6. Powers and functions of the Governing Body.— In addition to the powers conferred on, and the functions entrusted to it by the other provisions of this Ordinance or by the rules, the Governing Body shall have powers—
(a) to approve the budget estimates, the audited accounts and the annual report of the Institution for submission to Government in accordance with the provisions of this Ordinance; and
(b) to call for any information, or direct any research to be made for the furtherance of the objects of this Ordinance.
7. Meetings of the Governing Body.— (1) The meetings of the Governing Body shall be held at such times and at such places as may be provided by regulations, and until regulations are made in this behalf, such meetings shall be convened by the Chairman.
(2) To constitute a quorum at a meeting of the Governing Body, the number of members present shall be five.
(3) Each member shall have one vote, and, in the event of equality of votes, the Chairman shall have second or casting vote.
(4) The meetings of the Governing Body shall be presided over by the Chairman, and in the absence of the Chairman, by the person elected for the purpose by the members present from amongst themselves.
8. Authentication of orders, etc.— All orders and decisions of the Governing Body shall be authenticated by the signature of the Chairman or of such other member as may have been authorised by the Governing Body in writing for the purpose.
9. Supersession of the Governing Body.— (1) If, in the opinion of Government, the Governing Body has persistently failed to perform the duties imposed upon it by or under this Ordinance, or has abused its powers, Government may, by notification, supersede the Governing Body:
Provided that before such supersession, Government shall give the Governing Body a reasonable opportunity to show why it should not be superseded, and shall consider any explanation or objection which it submits.
(2) Upon the publication of a notification under subsection (1), the person holding office as Chairman and members shall cease to hold such office.
(3) Immediately upon the supersession of a Governing Body, Government shall constitute another Governing Body by appointing new members in accordance with the provisions of section 5.
10. Fees and allowances.— Members shall receive such fees and allowances as may be prescribed.
11. Resignation.— A member, other than [an] ex-officio member, may resign his office by notice in writing to Government, and his seat shall fall vacant on the acceptance of the resignation.
12. Disqualifications.— (1) No person shall be or shall continue to be member, if he—
(a) has been convicted of an offence involving moral turpitude; or
(b) is declared to be of unsound mind by a competent Court; or
(c) is an undischarged insolvent; or
[(e) is a member of the staff of the Institution other than the Commissioner and the Medical Adviser];
(f) has any direct or indirect interest in a contract with, or in any work being done for, the Institution, except as a shareholder (not being a Director) of a company; or
(g) owes to the Institution contributions to the extent specified in the regulations; or
(h) has lost the capacity by virtue of which he was appointed as a member; or
(i) has failed to attend more than one-third of the number of meetings of the Governing Body held during any year.
(2) Government may, by order in writing, remove the Chairman or a member, if he—
(a) refuses or fails to discharge or becomes, in the opinion of Government, incapable of discharging his responsibilities under this Ordinance; or
(b) has, in the opinion of Government, abused his position as a member; or
(c) has absented himself from three consecutive meetings of the Governing Body without the leave of Government in the case of the Chairman, or of the Chairman in the case of a member:
Provided that before such removal, Government shall give the Chairman or the member, as the case may be, a reasonable opportunity of showing cause as to why he should not be removed, and shall consider any explanation or objection which he submits.
13. Filling of casual vacancies.— A member appointed to fill a vacancy other than a full-term vacancy, shall hold office for only so long as the member in whose place he is appointed would have been entitled to hold office if the vacancy had not occurred.
14. Head Office.— The head Office of the Institution shall be at
15. Medical Advisor.— As soon as may be, Government shall appoint a Medical Advisor having the prescribed qualifications.
16. Duties of Medical Advisor.— The Medical Advisor shall—
(a) advise the Governing Body on matters relating to the administration of medical care and the prevention and treatment of diseases among secured persons;
(b) perform such other duties in connection with medical care as may be specified in the regulations.
17. Medical practitioners and Medical Boards.— (1) The Institution shall appoint Medical Practitioners and Medical Boards in such Social Security areas and in such manner as may be provided by regulations.
(2) The powers and functions of Medical Practitioners and Medical Boards, and the fees and allowances to be paid to such practitioners or the members of such boards, shall be such as may be provided by regulations.
18. Commissioner and Vice-Commissioner.— (1) There shall be a Commissioner and a Vice-Commissioner of the Institution both to be appointed by Government.
(2) The Commissioner shall—
(a) be the chief executive of the Institution and shall act as Secretary to the Governing Body;
(b) be responsible to the Governing Body in respect of all matters relating to the structure, administration and personnel of the Institution; and
(c) have such powers regarding appointment, transfer, promotion, dismissal and other matters affecting the staff of the Institution as are provided for by regulations.
(3) The Vice-Commissioner shall perform the duties of the Commissioner when the latter is absent or prevented from acting, and the Commissioner may assign to the Vice-Commissioner the responsibility for the direction of certain services or delegate to him any of his own powers under this Ordinance, the rules and the regulations.
19. Officers and staff of the Institution.— The Governing Body may employ such officers and staff for the administration of the affairs of the Institution as the regulations may provide.
