ESI Dept Is Troubling Us Help

Hi seniors, We have recd a letter from the ESI dept claiming for 3.5 lakhs recovery for a period of 1995 to 1999. They claim that they have sent a Form C-18 in Feb. 2003 for this amount. Where as during the same period they have raised another Form C 18 and within two months raised a Form 45 A for recovery for 1.5 Lakhs and we have paid the same at that time. We have been going to ESI dept during this time and nothing was mentioned about this claim. We are regularly paying ESI every month and there has been audit by ESI Inspectors subsequently till 2006 and nothing was stated on this issue. How do we bring the Salary register Attendance register and all the documents like ledger and bank statements for period of 10 to 13 years back? Can we do some thing on why this claim was not settled at that time? Is there any case law that claims that documents need not be produced, or its the responsibility of ESI dept to substantiate their claim. Aslam Sha [Login to view]

If you attach the copies of the claims, viz. C-18, 45-A order, C-19 and Recovery Certificate, I can suggest you to some extent.........

Thanks prasad, PL send me your mail ID i am only able to see a picture icon not your mail ID please make mail ID as mine " daudaslamsha at gmail.com" Ravi your sugestion is fine only thing is it must be the last option. Is there any rule that restricts the scrutiny period restriction for ESI like 7 years for income tax. aslam sha

Hi Usually, ESI accepts a letter stating unavailability of records prior to five years. Also, ESI inspectors ordinarly explain the basis for arriving at an amount in their observation reports. It might help if you dig out the files and go through their observation reports. Regards Mahesh

Dear All. It is only appropriate that you take up the issue with the ESI and build the good and healthy relationship with them if your company is willing to do so. Any default on your side without paying the contribution is not ony wrong but act against the interests of the employees. Go through the previous files, returns and registers. Get the opinion and take your management in full confidence before you act. As an individual it woule be appropriate to deal with laws in the right earnest and protect the company interests also simultanesouly. V. Rangarajan.

Thanks Rangarajan, As explained we have been regulaly paying the ESI and there has been a audit by ESI inspectors upto Mar 2006. they cannot claim that there was a default in 1995 to 1999 and claim to have sent a notice in 2003 and again 2009 call for records. Its interesting to note that exactly during this period they made a claim based on Audit and we paid the dues immediately even though it was not technically correct. they asked us to pay 6.5% for the interior contract given by us to build another floorand we paid as we did not get into legal complications. Regards aslam Sha

15 years in General. As such, HR cannot dispose off any of the employee records. You can support with your business volume and transactions saying you wont be able to maintain anything beyond 10 yrs along with your good standing report for last 10 years.

Dear, First of all checkup from your records whether your company was liable to pay any contributions if so did they not make payment. If u r unable to locate u r records go to ESi authorities and ask them on what basis they have issued. Ofcourse to do this you have to be litle tactful and make them to believe that u r trying to convince u r mgt. so that what is real will come up. best of luck GLN

Instead of afraid of any Deptt. whether it is ESI or EPF or etc., Being an educate, You try to approach the concerned officers or the Head of the Office, in your case, you can approach the concerned Regional Director along with the written representation requesting for the details of the claim and its documentary evidence of such claim. I am an employee of the ESI Corporation and have the utmost respect to my departments procedures. Without any evidence ESI can not initiate such hard actions. Otherwise, ofcourse, i should not suggest you. Even you can call for the details of such claim in writing through RTI Act. In need of further help dont hesitate to contact at [Login to view] or yahoo.com:-P

Hello Aslam Never bribe. It is going to increase you problem. Take the legal route. For that go through the file to see whether you had asked for postponment of inspection at any time, whether you had asked for postponment of hearing on C18 any time in the past, or whether you failed to attend hearing. I was in ESI department, in a very senior position, having authored several of the internal instruction . There are instruction against repeated inspectin for same period, need to give standard observation slip by inspectors etc. Please go through you file and get all the papers. If i can see all the papers including inspectors observation letter, C18, your response, and 45A order I could perhaps give you some suggestion. If the claim is wrong you need to take up with DG, ESIC and fails there, you could go to EI Court, where the procedure is simple. If after going through all the document, it is professional found to be correct, do not go to court, since that is going to pile up your interest and penalty liability. Regards O Abdul Hameed formerly Additional Commissiner, ESIC, New Delhi Presently General Manager, Peekay Steels, Calicut/Coimbatore [Login to view]