Lok Sabha Question No. 69 (UNSTARRED), answered on 2019-02-04
Subject: Procedure for Recovery of Outstanding Amount
Ministry: LABOUR AND EMPLOYMENT
Asked by: RAJU ALIAS DEVAPPA ANNA SHETTI

## GOVERNMENT OF INDIA

## MINISTRY OF LABOUR AND EMPLOYMENT

## LOK SABHA

## UNSTARRED QUESTION NO. 69

## TO BE ANSWERED ON 04.02.2019

## PROCEDURE FOR RECOVERY OF OUTSTANDING AMOUNT †69. SHRI RAJU SHETTY:

Will  the  Minister  of  LABOUR  AND  EMPLOYMENT  be  pleased  to state:

- (a)the  details  of  the  criteria/guidelines/procedure  related  to  recovery of  the  outstanding  amount  including  the  amount  of  Employee's Provident  Fund  (EPF)  and  Employee's  State  Insurance  (ESI)  and their dues from the closed companies/units in the country;
- (b)the details of the amount not recovered from such industries/companies in the country so far, State/UT-wise; and
- (c)the steps taken to recover the said amount along with the amount recovered during each of the last three years and the current year, State/UT-wise?

## ANSWER

## MINISTER OF STATE (IC) FOR LABOUR AND EMPLOYMENT (SHRI SANTOSH KUMAR GANGWAR)

- (a) & (b): As regards Employees' Provident Fund (EPF), the Provident Fund dues of  the  closed  establishment  are  recovered  in  the  manner specified under Section 8B to 8G of the Employees' Provident Funds & Miscellaneous Provisions (EPF & MP) Act, 1952 which include:-
- (i)  Attachment and sale of the movable or immovable property of the establishment or, as the case may be, the employer;
- (ii) Arrest of the employer and his detention in civil prison;
- (iii)  Appointing  a  receiver  for  the  management  of  the  movable  or immovable properties of the establishment or, as the case may be, the employer.

Contd..2/-

The list of State/UT-wise amount not recovered from the closed establishments under EPF is at Annexure-I.

As  regards  Employees'  State  Insurance  (ESI),  the  recovery  of outstanding amount to ESIC is made as per the procedure laid down under section 45-C to 45-I of the ESI Act, 1948.

The  details  of  the  criteria  /  guidelines  /  procedure  related  to recovery of ESI dues from the closed companies / unit is as under:- If employer fails/refuses to respond to ESI notices then recovery of ESI dues  is  made  through  garnishee,  attachment  of  bank  account  / movable  assets  and  receivership,  sale  of  immovable  assets  of  the defaulter / closed units.

The list  of  State/UT-wise  detail  of  the  amount  not  recovered  in the country so far, from the closed industries / companies under ESI is at Annexure - II.

(c): As regards EPF, by taking steps mentioned in reply to part (a) of the  Question  above,  the  State/UT-wise  list  of  the  recovered  amount during  each  of  the  last  3  years  and  current  year  under  EPF  is  at Annexure-III.

As  regards  ESI,  steps  to  recover  the  dues  from  the  closed companies/units:-

In  case  of  company/unit  being  closed,  the  Regional  Director  / Joint Director I/c arranges the delivery of Notice through SSO / Branch Manager  by  way  of  affixing  the  notice  at  prominent  places  of  the premises of the said defaulter. The process is witnessed by someone and report of service is sent to Regional Office/Sub-regional office.

The list of State/UT-wise detail of the amount recovered from the closed companies / units during each of the last 3 years and current year under ESI is at Annexure - IV.

****                                                      *******

Annexure referred to in reply to Parts (a) & (b) of Lok Sabha Unstarred Question No. 69 for  04.02.2019  raised  by  Shri  Raju  Shetty  regarding  'Procedure  for  Recovery  of Outstanding Amount'.

