Insurance court cuts fine imposed on hotel chain

The Employees Insurance Court has reduced by 75% the damages imposed on Vasantha Bhavan Hotels India (P) Limited by the Employees State Insurance Corporation (ESIC).

In its petition, Vasantha Bhavan sought to set aside the notice issued by ESIC, claiming damages of ₹13,29,854 for delay in making contribution for the period from July 2013 to October 2014.

The firm will now have to pay ₹3,32,465.

The Court said it found the action by ESIC was well within its power. However, it noted amid the COVID-19 pandemic, industries invariably suffered economically in the last two years.

Three months time

“Thus at this point of time, if we direct the petitioner to pay damages with higher percentage as stipulated, it will have serious impact on the very existence of the establishment,” the Court said, and directed the firm to pay 25% of the damages claimed within three months from its order dated October 22.

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Printable version | Dec 7, 2021 7:09:25 PM |

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