Wipro says ESIC withholds dues under contract

panchdeepIT provider Wipro Ltd said Indian government’s Employees’ State Insurance Corporation has withheld payments due to it after the completion of a project, and it will take legal action to recover the amount.

The seven-year contract, named Project Panchdeep, was completed on June 08, 2016, and Wipro provided an additional three months of support.

“Wipro will handover this project close of business hours on September 8, 2016,” the company said.

“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,” the company said.

“Wipro has disputed this non-payment and 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. Wipro follows a consistent accounting policy; and Over the relevant period these dues are appropriately recorded in financial records.”

Wipro’s role was that of Systems Integrator for the project to set up a healthcare administration program under the Build, Own, Operate and Transfer Model.

This project has helped ESIC digitize and offer real-time healthcare services to over 7.8 crore citizens across 2,200 locations, the company said.