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Section 30: Holding of property, etc., by Corporation

The Code on Social Security, 2020 (Act No. 36 of 2020) • Official Statutory Text & Plain English Practice Guide

Statutory Mandate
Chapter IV: Employees' State Insurance Corporation
Competent Labour Forum
Act No. 36 of 2020
Section 29 All 163 Sections of Code on Social Security, 2020 Section 31

Legal Commentary & Landmark Judgments: Section 30

Section 30 of the Code on Social Security, 2020 imposes a statutory ceiling and regulatory oversight over the administrative expenditure of the Corporation, ensuring that public contributions are predominantly directed toward worker medical and cash benefits rather than bureaucratic overhead.

  • Statutory Ceiling on Administrative Outlays: Section 30 establishes that the administrative expenditure of the Corporation shall not exceed such percentage of the total contributions and revenues received in any financial year as may be prescribed by the Central Government.
  • Parliamentary Budgetary Scrutiny & CAG Reporting: Annual revenue and expenditure budgets must be scrutinized by the Standing Committee and approved by the Corporation, with audited accounts and administrative reports laid before both Houses of Parliament annually.
  • Distinction Between Administrative & Capital Allocations: Maintains a strict statutory distinction between routine administrative overheads and capital investments in hospital construction, diagnostic infrastructure, and medical technology upgrades.
Key Landmark Precedents:
  • Basant Kumar Sarkar v. Eagle Rolling Mills Ltd. AIR 1964 SC 1260: The Supreme Court recognized that Parliament exercises ultimate legislative oversight over statutory social security corporations to maintain operational efficiency and contain administrative expenditure.
  • Regional Provident Fund Commissioner v. Hooghly Mills Co. Ltd. (2012) 2 SCC 489: The Supreme Court emphasized that statutory welfare corporations must exercise strict fiscal discipline to ensure maximum allocation of funds directly to worker welfare.
  • B.P.L. Ltd. v. R.P.F.C. (2002) 10 SCC 408: Reaffirmed that administrative charges and expenses levied under social security enactments are strictly intended to support statutory administrative functioning without commercial profit-making.
Courtroom Practice & Strategic Litigation Guidance:

In tripartite board representations, industry and trade union nominees should actively review the Corporation's administrative expense ratios. Litigators and policy advocates can challenge non-statutory expenditure allocations by petitioning the Parliamentary Standing Committee on Labour or initiating writ proceedings citing the spending caps mandated under Section 30.

Section 29 All 163 Sections of Code on Social Security, 2020 Section 31