BCCI engaged in commercial activities, comes under Employees State Insurance Act: Bombay High Court
India Today
The Bombay High Court has observed that the Board of Control for Cricket in India (BCCI) engages in commercial activities and earns profits from them, and is, therefore, covered under the Employees State Insurance (ESI) Act.
The Board of Control for Cricket in India (BCCI) is covered under the Employees State Insurance (ESI) Act and is thus liable to pay the employer's contribution to the ESI Corporation, which looks after the welfare of employees of any company.
The high court said that the BCCI is liable to pay employer’s contribution to the Employees State Insurance Corporation (ESIC), an autonomous body under the Union government.
The body provides medical care, paying compensation in cases of illnesses, injuries etc., and several other benefits for employees in the organised sector.
In an order passed on June 24, a single bench of Justice Bharati Dangre upheld an order passed earlier this year by an ESI court in the city, which had held that the BCCI can be categorised as a “shop” under the Mumbai Shop and Establishment Act and would, therefore, be covered by the ESI Act.
The BCCI had approached the high court challenging this order.
Justice Dangre, however, said that while the BCCI was largely an administrative body, it did make money from international cricket tours, the Indian Premier League, by selling rights of broadcasting the cricket matches, sponsorship, sale of tickets, etc. Hence, it’s activities were liable to be considered as commercial.
“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.
