REVENUE INCOME OF ESI

Updated on : 2020-Oct-10 18:11:24 | Author :

Revenue Income in ESIC

 

It consists of income from the contribution of employer & employees. It also includes the income from interest charged from the employer for his failure to pay a contribution in time.

The revenue target for the year 2011-12 has been fastened as Rs.5700.00 Crores. in the initial 09 months of the financial year up to Dec. 2011, the revenue income of the Corporation is Rs.4721.03 Crores. The region-wise details of revenue income are as under:-

 

ANALYSIS OF REGION WISE COLLECTION OF REVENUE INCOME UPTO THE MONTH OF DEC., 2011

 

 

 

 

 

 

(Rs. in lakhs)

Name of the Region

Target of contributio n income

Proportionat e Target for 9 months

Total Contribution income for 9 months(from April

to Dec., 2011)

Increase/decrease as compared to the Proportionate Target fixed

for 9 months

Andhra

Pradesh

 

33681

 

25260.75

 

28531.01

 

3270.26

Vijayawada

5716

4287.00

5126.31

839.31

Assam

1713

1284.75

2251.21

966.46

Bihar

2130

1597.50

2087.66

490.16

Jharkand

5335

4001.25

5358.07

1356.82

Delhi

21175

15881.25

13790.92

-2090.33

Goa

4857

3642.75

4436.99

794.24

Gujarat

11372

8529.00

11004.23

2475.23

Baroda

6212

4659.00

5078.94

419.94

Surat

6885

5163.75

5837.45

673.70

Haryana

17620

13215.00

14622.47

1407.47

Karnataka

31784

23838.00

24810.80

972.80

Hubli

4537

3402.75

3622.88

220.13

Kerala

5592

4194.00

5480.47

1286.47

MP

10173

7629.75

10013.87

2384.12

Chhattisgarh

3330

2497.50

4102.38

1604.88

Mumbai

30421

22815.75

18102.25

-4713.50

Marol

26195

19646.25

17622.59

-2023.66

Thane

15070

11302.50

13532.69

2230.19

Nagpur

3536

2652.00

2193.52

-458.48

Aurangabad

3562

2671.50

3655.04

983.54

Pune

25892

19419.00

21517.00

2098.00

Orissa

6782

5086.50

4997.08

-89.42

Punjab

15131

11348.25

12923.33

1575.08

Himachal & P.

 

4626

 

3469.50

 

4403.78

 

934.28

J&K

1752

1314.00

1282.40

-31.60

Rajasthan

13479

10109.25

6786.46

-3322.79

Tamil Nadu

52290

39217.50

35109.43

-4108.07

Salem

5368

4026.00

5269.62

1243.62

Pondicherry

3224

2418.00

2480.95

62.95

Coimbatore

12408

9306.00

11309.65

2003.65

Madurai

6503

4877.25

5891.23

1013.98

 

 

 

Tirunelveli

2459

1844.25

2533.59

689.34

Uttarakhand

7775

5831.25

5775.65

-55.60

West Bengal

19407

14555.25

27155.38

12600.13

Barrackpore

6430

4822.50

5532.93

710.43

U.P.

9835

7376.25

6483.00

-893.25

Noida

19742

14806.50

17540.76

2734.26

Gurgaon

24038

18028.50

19395.99

1367.49

Varanasi

1420

1065.00

629.50

-435.50

Kollam

5226

3919.50

4609.29

689.79

Udaipur

3269

2451.75

2601.19

149.44

Ludhiana

8793

6594.75

7996.74

1401.99

Ernakulum

7090

5317.50

6985.55

1668.05

Peenya

13991

10493.25

10673.60

180.35

Bommasandra

15198

11398.50

15979.44

4580.94

Visakhapatna

m

 

3818

 

2863.50

 

4606.48

 

1742.98

Okhla

21986

16489.50

15808.54

-680.96

Rohini

2451

1838.25

4562.38

2724.13

Total

570000

427500.00

472102.69

44602.69

 

 

Recovery of contribution

 

  1. Contribution under ESI Act are payable by the Principal employer of factory/establishment in the first instance but he is authorized to recover from the employees, the employees’ share of contribution by deduction from their wages and not otherwise, providing no such deduction is to be made up of any wages apart from those regarding the amount in respect of that contribution is payable. The employer isn't entitled to recover the employer’ share of contribution from the wages of the staff. the rate of contribution has been ordered down in Rule fifty one of ESI (Central) Rules, 1950, as amended.