| State/UT-wise list of amount not recovered from Closed Establishments under EPF as on November, 2018.   | State/UT-wise list of amount not recovered from Closed Establishments under EPF as on November, 2018.   |
|---------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------|
| State/UT                                                                                                | Amount in Rs. crores                                                                                    |
| Andhra Pradesh                                                                                          | 4.51                                                                                                    |
| Bihar                                                                                                   | 20.10                                                                                                   |
| Chhattisgarh                                                                                            | 3.45                                                                                                    |
| Delhi                                                                                                   | 9.28                                                                                                    |
| Goa                                                                                                     | 0.17                                                                                                    |
| Gujarat                                                                                                 | 49.14                                                                                                   |
| Himachal Pradesh                                                                                        | 0.87                                                                                                    |
| Jharkhand                                                                                               | 19.43                                                                                                   |
| Karnataka                                                                                               | 75.07                                                                                                   |
| Kerala & Lakshadweep                                                                                    | 17.96                                                                                                   |
| Maharashtra                                                                                             | 193.35                                                                                                  |
| Madhya Pradesh                                                                                          | 93.55                                                                                                   |
| North Eastern Region (NER)                                                                              | 8.07                                                                                                    |
| Odisha                                                                                                  | 56.62                                                                                                   |
| Punjab & Chandigarh                                                                                     | 37.25                                                                                                   |
| Rajasthan                                                                                               | 1.06                                                                                                    |
| Tamil Nadu & Puducherry                                                                                 | 87.17                                                                                                   |
| Telangana                                                                                               | 24.88                                                                                                   |
| Uttar Pradesh                                                                                           | 96.97                                                                                                   |
| Uttrakhand                                                                                              | 35.03                                                                                                   |
| West Bengal & Andaman & Nicobar Islands & Sikkim                                                        | 872.51                                                                                                  |
| Total                                                                                                   | 1706.44                                                                                                 |

## Annexure-II

Annexure referred to in reply to Parts (a) & (b) of Lok Sabha Unstarred Question No. 69 for  04.02.2019  raised  by  Shri  Raju  Shetty  regarding  'Procedure  for  Recovery  of Outstanding Amount'.

| State/ UT-wise detail of the amount not recovered in the country so far, from the closed industries / companies under ESI.   | State/ UT-wise detail of the amount not recovered in the country so far, from the closed industries / companies under ESI.   | State/ UT-wise detail of the amount not recovered in the country so far, from the closed industries / companies under ESI.   |
|------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------|
| S. No.                                                                                                                       | Name of the State / UT                                                                                                       | Amount Rs. in lakhs                                                                                                          |
| 1                                                                                                                            | ANDHRA PRADESH                                                                                                               | 1388.45                                                                                                                      |
| 2                                                                                                                            | ASSAM, MEGHALAYA AND TRIPURA                                                                                                 | 200.8                                                                                                                        |
| 3                                                                                                                            | BIHAR                                                                                                                        | 160.63                                                                                                                       |
| 4                                                                                                                            | CHHATTISGARH                                                                                                                 | 110.87                                                                                                                       |
| 5                                                                                                                            | DELHI                                                                                                                        | 1091.69                                                                                                                      |
| 6                                                                                                                            | GOA                                                                                                                          | 176.76                                                                                                                       |
| 7                                                                                                                            | GUJARAT, DADRA & NAGAR HAVELI AND DAMAN & DIU                                                                                | 449.94                                                                                                                       |
| 8                                                                                                                            | HARYANA                                                                                                                      | 779.24                                                                                                                       |
| 9                                                                                                                            | HIMACHAL PRADESH                                                                                                             | 29.17                                                                                                                        |
| 10                                                                                                                           | JAMMU & KASHMIR                                                                                                              | 39.84                                                                                                                        |
| 11                                                                                                                           | JHARKHAND                                                                                                                    | 525                                                                                                                          |
| 12                                                                                                                           | KARNATAKA                                                                                                                    | 1777.89                                                                                                                      |
| 13                                                                                                                           | KERALA AND LAKSHADWEEP                                                                                                       | 144.6                                                                                                                        |
| 14                                                                                                                           | MADHYA PRADESH                                                                                                               | 785.9                                                                                                                        |
| 15                                                                                                                           | MAHARASHTRA                                                                                                                  | 546.5                                                                                                                        |
| 16                                                                                                                           | ODISHA                                                                                                                       | 846.23                                                                                                                       |
| 17                                                                                                                           | PUDUCHERRY, ANDAMAN AND NICOBAR                                                                                              | 203.41                                                                                                                       |
| 18                                                                                                                           | PUNJAB                                                                                                                       | 712.17                                                                                                                       |
| 19                                                                                                                           | RAJASTHAN                                                                                                                    | 761                                                                                                                          |
| 20                                                                                                                           | TAMIL NADU                                                                                                                   | 9293.93                                                                                                                      |
| 21                                                                                                                           | TELANGANA                                                                                                                    | 245.07                                                                                                                       |
| 22                                                                                                                           | UTTAR PRADESH                                                                                                                | 364.23                                                                                                                       |
| 23                                                                                                                           | UTTARAKHAND                                                                                                                  | 802                                                                                                                          |
| 24                                                                                                                           | WEST BENGAL                                                                                                                  | 2538.79                                                                                                                      |
| Total                                                                                                                        | Total                                                                                                                        | 23974.11                                                                                                                     |

