TEA requestd 25 cr from ESI
With the Supreme Court upholding the Karnataka High Court decision that the principal employer is not liable to pay Employees States Insurance (ESI) on outside job works, Tirupur Exporters' Association (TEA) today requested the ESI Corporation to refund Rs 25 crore paid by exporters under the head.In a letter to Prabhat Chandra Chaturvedi, DG, ESIC, Delhi, copy of which was released to the press, TEA president A Shaktivel requested him to advise the regional office here to refund the amount to Tirupur knitwear exporters, who had paid to ESIC for outside job works.The apex court, in its order on March 12, 2007 in the case ESIC vs JMD Fashions, had dismissed the petition of ESIC and upheld the decision of Karnataka High Court, the letter said.Since the knitwear exporters were already facing financial problem due to appreciation of rupee coupled with increase in bank interest rates, the refund of the amount immediately would help them to improve their financial position, Shaktivel said.A copy of the letter has also been sent to the Chairman, Standing Committee, ESCI, Delhi, he added.
