Bihar: ESIC issues garnishee orders to Aurangabad Municipal Corporation

After a leading private contractor of the Aurangabad Municipal Corporation (AMC) failed to make a payment to the Employees' State Insurance Corporation (ESIC), the AMC issued attachment orders and asked it to pay the outstanding amount of Rs 67.71 lakh along with interest charged per day.

The ESIC wrote a letter stating that Maharana Agency Security And Labour Suppliers has failed to pay the arrears due under the ESI Act amounting to Rs 66.71 lakh, which includes interest from December 11, 2019, to June 02, 2021, on the contribution and Rs 1,786.95 per day till the date of payment. When contacted, ESIC enforcement inspector Shiv Prakash said that following the notification, AMC is taking some steps to clear the outstanding amount, but declined to elaborate further.

The order issued by ESIC enforcement officer Rajiv Kumar Choudhary said, “Despite receiving the said demand notices, the defaulter has not settled the arrears as on date. Whereas it is necessary to initiate enforcement action in accordance with law,” and directed the AMC to remit an amount of Rs 67.44 lakh, which includes costs, execution charges and interest by 4. and Rs 1,392.43 per day with effect from January 5, 2022 until the date of payment.