Skip to main content

CAG indicts Gujarat government for siphoning workers’ welfare funds to benefit builders

By Dilip Patel* 
The Comptroller and Auditor General (CAG) has slammed the Bhupendra Patel-led BJP government in Gujarat for turning the state’s Building and Other Construction Workers’ Welfare Board into a tool that benefits builders and contractors while neglecting the welfare of labourers. According to the CAG’s findings, successive BJP governments since 2004 have violated laws, ignored accountability, and diverted workers’ funds, leaving thousands of labourers without safety, health care, or basic welfare schemes.
The audit revealed that from November 2017 to March 2022, the board functioned without proper representation from employers or workers, and even in 2025, the government has failed to restructure it. Despite laws mandating an advisory committee, no such body has been set up since 2011. The board has not created a dedicated welfare fund, and the cess collected continues to remain in government accounts instead of being used for workers.
As of March 2023, the government had collected ₹4,788 crore in cess but only transferred ₹2,545 crore (53 percent) to the board, while retaining ₹2,243 crore (47 percent) for its own use. Out of ₹2,544 crore granted to the board, only ₹808 crore was spent on welfare schemes and administration, leaving ₹1,736 crore unutilised. Between 2017 and 2022, 42 percent of welfare schemes were shut down, including the old-age pension scheme and subsidised food programmes in most districts.
The CAG also highlighted rampant negligence in workers’ safety. Inspections showed that 66 percent of contractors failed to provide overhead safety, 60 percent did not supply eye protection, and 28 percent denied workers headgear. Fire safety equipment was absent at 64 percent of construction sites, and up to 88 percent had no medical emergency preparedness. Despite laws requiring safety and health policies for sites with over 50 workers, many contractors either failed to prepare them or left them incomplete.
While builders’ registrations surged from 668 in 2017 to over 5,000 in 2025, there was no effective mechanism to regulate construction activity or ensure compliance with central government guidelines. Worker registration was left incomplete, and surveys were never conducted to identify beneficiaries. Astonishingly, only 37 workers received housing assistance between 2017 and 2022, despite nearly a million being eligible.
Funds meant for pandemic relief also went unaccounted. Of the ₹52 crore allocated to municipal corporations in 2020 for COVID-19 protection, ₹36 crore remained unaudited as of 2023. Even schemes like the Dhanvantari mobile health vans barely reached 50 workers, exposing systemic neglect.
The CAG recommended urgent measures including immediate reconstitution of the welfare board, direct transfer of cess funds to it, filling of vacant inspector posts, strict enforcement of worker registration and safety standards, and revival of pension, food, and housing schemes.
The report paints a grim picture of systemic failure in Gujarat, where builders continue to flourish while workers remain deprived of their legal entitlements, leaving the Patel government accused of abandoning labourers to die while protecting the interests of the construction lobby.
---
*Senior journalist based in Ahmedabad 

Comments

TRENDING

Sergei Vasilyevich Gerasimov, the artist who survived Stalin's cultural purges

By Harsh Thakor*  Sergei Vasilyevich Gerasimov (September 14, 1885 – April 20, 1964) was a Soviet artist, professor, academician, and teacher. His work was posthumously awarded the Lenin Prize, the highest artistic honour of the USSR. His paintings traced the development of socialist realism in the visual arts while retaining qualities drawn from impressionism. Gerasimov reconciled a lyrical approach to nature with the demands of Soviet socialist ideology.

Nepal votes amid regional rivalry: Why New Delhi is watching closely

By Nava Thakuria*  As Nepal holds an early national election on Thursday (5 March 2026), the people of northeast India, along with other regional observers, are watching the proceedings closely. The vote was necessitated after the government of Prime Minister Khadga Prasad Sharma Oli collapsed in September 2025 following widespread anti-government protests. The election will determine the composition of the 275-member House of Representatives, originally scheduled for 2027, under the stewardship of an interim government led by former Supreme Court justice Sushila Karki.

From plagiarism to proxy exams: Galgotias and systemic failure in education

By Sandeep Pandey*   Shock is being expressed at Galgotias University being found presenting a Chinese-made robotic dog and a South Korean-made soccer-playing drone as its own creations at the recently held India AI Impact Summit 2026, a global event in New Delhi. Earlier, a UGC-listed journal had published a paper from the university titled “Corona Virus Killed by Sound Vibrations Produced by Thali or Ghanti: A Potential Hypothesis,” which became the subject of widespread ridicule. Following the robotic dog controversy coming to light, the university has withdrawn the paper. These incidents are symptoms of deeper problems afflicting the Indian education system in general. Galgotias merely bit off more than it could chew.

'Policy long overdue': Coalition of 29 experts tells JP Nadda to act on SC warning label order

By A Representative   In a significant development for public health, the Supreme Court of India has directed the Food Safety and Standards Authority of India (FSSAI) to seriously consider implementing mandatory front-of-pack warning labels on pre-packaged food products. The order, passed by a bench of Justices J.B. Pardiwala and K.V. Viswanathan on February 10, 2026, comes as the Court expressed dissatisfaction with the regulatory body's progress on the issue.

From non-alignment to strategic partnership: India's ideological shift toward Israel

By Bhabani Shankar Nayak*  India's historical foreign policy maintained a notable duality: offering sanctuary to persecuted Jewish communities dating back centuries, while simultaneously supporting Palestinian self-determination as an expression of its broader anti-colonial foreign policy commitments. The gradual shift in Indian foreign policy under Hindutva-aligned governance — moving toward a strategic partnership with Israel while reducing substantive engagement with the Palestinian cause — raises legitimate questions about ideological motivation and geopolitical consequence.

Development vs community: New coal politics and old conflicts in Madhya Pradesh

By Deepmala Patel*  The Singrauli region of Madhya Pradesh, often described as “India’s energy capital,” has for decades been a hub of coal mining and thermal power generation. Today, the Dhirouli coal mine project in this district has triggered widespread protests among local communities. In recent years, the project has generated intense controversy, public opposition, and significant legal and social questions. This is not merely a dispute over one mine; it raises a larger question—who pays the price for energy development? Large corporate beneficiaries or the survival of local communities?

Indian ecologist urges United Nations to probe alleged Epstein links within UN ranks

By A Representative   A senior Indian ecologist and long-time United Nations environmental negotiator, Dr. S. Faizi of Thiruvananthapuram, has written to AntĂłnio Guterres, urging the United Nations to launch a high-level investigation into alleged links between certain current and former UN officials and the late American financier Jeffrey Epstein, following disclosures of email communications by the U.S. Department of Justice.

Vaccination vs screening: Policy questions raised on cervical cancer strategy

By A Representative   A public policy expert has written to Union Health Minister J. P. Nadda raising a series of concerns regarding the national Human Papillomavirus (HPV) vaccination campaign launched on February 28 for 14-year-old girls.

Zinaida Portnova: The teenage partisan of the Soviet resistance

By Harsh Thakor*  February 20 marked the birth centenary of Zinaida Portnova, one of the youngest recipients of the Soviet Union’s highest wartime honour. Remembered for her role in the anti-Nazi underground in occupied Belarus during the Second World War, Portnova became a symbol of youth participation in the Soviet resistance.