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The audit of the Government of Maharashtra on the welfare of building and other construction workers covers the period 2017-18 to 2021-22.
Duplicate transfers and exclusions in Covid assistance
Under the Assistance During Covid-19 Scheme, Maharashtra Government distributed the total amount 662.61 crore in three phases by March 2022. In the first phase between April 2020 and March 2022 Rs 205.53 crore distributed to 10.28 lakh beneficiaries Rs.2,000 per registered worker.
In the second phase between August 2020 and March 2022 Rs 298.71 crore paid to 9.96 lakh beneficiaries Rs 3,000 per beneficiary. Third phase in April 2021 Rs 58.37 crore distributed to 10.56 lakh beneficiaries Rs 1,500 per beneficiary.
The data processing work to identify duplications and anomalies was done by a consortium of ITI Limited and Arceus Infotech Pvt. Ltd. The audit shows that In 32,018 cases Rs 2,000 per beneficiary was transferred more than once to the same bank account, resulting in excess payment. 3.26 crores.
| number of bank accounts | how many times paid | total cases | how many times overpaid | Additional Payment (₹ in Lakhs) |
| 1 | 2 | 3 | 4 (3-1) | 5 |
| 1 | 6 | 6 | 5 | 0.1 |
| 4 | 5 | 20 | 16 | 0.32 |
| 109 | 4 | 436 | 327 | 6.54 |
| 306 | 3 | 918 | 612 | 12.24 |
| 15,319 | 2 | 30,638 | 15,319 | 306.38 |
| Total | 32,018 | 16,279 | 325.58 | |
Table showing disbursements across the same bank account number. (Source: CAG report)
Similarly, In 7,394 cases, Rs 3,000 were paid more than once, leading to overpayment Whereas, Rs 1.12 crore In 4,336 cases, 1,500 were credited multiple times, leading to overpayment 65.04 lakh. overall, With over 44,000 cases of duplicate transfers, excess payments of Rs 5.03 crore were made.
Whereas, 1,20,764 workers were deprived of the second installment. Rs 3,000 was received despite the first installment being received, while all eligible beneficiaries were required to pay the second installment as per the scheme guidelines. Despite this, only 15,920 beneficiaries received the second installment, highlighting inconsistent implementation.
| number of bank accounts | how many times paid | total cases | how many times overpaid | Additional Payment (₹ in Lakhs) |
| 1 | 2 | 3 | 4 (3-1) | 5 |
| 2 | 6 | 12 | 10 | 0.3 |
| 2 | 5 | 10 | 8 | 0.24 |
| 22 | 4 | 88 | 66 | 1.98 |
| 12 | 3 | 36 | 24 | 0.72 |
| 3,624 | 2 | 7,248 | 3,624 | 108.72 |
| Total | 7,394 | 3,732 | 111.96 | |
Table showing disbursements across the same bank account number. (Source: CAG report)
Delay in direct benefit claims
Claims such as education assistance and death benefit were processed through direct benefit transfers. The audit found huge delays in approvals, with 60% of claims approved after a year, while rejections were completed within seven days.
Only a fraction of this was covered in health check-ups
The Health Checkup Program for construction workers was implemented through HLL Lifecare Limited, a selected Government of India enterprise on nomination basis. Between 2019-20 and 2021-22, Rs 59.19 crore was spent on health check-up of 2.97 lakh registered workers.
Only 15% of the 19.49 lakh registered workers availed the benefits.
No inspection at construction sites
Despite statutory requirements, none of the 9,891 registered manufacturing establishments were inspected by the state government.
Additionally, 2,519 registered establishments failed to submit mandatory safety and health policy statements. Medical examination of workers engaged in operation of cranes, transport equipment or lifting equipment was also not ensured.
Overpayment in Mid Day Meal Scheme
Midday meal contracts for construction workers were awarded to GCPL, IAPFPL and JKPL in 2018. None of the agencies issued distribution cards to the workers. The government did not deduct the cost of these cards from payment per meal, leading to overpayments. 81.56 crores by March 2022.
Irregularities identified in safety and essential kits
Out of 5.81 lakh registered workers between July 2020 and December 2021, 1.37 lakh workers (32.18%) did not receive protection or necessary kits. Audit found that 802 essential kits cost Rs 4,579 per kit was distributed to 401 beneficiaries twice.
Similarly, the cost of safety kit is Rs 24,430. Rs 4,661 per kit was distributed twice to 12,215 beneficiaries, while 18 beneficiaries received safety kits thrice. The policy allows repeat orders only up to 50% of the initial order value 10 crores, whichever is less. However, it is advisable to place orders again and again 888.39 crore for safety kits and Rs 872.76 crore was kept for essential kits, much more than the prescribed limit.
fit for contract Indo Allied Protein Food Pvt Ltd given Rs 104.87 crore for safety kits In 2018, Rs 103.03 crore was given to Gunina Commercial Pvt Ltd for essential kits. The audit said both companies had no prior experience in safety or essential kits and had only traded in shoes, notebooks and school bags. By March 2022, Rs 1,670.48 crore was spent on security and distribution of essential kits.
Board functioning and staffing concerns
The Maharashtra Building and Other Construction Workers Welfare Board was last reorganized in 2018. No representatives of workers or employers were appointed, and only government representatives were on the board. Only one meeting was held in December 2022.
The Board faced a staff shortage of 89% against the sanctioned strength. Recruitment to the vacant posts remained pending till July 2024. No action was taken by the Maharashtra government on the proposal for 602 posts sent in December 2022. Additional contractual employees were recruited without approval in 2020-21 and 2021-22, resulting in irregular payments. 1.68 crores.
Mass non-registration and accident risk
During 2017-18 to 2021-22, 73% of the establishments were not registered under the Building and Other Construction Workers Welfare Act and Maharashtra Building and Other Construction Workers Welfare Rules.
In 19 of the 37 accident cases, the establishments involved were not registered. Of the 1,391 sample workers, 894 workers were not registered, leaving them out of the welfare net.
Cess deficit and weak IT system
The audit found that in 169 building schemes, four planning authorities, including BMC and MMRDA, applied annual statement of rates only on built-up area, excluding the non-FSI area. This resulted in less recovery of cess 29.41 crores. The removal of landscape and garden costs further reduced cess collections.
Read more: RLDA’s big land bank, small returns: CAG flags delays, devaluation, revenue loss
Welfare Board also awarded Rs 88.60 crore contract awarded to a consortium of ITI Ltd and Arceus Infotech Pvt Ltd for IT system covering registration, claims and cess collection. The audit said no accounting and finance module was developed by July 2024, and no action was taken against non-performing contractors.
Overall, the CAG audit points to deep flaws in Covid financial assistance delivery, weak oversight and persistent governance failures, which deprived genuine construction workers of benefits, while excess and irregular payments continued unchecked.