Anonymous
A- is a three Wheeler Garage proprietorship with Father.
B- is authorized service center (of a manufacturer company) for Two Wheeler, proprietorship with Daughter.
A and B both unit are situated at same plot jointly owned by Father-mother-Son. (Daughter is not owing the plot)
Are these two units/establishments liable to be clubbed for the purpose of ESI? on What ground/s?
One unit is "Three Wheeler Garage" and another is "Two Wheeler Authorised Service Centre", will this be valid point for non-coverage?

From India, Mumbai
Shrikant_pra
264

Authorities will say that the stake holders are the same and as such this arrangement is done to escape from provisions of PF & ESI Act and pass order of clubbing. It is very cumbersome & time consuming to fight such order.
Names, types of business doesnot matter, stakeholders matter.

From India, Mumbai
Anonymous
Shrikant_pra ji, Proprietors of both units are related to each other but they two different individuals. Even then Authorities will say that the stake holders are the same ? how and why?
From India, Mumbai
Shrikant_pra
264

The authorities under both the act have powers under the acts club unit it they can put forth that separate entities are created to circumvent the act. Please understand the authorities do have the powers and as i have said that it will be very difficult for you to get the order vacated.
From India, Mumbai
Srinath Sai Ram
610

Whether there is Functional integration between the units will be the criteria for clubbing both organizations from the point of view of Statutory Authorities.
From India, New Delhi
Anonymous
How one can establish Functional integration between the units?
From India, Mumbai
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