CHAPTER III
CONTRIBUTIONS
20. Amount and payment of contributions.— (1) Subject to the other provisions of this Chapter, the employer shall, in respect of every employee, whether employed by him directly or through any other person pay to the Institution a contribution at such times, at such rate and subject to such conditions as may be prescribed[:]
[Provided that no contribution shall be payable on so much of an employee’s wages as is in excess of [two hundred rupees per day or five thousand rupees per month.]]
[(3) The employer shall not be entitled, to deduct [his own share of contribution] from the employee’s wages or otherwise to recover from him any portion of the contribution, notwithstanding any agreement to the contrary].
(5) For the purpose of determining the amount of the contribution payable, daily wages shall be calculated in such manner as may be provided by regulations.
(6) Where the mode of payment of remuneration, whether in cash or in kind, makes it difficult to determine the amount of wages for computing the contribution, the Commissioner may, subject to regulations and in consultation with the representatives of employers and employees, determine such wages.
(7) Any sum deducted from another employee’s wages by the employer under this Ordinance shall be deemed to have been entrusted to him for the purpose of paying the employee’s contribution in respect of which it was deducted.
(8) In the case of construction work the owner of the building shall guarantee the payment of contributions by the contractors.
(9) In the case of works executed or undertakings carried on behalf of the State by a contractor or licensee, the competent public authority shall, before final settlement of the claims of the contractor or licensee arising out of the contract, require the production of a certificate from the Institution showing that the necessary contributions have been paid, and in default of such certificate it shall deduct from the amount otherwise payable in settlement of such claim, the appropriate amount of the contributions payable, and pay such amount direct to the Institution.
[20A. Self-Assessment Scheme.— (1) Notwithstanding anything contained in this Ordinance, an employer who opts for the self-assessment scheme shall be liable to pay to the Institution a contribution [of two hundred ten rupees] per month per secured employee.
(2) The liability of an employer to pay contribution under the self-assessment scheme shall be in respect of those employees who were secured under this Ordinance on
(3) Every employee secured under this Ordinance in respect of whom the employer pays contribution shall be liable to pay through the employer an amount of twenty rupees per month as his share to the Institution.]
21. Records and returns by employees.— Every employer shall keep such records and shall submit to the Institution such returns, at such times, in such form and containing such particulars relating to persons employed by him, as may be provided in the regulations.
22. Officials of Institution to check employer’s books.— (1) Any official of the Institution duly authorised by a certificate in a form specified in the regulations, may, for the purpose of inquiring into the correctness of any of the particulars stated in the records or returns referred to in section 21 or for the purpose of ascertaining whether any of the provisions of this Ordinance have been complied with—
(a) require an employer to furnish to him such information as he may consider necessary; or
(b) at any reasonable time enter any establishment or other premises occupied by such employer and require any person found incharge thereof to produce and allow him to examine such accounts, books and other documents relating to the employment of persons and payment of wages, or to furnish to him such information, as he may consider necessary; or
(c) examine, with respect to any matter relevant to the purposes aforesaid, the employer, his agent or any person found in such establishment or other premises, or any other person whom the said official has reasonable cause to believe to be or to have been a secured person.
(2) The official referred to in sub-section (1), shall be bound to secrecy as regards all matters with which he becomes acquainted in the performance of his duties and which do not relate to matters provided for in this Ordinance.
(3) If an employer fails to maintain records or to submit returns as required by regulations, or otherwise fails to comply with the provisions of sub-section (1) and thereby makes it difficult to ascertain the identity of persons required to be secured or the amount of contribution payable, the contribution shall be assessed on the basis of such evidence as the Institution may find satisfactory for this purpose.
[(4) No staff member of the Institution shall visit the premises of any establishment, opting for the Self-Assessment Scheme under section 20A, for the purpose of checking of employer’s books, record, etc., during the period [of two years].]
[(5) The number of annual inspections in respect of those establishments which do not opt for self-assessment scheme shall be restricted to only one which shall be notified to the establishments in advance and shall, at the maximum, be restricted to last two years.]
23. Increase of unpaid contributions and recovery of contributions, etc., as arrears of land revenue.— (1) If any employer fails to pay, on the due date, the contributions payable by him under sub-section (1) of section 20, the amount so payable by him shall be increased by such percentage or amount as may be prescribed:
Provided that in no case shall such increase exceed fifty per centum of the amount due:
Provided further that no part of such increase shall be payable by, or the liability to pay the same be passed on by the employer to his employees.
(2) Without prejudice to any other remedy, the amount of the contributions due, together with the increase provided for under sub-section (1), may be recovered as arrears of land-revenue.
24. Safeguard of secured persons’ rights in default of payment of contributions by employer.— In the event of default in payment of contributions by the employer in respect of a secured person, such secured person shall, unless he has connived at such default, have and enjoy the same rights under this Ordinance as if no such default had occurred.
