SC directions on utilisation of thousands of crores collected for construction workers

Satya Prakash

Tribune News Service

New Delhi, March 19

Noting that construction workers contributed to nation building "in their own small way", the Supreme Court on Monday issued a series of directions to the Centre and states to ensure proper utilisation of thousands of crore rupees collected as cess from builders towards their welfare.

A bench of Justice Madan B Lokur and Justice Deepak Gupta ordered the Ministry of Labour and Employment, state governments and union territories to put in place proper machinery for registration of establishments and construction workers at the earliest.

"there is a tremendous amount of construction activity going on all over the country and there is no reason why establishments involved in the construction activity, both formal as well as non-formal, should not pay the cess, especially when they are utilising the services of the construction workersthere is no reason why the construction workers should be denied their entitlements and benefits," the bench said.

It asked the Ministry of Labour and Employment to frame by September 30 a model scheme in consultation with all stakeholders, including NGOs, for the purpose which could be adopted by all states and UTs.

The order came on a petition filed by National Campaign Committee for Central Legislation on Construction Labour, alleging that the statutory cess collected from real estate firms under the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996 (BOCW Act) and the Building and Other Construction Workers' Welfare Cess Act, 1996 for welfare of construction workers was not being utilised properly for want of an effective mechanism to identify the beneficiaries.

According to an affidavit filed by the National Legal Services Authority (NALSA) on December, 14, 2016, the amount of cess that ought to have been collected was about Rs 70,000 crore.

Construction workers not only assisted in building infrastructure, but also in building the nation, in their own small way, it said, adding a decision will have to be taken by the Centre on gainful utilisation of the cess already collected so that the Welfare Boards are not unjustly enriched - the beneficiaries having unfortunately lost out.

The bench said "it is necessary for the CAG to take stock of issues and problems pertaining to the implementation of the BOCW Act and to ensure that effective and meaningful audits are carried out, keeping in mind the huge amounts involved".

It also asked state governments and Welfare Boards to conduct a social audit of the scheme to ensure better, effective and meaningful implementation of the BOCW Act.

The court was hearing the PIL filed by an NGO, National Campaign Committee for Central Legislation on Construction Labour, alleging that the statutory cess levied from real estate firms for the welfare of construction workers was not being utilised properly as there was no mechanism to identify the beneficiaries for extending the benefit.

Noting that crores of men, women and children were involved on a day-to-day basis in construction industry and Parliament thought it appropriate to legislate for their benefit, it said, "The sanctity of laws enacted by Parliament must be acknowledged -- laws are enacted for being adhered to and not for being flouted. The rule of law must be respected and along with it the human rights and dignity of building and construction workers must also be respected and acknowledged, to avoid a complete breakdown of the BOCW Act compounded by serious violations offundamental rights."

For construction workers 

Each state government and UT to constitute State Advisory Committee and Expert Committee and frame necessary Rules by September 30 for effective implementation of the scheme.

They must appoint Registering Officers for registration of establishments and construction workers.

Also, establish a Welfare Board and a Welfare Fund for benefit of construction workers.

All construction workers to be registered, given identity cards and and a Universal Access Number (UAN).

Labour Ministry to consider making available to construction workers benefits of The Maternity Benefit Act, 1961, and The Minimum Wages Act, 1948, The Employees' State Insurance Act, 1948, the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, and the Mahatma Gandhi National Rural Employment Guarantee Act, 2005.

Labour Ministry also to consider whether projects of the Government of India in the railways, defence and other establishments are brought within the purview of the BOCW Act.

SC to take it up on May 1, 2018 to ensure compliance of its directions.