Diversion of Welfare Funds for Construction Workers

As per Section 18 of the Building and Other Construction Workers (RECS) Act, 1996, the State Governments/UT Administrations have constituted State Building and Other Construction Workers Welfare Board for welfare of construction workers.

Under Section 22 of the Act, functions of the State Building and Other Construction Workers Welfare Boards are as under:

(a)                   provide immediate assistance to a beneficiary in case of accident;

(b)                  make payment of pension to the beneficiaries who have completed            the age of sixty years;

(c)                   sanction loans and advances to a beneficiary for construction of a houses not exceeding such amount and on such terms and conditions as may be prescribed;

(d)                  pay such amount in connection with premia for Group Insurance Scheme of the beneficiaries as it may deem fit;

(e)                   give such financial assistance for the education of children of the beneficiaries as may be prescribed;

(f)                   meet such medical expenses for treatment of major ailments of a beneficiary or, such dependent, as may be prescribed;

(g)                  make payment of maternity benefit to the female beneficiaries; and

(h)                  make provisions and improvement of such other welfare measures             and facilities as may be prescribed.

The State Governments/UT Administrations have formulated their own schemes in terms of Section 22 of the Act.

Levy and collection of cess on the cost of construction incurred by employers under the Building and Other Construction Workers’ Welfare Cess Act, 1996, is provided with a view to augmenting the resources of the Building and Other Construction Workers’ Welfare Boards. Cess funds are utilized by the State Building and Other Construction Workers’ Welfare Boards for the welfare of construction workers. Central Government has issued directions under Section 60 of the Building and Other Construction Workers (RECS) Act, 1996 to ensure that the cess is exclusively utilized for the welfare of construction workers.