Report of the Comptroller and Auditor General of India on General, Social, Economic and Revenue Sectors for the year ended 31 March 2023, Government of Manipur

A report in six chapters covering the general, social, economic and revenue sectors for the year ended March 2023. It carries three performance audits — on the welfare of building and other construction workers, solid waste management in urban areas, and the development and promotion of tourism — and nine compliance audit paragraphs, one of them a subject-specific compliance audit on the department's oversight of GST payments and returns. The construction workers' audit, covering 2017-22, is the finding used here.

State: Manipur
Audit period: 1 Apr 2017 — 31 Mar 2022
Presented: 10 Mar 2026

Findings

Of ₹101.15 crore of labour cess collected, the State Government released only ₹63.61 crore to the welfare board, and on just two occasions, leaving ₹37.54 crore with the government.
“The State Government had released the Cess collected amounting to ₹ 63.61 crore to the Board only on two occasions out of total cess collection of ₹ 101.15 crore, leaving a balance of ₹ 37.54 crore.”Overview
Seventy-three cheques worth ₹16.08 crore presented for deposit into the board's account were dishonoured by the bank, and the board invested ₹5.31 crore in the Manipur State Cooperative Bank, which is not a nationalised bank, contrary to a Supreme Court direction.
“Test check of the Bank Account of the Board for the years 2017-18 to 2021-22 revealed that 73 cheques for an amount of ₹ 16.08 crore presented for deposit into account of the Board were dishonoured by the Bank, resulting in loss of Cess... Board had invested ₹ 5.31 crore in Manipur State Corporative Bank (MSCB), which is not a nationalised bank, contrary to the direction of the Hon'ble Supreme Court of India.”Overview
The State notified the rules under the 1996 Act only in October 2008, twelve years late; the State Advisory Committee met twice in its history, in November 2010 and December 2015, and had not been reconstituted as of March 2023.
“There was delay in implementation of the provisions of the Act as the State Government notified the "The Manipur Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Rules 2008" in October 2008 after a gap of 12 years from enactment of the Act. The State Advisory Committee (SAC) was not reconstituted till March 2023 and only two meetings of the State Advisory Committee were held (November 2010 and December 2015).”Overview
None of the 52 registered employers filed the annual returns they owe for 2017-22 and no follow-up was taken; no cess assessment was carried out by the Deputy Labour Commissioner during the audit period.
“None of the 52 registered employers had furnished requisite annual returns to the Department and to the Board during the period 2017-18 to 2021-22. Further, no follow-up action was taken to ensure submission of these returns by the employers... During the audit period no assessment of cess was conducted by the Deputy Labour Commissioner.”Overview
Records showed 433 people with the same name, father's name, address and date of birth holding multiple registration numbers; of 675 natural-death payments, 242 were made between 61 and 1,947 days late.
“Analysis of beneficiaries records revealed that there were 433 cases having same name, same father's name, same address and same date of birth but allotted with multiple registration numbers... Out of payment made to 675 beneficiaries for Natural Death, there were 242 cases where financial assistance was given after a delay ranging from 61 days to 1947 days.”Overview

Findings

Of ₹101.15 crore of labour cess collected, the State Government released only ₹63.61 crore to the welfare board, and on just two occasions, leaving ₹37.54 crore with the government.

“The State Government had released the Cess collected amounting to ₹ 63.61 crore to the Board only on two occasions out of total cess collection of ₹ 101.15 crore, leaving a balance of ₹ 37.54 crore.”Overview

Seventy-three cheques worth ₹16.08 crore presented for deposit into the board's account were dishonoured by the bank, and the board invested ₹5.31 crore in the Manipur State Cooperative Bank, which is not a nationalised bank, contrary to a Supreme Court direction.

“Test check of the Bank Account of the Board for the years 2017-18 to 2021-22 revealed that 73 cheques for an amount of ₹ 16.08 crore presented for deposit into account of the Board were dishonoured by the Bank, resulting in loss of Cess... Board had invested ₹ 5.31 crore in Manipur State Corporative Bank (MSCB), which is not a nationalised bank, contrary to the direction of the Hon'ble Supreme Court of India.”Overview

The State notified the rules under the 1996 Act only in October 2008, twelve years late; the State Advisory Committee met twice in its history, in November 2010 and December 2015, and had not been reconstituted as of March 2023.

“There was delay in implementation of the provisions of the Act as the State Government notified the "The Manipur Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Rules 2008" in October 2008 after a gap of 12 years from enactment of the Act. The State Advisory Committee (SAC) was not reconstituted till March 2023 and only two meetings of the State Advisory Committee were held (November 2010 and December 2015).”Overview

None of the 52 registered employers filed the annual returns they owe for 2017-22 and no follow-up was taken; no cess assessment was carried out by the Deputy Labour Commissioner during the audit period.

“None of the 52 registered employers had furnished requisite annual returns to the Department and to the Board during the period 2017-18 to 2021-22. Further, no follow-up action was taken to ensure submission of these returns by the employers... During the audit period no assessment of cess was conducted by the Deputy Labour Commissioner.”Overview

Records showed 433 people with the same name, father's name, address and date of birth holding multiple registration numbers; of 675 natural-death payments, 242 were made between 61 and 1,947 days late.

“Analysis of beneficiaries records revealed that there were 433 cases having same name, same father's name, same address and same date of birth but allotted with multiple registration numbers... Out of payment made to 675 beneficiaries for Natural Death, there were 242 cases where financial assistance was given after a delay ranging from 61 days to 1947 days.”Overview