Alleging that Employees’ State Insurance Corporation (ESIC) has withheld certain payments due to it in an “ad-hoc and arbitrary manner”, IT services provider Wipro today said it will seek legal recourse if the issue is not resolved amicably in a reasonable time.
In March 2009, Wipro had bagged a seven-year contract worth over Rs 1,100 crore from ESIC for rolling out project ‘Panchdeep’ to set up a healthcare administration programme.
“Wipro has completed its obligations under the contract. However, ESIC has withheld certain amounts due to Wipro in an ad-hoc and arbitrary manner, which has resulted in a significant delay in collections for Wipro,” it said in a statement.
The company added that it has disputed the non-payment and that it is engaged with ESIC to recover the amounts due.
“If we are not able to resolve this amicably in a reasonable time, Wipro will take all necessary legal steps available to it,” it added.
While the Benagaluru-based company did not disclose the quantum of dues pending, it said these dues are appropriately recorded in its financial records over the relevant period.
“The agreement expired on June 8, 2016 post which Wipro has no obligation to provide any services to ESIC. In spite of ESIC’s failure to make timely payments, Wipro at the request of ESIC and given the critical nature of the services for the citizens, agreed to provide support services for an additional period of three months,” it said.
Wipro added that it will handover the project at the close of business hours on September 8 as contractually agreed.
There was no immediate comment from ESIC, which provide medical care services to industrial workers.