Performance Audit on Welfare of Building and Other Construction Workers, Gujarat

An audit of how Gujarat implements the Building and Other Construction Workers Act, 1996 and the Cess Act, 1996 — the two laws meant to fund and deliver welfare for construction workers. It found the statutory bodies either not constituted or constituted without the workers and employers the law requires, the Welfare Fund never created, and most of the posts meant to register workers and process their claims lying vacant.

State: Gujarat
Audit period: 1 Apr 2017 — 31 Mar 2022
Presented: 11 Sept 2025

Findings

From November 2017 to March 2022 the welfare board functioned as a single-member board headed by a secretary, without any representative of employers or building workers.
“despite lapse of about five years from November 2017, a single member board had been functioning without representatives of the employers and the workers as of March 2022.”Executive Summary
The State Advisory Committee required by Section 4(1) of the Act had not been constituted since 2011, and the Welfare Fund required by Section 24 was never constituted — so the cess collected goes into the government account instead.
“Audit observed that the State Government had not constituted SAC since 2011... Audit observed that Board had not constituted the Welfare Fund. In absence of the Welfare Fund, cess collected by the Cess Collectors in the State is deposited in the Government Account.”Executive Summary
As of March 2022, 72 per cent of the board's regular posts and 42 per cent of inspector posts in the Directorate of Industrial Safety and Health were vacant, and no separate Nirikshak post had been sanctioned at district board offices.
“As of March 2022, 72 per cent regular posts of Board and 42 per cent posts of the Senior Inspector/Inspector of DISH were vacant. State Government had not sanctioned a separate post of Nirikshak at district Board offices”Executive Summary

Fact-checks citing this report

Lacks contextWe will ensure that the interests of labour in the unorganized sector are protected… issue identity cards to the unorganized sector labourers, and arrangements will be made to provide them good quality health and education services… strengthen the Pension and Health Insurance safety nets for all kinds of labourers.

Performance Audit on Welfare of Building and Other Construction Workers, Gujarat

Findings

From November 2017 to March 2022 the welfare board functioned as a single-member board headed by a secretary, without any representative of employers or building workers.

“despite lapse of about five years from November 2017, a single member board had been functioning without representatives of the employers and the workers as of March 2022.”Executive Summary

The State Advisory Committee required by Section 4(1) of the Act had not been constituted since 2011, and the Welfare Fund required by Section 24 was never constituted — so the cess collected goes into the government account instead.

“Audit observed that the State Government had not constituted SAC since 2011... Audit observed that Board had not constituted the Welfare Fund. In absence of the Welfare Fund, cess collected by the Cess Collectors in the State is deposited in the Government Account.”Executive Summary

As of March 2022, 72 per cent of the board's regular posts and 42 per cent of inspector posts in the Directorate of Industrial Safety and Health were vacant, and no separate Nirikshak post had been sanctioned at district board offices.

“As of March 2022, 72 per cent regular posts of Board and 42 per cent posts of the Senior Inspector/Inspector of DISH were vacant. State Government had not sanctioned a separate post of Nirikshak at district Board offices”Executive Summary