The Supreme Court has, in the matter of Board of Control for Cricket in India (BCCI) vs Regional Director Employees’ State Insurance Corporation, held that BCCI could be said to be a “shop” for the purposes of attracting the provisions of the Employees State Insurance Act. The Board had sought clarification from the Apex Court on whether it would be considered a “shop” as per the notification dated 18.09.1978 under Section 1(5) of the Employees State Insurance Act 1948 (ESI).
The appeal had been filed before the Supreme Court after the Bombay High Court had dismissed BCCI’s appeal from the Employee’s Insurance Court. The Court opined that BCCI not only regulated and administered cricket as a sport in the country but was also involved in selling match tickets, providing entertainment, and receiving income from various sources like the Indian Premier League, international tours, etc.
Since it conducted economic and commercial activities, its employees must be covered by the benefits of ESI contribution on the wages they received from BCCI. The Court also referred to BCCI’s memorandum of association that confirmed the commercial activities it undertook.