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ESI not paid for employees working in cinema theatre in Chennai

Contents News/Article Date: 11th August 2023

Relating to which Act: The Employees’ State Insurance (ESI) Act, 1948          

Penalty under the Act: Section 85(a):  Penalty for failure to pay contribution Non-payment of this contribution is a serious offense because it directly affects insurable employees. Hence, the maximum imprisonment for this offense is 3 years and the minimum is 6 months with Rs. 5,000 as fine.

Applicable to which State: All the States and Establishments covered by the ESI Act

Type: News Report

Pertains to:  Employees in Cinema Theatre owned by Jaya Prada in the city

Relevance of this news: Karma Global is in the business of HR Services, Payroll, Outsourcing and Regulatory Compliances right from its inception in 2004 and since then, has brought in a lot of efficiencies and technological upgradations with experts on its roll, to ease the hassles of Payroll Processing, Temp Staffing, On-boarding, Employee Life Cycle, Statutory, Regulatory and Payroll compliances by providing customized solutions to all its elite clients.

Karma Global does excellent work on providing ESI Services both to establishments as well as Insured Employees and in this respect, it will inform all its clients and insured employees about the many announcements that the Government has made in terms of expansion of ESI Scheme, so as to make it available in the remotest of places viz. 744 districts and also to make health facilities and medical colleges in progressive districts of our country further expanding post graduate medical seats.

And in this instance: The Egmore Metropolitan Magistrate Court on Friday awarded a 6-month sentence to South Indian Film Star on charges of non-payment of ESI fund for employees working in the Cinema Theatre in the city owned by her.

Subject: ESI not paid for employees working in the Cinema Theatre in the city owned by Jaya Prada


Attached is the news report

ESI not paid for employees working in cinema theatre in Chennai

Six-Months Jail For Jayaprada As ESI Not Paid

Dc Correspondent

Chennai, Aug. 11

The Egmore Metropolitan Magistrate Court On Friday Awarded a Six-Month Sentence to South Indian and Bollywood Film Star Jayaprada, A Former Mp. On Charges of Non-Payment of Employees State Insurance (ESI) Fund for Employees Working in The Cinema Theatre Owned by Her In

The City the Verdict Was Given On a Petition by The Workers of The: Theatre Who Complained That Jayaprada Had Not Paid Their Esi Amount. The Workers of the Theatre Which Has Been Closed for The Last 10 Years Said the Management Was Deducting ESI Amount but Did Not Pay the Money to The State Insurance Corporation. Since They Were Denied Their Dues, They Were Forced to Move the Court, They Said.

Jayaprada and The Three Employees Who Run the Theatre Had Filed a Petition in The Madras High Court Seeking to Stop the Proceedings in The Egmore Court. But, All The Three Petitions Were Dismissed by The High Court.

When The Case Came Up Before the Egmore Court,

Jayaprada Offered to Pay the Amount Received from The Workers. But The Lawyer for ESI Objected to This and The Judge Sentenced the Actor to (Six Months Jail).

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