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Whopping Rs 13 cr Labour cess not deducted
ERA insensitive to its workforce
6/25/2014 11:35:42 PM
Arun Singh

Jammu, June 25: The nonchalant attitude of the Economic Reconstruction Agency (ERA) with regards to its responsibility towards its work force can be gauged from the fact that it did not deduct labour Cess to the tune of Rs 12.99 crores from the bills of contractors disregarding welfare of the labour class, working in various construction projects.
Sources told Early Times that Economic Reconstruction Agency (ERA) had made payment of Rs 1299 crore to the contractors for the construction of 100 sub-projects during the period from 2007-8 to 2012-13.
"According to the Jammu and Kashmir Building and Other Construction Workers Welfare Cess Act, 1996, the employer is required to collect Cess at the rate not exceeding two per cent but not less than one per cent of the cost of the construction incurred by the employer," they said further adding that the Cess is to be paid to the Cess Collector appointed by the State Government within thirty days of completion of construction or date of assessment.
They further said that labour Cess at the rate of one per cent had not been deducted from the bills of the contractors while making payments to them resulting in non-recovery of Rs 12.99 crore.
They said the fund collected by Cess Collector is utilized in various welfare works of the labours working in the building construction projects.
Meanwhile, it is surprising that ERA being fully funded and controlled by the State Government through the Governing Board existing presently with the sole purpose of executing the ADB assisted projects yet no formal agreement has been signed between the Society and the Government.
As per Memorandum of Association, the Board of Governors is required to meet once in every three months and at least four such meetings are to be held in every year but it has been observed that only 18 meetings against the requirement of 32 meetings had been held by the Board of Governors during the period upto 2012-13.
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