Audit reveals deprivation of welfare funds for Delhi's construction workers

By Bharat Dogra 

A recent report by the Comptroller and Auditor General (CAG) confirms what many have long suspected: construction workers in Delhi have been systematically denied legally mandated welfare benefits for years. The audit findings corroborate a distressing trend of lapsed support, incomplete records, and misused funds meant for the city's vast workforce.

For years, interviews with workers in Delhi's slums and labor areas revealed a consistent story of deprivation. Many workers, including women, never received benefits they were entitled to, and even more shockingly, benefits were discontinued for those who had previously received them. These benefits, which include pensions for the elderly, scholarships for children, and assistance for marriage or accidents, were a source of hope after a long campaign for protective welfare laws. Unfortunately, that hope has been repeatedly dashed.

In the years following the 1996 laws that established a welfare fund for construction workers, implementation in Delhi went through three distinct phases. The government was initially slow to implement the laws, leading to a period of disappointment. A glimmer of hope emerged when implementation improved, but this hopeful phase was short-lived. Benefit distribution stalled, and the process of registering for benefits became increasingly difficult.

Adding to the problem, the Delhi government used the dedicated welfare fund to provide relief to workers during construction bans for pollution control. While this relief was needed, it should have come from a separate source. This practice unfairly drained the welfare fund, which was intended for a wide range of specific benefits. The CAG report highlights that while the Delhi Building and Other Construction Workers (BOCW) Board collected an impressive INR 35.79 billion by March 2023, the actual welfare expenditure was a shockingly low 9.5% to 11.3% of the total receipts.

The CAG report provides concrete evidence of the systemic failures. Delhi's registration renewal rate for BOCW workers was a mere 7.3%, a far cry from the all-India average of 74%. The government also lacked reliable data on its workers, with a significant mismatch between claimed registrations and available records. A discrepancy of INR 204 million was found between district and board records, and 97 cess-paying private establishments were not registered with the board. Furthermore, educational assistance funds for periods after 2018–20 were not distributed, leaving workers' children without crucial support. The report indicates that some non-construction workers were able to register for benefits, while many genuine construction workers, including those who had toiled for decades, were denied recognition and assistance.

The recent CAG report serves as a critical wake-up call, confirming the serious inadequacies and problems plaguing the implementation of welfare laws for construction workers. These findings should act as a catalyst for immediate and corrective action to ensure the legal rights and welfare of these essential workers are finally protected.

---

The writer is Honorary Convener, Campaign to Save Earth Now. His recent books include Protecting Earth for Children, A Day in 2071, When the Two Streams Met, and The Guardians of the Himalayas