1.   The procedure for registration, collection and passing of orders under Section-12 has been standardized. The number of forms have been reduced and modified to simplify procedure, reduce compliance cost and facilitate payment of contribution by employers and employees. New registers for record of arrears, show cause notices, demand & collection, Self-Assessment and Amnesty Schemes have been prescribed. The instructions regarding construction of comprehensive data-base of employers and building up of record of the employers’ and employees’ contributions have been issued through series of circulars.

 2.         For proper enforcement of standardized procedures to achieve the desired results, it is imperative that the Zonal Monitoring and Inspection Teams should regularly inspect the Regional Offices and ensure that the instructions are being adhered to in letter and spirit. The standard form for inspection of Regional Office is placed as Annex-SIF-1. 

3.         Inspection is a vast field and no comprehensive check list can be issued. The Inspection Authorities should determine the scope of their work in accordance with the circumstances of each Regional Office. However, a check list comprising of minimum issues to remind Inspection Authorities of their basic duties has been devised for guidance of field officers.

 3.1)     ANNUAL TARGET

 Realistic targets on the basis of actual potential determined through data base of employers and actual collection have been fixed. It is therefore essential to watch and monitor the realization of targets by each Region. Zonal Monitoring and Inspection Teams should therefore regularly examine and comment on the Annual and proportionate Monthly Targets. Following format may be used. 

S.No	Annual Target	Proportionate Target	Actual Achievement	Remarks
01	Registration of Employers
02	Registration of Employees
03	Collection
04	Record Building

             In remarks column the excess or deficiency in proportionate target and actual achievement may be identified and commented. The explanation for the deficiency if any, be obtained and advice for improvement given.

 3.2)     JOB DESCRIPTIONS

 Job description is the foundation for enforcement of accountability and key to improvement of performance. The Inspection Team should therefore address the following issues:- 

            i.  Whether comprehensive job description of each functionary has been    duly notified in writing and acknowledged by the incumbent?

          ii.  Whether all employees are fully aware of their responsibilities specified in their job descriptions and are performing their duties accordingly?

       iii.  Whether action has been initiated against those who are not performing their jobs in accordance with the job descriptions?

 3.3)   REGISTRATION / DOCUMENTATION

           i.   Whether a Comprehensive Data Collection (Map Survey) exercise has been completed and registerable cases identified? 

       ii.  Whether the information collection procedure has been institutionalized and Regional Head / Beat-Officers have made arrangements for constant up-dating of information in respect of his Region / Beat?

     iii.  Whether all columns of survey Register (MPR01) have properly been filled up?

       iv.  Whether the Regional Head has checked 5% of the data as prescribed in Circular 02 of 2002-03 dated 4/7/2002?

          v.  Whether the officers concerned had undertaken proper publicity campaign to educate and motivate the new registerable employers to get automatic registration under section-11 of EOB Act 1976 or under Amnesty Scheme promulgated under SRO-500(1) dated 5^th August, 2002 elaborated in circular No. 17 dated 9/9/2002?

       vi.  Whether PR-01 and PR-01A have been duly receive, checked, entered in relevant registers and new files opened accordingly?

    vii.  Whether PR-02 and PR-02A forms have also been received, verified and computerized?

 viii.  Whether PE-01 forms for employers have been issued?

      ix.  Whether PE-02 Forms for the employees have been issued?

          x.  Whether PR-03 Forms in all registration cases have been received and collection verified with Bank Scroll and PR-02 & PR-02A forms?

 3.4)     COLLECTION

             i.  Whether collection in newly registered cases has been made and PR-03A or PR-03 has been received and verified with Bank Scroll and employee record?

         ii.  Whether PR-03 Forms in new cases of Self-Assessment alongwith PR-10 have been received, verified with Bank Scroll and employee record?

      iii.  Whether number of employees and amount of contribution declared in Self-Assessment Form has been compared with the preceding years and found to be equal or more than the preceding year? If not, has the deficiency been confronted to employer and balance recovered?

        iv.  Whether PR-03 Forms in existing non-Self Assessment cases have been received?

           v.  Whether there is an evidence of suppression or evasion in non-Self-Assessment cases? If so, has it been included in the checking plan?

        vi.  Whether lists of defaulters / delinquents have been prepared?

     vii.  Whether Statutory Increase in accordance with section-13 of EOB Act read with Circular No. 2 dated 19/6/2002 or relevant instructions have been imposed regularly?

  viii.  Whether Arrears Register, Ledger of Arrears’ and Lists of arrears have been properly prepared for action against the defaulters for recovery as arrears of Land Revenue?

        ix.  Whether action against defaulters has been taken for recoverable arrears in accordance with Circular No.14 dated 26/8/2002 against public and private enterprises?

           x.  Whether Show Cause Notices U/S 12(3) for non-payment of contribution during the last three months have been issued regularly and subsequent actions taken in accordance with law to recover the contribution?