 

Position regarding arrears of ESI Dues

 

The arrears of ESI dues as on 31.3.2011 were Rs.1357.00 crores as per details given below:-

 

 

    1. Recoverable dues 340.29 in cr.

ii Non-Recoverable dues for the present 1016.71 in cr.

Total 1357.00 in cr.

Out of the dues of Rs.1357.00 Crores category –wise classification is as follows:-

  1. Govt./Public Sector 307.68 in cr.

Factories / Estt.

  1. Private Factories/Estt. 1049.24 in cr.

Total 1357.00 in cr.

 

Statement showing the position of Arrears of ESI Dues as on 31.03.2011

(Rs. In Crores)

 

BREAK UP

 

As on 31.3.2011

 

A) ARREARS RECOVERABLE

Private

Public

Total

Amount pending with Recovery Officers

314.57

25.78

340.29

Total

314.57

25.78

340.29

 

B) ARREARS NOT RECOVERABLE FOR THE PRESENT

 

 

(i)

Amount of arrears disputed in Courts

390.13

239.61

629.74

 

(ii)

Amount due from Factories/Estts. Which have gone

into liquidation

158.78

22.34

181.12

 

(iii)

Amount pending with Claim Commissioner

1.04

3.5

4.54

 

(iv)

Amount due from Factories/Estts. Which have closed

and whereabouts of employers not known.

57.27

0.22

57.49

 

(v)

Decree obtained and execution proceedings in

progress.

2.28

0.00

2.28

 

Total (I to v)

609.5

265.53

875.17

 

C) DUES FROM SICK INDUSTRIES/EXEMPTION

GRANTED BY STATE/CENTRAL GOVT.

 

 

 

(i)

Factories regd. With BIFR but rehabilitation scheme

yet to be sanctioned

54.1

6.26

60.36

 

(ii)

Factories/establishments which have been declared

sick and rehabilitation scheme sanctioned by BIFR

30.57

5.05

35.62

 

(iii)

Closed unit in respect of which particulars of

employer is known/available

40.50

5.06

45.56

 

(iv)

Dues from factories/Estts. Where exemption granted

by State Govt. and arrears continued to be shown.

0.00

0.00

0.00

 

Total (I to iv)

125.17

16.3

7

141.54

 

GRAND TOTAL (A+B+C)

1049.24

307.

68

1357.00
           

 

The following measures have been/are being taken to bring down the arrears:-

 

 

Consequent to adding of new provisions under Section 45-C to 45-I in the Principal Act. 1948 through the ESI (Amendment) Act, in 1989, for setting up of independent Recovery Machinery in the ESI Corporation on the analogy of the 2nd and 3rd Schedule of the income tax Act, the Corporation has found out its own Recovery Machinery. Consequently officers of the cadre of Deputy administrators and Assistant administrators are notified to work as Recovery Officer. This measure would help for making up the shortage of Recovery Officers who shall exclusively carryout the revenue recovery work.

 

Prosecution action is taken against the defaulting employers under Section eighty five, 85-A of the ESI Act. and beneath Section 406/409 of Indian penal code. Penal damages are obligatory under Section 85-B of the Act.

Besides taking legal actions under provisions of the Act, administrative and persuasive measures i.e. business the name of defaulters in local News Papers/ESIC website also are being taken for early recovery of arrears.

 

Recovery of Arrears

 

The Recovery Machinery started functioning in Regions or Sub-Regions by stages. The date of such setting up of Recovery Machinery, target and the amount recovered during 2010-2011 are shown as under :-

 

(Amount in Crore)

Sl.

No.

Name of the Region/Sub-Region

Date of setting up of Recovery Machinery

Target fixed

Amount recovered

1.

Andhra Pradesh

01.01.1992

3.65

4.39

2.

Karnataka

01.01.1992

10.94

11.41

3.

Madhya Pradesh

01.01.1992

1.56

0.97

4.

Maharashtra

01.01.1992

8.12

5.52

5.

Uttar Pradesh

01.01.1992

4.05

2.07

6.

West Bengal

01.01.1992

9.98

10.29

7.

Gujarat

01.12.1992

2.54

2.57

8.

Bihar

01.12.1992

1.38

0.85

9.

Haryana

01.12.1992

2.61

1.04

10.

Kerala

01.12.1992

7.19

5.73

11.

Rajasthan

01.12.1992

4.26

4.67

12.

Orissa

01.12.1992

2.75

0.91

13.

Delhi

01.12.1992

5.21

3.67

14.

Pune

01.12.1992

3.28

5.06

15.

Chennai

01.12.1992

12.41

12.47

16.

Coimbatore

01.12.1992

8.66

9.11

17.

Madurai

01.03.1993

3.08

3.09

18.

Nagpur

01.03.1992

2.86

0.87

 

19.

Punjab

01.06.1993

3.10

6.53

20.

H.P.

01.06.1993

0.42

0.24

21.

J & K

01.06.1993

0.59

0.37

22.

Goa

01.09.1997

0.31

0.31

23.

Assam

01.09.1997

1.19

0.77

24.

 

Marol

22.04.2003

3.74

1.53

25.

 

Thane

22.04.2003

2.91

2.03

26.

 

Noida

12.08.2003

1.40

1.58

27

 

Jharkhand

30.09.2003

2.05

0.96

28

 

Pondicherry

01.06.2004

0.44

1.38

29

 

Hubli

01.05.2003

1.27

1.12

30.

Vijayawada

01.06.2004

1.13

1.29

31.

Chhattisgarh

01.06.2004

0.31

1.87

32.

Uttaranchal

01.06.2004

1.24

1.27

33.

Aurangabad

01.04.2008

1.05

0.44

34

Vadodara

01.04.2010

1.64

2.51

35

Surat

01.04.2010

0.42

0.44

36

Ludhiana

01.04.2010

1.60

0.26

37

Salem

01.04.2010

1.01

1.08

38

Tirunelveli

01.04.2010

3.08

1.41

39

Barrackpore

01.04.2010

2.10

2.14

40

Rohini

01.04.2010

1.19

0.79

41

Okhla

01.04.2010

1.63

0.61

 

Total

-

128.32

115.61

 

The total arrears outstanding as on 31.3.2011 were Rs. 1357.00 crores, out of which Rs.340.29 crores falls under the category of recoverable arrears and an amount of Rs.1016.71 crores under the category of non-recoverable arrears for the present due to claims controversial within the Courts, factories having gone into liquidation, factories registered with BIFR, quantity unfinished with Claims Commissioner, closure of the factories and whereabouts of the defaulting employers in certain cases not known. The Regions are advised to speed up the recovery so as to meet the Recovery Target for the year 2011-12. Special drives are being launched every year from 1st December to 31st March to recover ESI dues .This year also D.O. Letter has been issued on 20.12.2011 to launch special drive from 1st January 2012 to March 2012 to achieve the annual recovery target. The Recovery Officers of the Corporation had recovered Rs.115.61 crores from the defaulting employers in 2010-11 against the target of Rs. 128.32 crores. A target of Rs.136.00 crores towards recovery of arrears has been fixed for the year 2011-12. The Recovery Officers have since recovered the dues of Rs89.07 crores throughout the amount from april 2010 to December 2011. 

 

 

 

 

 

 

 

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