Sir(s),
If any factory or specified establishment is coverable under ESI Act, 1948, but not covered, following penalties etc. will be payable on coverage of the unit lateron as and when detected and found to be coverable:
1. The unit will be covered retrospectively from the very date from which the same qualifies for coverage.
2. The employer will not be able to deduct the employees' share of contributions from the wages of the employees for the past period, but will be required to deposit the same.
3. interest will be liable to be recovered from employer for such late deposit of contributions.
Similar type of provisions exist in EPF & Misc. Provisions Act also.