3.5)     EVASION CASES

                i.  Whether the lists of evasion cases as per Circular No. 17 dated 9/9/2002 have been prepared showing the evidence to prove the evasion?

              ii.  Whether the evidence for evasion in all cases is solid? In case it can be supplemented, advice for the same should be given by the Inspection Authorities.

           iii.  Whether the Checking Plan in case of non Self Assessment cases have been prepared properly on the basis of cogent evidence and reasons in accordance with law?

             iv.  Whether the checking plan has been approved by the Regional Offices and Zonal Offices?

               v.  Whether the register for Show Cause Notices has properly been maintained? The Inspection Authorities should ascertain the number of Show Cause Notices issued under Section 12(3) and the number of orders passed u/s 12(3) determining the amount of evasion. The reason for issuance and settlement should be examined to comment on bonafide of action and quality of anti-evasion measures / exercise undertaken by the Beat Officer/ Regional Head.

             vi.  The reasons for settlement of the cases and dropping-off notices u/s 12(3) should be thoroughly checked, ascertained and cases involving gross negligence or connivance be reported through confidential letters to Head Office with endorsement to Chairman.

          vii.  The quality of orders should be commented and the improvable deficiencies be pointed out for improvement of the orders in future.

3.6)     DATA-BASE

            i.  Whether weekly reports have been submitted in time?

         ii.  Whether the quality of reports was good and accurate?

      iii.  Whether Survey Register has been maintained with due diligence?

   iv.  Whether MSPR-01 has been checked to ascertain that none of the industrial and commercial establishment have been left out and 5% checking by the Regional Head has properly been made?

           v.  Whether the data has properly been entered into the computer and back-up provided to Zones / EDP Division for consolidation and onward submission to Head Office?

        vi.  Whether the data analysis has been conducted to identify new register -able cases, cases of evasion? Whether class-wise parametric analysis has been undertaken to identify cases of suppression on the basis of standard norms of employment?

      vii.  Whether action for registration in registerable cases after the expiry of last date for Amnesty has been planned / taken as the case may be?

   viii.  The number and accuracy of new registerable cases should be ascertained and commented accordingly.

         ix.  Whether all columns of registration have properly been filled-up specially column No. 15 & 19 of the Register? Whether quality of information for filling up column 19 was authentic? The advice to improve the quality of information regarding number of employees based on experience of Inspection Team should be given. In this context information from feasibility reports, research reports and volunteered by employees federation may be utilized.

            x.  The quality of information collected to fill-up column-19 of the register should be specifically discussed with the Regional Head impressing upon him that collection of authentic information is a continuous process and the column should be updated and supplemented with authentic information from time to time.

 3.7)     PROGRESS REPORTS

             i.  Whether the Monthly Progress Reports (MPR) on the new format of C1 & C2 have been properly filled and submitted in time?

         ii.  Whether the information provided in MPR tallies with the relevant registers and record maintained in the Region?

      iii.  Whether the data in MPR is internally and externally consistent?

        iv.  Whether the record of show cause notices has properly been maintained and accurately being reported in MPRs?

           v.  Whether the record of arrears and current Demand has properly been maintained and accurately reported in MPRs.

3.8)     RECOVERY OF ARREARS

                 i.  What is the magnitude and ageing analysis of arrears against Private Sector defaulters exceeding Rs.50,000/-?

              ii.  Whether action for recovery of arrears Private Sector Defaulters have been initiated and completed in accordance with Circular-14 dated 26/8/2002?

           iii.  What is the extent and ageing analysis of arrears against Public Sector Defaulters exceeding Rs. 50,000/-.

             iv.  Whether action for recovery of arrears Public Sector Defaulters have been initiated in accordance with Circular-14 dated 26/8/2002?

                 v.  The amount of arrears, current demand, stage and level of recovery action should be indicated alongwith the advice for effective steps for recovery.

             vi.  Whether the record of notices under Land Revenue has been maintained and systematically followed?

           vii.  Whether records of proceedings of recovery of arrears for Public & Private Sectors have regularly been maintained and reports submitted to higher authorities?

        viii.  Whether recovery action has persistently and diligently been pursued?

              ix.  Whether all recovery measures have been exhausted in case of such arrears?

                 x. Whether recovery committees and dispute resolution committees were activated and properly pursued to enforce recovery?

