BCCI Comes Under Employees State Insurance (ESI) Act As It Earns Profits From Commercial Activities – Bombay High Court
Published - 01 Jul 2022, 01:14 PM | Updated - 23 Aug 2024, 12:09 AM
The Bombay High Court has asserted that the Board of Control for Cricket in India (BCCI) comes under the Employees State Insurance (ESI) Act as it earns profits from engaging in commercial activities.
As the Board of Control for Cricket in India (BCCI) is covered under the ESI Act it is liable to pay the employer’s contribution to the Employees State Insurance Corporation (ESIC), said the high court.
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Notably, the Employees State Insurance Corporation (ESIC) is an autonomous body under the Union government and it looks after the welfare of employees of any company in the organised sector.
Meanwhile, under the Employees State Insurance (ESI) Act the corporation provides certain benefits to employees in case of sickness, maternity, employment injury etc.
An order was passed earlier this year by the Employees State Insurance (ESI) court which had held that the Board of Control for Cricket in India (BCCI) comes under the Employees State Insurance (ESI) Act as it can be categorised as a “shop” under the Mumbai Shop and Establishment Act.
On June 24, a single bench of Justice Bharati Dangre upheld the earlier passed order. However, the Board of Control for Cricket in India has challenged this order by approaching the high court.
The BCCI Is Admittedly Involved In Entertaining And Carrying Out Systematic Commercial Activity – Bombay High Court
Justice Dangre has said that the activities performed by the Board of Control for Cricket in India can be considered commercial. Justice Dangre asserted that the BCCI, while largely being an administrative body, made money from the Indian Premier League (IPL), International cricket tours, by selling broadcasting rights, sponsorship, sale of tickets and several other activities.
“The board is admittedly involved in entertaining and carrying out systematic commercial activity and is engaged in providing services to the public at large by engaging its employees, organising events, promoting cricket as a source of entertainment and thereby collecting funds,” the court said as reported by India Today.
“I have no hesitancy to hold that the nature of activities conducted by the Board are commercial and hence, covered under the term ‘shop’ for the purpose of the ESI Act and notification issued thereunder,” Justice Dangre said while dismissing the BCCI’s appeal.
Meanwhile, the Board of Control for Cricket in India is allowed to file an appeal as the high court has stayed the implementation of its order for six weeks.
Also Read: Just IN: BCCI Announces 17-Men Team India Squad For 3-Match ODI Series Against England
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