## Annexure-III

Annexure referred to in  reply  to  Part  (c)  of  Lok  Sabha  Unstarred  Question  No.  69  for 04.02.2019 raised by Shri Raju Shetty regarding 'Procedure for Recovery of Outstanding Amount'.

| State/UT-wise list of recovered amount (in Rs. crores) during last 3 years & current year from the Establishments under EPF as on November, 2018.   | State/UT-wise list of recovered amount (in Rs. crores) during last 3 years & current year from the Establishments under EPF as on November, 2018.   | State/UT-wise list of recovered amount (in Rs. crores) during last 3 years & current year from the Establishments under EPF as on November, 2018.   | State/UT-wise list of recovered amount (in Rs. crores) during last 3 years & current year from the Establishments under EPF as on November, 2018.   | State/UT-wise list of recovered amount (in Rs. crores) during last 3 years & current year from the Establishments under EPF as on November, 2018.   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|
| State/UT                                                                                                                                            | 2015-16                                                                                                                                             | 2016-17                                                                                                                                             | 2017-18                                                                                                                                             | 2018-19                                                                                                                                             |
| Andhra Pradesh                                                                                                                                      | 0.17                                                                                                                                                | 170.65                                                                                                                                              | 0.04                                                                                                                                                | 0.04                                                                                                                                                |
| Bihar                                                                                                                                               | 0                                                                                                                                                   | 1.19                                                                                                                                                | 0                                                                                                                                                   | 0.27                                                                                                                                                |
| Chhattisgarh                                                                                                                                        | 7.78                                                                                                                                                | 0.76                                                                                                                                                | 0.48                                                                                                                                                | 0.06                                                                                                                                                |
| Delhi                                                                                                                                               | 4.52                                                                                                                                                | 28.06                                                                                                                                               | 3.61                                                                                                                                                | 1.37                                                                                                                                                |
| Goa                                                                                                                                                 | 0.01                                                                                                                                                | 0                                                                                                                                                   | 0.10                                                                                                                                                | 0.04                                                                                                                                                |
| Gujarat                                                                                                                                             | 2.76                                                                                                                                                | 3.99                                                                                                                                                | 3.09                                                                                                                                                | 4.19                                                                                                                                                |
| Himachal Pradesh                                                                                                                                    | 0                                                                                                                                                   | 0.37                                                                                                                                                | 0.09                                                                                                                                                | 0.10                                                                                                                                                |
| Jharkhand                                                                                                                                           | 0                                                                                                                                                   | 0                                                                                                                                                   | 1.01                                                                                                                                                | 0.32                                                                                                                                                |
| Karnataka                                                                                                                                           | 5.07                                                                                                                                                | 4.35                                                                                                                                                | 30.34                                                                                                                                               | 24.33                                                                                                                                               |
| Kerala & Lakshadweep                                                                                                                                | 1.20                                                                                                                                                | 2.28                                                                                                                                                | 1.38                                                                                                                                                | 0.44                                                                                                                                                |
| Madhya Pradesh                                                                                                                                      | 0                                                                                                                                                   | 0.05                                                                                                                                                | 0.42                                                                                                                                                | 0.26                                                                                                                                                |
| Maharashtra                                                                                                                                         | 85.75                                                                                                                                               | 289.62                                                                                                                                              | 57.34                                                                                                                                               | 36.01                                                                                                                                               |
| North Eastern Region                                                                                                                                | 0.07                                                                                                                                                | 0.05                                                                                                                                                | 0.05                                                                                                                                                | 0.02                                                                                                                                                |
| Odisha                                                                                                                                              | 0.26                                                                                                                                                | 2.98                                                                                                                                                | 4.27                                                                                                                                                | 1.33                                                                                                                                                |
| Punjab & Chandigarh                                                                                                                                 | 0                                                                                                                                                   | 2.01                                                                                                                                                | 1.94                                                                                                                                                | 0.82                                                                                                                                                |
| Rajasthan                                                                                                                                           | 0                                                                                                                                                   | 0.10                                                                                                                                                | 0.06                                                                                                                                                | 0                                                                                                                                                   |
| Tamil Nadu & Puducherry                                                                                                                             | 3.53                                                                                                                                                | 9.66                                                                                                                                                | 6.05                                                                                                                                                | 10.43                                                                                                                                               |
| Telangana                                                                                                                                           | 2.96                                                                                                                                                | 1.61                                                                                                                                                | 4.42                                                                                                                                                | 2.23                                                                                                                                                |
| Uttar Pradesh                                                                                                                                       | 21.73                                                                                                                                               | 0.69                                                                                                                                                | 5.11                                                                                                                                                | 8.83                                                                                                                                                |
| Uttrakhand                                                                                                                                          | 0.16                                                                                                                                                | 2.47                                                                                                                                                | 0                                                                                                                                                   | 0                                                                                                                                                   |
| West Bengal & Andaman & Nicobar Islands & Sikkim                                                                                                    | 160.53                                                                                                                                              | 130.42                                                                                                                                              | 178.08                                                                                                                                              | 57.48                                                                                                                                               |
| TOTAL                                                                                                                                               | 296.50                                                                                                                                              | 651.31                                                                                                                                              | 297.88                                                                                                                                              | 148.57                                                                                                                                              |