 3.9)     AMNESTY & SELF-ASSESSMENT SCHEMES

             i.  Whether the registers for Amnesty and Self-Assessment Scheme have separately been maintained?

         ii.  Whether register for cases claiming Amnesty and Self-Assessment but not qualifying for the same has been maintained, the reasons for the same recorded and communicated in accordance with the procedure laid down in Circular No. 17 dated 9/9/2002?

      iii.  Whether separate recovery register of Self-Assessment Scheme has been maintained?

        iv.  Whether regular reports in this regard have been submitted?

   v.  Whether PI-03 Cards have been issued to all the employees of the establishments qualifying for Amnesty and Self-Assessment Schemes?

 vi.  Whether the cases of Self-Assessment and Amnesty Schemes have been processed correctly in accordance with Circular No.17 dated 9/9/2002.

 3.10)   RECORD BUILDING

             i.  Whether the E-MAIL addresses of the employers have been obtained and E-mail contact / communication established with them?

         ii.  Whether record of employers and employees contributions has been maintained in accordance with Circular No.10 dated 6/8/2002?

      iii.  Whether Ledger Accounts of each employee are being maintained, updated and intimation letters issued to them?

3.11)   QUALITY OF ASSESSMENT

            i.  Whether the procedure for raising of demand and guidelines for issuance of order U/S 12(3) in Circular NO. 11 & 12 of 2002-03 have properly been followed and sustainable orders have been passed by the Regional Heads?

         ii.  Whether the cases have been upheld in appeal U/S 33, 34 & 35 of the EOB Act, 1976.

3.12)   CHECKING PLAN

            i.  Whether the checking plans have been prepared in time and in accordance with the instruction issued under Circular No. 17 dated 9/9/2002 and implemented in transparent fashion under intimation to the important stakeholders.

         ii.  Whether substantial evasion has been detected as a result of checking plan. If not, what were the deficiencies and how could the same be improved?

3.13)   BENEFITS

                 i.  Whether Pension Payment Control Register maintained properly?

              ii.  Whether F.I.R is maintained properly and entries are made properly.

    iii.   No. of Cases Pending beyond 45 days _________, less than 45 days______.

             iv.  Whether files of claimants / pensioners maintained properly?

             v.  Whether adequate precautions to detect ghost pensioners have been taken? 

3.14)   MAINTENANCE OF REGISTERS

 Whether all the prescribed registers as per Annex-II have been properly maintained and utilized to improve the efficient service to employers, employees and the pensioners?

 3.15)   COMPLAINTS

 Progress in disposal of complaints, whether of evasion or delays and maladministration in processing of claims shall be checked and monitored to ensure prompt response. Zonal Head shall regular check his own complaint register and inspect the registers of Regions. All the pending complaints shall be reviewed during inspection and spot instructions issued to resolve the disputes on merits.

 3.16)   ADMINISTRATION

                    i.  Whether regular performance evaluation (PER) has been carried out in accordance with Circular No.9 dated 29/7/2002? If so what was raking of Eos and Regional Head? 

                ii.  Whether Regular and Late Attendance Registers maintained?

              iii.  Whether Proper actions against the late comers & absentees taken?

                iv.  Whether budget and expenses registers properly maintained?

                   v.  Whether building & office premises properly maintained?

                vi.  Whether office decorum & discipline is being maintained?

 3.17)   CONSTITUTION OF TEAM

 For effective inspection it shall be conducted by the Zonal Head himself. He may train his Zonal Monitoring and Inspection Team to do the spade work which shall comprise of senior and experienced officers (Director + Assistant Director). The program, mode and manner of inspection may be intimated in advance to the Regional Office. The draft inspection report covering all aspects of activities in Regional Office shall be discussed by the Zonal Head with the Regional Head before finalization of report. Copies of the reports signed by the Zonal Heads shall be submitted to the Head Office with a copy to Chairman which shall serve as the basis for performance evaluation of the officers. Minimum two inspections shall be conducted every month by each Zonal Office and reports submitted to Head Office for information and evaluation on 15^th of every month. 

4.         The above instructions are the bare minimum for guidance of officers and are not substitute for application of mind and adherence to the instructions already issued by the superior authorities. The Inspection Report prepared by Zonal Inspection Team shall be evaluated by Monitoring and Inspection Team of Head Office. It is hoped that the quality of inspection reports shall be maintained and efforts made to streamline the procedures and enforce the instructions with the objective to strengthen the capabilities of the Institution in collection of information and passing of sustainable order u/s 12(3) so that it is established that the Institution has the system and procedure to instantly identify defaulters and prompt recovery of contribution due alongwith Statutory Increase.               

 

  

 

                                                                               (MUHAMMED SHAFI MALIK)

                                                                                                  CHAIRMAN