Pre Employment Health Check is mandated in Factories Act 1948, as per the factories act all candidates getting employed in manufacturing facility whether in a hazardous process or non-hazardous process all candidate must undergo pre-joining medical check up and submit the fitness to the company before joining the work.  

For the company, it is compliance under factories act.  

More importantly, it is also important for organisations to ensure that healthy candidates are getting on board which will help you to boost productivity. Candidates inducted without pre-joining medicals are prone to take more leaves and will hamper the production cycle more often.  This will also create compliance. issue if not fulfilled.