ESIC warns against shell company

One more shell company has been formed in Udupi to defraud Employees’ State Insurance Corporation (ESIC) and taxi drivers, who are not eligible to get benefit under ESI scheme, by promising them benefits under the ESI scheme, ESIC Sub Regional Office-Mangaluru Director In charge S Sivaramakrishnan said.

He has cautioned that whoever illegally avails benefits under the ESI scheme were liable for punishment, which involves imprisonment or fine. In addition, money is also recovered for the value of benefits availed by them as arrears of land revenue, under Section-70 and Section-84 of the ESI Act, 1948.

“The public are cautioned not to get cheated by imposters and frauds.” Benefits under the ESI scheme is available only to those employees in the organised sector, who have been registered through their employers in the ESIC website as per the provisions of the ESI Act, 1948.

Further, ESIC Act is applicable and ESI Scheme can be extended only to those shops, factories, schools, colleges and other commercial establishments where a minimum of 10 employees are employed. People employed in the unorganised sector and self employed auto drivers, taxi drivers, etc., are not covered under the scheme, he added.