25. Return of contributions paid erroneously.— [An] employer shall be entitled to the refund to any contribution paid to the institution under the erroneous belief that it was payable [* * *] under the provisions of this Ordinance, and shall be entitled to the refund of the excess amount of the contribution where such contribution had been paid at a higher rate than the rate prescribed:
Provided that where a contribution was paid under the erroneous belief that a person was a secured person, any sum paid to such person or his dependents by way of benefits shall, in so far as possible, be deducted from the amount of such refund:
Provided further that no contribution or excess amount of any contribution shall be refunded unless an application for such refund is made within six months of the date on which the contribution was paid.
26. Increase of contributions where safety rules not observed.— If an employer fails to observe rules of safety or hygiene prescribed by or under any enactment applicable to his establishment, the Commissioner may, subject to rules, by order in writing, increase the employer’s rate of contribution provided that such increase shall not exceed twenty per centum of the contribution otherwise payable.
27. Extinguishment of claims to contributions.— Any claim of the Institution for unpaid contributions shall be extinguished in the manner provided in the regulations.
CHAPTER IV
FINANCE AND AUDIT
28. Employees’ Social Security Fund.— (1) All contributions paid under this Ordinance, and all other moneys received by or on behalf of the Institution shall be paid into the Fund, which shall be held and administered by the Institution for the purposes of this Ordinance.
(2) The Institution may accept grants, donations and gifts from any Government or from a local authority or other body for all or any of the purposes of this Ordinance.
(3) All moneys accruing or payable to the Fund shall be paid into such scheduled bank as may be approved by the Governing Body, or to any office of the Institution.
(4) The Institution shall maintain separate accounts for administrative expenses, and for such branches of social security and such other purposes as may be prescribed.
29. Security reserves.— The Institution shall establish and maintain reserves in connection with the branches of social security prescribed in accordance with sub-section (4) of section 28 at such times, upto such amounts, and in such manner as may be prescribed.
30. Investments and loans.— (1) Subject to rules, the Institution may, from time to time, invest any moneys which are not immediately required for payments under this Ordinance, and may reinvest or realise such investments.
(2) The Institution may, with the previous sanction of Government and on such terms as it may specify raise loans and take measures for discharging such loans.
31. Budget.— (1) The Institution shall, before such date and in such manner as may be prescribed, draw up estimates for the ensuing year of—
(a) the administrative expenses of the Institution;
(b) the expenditure to be incurred under each of the branches of social security and other purposes for which separate accounts are prescribed in accordance with sub-section (4) of section 28; and
(c) the income of the Institution from contributions, the special tax payable under section 70, and other sources, if any.
(2) The Institution shall allocate the estimated income from the special tax towards meeting capital expenditure in accordance with sub-section (3) of section 70, and after allocating sufficient of the estimated income from contributions and other sources, if any, to cover the estimated administrative expenses, shall allocate the remainder of such estimated income among the branches of social security and other purposes referred to in clause (b) of sub-section (1).
(3) Such estimates and allocations shall, before such date as may be prescribed be submitted to Government and, when approved by it, shall constitute the budget of the Institution for the ensuing year.
(4) If Government has not approved such estimates and allocations, with or without amendments, within thirty days of their submission or before the commencement of the financial year to which such estimates relate, whichever is the later, its approval shall be deemed to have been given and the estimates and allocations as submitted shall constitute the budget of the Institution for the financial year to which they relate.
(5) If it appears that expenditure under any budget head is likely to exceed the budget provision under such head, the Governing Body may increase such budget provision by transferring thereto from any other budget head, any amounts not required or not expected to be required or not under such head:
Provided that no such transfer shall be made to the budget heads for either administrative expenses or the provision of medical care without the prior approval of Government.
(6) If, notwithstanding the application of the provisions of sub-section (5), it appears that expenditure under any budget head is likely to exceed the corresponding budget provision, or that income under any budget head is likely to fall short of the corresponding budget provision, the expected excess or deficiency, as the case may be, shall be reported to Government, who shall take such action, if any, as may seem appropriate:
Provided that no payment to which a claimant is entitled under this Ordinance shall be withheld pending such action.
32. Accounts and Audit.— (1) The Institution shall maintain accounts of its income and expenditure and of its assets and liabilities in such form and manner as may be prescribed.
(2) The Institution shall appoint an internal auditor who shall perform such duties and exercise such powers as may be provided by regulations.
(3) The accounts of the Institution shall be audited by an external auditor appointed by Government, at such times and in such manner as may be prescribed.
(4) The external auditor shall have access to the books, accounts and other documents of the Institution at all reasonable times, and may call for such explanations and information as he may require, or examine any officer of the Institution.
(5) The external auditor shall forward his report to Government together with an audited copy of the accounts of the Institution.
33. Annual Reports.— (1) The Institution shall, within six months after the closing of a financial year, submit to Government an annual report of its work and activities during that financial year, and such report shall cover such matters as may be prescribed.
(2) The annual report, together with the audited accounts of the Institution, shall be published and copies thereof shall be made available for sale to the public.
34. Valuation of assets and liabilities.— The Institution shall, at intervals of not more than five years, have an actuarial valuation made of its assets and liabilities:
Provided that Government may direct a valuation to be made at such other times as it may consider necessary.
