MANISH GUPTA
Ranchi, Aug 12: The continued dereliction of rules by the Jharkhand finance department for more than 14 years has impacted the welfare of more than 12 lakh construction workers as the state illegally consumes Rs 600 crore meant for the welfare of labourers.
The Jharkhand government collected Rs 609.33 crore as labour cess between 2008 and 2021 but failed to transfer the amount to the state labour welfare board. Officials concerned informed that the state finance department got confused between the two Acts.
“The money collected was allotted under the wrong heads. There was confusion between the Building and Other Construction Workers (BOCW) Act, 1996, and the Contract Labour Act, 1970. While the labour cess part in the first Act is sent to the labour welfare board, the establishment registration and renewal parts in both Acts go to the state government. But all the money was going to the state government,” said an official on condition of anonymity.
Besides, despite a central ruling and several reminders by the Jharkhand Building and Other Construction Workers’ (BOCW) Welfare Board, the state government continued collecting the labour cess from its agencies and departments while the money should have been directly deposited in the account of the welfare board.
“This makes the process lengthy and tedious. The money is first collected by the state government and then budgetary provision is made to take out that money for transfer to the rightful owner. A significant amount of money gets blocked this way restricting the welfare activities for the construction workers. There are 12,71,000 construction workers in the state,” he said.
As per the BOCW Welfare Cess Act, 1996, one per cent of the total construction cost excluding land value and compensation cost has to be deposited with the labour department as labour cess by both government and private parties. In 2020-21, the state had collected Rs 59.15 crore as labour cess.
The Comptroller and Auditor General of India (CAG) in its latest audit report on state finances revealed that the state government collected Rs 609.33 crore during 2008-2021 as labour cess but failed to deposit it to the labour welfare board. This overstated the revenue surplus and understated the fiscal deficit of the state during 2008-21, the auditor added.
On being contacted, Jharkhand BOCW Welfare Board Secretary Umesh Prasad Singh said, “The state finance department has agreed to pay Rs 468 crore in three phases. The first instalment of Rs 154 crore has been deposited in the treasury and soon it will come to the board’s account. The balance will be paid in the next two financial years.”
As for the differential amount between what the board claims and what the state finance department has agreed, Singh said that the board will claim it in due process along with additional dues that may accrue during the period.
While the state government now has to provision for Rs 609.33 crore that represents its unaccounted liabilities, the Jharkhand BOCW Welfare Board, too, has not done a great job with whatever funds it had in the last decade.
During 2009-10 to 2020-21, Rs 437.49 crore was spent by the welfare board on welfare schemes. However, this accounts for only 56% of the total funds (Rs 783.35 crore) that the board directly received as cess and from government as grant-in-aid in the period.
