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1
THE BUILDINGANDOTHERCONSTRUCTION WORKERS’ (REGULATION OF EMPLOYMENT AND
CONDITIONS OF SERVICE) ACT, 1996
[HINDALCO LEGAL TEAM]
IN COLLABORATION WITH
[HINDALCO TECHNICAL UNIVERSITY]
Suvashree Parichha
Kamadev Raulo
Provisions of BOCW Act and Rules.
2
THE BUILDINGANDOTHERCONSTRUCTION WORKERS’ (REGULATION OF EMPLOYMENT AND
CONDITIONS OF SERVICE) ACT, 1996
INTRODUCTION
The Building and Other construction workers (Regulation
and Conditions of Services) Act, 1996 was made for the
welfare of the employees engaged in different establishments.
This enactment is for the welfare of the weaker section, i.e
workers of unorganized sector. This Act imposes obligations
upon owners of the establishments to maintain inspecting staff
and for maintenance of health, cleanliness, prevention of
overcrowding and provision for amenities such as lighting,
drinking water, etc. Provisions are also made for safety of
workers and their welfare, such as restrictions on working
hours and on the employment of young persons and females,
and grant of annual leave with wages.
This Act came into force on the 1st day of
March 1996.
3
THE BUILDINGANDOTHERCONSTRUCTION WORKERS’ (REGULATION OF EMPLOYMENT AND
CONDITIONS OF SERVICE) ACT, 1996
BACKGROUND
In building and other construction works more than eight million workers are engaged throughout
the country. These workers are one of the most vulnerable segments of the unorganized labour in
India. Their work is of temporary nature, the relationship between employer and the employee is
temporary, working hours are uncertain. Basic amenities and welfare facilities provided to these
workers are inadequate. Risk to life and limb is also inherent. In the absence of adequate statutory
provisions to get the requisite information regarding the number and nature of accidents was quite
difficult and due to this to fix responsibility or to take corrective measures was not an easy job.
Although the provisions of certain Central Acts were applicable to the building and other
construction workers yet a need was felt for a comprehensive Central Legislation for regulating
the safety, welfare and other conditions of service of these workers.
The Building and Other Construction Workers (Regulation of Employment and Conditions of
Service) Bill having been passed by both the Houses of Parliament received the assent of the
President on 19th August, 1996.
Applicability of the Act:
BOCW Act applies to every establishment which employs, or had employed on any day of the
preceding twelve months, ten or more building workers in any building or other construction work.
Important Definitions
Building and other construction Work (BOCW) means the construction, alteration, repairs,
maintenance or demolition- of or, in relation to, buildings, streets, roads, railways, tramways,
airfields, irrigation, drainage, embankment and navigation works, flood control works (including
storm water drainage works), generation, transmission and distribution of power, (including
channels for distribution of water), oil and gas installations, electric lines, wireless, radio;
television, telephone, telegraph and overseas communication dams, canals, reservoirs,
watercourses, tunnels, bridges, viaducts, aqueduct transmission towers and such other work as may
be specified in this behalf by the appropriate Government, by notification.
Building worker is a person who is employed to do any skilled, semiskilled or unskilled manual,
supervisory, technical or clerical work for hire or reward, whether the terms of employment be
expressed or implied, in connection with any building or other construction work but does not
4
THE BUILDINGANDOTHERCONSTRUCTION WORKERS’ (REGULATION OF EMPLOYMENT AND
CONDITIONS OF SERVICE) ACT, 1996
include any such person who is employed mainly in a managerial or administrative capacity or
being employed in a supervisory capacity, draws wages exceeding one thousand six hundred
rupees per mensem or exercises, either by the nature of the duties attached to the office or by
reason of the powers vested in him, functions mainly of a managerial nature.
Contractor is a person who undertakes to produce a given result for any establishment, other than
a mere supply of goods or articles of manufacture, by the employment of building workers or who
supplies building workers for any work o establishment; and includes a sub- contractor.
