Local
eo nmittee/Workers Union and Employers Association must also be
informed about launch of NewAmnesty Scheme2014.
(1) Regional Directors/Director lies/J oint Director lie of RO/SRO/D.O
need not refer any caseto Hqrs.
l
. u .
(1) The Corporation has also approved that incentive as mentioned below
may also be given to Panel Advocate for their contribution in
withdrawal of cases during the Scheme.
CI) Incentive ofRs. 2,000/- for casesfiled uls 75
1,) Incentive of Rs 500/- for cases filed u/s 85 (a) to 85 (g) of
ESI Act.
C,' Further, regions which succeed in withdrawal of 25% of
their pending cases may begivencertificate of merit
(K) Monthly Progress report inthis regard should reach this office by 10th of every
mont 1.
(L ) They are advised to form a monitoring cell at their level, to implement
successfully and smoothly, the contents of this Scheme, including for reporting
to Hqr :
(M) The re.eipt of this communication may be acknowledged.
Yours faithfull y,
~2 L -
(ARUN KUMAR)
ADDL. COMMISSIONER (REV)
Copy forward \~dto
1. All Divis ional Heads inHqrs office
2. All SSM.~s/SMCs - for information .
3. J oint Dircctors/Dy. Director (Fin) ESI CorporatlOn, RO/SRO ----
4 A C (Vig lance), Hqrs office .
S' D: (Vi }'J D(V)(NZ)/J D(V)(WZ)/J D(V)(SZ) - for informatlOn. .
6~~:bsit: 1,1anager - with the request to post the matter in the Official WEbslte
of ESI Col:poration .
7. All brand \esinHqrs office for informatlOn.

ANNEXURE-A
PROFORMA FOR WITHDRAWAL OF COURT CASES
1. Name and address of the Insured person/employer
] 1. Employer Code No./lnsurance No.
]U. Date of Institution of case
IV. Name of the Court/Forum in which case is pending
\'. Section of ESIAct 1948 under which the case was filed.
\ 'I. Present status of the case and the issues involved
\ U. Details of amount involved with period.
Compliance made Nature of default S.No.
V1]1. Copy of court order permitting out of court settlement in case of
litigation u/s 75 and appeal u/s 82 of the Act.
D::. Proof & Details of deposit of the amount.
The above information is true and correct to the best of my
kuowledqe, I also undertake that I shall be regular in compliance in the
pi ovisions of ESIAct in future or else shall forfeit the right to a avail of
Sl ch Amnesty scheme.
Date:
PI:ICe:
Signature of the Applicant
Name:
Status: