Probe delay in recovery of arrears, par panel to ESIC

A parliamentary panel today asked Employees' State Insurance Corporation (ESIC) to investigate the delay in recovery of outstanding arrears which have soared to over Rs 8,380 crore.

The corpus of the ESIC, a social sector scheme, is built on contributions from employers as well as employees.

The Parliamentary Standing Committee on Labour regretted that ESIC has not been able to recover the arrears despite the presence of harsh provisions for recovery of arrears, attachment of accounts, arrest warrants, and the statutory requirements for employers to file monthly contribution details online.

"It has appeared to the Committee that the enforcement of these provisions by ESIC is, perhaps, weak and measures need to be taken to not only recover the huge outstanding arrears but also to minimise the arrears in the future," said the report of the panel tabled in Parliament today.

The Committee noted that as on date Rs 8,380.06 crore (sum of arrears from 2013-2017) is due out of which Rs 4,863.06 crore is non-recoverable.

Further, out of the targets fixed in the last five years for recovery of Rs 1,225.01 crore by ESIC, only Rs 1,147.09 crore could be recovered due to one reason or the other.

"The ESIC has also informed that out of the total outstanding arrears, a substantial amount is not recoverable," the report said.

The Committee has desired ESIC to initiate necessary action for recovery of outstanding arrears amounting to Rs 8,380.06 crore. It has recommended that the ESIC needs to investigate and determine accountability in a time bound manner.

The Committee wants to be apprised of the action by ESIC for ensuring prompt action against defaulters, the report said.