Centre's Auditor CAG Flags Underuse of Construction Workers Welfare Funds In Delhi

The Comptroller and Auditor General (CAG) has raised serious concerns over the underutilisation of welfare funds and weak implementation of worker-related schemes in Delhi.

According to the performance audit tabled in the Delhi Assembly, the national capital renewed only 7.3% of construction worker registrations between 2019 and 2023, significantly lower than the national average of 74%.

The report, covering the four-year period when the Aam Aadmi Party (AAP) was in government, found that while Delhi had collected substantial funds under the welfare cess, a large portion remained unspent. It also highlighted deficiencies in data accuracy, registration processes, benefit delivery, and regulatory oversight.

Gaps in Data, Duplicate Entries

The audit found that out of 6.96 lakh registered workers, the Delhi Building and Other Construction Workers' Welfare Board was able to provide complete details for only 1.98 lakh. Within this group, over 1.19 lakh beneficiaries were linked to 2.38 lakh photographs, raising concerns about duplicate records and shortcomings in the IT system used to manage registrations.

"The presence of multiple images for the same individual, blank images, and duplication suggest the system lacked the capability to flag inconsistencies," the audit noted.

Welfare Funds Remain Underutilised

The audit reported that Delhi's Welfare Board had accumulated Rs 3,579 crore by March 2023 under the 1% construction cess mandated by the Building and Other Construction Workers' Welfare Cess Act, 1996. However, key benefits and welfare schemes saw limited implementation.

Of the 17 schemes in place, only 12 were operational during the audit period. No expenditure was recorded under five schemes, including maternity assistance, house purchase loans, tool grants, and insurance policies. The report also noted delays in disbursing benefits; for example, education assistance worth Rs 46.08 crore meant for 58,998 children of workers for the years 2018-19 and 2019-20 was released only in March 2022. No funds were provided for subsequent years till September 2023.

A mismatch of Rs 204.95 crore was also reported between the cess figures recorded by districts and those maintained by the Board.

Regulatory Oversight and Enforcement Issues

The report pointed out that no construction site inspections were carried out by the Labour Department or the Directorate of Industrial Safety & Health during the four-year audit period, limiting compliance checks on contractors and establishments.

Further, the audit identified 97 cess-paying private firms and 25 construction-related businesses listed on the Delhi Fire Service website that were not registered with the Welfare Board. This was attributed to the Board's limited efforts in identifying eligible establishments.

Recommendations made by the Central government in 2018, such as providing transit accommodation, mobile toilets, and creches at worksites, had not been acted upon in Delhi, the report said. Training of workers also came to a halt after 2019-20.

Insurance and Health Coverage Gaps

The audit also flagged discrepancies in the compensation structure. While the Board had approved revised compensation of Rs 4 lakh for accidental death and Rs 2 lakh for natural death in 2019, the older rates of Rs 2 lakh and Rs 1 lakh continued to be offered during the audit period.

Unlike several other states, Delhi did not integrate its construction workers into the Ayushman Bharat-PM Jan Arogya Yojana (AB PM-JAY), a centrally sponsored scheme providing Rs 5 lakh annual health insurance per family. Instead, workers in the capital were eligible for medical assistance up to only Rs 10,000.

Legislative Response Expected

Officials said the report, which was tabled by Chief Minister Rekha Gupta during the ongoing monsoon session, is expected to be taken up for discussion in the coming days.

While the audit offers detailed findings and data-backed assessments, the final response from the government and the Board may influence future reforms to the welfare system for construction workers in Delhi.

As the capital continues to expand and rely on its construction workforce, the report raises critical questions about whether the available welfare mechanisms are reaching those they are meant to serve.