Performance Audit on Welfare of Building and Other Construction Workers, Government of Telangana

A performance audit of whether Telangana registers its construction workers and their employers, collects and transfers the labour cess meant for them, enforces safety and health norms at construction sites, and spends the resulting fund on the welfare schemes the law provides for.

State: Telangana
Audit period: 1 Apr 2017 — 31 Mar 2022
Presented: 30 Mar 2026

Findings

Of ₹164.25 crore of labour cess collected by the seven sampled urban local bodies and one development authority over 2017-22, only ₹59.86 crore reached the Board; ₹104.39 crore — 64 per cent — stayed with the collecting bodies.
“Out of ₹164.25 crore collected by the seven sampled ULBs and one Urban Development Authority (UDA) during the period 2017-18 to 2021-22, an amount of ₹59.86 crore only was remitted into account of the Board and the balance of ₹104.39 crore (64 per cent) was lying with the ULBs/ UDA.”Executive Summary
The Board was functioning with three members against the minimum of eight the rules require, and had prepared annual accounts only up to 2018-19 as of May 2023.
“Thus, it was functioning with only three Members contrary to the Rules which stipulated a minimum of eight members including Chairman. Annual accounts of the Board were prepared up to 2018-19 only as of May 2023.”Executive Summary
The Board spent ₹32.43 crore on advertisements out of cess funds in 2017-19, despite an August 2015 Supreme Court order and June 2016 central instructions forbidding it.
“The Board had incurred an amount of ₹32.43 crore on Advertisements during the period 2017-18 to 2018-19 despite orders of the Hon'ble Supreme Court (August 2015) and Government of India instructions (June 2016) for not incurring Advertisement expenses out of Cess funds.”Executive Summary
Of ₹1,004.82 crore advanced for Covid-19 relief on the State Government's direction, only ₹258.04 crore was actually spent on construction workers.
“As per the directions (April 2020) of State Government, the Board had remitted an advance amount of ₹1004.82 crore for Covid-19 relief measures to Labour including BOC workers. Out of this, an expenditure of only ₹258.04 crore was incurred (March 2021) on BOC workers.”Executive Summary
Of 1,38,908 welfare claims, 83,736 were paid, 10,125 rejected and 45,047 left pending, with no record that the rejections were ever communicated to the applicants; ₹51.47 crore was lost to dishonoured cheques and demand drafts never realised.
“Out of total 1,38,908 claims, 83,736 claims were disbursed, 10,125 claims were rejected, and balance 45,047 claims were pending at various levels. However, the information/intimation regarding rejection of claims communicated to the applicants was not on record... the Board had sustained loss of revenue of ₹51.47 crore due to non-realisation of dishonoured cheques/demand drafts as of February 2023.”Executive Summary
The Andhra Pradesh construction workers' board still owed Telangana's board ₹431.94 crore, unrealised nine years after bifurcation, and ₹119.39 crore of Telangana's own bifurcation allocation had not been released to the Board as of January 2024.
“The Board had withdrawn an amount of ₹71.72 crore by May 2019 leaving a balance ₹119.39 crore which was not released to the Board as of January 2024... Andhra Pradesh Building and Other Construction Workers Welfare Board (APBOCWWB) owed an amount of ₹431.94 crore to TBOCWWB. However, the amount had not been realised (January 2024) even after a lapse of nine years.”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.

Findings

Of ₹164.25 crore of labour cess collected by the seven sampled urban local bodies and one development authority over 2017-22, only ₹59.86 crore reached the Board; ₹104.39 crore — 64 per cent — stayed with the collecting bodies.

“Out of ₹164.25 crore collected by the seven sampled ULBs and one Urban Development Authority (UDA) during the period 2017-18 to 2021-22, an amount of ₹59.86 crore only was remitted into account of the Board and the balance of ₹104.39 crore (64 per cent) was lying with the ULBs/ UDA.”Executive Summary

The Board was functioning with three members against the minimum of eight the rules require, and had prepared annual accounts only up to 2018-19 as of May 2023.

“Thus, it was functioning with only three Members contrary to the Rules which stipulated a minimum of eight members including Chairman. Annual accounts of the Board were prepared up to 2018-19 only as of May 2023.”Executive Summary

The Board spent ₹32.43 crore on advertisements out of cess funds in 2017-19, despite an August 2015 Supreme Court order and June 2016 central instructions forbidding it.

“The Board had incurred an amount of ₹32.43 crore on Advertisements during the period 2017-18 to 2018-19 despite orders of the Hon'ble Supreme Court (August 2015) and Government of India instructions (June 2016) for not incurring Advertisement expenses out of Cess funds.”Executive Summary

Of ₹1,004.82 crore advanced for Covid-19 relief on the State Government's direction, only ₹258.04 crore was actually spent on construction workers.

“As per the directions (April 2020) of State Government, the Board had remitted an advance amount of ₹1004.82 crore for Covid-19 relief measures to Labour including BOC workers. Out of this, an expenditure of only ₹258.04 crore was incurred (March 2021) on BOC workers.”Executive Summary

Of 1,38,908 welfare claims, 83,736 were paid, 10,125 rejected and 45,047 left pending, with no record that the rejections were ever communicated to the applicants; ₹51.47 crore was lost to dishonoured cheques and demand drafts never realised.

“Out of total 1,38,908 claims, 83,736 claims were disbursed, 10,125 claims were rejected, and balance 45,047 claims were pending at various levels. However, the information/intimation regarding rejection of claims communicated to the applicants was not on record... the Board had sustained loss of revenue of ₹51.47 crore due to non-realisation of dishonoured cheques/demand drafts as of February 2023.”Executive Summary

The Andhra Pradesh construction workers' board still owed Telangana's board ₹431.94 crore, unrealised nine years after bifurcation, and ₹119.39 crore of Telangana's own bifurcation allocation had not been released to the Board as of January 2024.

“The Board had withdrawn an amount of ₹71.72 crore by May 2019 leaving a balance ₹119.39 crore which was not released to the Board as of January 2024... Andhra Pradesh Building and Other Construction Workers Welfare Board (APBOCWWB) owed an amount of ₹431.94 crore to TBOCWWB. However, the amount had not been realised (January 2024) even after a lapse of nine years.”Executive Summary