Employer in relation to an establishment, means the owner thereof and includes, in relation to a
building or other construction work carried on by or under the authority of any department of the
Government, directly without any contractor, the authority specified in this behalf, or where no
authority is specified, the head of the department, building or other construction work carried on
by or on behalf of a local authority or other establishment, directly without any contractor, the
chief executive officer of that authority or establishment, building or other construction work
carried on by or through a contractor, or by the employment of building workers supplied by a
contractor, the contractor;
Establishment means and includes any establishment belonging to, or under the control of,
Government, anybody corporate or firm, an individual or association or other body of individuals
which or who employs building and includes an establishment belonging to a contractor, but does
not include an individual who employs such workers in any building or construction work in
relation to his own residence the total cost of such construction not being more than rupees ten
lakhs;
REGISTRATION OF ESTABLISHMENTS
The appropriate Government may, - a) appoint the registering officers for the purposes of this Act;
and b) define the limits within which a registering officer shall exercise the powers conferred on
him by or under this Act.
Every employer shall,- (a) within a period of sixty days from such commencement in relation to
an establishment to which this Act may be applicable, (b) make an application to the registering
officer for the registration of such establishment.
Every Building worker who has, a) completed 18 years of age, but has not completed 60 years of
age, and who has been engaged in any building or other construction work for not less than ninety
5
THE BUILDINGANDOTHERCONSTRUCTION WORKERS’ (REGULATION OF EMPLOYMENT AND
CONDITIONS OF SERVICE) ACT, 1996
days during the preceding twelve months shall be eligible for registration as a beneficiary under
this Act. b) And shall, until she attains the age of 60 years, contribute to the Fund and the different
rates of contribution may be specified for different classes of building workers.
HOURS OF WORK, WELFARE MEASURES AND OTHER CONDITIONS OF SERVICE
OF BUILDING WORKERS
The employer shall provide in every place where building or other construction work is in
progress-
 Sufficient supply of wholesome drinking water- The employer shall make in every place
where building or other construction work is in progress, effective arrangements to provide
and maintain at suitable points conveniently situated for all persons employed there in, a
sufficient supply of wholesome drinking water. (Sec. 32)
 Latrines and urinals- In every place where building or other construction work is carried
on, the employer shall provide sufficient latrine and urinal accommodation of such types
as may be prescribed and they shall be so conveniently situated as may be accessible to
the building workers at all times while they are in such place. (Sec. 33)
 Crèches (50 women workers)- In every place wherein, more than fifty female building
workers are ordinarily employed, there shall be provided and maintained a suitable room
or rooms for the use of children under the age of six years of such female workers. Such
rooms shall provide for adequate accommodation, adequately lighted and ventilated, clean
and sanitary condition, be under the charge of women trained in the care of children and
infants.
 First-aid facilities- Every employer shall provide in all the places where building or other
construction work is carried on such first-aid facilities as may be prescribed. (Sec 36)
 Canteens(250 workers)- The appropriate Government may, by rules require the employer
to provide and maintain in every place wherein not less than two hundred and fifty building
workers are ordinarily employed, a canteen for the use of the workers. (Sec 37)
 Fixing hours for normal working day- to fix the number of hours of work which shall
constitute normal working day for a building worker, inclusive of one or more specified
intervals and provide for a day of rest in every period of seven days which shall be allowed
to all building workers and for the payment of remuneration in respect of such days of rest.
6
THE BUILDINGANDOTHERCONSTRUCTION WORKERS’ (REGULATION OF EMPLOYMENT AND
CONDITIONS OF SERVICE) ACT, 1996
 Wages of overtime work- Where any building worker is required to work on any day in
excess of the number of hours constituting a normal working day he shall be entitled to
wages at the rate of twice his ordinary rate of wages. (Sec. 29)
 Maintenance of registers and records-Every employer shall maintain such registers and
records giving such particulars of building workers employed by him, the number of hours
of work which shall constitute a normal working day for them, in day of rest in every
period of seven days which shall be allowed to them, tile wages paid to them, the receipts
given by them and such other particulars. Once an establishment is registered under Bocw
Act, the said establishment have to follow the Minimum working hours, and have to
maintain the working hour register in the manner prescribed in the Act. (Sec. 30)
SAFETY AND HEALTH MEASURES
In every establishment wherein 500 or more workers are employed, the employer shall-
 Constitute a Safety Committee consisting of equal number of representatives of the
employer and the building workers.
 The employer shall also appoint a safety officer who shall possess such qualifications and
perform such duties as may be prescribed.
 Give notice thereof to such authority where an accident occurs which causes death or
bodily injury
SAFETY, HEALTH AND OTHER PROVISIONS
 An employer shall be responsible for taking all practical steps necessary to prevent
accidents.
 An employer shall be responsible for payment of wages to each building worker
employed.