Annexure referred to in  reply  to  Part  (c)  of  Lok  Sabha  Unstarred  Question  No.  69  for 04.02.2019 raised by Shri Raju Shetty regarding 'Procedure for Recovery of Outstanding Amount'.

State  /  UT-wise  detail  of  the  amount  (in  Rs.  lakhs)  recovered  from  the  closed companies  /  units  during  each  of  the  last  3  years  and  current  year  (upto December, 2018) under ESI.

| S. No.   | Name of the State / UT                      |   2015-16 |   2016-17 |   2017-18 |   2018-19 |
|----------|---------------------------------------------|-----------|-----------|-----------|-----------|
| 1        | ANDHRA PRADESH                              |      0    |      0    |      0    |     5.15  |
| 2        | ASSAM, MEGHALAYA AND TRIPURA                |      0    |      0    |      0    |     0     |
| 3        | BIHAR                                       |      0.1  |      0.06 |      0.01 |     0.02  |
| 4        | CHHATTISGARH                                |      0    |      0    |      0    |     0     |
| 5        | DELHI                                       |     14.01 |      0    |     51.73 |     0.035 |
| 6        | GOA                                         |      0    |      0    |      0    |     0     |
| 7        | GUJARAT, DADRA & NAGAR HAVELI AND DAMAN DIU |     86.9  |     64.55 |     92.47 |   139.12  |
| 8        | HARYANA                                     |      1.61 |      2.15 |      8.05 |     2.7   |
| 9        | HIMACHAL PRADESH                            |      0.71 |      0.03 |      1    |     0.08  |
| 10       | JAMMU & KASHMIR                             |      0    |      0    |      2.54 |     0     |
| 11       | JHARKHAND                                   |      6.2  |      8.3  |      4.43 |     6.61  |
| 12       | KARNATAKA                                   |     18.02 |      2.53 |      4.44 |     6.05  |
| 13       | KERALA AND LAKSHADWEEP                      |      1.94 |      1.59 |      1.75 |    30.99  |
| 14       | MADHYA PRADESH                              |     24.22 |     18    |      9.76 |     6     |
| 15       | MAHARASHTRA                                 |    103.89 |     70.64 |     54.55 |    41.22  |
| 16       | ODISHA                                      |      0    |     23.15 |      0    |     0     |
| 17       | PUDUCHERRY, ANDAMAN AND NICOBAR             |      0.97 |      0.44 |      0    |     1.35  |
| 18       | PUNJAB                                      |     28.82 |     20    |     11.39 |     7.57  |
| 19       | RAJASTHAN                                   |     17.49 |     38.94 |     33.17 |    16.62  |
| 20       | TAMIL NADU                                  |    289.97 |     18.35 |    104.93 |    74.08  |
| 21       | TELANGANA                                   |      0    |      0    |     31.59 |     0     |
| 22       | UTTAR PRADESH                               |      0    |      0    |      0    |     0     |
| 23       | UTTARAKHAND                                 |     87.35 |     11.46 |     30    |     6.59  |
| 24       | WEST BENGAL                                 |      0    |      0    |      7.54 |     0     |
|          | Total                                       |    682.2  |    280.19 |    449.35 |   344.19  |

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