SC raps Centre on labour cess

-The Telegraph

New Delhi: The Supreme Court today summoned the Union labour secretary to explain states’ failure to utilise a staggering Rs 27,000 crore collected as cess for construction workers’ welfare and rapped the Centre for its "unfortunate casual attitude" in the matter.

A bench of Justices Madan B. Lokur and U.U. Lalit, which deals with social justice matters, said the labour secretary should appear at the next hearing and submit an action plan for proper utilisation of the funds along with a status report.

The bench passed today’s order after expressing displeasure that despite its directive on August 21, the Centre had failed to file an affidavit spelling out the plan.

The bench is hearing a PIL seeking a directive to the states for proper utilisation of the cess – collected from employers, contractors and promoters and meant for benefits like medical aid and old-age pension for the workers. The plea claims the cess is misused by all states.

Today, the bench said if the Centre failed to file its affidavit in four weeks, the court would pass appropriate orders based on "action plans" of amicus curiae Vivek Tankha and counsel Colin Gonzalves, appearing for the petitioner, the National Campaign Committee of Labour Unions.

At the last hearing, the bench had asked the Delhi government to return Rs 2.69 crore to the cess fund, saying it had been used for other purposes since 2002.

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