 An employer shall, at least 30 days before the commencement of any B&OC work,
send to the Inspector.
7
THE BUILDINGANDOTHERCONSTRUCTION WORKERS’ (REGULATION OF EMPLOYMENT AND
CONDITIONS OF SERVICE) ACT, 1996
The Appropriate Govt. may make rules regarding the measures to be taken for the safety and
health. Such as- the name and situation of the place, the name and address of the person, the nature
of work involved & facilities provided, the number of workers likely to be employed. Precautions
need to be taken during demolition, to prevent inhalation of dust & fumes, use of hoists & lifts.
RESPONSIBILITIES OF EMPLOYER
According to Sec. 44, an employer shall be responsible for providing constant and adequate
supervision of any building or other construction work in his establishment as to ensure
compliance with the provisions of this Act relating to safety and for taking all practical steps
necessary to prevent accidents.
An employer shall be responsible for payment of wages to each building worker employed by him
and such wages before such date as may be prescribed. In case the contractor fails to make payment
of compensation in respect of a building worker employed by him, where he is liable to make such
payment when due, or makes short payment thereof, then, in the case of death or disablement of
the building worker, the employer shall be liable to make payment of that compensation in full or
the unpaid balance due in accordance with the provisions of the Workmen's Compensation Act,
1923 (8 of 1923), and recover the amount from the contractor either by deduction from any amount
payable to the contractor under any contract or as a debt payable by the contractor. (Sec.45)
As per Sec. 46, an employer shall, at least thirty days before the commencement of any building
or other construction work, send or cause to be sent to the Inspector having jurisdiction in the area
where the proposed building or other construction work is to be executed, a written notice
containing –
(a) Name and situation of the place where the building or other construction work is proposed to
be carried on;
(b) Name and address of the person who is undertaking the building or other construction work:
(c) Address to which communications relating to the building or other construction work may be
sent;
(d) Nature of the work involved and the facilities, including any plant and machinery, provided;
8
THE BUILDINGANDOTHERCONSTRUCTION WORKERS’ (REGULATION OF EMPLOYMENT AND
CONDITIONS OF SERVICE) ACT, 1996
(e) Arrangements for the storage of explosives, if any, to be used in the building or other
construction work;
(f) Number of workers likely to be employed during the various stages of building or other
construction work;
(g) Name and designation of the person who will be in overall charge of the building or other
construction work at the site;
PENAL PROVISIONS
Sec. 48 of the act provides for where an employer fails to give notice of tile commencement of the
building or other construction work under section 46, he shall be punishable with imprisonment
for a term which may extend to three months, or With fine which may extend to two thousand
rupees, or with both.
Sec. 49 provides for penalty if whoever obstructs an inspector in the discharge of his duties under
this Act or refuses or willfully neglects to afford the Inspector any reasonable facility for making
any inspection, examination, inquiry or investigation authorized by or under this Act in relation to
an establishment shall be punishable with imprisonment for a term which may extend to three
months, or with fine which may extend to one thousand rupees, or with both.
CONCLUSION AND TAKEAWAYS FOR THE BUSINESS
It is estimated that about 8.5 million workers in the country are engaged in building and other
construction works. Building and other construction workers are one of the most numerous and
vulnerable segments of the unorganized labour in India. The building and other construction works
are characterized by:-
 their inherent risk to the life and limb of the workers its casual nature,
 temporary relationship between employer and employee,
 uncertain working hours,
 Lack of basic amenities and inadequacy of welfare facilities.
The Act provides the regulatory framework for the employment and conditions of service with
adequate statutory provisions such as requiring the requisite information regarding the number and
9
THE BUILDINGANDOTHERCONSTRUCTION WORKERS’ (REGULATION OF EMPLOYMENT AND
CONDITIONS OF SERVICE) ACT, 1996
nature of accidents during building and other construction work. In the absence of such
information, it is difficult to fix responsibility or to take any corrective action.
As per the code and the ruling of the SC, the liability accrues from the enactment of the Act i.e1996
and thus, if the Welfare Board is subsequently or belatedly notified in the concerned State, it cannot
be claimed that liability would accrue from the date of constitution of the Welfare Board. The
principal liability is on the employer, if the contractor fails to pay 1% cess of cost of construction.
