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No. P-11/14/Amnesty Scheme/2023-Rev.II
All Additional Commissioners/Regional Directors/SRO I/c
ESI Corporation
Regional Office/Sub-Regional Office
Sub: The New Amnesty Scheme, 2025 For withdrawal of the Criminal Cases
Filed against Insured Persons and Employers and settlement of cases filed
by Employers u/s 75 and 82 of ESI Act 1948-regarding
Sir /Madam,
The Corporation in its 196th meeting held on 27.06.2025 has approved the
launch of the Amnesty Scheme 2025:
1. To reduce the number of litigation by providing a mechanism for resolution of
disputes outside the court.
2. To earn goodwill of stakeholders and thus enhance the brand image of the
Corporation.
Keeping in view above factors, the New Amnesty Scheme 2025 provides the
opportunity for the withdrawal of prosecution cases filed u/s 84 and 85 of ESI Act
and court cases u/s 75 and 82 of the ESI Act and Article 226 up to 31.03.2025
subject to following terms and condition
A. SETTLEMENT OF COURT CASES FILED U/S 75 AND APPEAL U/S 82 OF
ESI ACT 1948 AND ARTICLE 226 OF THE CONSTITUTION OF INDIA
(i) DISPUTE OF COVERAGE:
The scheme shall include all cases filed in which the employer has disputed
the coverage which may be settled subject to the following conditions:
In case of closed units:
Unit is closed for more than 5 years as on 31.03.2025
Case is pending before Hon'ble Courts for more than 5 years as on
31.03.2025
No assessment has been made for the period under dispute and litigation up
to the date of commencement of Amnesty Scheme 2025
RD/Incharge will initiate action to instruct the counsel to make the statement
before Hon’ble Court for withdrawal/settlement in terms of Amnesty Scheme.
Unit closed within 5 years as on 31.03.2025:
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Date: 24.07.2025
Employer showing record to substantiate coverage.
He pays the accepted dues i.e. contribution, interest on the accepted
contribution.
No damages will be claimed.
In such cases where the assessment has been made on assumed basis,
such cases may also be considered provided the employer produces records
in support of accepted dues.
In case of running units:
If the unit is functioning and the employer produces records to substantiate
his plea regarding non-coverage or coverage from a later date, same may be
accepted.
No damages will be claimed in such cases.
# Cases where the registration has been done by the employer himself by
submitting Form-01 on the portal (SSP/ESIC) will be excluded from the
Amnesty Scheme.
(ii) DISPUTE OF CONTRIBUTION:
This Scheme shall also include cases in which the employer has disputed
the determination of contribution under section 45A or under section 45AA or
recovery of contribution, in the Employees' State Insurance Court, u/s 75 of the
ESI Act, made the appeal u/s 82 of the Act or under article 226 of Constitution of
India (where substantial question of law is not involved), up to 31.03.2025 subject
to the fulfilment of the following conditions:
i. The employer shall file a petition before the Hon’ble Court where he has
raised the dispute and seek permission of Hon’ble Court for out of Court
settlement of matter under litigation. If the Court allows, then the matter shall
be settled as per the scheme. The employer shall apply for the Amnesty
scheme in the proforma prescribed by the corporation
ii. The employer shall pay both the Employees' and Employers' share of
contribution and interest on the revised amount of as per their records, which
he shall produce before the assessing officers, if the contribution has been
assessed on assumed wages and he shall comply with other provisions of
the Act.
iii. In case all the records required for assessment of contribution are not
available with the employer, they shall produce alternative records such as
EPFO and Income Tax Record etc. and shall pay the contribution accordingly
as per these records.
iv. However, if the employer is not able to produce any of the records and the
assessment has been made in respect of wages other than the wages shown
in Regulation 32 Register, he shall pay the contribution which shall be not
less than 30% of the assessed amount of contribution. The cases where
assessment has already been made as per Hqrs instruction No. P-11/13/97-
Ins-IV dated 26.05.2003 or where the contribution has been assessed on
actual basis will not fall under the purview of the scheme.
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v. The employer shall pay Interest as per the revised contribution.
vi. No damages shall be levied.
vii. The employer shall also furnish an undertaking to the Corporation to the
effect that he/she shall be regular in compliance in the provisions of ESI Act
in future or else he/she shall forfeit the right to avail of such amnesty scheme.
B. CASES WHERE EMPLOYER HAS DISPUTED THE LEVY OF DAMAGES.
i. There are cases where employer has disputed levy of damages in the court
of law after making payment of contribution and interest. These cases filed up
to 31.03.2025 may also be considered for withdrawal with the condition that
the employer has to pay 10% (Ten Percent) of the damages as determined by
the Corporation. If Employer has gone in Higher Court against the decision
of Lower Court, RO/SRO may make a statement before the Hon’ble Court
that the Corporation would accept the 10% of the damage amount under the
Amnesty Scheme.
ii. Similarly, where the Corporation has gone in higher Court against the
decision of EI Court/High Court, damages as ordered by the lower court
should be accepted and the case may be withdrawn by the Corporation after
realizing the amount of the damages as ordered by the lower court.
C. THE SCHEME TO WITHDRAW THE COURT CASES FILED U/S 84, 85, 85A
OF THE ESI ACT, 1948
(1) Case filed against the insured persons under section 84 of the ESI
Act for giving wrong declaration/statement resulting in excess payment to
him/her may be withdrawn subject to the condition that:
a. The entire amount paid in excess to the Insured person is refunded in
full by him/her to the Corporation
b. No Interest will be claimed
c. An undertaking is also given by Insured Person to the effect that he/she
would not give wrong declaration/statement in future
d. Where the whereabouts of IP is not known and notices cannot be
served despite best efforts, all such cases which are pending for more
than 5 years shall be withdrawn where the complaints are strictly under
the ESI Act.
e. Cases involving criminal conspiracy and forgery will not be covered
under the Scheme.
