Would need advice regarding the applicability of Factories Acts and Shops and Establishments Acts in LWE areas. We are a solar power T&D company operating in Jharkhand-Gumla, which is an LWE-affected district. We are a private limited company and a growing organization. However, we have not yet registered under any act.
May I be guided and advised on the following points:
1. About the impact of non-registration
2. As the business is based on funds received and loans taken, are we liable for compliance?
3. The place of operation is in the most remote villages - do we still need to comply?
From India, Kolkata
Acknowledge(0)
Amend(0)
May I be guided and advised on the following points:
1. About the impact of non-registration
2. As the business is based on funds received and loans taken, are we liable for compliance?
3. The place of operation is in the most remote villages - do we still need to comply?
From India, Kolkata
Acknowledge(0)Amend(0)
Since your place of operation, i.e., generation of solar energy, is in village areas, it would not be covered under the State Shops and Establishments Act but would be covered by the Factories Act,1948 as it is a manufacturing process. Therefore, non-registration under the Factories Act,1948 would lead to penal action and result in heavy penalties.
Every business is based on funds, both owned and borrowed. That can't be an excuse for legal compliance of any sort.
From India, Salem
Acknowledge(0)Amend(0)
6185Every business is based on funds, both owned and borrowed. That can't be an excuse for legal compliance of any sort.
From India, Salem
Acknowledge(0)Amend(0)
Dear Queriest,
Though the Govt. is trying to bring more and more schemes and incentives to attract development in LWE-affected areas, to my knowledge, there is no concession, exemption, or relief granted from obtaining any registration, license, NOC, etc., or from applying social security schemes like PF, ESI, EC, Gratuity, etc. However, such areas fall under non-implemented areas under the ESI Act. Therefore, you have no option but to register yourself under FA, EPF, CLRA if you have a contract system and CLRA is applicable, State PT if applicable, State LWF if applicable, and make necessary compliance timely under all applicable labor laws.
As stated by our learned member Shri. Umakanthan, non-registration under the FA Act, 1948 would lead to penal action and result in heavy penalties. Your liability under PF and other applicable social security will start from the day you employ the threshold number of workers, with heavy interest and damages. There is no excuse on the ground that the business is based on funds borrowed or otherwise.
From India, Mumbai
Acknowledge(0)Amend(0)
Though the Govt. is trying to bring more and more schemes and incentives to attract development in LWE-affected areas, to my knowledge, there is no concession, exemption, or relief granted from obtaining any registration, license, NOC, etc., or from applying social security schemes like PF, ESI, EC, Gratuity, etc. However, such areas fall under non-implemented areas under the ESI Act. Therefore, you have no option but to register yourself under FA, EPF, CLRA if you have a contract system and CLRA is applicable, State PT if applicable, State LWF if applicable, and make necessary compliance timely under all applicable labor laws.
As stated by our learned member Shri. Umakanthan, non-registration under the FA Act, 1948 would lead to penal action and result in heavy penalties. Your liability under PF and other applicable social security will start from the day you employ the threshold number of workers, with heavy interest and damages. There is no excuse on the ground that the business is based on funds borrowed or otherwise.
From India, Mumbai
Acknowledge(0)Amend(0)Engage with peers to discuss and resolve work and business challenges collaboratively - share and document your knowledge. Our AI-powered platform, features real-time fact-checking, peer reviews, and an extensive historical knowledge base. - Join & Be Part Of Our Community.
Factories Act.doc
LIST OF HOLIDAYS UNDER FACTORIES ACT - ANDHRA PRADESH.pdf