In case of delay in payment, Interest @ 2 % per month from due date till date payment + penalty
(not exceeding Cess amount). Prosecution for non-furnishing return or furnishing false returns
knowingly or having reasons to believe it to be false or wilfully or intentionally evading/attempt
to evade payment of Cess is liable for imprisonment up to 6 months or fine or with both.

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Booktile on BOCW Act.docx

  • 1. 1 THE BUILDINGANDOTHERCONSTRUCTION WORKERS’ (REGULATION OF EMPLOYMENT AND CONDITIONS OF SERVICE) ACT, 1996 [HINDALCO LEGAL TEAM] IN COLLABORATION WITH [HINDALCO TECHNICAL UNIVERSITY] Suvashree Parichha Kamadev Raulo Provisions of BOCW Act and Rules.
  • 2. 2 THE BUILDINGANDOTHERCONSTRUCTION WORKERS’ (REGULATION OF EMPLOYMENT AND CONDITIONS OF SERVICE) ACT, 1996 INTRODUCTION The Building and Other construction workers (Regulation and Conditions of Services) Act, 1996 was made for the welfare of the employees engaged in different establishments. This enactment is for the welfare of the weaker section, i.e workers of unorganized sector. This Act imposes obligations upon owners of the establishments to maintain inspecting staff and for maintenance of health, cleanliness, prevention of overcrowding and provision for amenities such as lighting, drinking water, etc. Provisions are also made for safety of workers and their welfare, such as restrictions on working hours and on the employment of young persons and females, and grant of annual leave with wages. This Act came into force on the 1st day of March 1996.
  • 3. 3 THE BUILDINGANDOTHERCONSTRUCTION WORKERS’ (REGULATION OF EMPLOYMENT AND CONDITIONS OF SERVICE) ACT, 1996 BACKGROUND In building and other construction works more than eight million workers are engaged throughout the country. These workers are one of the most vulnerable segments of the unorganized labour in India. Their work is of temporary nature, the relationship between employer and the employee is temporary, working hours are uncertain. Basic amenities and welfare facilities provided to these workers are inadequate. Risk to life and limb is also inherent. In the absence of adequate statutory provisions to get the requisite information regarding the number and nature of accidents was quite difficult and due to this to fix responsibility or to take corrective measures was not an easy job. Although the provisions of certain Central Acts were applicable to the building and other construction workers yet a need was felt for a comprehensive Central Legislation for regulating the safety, welfare and other conditions of service of these workers. The Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Bill having been passed by both the Houses of Parliament received the assent of the President on 19th August, 1996. Applicability of the Act: BOCW Act applies to every establishment which employs, or had employed on any day of the preceding twelve months, ten or more building workers in any building or other construction work. Important Definitions Building and other construction Work (BOCW) means the construction, alteration, repairs, maintenance or demolition- of or, in relation to, buildings, streets, roads, railways, tramways, airfields, irrigation, drainage, embankment and navigation works, flood control works (including storm water drainage works), generation, transmission and distribution of power, (including channels for distribution of water), oil and gas installations, electric lines, wireless, radio; television, telephone, telegraph and overseas communication dams, canals, reservoirs, watercourses, tunnels, bridges, viaducts, aqueduct transmission towers and such other work as may be specified in this behalf by the appropriate Government, by notification. Building worker is a person who is employed to do any skilled, semiskilled or unskilled manual, supervisory, technical or clerical work for hire or reward, whether the terms of employment be expressed or implied, in connection with any building or other construction work but does not
  • 4. 4 THE BUILDINGANDOTHERCONSTRUCTION WORKERS’ (REGULATION OF EMPLOYMENT AND CONDITIONS OF SERVICE) ACT, 1996 include any such person who is employed mainly in a managerial or administrative capacity or being employed in a supervisory capacity, draws wages exceeding one thousand six hundred rupees per mensem or exercises, either by the nature of the duties attached to the office or by reason of the powers vested in him, functions mainly of a managerial nature. Contractor is a person who undertakes to produce a given result for any establishment, other than a mere supply of goods or articles of manufacture, by the employment of building workers or who supplies building workers for any work o establishment; and includes a sub- contractor. Employer in relation to an establishment, means the owner thereof and includes, in relation to a building or other construction work carried on by or under the authority of any department of the Government, directly without any contractor, the authority specified in this behalf, or where no authority is specified, the head of the department, building or other construction work carried on by or on behalf of a local authority or other establishment, directly without any contractor, the chief executive officer of that authority or establishment, building or other construction work carried on by or through a contractor, or by the employment of