State files affidavit in High Court on workers welfare board

By S A Ishaqui
Hyderabad, April 21: The State Government on Monday informed the AP HighCourt that the companies and the contractors, who are executing construction works of the government ora public sector undertaking,have to pay one per cent cess from the total construction cost of the project, for the welfare of workers.
The government filed an affidavit pursuant to the notice of the court following petitions filed by several construction companies that VRCL Infrastructures & Projects Limited,Nagarjuna Constructions, Aparna Constructions, Ramky Constructions and IJM (India) Infrastructures Limitedand Coramandel Prestcrete Private Limited, seeking quashing of the Building and Other ConstructionWorkers (Regulation ofEmployment and Service) Act, 1996.
The government submitted to the court that Section 18 of the Act mandates that every State Governmentshould constitute Welfare Boards for the building and other construction workers. It was informed that aWelfare Board was constituted on April 30 last year and the government issued a GO on June 26, 2007 to facilitate the collection of cess and to credit it to the account of theWelfare Board.
A division bench comprising Justice B Prakash Rao and Justice C Ramulu will hear arguments on a batchof writ petition filed against the collection of cess, on April 25.