Dear Dialogue Members,
I share bellow a case of one NGO being pulled up by ESI.
Miracle Foundation India partners with one NGO in a small town in Tamil Nadu, the NGO runs a children’s home which cares for approximately 130 children and has a staff of 16-18 persons. We have been associated with this NGO for the past three year and consider them to be one the most transparent and honest organization. Their work with the children is outstanding
About a year & half back, an inspector of ESI office visited this children’s home and demanded documents which was dutifully shared. He told them that they have defaulted by not registering with ESI. The management tried its best to convince that they do not qualify for ESI, but he was unwilling to consider it.
Later the organization received notice form ESI to comply with requirement and pay the amount stipulated in their letter. The organiation made a representation to the local ESI head and requested him to look into the case; nothing happened.
Now after a long gap, the organization received a letter from ESI that they have withdrawn Rs.89,000/- (approx) form the bank. This NGO has now filed a case in the Madurai court and is awaiting their hearing, which they are not sure when it would take place.
My questions are:
Are NGOs, who are running children’s homes and take care of orphans (and are not manufacturing units) covered under ESI?
Why should ESI withdraw such amount without any notice?
What can be done in this case?
I look forward to a dialogue on this
Thank you & regards,
India Country Head
Miracle Foundation India
A-149, Second Floor
New Delhi, 110017