building workers supplied by a contractor, the contractor; Establishment means and includes any establishment belonging to, or under the control of, Government, anybody corporate or firm, an individual or association or other body of individuals which or who employs building and includes an establishment belonging to a contractor, but does not include an individual who employs such workers in any building or construction work in relation to his own residence the total cost of such construction not being more than rupees ten lakhs; REGISTRATION OF ESTABLISHMENTS The appropriate Government may, - a) appoint the registering officers for the purposes of this Act; and b) define the limits within which a registering officer shall exercise the powers conferred on him by or under this Act. Every employer shall,- (a) within a period of sixty days from such commencement in relation to an establishment to which this Act may be applicable, (b) make an application to the registering officer for the registration of such establishment. Every Building worker who has, a) completed 18 years of age, but has not completed 60 years of age, and who has been engaged in any building or other construction work for not less than ninety
  • 5. 5 THE BUILDINGANDOTHERCONSTRUCTION WORKERS’ (REGULATION OF EMPLOYMENT AND CONDITIONS OF SERVICE) ACT, 1996 days during the preceding twelve months shall be eligible for registration as a beneficiary under this Act. b) And shall, until she attains the age of 60 years, contribute to the Fund and the different rates of contribution may be specified for different classes of building workers. HOURS OF WORK, WELFARE MEASURES AND OTHER CONDITIONS OF SERVICE OF BUILDING WORKERS The employer shall provide in every place where building or other construction work is in progress-  Sufficient supply of wholesome drinking water- The employer shall make in every place where building or other construction work is in progress, effective arrangements to provide and maintain at suitable points conveniently situated for all persons employed there in, a sufficient supply of wholesome drinking water. (Sec. 32)  Latrines and urinals- In every place where building or other construction work is carried on, the employer shall provide sufficient latrine and urinal accommodation of such types as may be prescribed and they shall be so conveniently situated as may be accessible to the building workers at all times while they are in such place. (Sec. 33)  Crèches (50 women workers)- In every place wherein, more than fifty female building workers are ordinarily employed, there shall be provided and maintained a suitable room or rooms for the use of children under the age of six years of such female workers. Such rooms shall provide for adequate accommodation, adequately lighted and ventilated, clean and sanitary condition, be under the charge of women trained in the care of children and infants.  First-aid facilities- Every employer shall provide in all the places where building or other construction work is carried on such first-aid facilities as may be prescribed. (Sec 36)  Canteens(250 workers)- The appropriate Government may, by rules require the employer to provide and maintain in every place wherein not less than two hundred and fifty building workers are ordinarily employed, a canteen for the use of the workers. (Sec 37)  Fixing hours for normal working day- to fix the number of hours of work which shall constitute normal working day for a building worker, inclusive of one or more specified intervals and provide for a day of rest in every period of seven days which shall be allowed to all building workers and for the payment of remuneration in respect of such days of rest.
  • 6. 6 THE BUILDINGANDOTHERCONSTRUCTION WORKERS’ (REGULATION OF EMPLOYMENT AND CONDITIONS OF SERVICE) ACT, 1996  Wages of overtime work- Where any building worker is required to work on any day in excess of the number of hours constituting a normal working day he shall be entitled to wages at the rate of twice his ordinary rate of wages. (Sec. 29)  Maintenance of registers and records-Every employer shall maintain such registers and records giving such particulars of building workers employed by him, the number of hours of work which shall constitute a normal working day for them, in day of rest in every period of seven days which shall be allowed to them, tile wages paid to them, the receipts given by them and such other particulars. Once an establishment is registered under Bocw Act, the said establishment have to follow the Minimum working hours, and have to maintain the working hour register in the manner prescribed in the Act. (Sec. 30) SAFETY AND HEALTH MEASURES In every establishment wherein 500 or more workers are employed, the employer shall-  Constitute a Safety Committee consisting of equal number of representatives of the employer and the building workers.  The employer shall also appoint a safety officer who shall possess such qualifications and perform such duties as may be prescribed.  Give notice thereof to such authority where an accident occurs which causes death or bodily injury SAFETY, HEALTH AND OTHER PROVISIONS  An employer shall be responsible for taking all practical steps necessary to prevent accidents.  An employer shall be responsible for payment of wages to each building worker employed.  An employer shall, at least 30 days before the commencement of any B&OC work, send to the Inspector.