(2) Cases filed against the employer under section 85 and 85A of the ESI act
up to 31, March 2025
Prosecution cases filed against the employer u/s 85 and 85-A of the ESI Act
may be withdrawn subject to the following conditions:
(i) If the contribution has been assessed on assumed wages, the employer
shall pay both the Employees' and Employers' share of contribution along with
Interest as per their records, which he shall produce before the assessing officers.
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(ii) In case the relevant records are not available with the employer, they shall
produce alternative records such as EPFO and Income Tax Records etc and shall
pay the contribution accordingly as per these records.
(iii) However, if the employer is not able to produce any of the records, he shall
pay contribution based on following, in the same order, (i.e. only in cases where
the records as per option 'a' is not available, down below alternatives in the same
order is to be exercised for assessing dues.):
a. The rate of monthly contribution paid for the month prior to the month
from which default started.
OR
b. Monthly wages declared in form-01
OR
c. Monthly wages reported by SSO in the Survey Report,
OR
d. Minimum wages applicable in the State/Region
(iv) The cases where the contribution has been assessed on actual basis will not
fall under the purview of the scheme.
(v) The employer will pay the interest as per the contribution paid by him as per
his records.
(vi) No Damages will be claimed.
(vii) In all such cases where employer has already deposited both contribution
and interest without protest, shall be withdrawn by the Regional Director without
waiting any request from the employer.
(viii) It will be subject to the condition that the employer is regular in compliance or
the employer makes the up to date compliance of ESIC dues.
D. THE SCOPE OF THE NEW AMNESTY SCHEME 2025 IS ENHANCED TO
INCLUDE CASES AS UNDER:
1. Cases filed u/s 85 (a & g)
There are large numbers of old pending cases which are pending for more
than 15 years as on 31, March 2025. In many of such cases the 'dues involved are
very meagre as compared to expenditure and manpower involved in handling such
cases in court of law. These cases may also be considered for withdrawal subject
to the following conditions:
i) For closed units
a. The unit is closed or whereabouts of employers is not known, and,
b. The outstanding contribution (excluding Interest & Damages) is up to Rs.
25000/-
ii) For running units
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a. If unit is functioning, the unit should make up to date compliance as follows
b. The outstanding contribution (excluding Interest & Damages) is up to Rs.
25000/- and,
c. 30% of contribution and resultant interest only to be paid
2. Cases filed u/s 85 (e) non-submission of return of contribution
only
There are cases where ESIC has filed a criminal case against the employer for
non-submission of return of contribution. As these cases do not have any financial
implication and as the contribution payment has been digitalized and the provision
for half yearly return have become redundant, such cases filed up to 31, March
2025 may be considered for withdrawal subject to following conditions:
i. For closed units
a. The unit is closed or whereabouts of employer is not known, and,
b. Employer has deposited contribution and interest for the period of return.
ii. For running units
Employer
has deposited contribution and interest for the relevant period of return.
3 . Cases of late submission of declaration forms by employer will also be
withdrawn, if compliance is made, accident cases is settled and case is pending for
more than 3 years.
E. As far as possible the officer other than who determined the contribution earlier
should be given the case of the concerned employer under the Amnesty.
F. All cases are required to be settled as per the scheme, within 6 months from
the date of filling of application by the Principal Employer/Insured Person.
G. The New Amnesty Scheme 2025 will be in force from 01/10/2025 to
30.09.2026.
H. The Scheme will also be available to those employers/insured persons who
have already availed of the benefits of earlier Amnesty Schemes.
I. The Regional Directors/Joint Director in charge of the Regional/Sub-Regional
Offices are fully empowered to accord sanction for withdrawal settlement of cases
referred as per para(A), (B), (C) and (D) on receipt of the compliance as per the
scheme.
J. The RD will meet the Registrar of the concerned Hon’ble High Court to apprise
them about the amnesty scheme and request to inform the lower Courts about
amnesty scheme being launched by ESIC. RD may also meet the concerned
authorities of lower courts to brief about the scheme.
K. A Committee comprising DD/AD (Legal), DD/AD (Finance) and a panel
advocate would be constituted at the field office level to review all such cases to be
withdrawn.
L. The AC & Regional Directors/Director I/Cs/Joint Director I/C Dy. Director I/c of
RO/SRO are advised to give wide publicity to the Scheme through
advertisement/press release in leading local newspapers and by holding
continuous interaction/ meeting with Employer/IP and Trade Union etc.
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The contents of the New Amnesty Scheme 2025 must also be posted on the
Regional Web Site. The members of Regional Board/Local Committee/Workers
Union and Employers Association must also be informed about launch of New
Amnesty Scheme, 2025.
M. AC & Regional Directors/Director I/Cs/Joint Director I/C, Dy. Director I/c of
RO/SRO need not refer any case to Hqrs for guidance/directions.
N. The incentive as mentioned below may also be given to panel Advocate for
their contribution in withdrawal of cases during the Scheme.
a. Incentive of Rs. 2500/- for per case filed u/s 75,82 and 226.
b. Incentive of Rs. 1000/- for per case filed u/s 85 (a)(e) & (g) of ESI Act.
c. Further all the officers/staff relating with the action regarding Amnesty
Scheme will be allowed honorarium as per rules.
d. Further the top ten best performing regions will be facilitated by the Hon’ble
Chairman of the Corporation.
O. Monthly Progress report in this regard should reach this office by 10th of
every month.
This issues with the approval of Director General.
Yours faithfully
(Rakesh Kumar)
Joint Director(Revenue)
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