  • 7. 7 THE BUILDINGANDOTHERCONSTRUCTION WORKERS’ (REGULATION OF EMPLOYMENT AND CONDITIONS OF SERVICE) ACT, 1996 The Appropriate Govt. may make rules regarding the measures to be taken for the safety and health. Such as- the name and situation of the place, the name and address of the person, the nature of work involved & facilities provided, the number of workers likely to be employed. Precautions need to be taken during demolition, to prevent inhalation of dust & fumes, use of hoists & lifts. RESPONSIBILITIES OF EMPLOYER According to Sec. 44, an employer shall be responsible for providing constant and adequate supervision of any building or other construction work in his establishment as to ensure compliance with the provisions of this Act relating to safety and for taking all practical steps necessary to prevent accidents. An employer shall be responsible for payment of wages to each building worker employed by him and such wages before such date as may be prescribed. In case the contractor fails to make payment of compensation in respect of a building worker employed by him, where he is liable to make such payment when due, or makes short payment thereof, then, in the case of death or disablement of the building worker, the employer shall be liable to make payment of that compensation in full or the unpaid balance due in accordance with the provisions of the Workmen's Compensation Act, 1923 (8 of 1923), and recover the amount from the contractor either by deduction from any amount payable to the contractor under any contract or as a debt payable by the contractor. (Sec.45) As per Sec. 46, an employer shall, at least thirty days before the commencement of any building or other construction work, send or cause to be sent to the Inspector having jurisdiction in the area where the proposed building or other construction work is to be executed, a written notice containing – (a) Name and situation of the place where the building or other construction work is proposed to be carried on; (b) Name and address of the person who is undertaking the building or other construction work: (c) Address to which communications relating to the building or other construction work may be sent; (d) Nature of the work involved and the facilities, including any plant and machinery, provided;
  • 8. 8 THE BUILDINGANDOTHERCONSTRUCTION WORKERS’ (REGULATION OF EMPLOYMENT AND CONDITIONS OF SERVICE) ACT, 1996 (e) Arrangements for the storage of explosives, if any, to be used in the building or other construction work; (f) Number of workers likely to be employed during the various stages of building or other construction work; (g) Name and designation of the person who will be in overall charge of the building or other construction work at the site; PENAL PROVISIONS Sec. 48 of the act provides for where an employer fails to give notice of tile commencement of the building or other construction work under section 46, he shall be punishable with imprisonment for a term which may extend to three months, or With fine which may extend to two thousand rupees, or with both. Sec. 49 provides for penalty if whoever obstructs an inspector in the discharge of his duties under this Act or refuses or willfully neglects to afford the Inspector any reasonable facility for making any inspection, examination, inquiry or investigation authorized by or under this Act in relation to an establishment shall be punishable with imprisonment for a term which may extend to three months, or with fine which may extend to one thousand rupees, or with both. CONCLUSION AND TAKEAWAYS FOR THE BUSINESS It is estimated that about 8.5 million workers in the country are engaged in building and other construction works. Building and other construction workers are one of the most numerous and vulnerable segments of the unorganized labour in India. The building and other construction works are characterized by:-  their inherent risk to the life and limb of the workers its casual nature,  temporary relationship between employer and employee,  uncertain working hours,  Lack of basic amenities and inadequacy of welfare facilities. The Act provides the regulatory framework for the employment and conditions of service with adequate statutory provisions such as requiring the requisite information regarding the number and
  • 9. 9 THE BUILDINGANDOTHERCONSTRUCTION WORKERS’ (REGULATION OF EMPLOYMENT AND CONDITIONS OF SERVICE) ACT, 1996 nature of accidents during building and other construction work. In the absence of such information, it is difficult to fix responsibility or to take any corrective action. As per the code and the ruling of the SC, the liability accrues from the enactment of the Act i.e1996 and thus, if the Welfare Board is subsequently or belatedly notified in the concerned State, it cannot be claimed that liability would accrue from the date of constitution of the Welfare Board. The principal liability is on the employer, if the contractor fails to pay 1% cess of cost of construction. In case of delay in payment, Interest @ 2 % per month from due date till date payment + penalty (not exceeding Cess amount). Prosecution for non-furnishing return or furnishing false returns knowingly or having reasons to believe it to be false or wilfully or intentionally evading/attempt to evade payment of Cess is liable for imprisonment up to 6 months or fine or with both.