Andhra Pradesh government asked to explain for not paying cess to Workers Welfare Board

Hyderabad: Justice M.S. Ramachandra Rao of the Hyderabad High Court on Friday admitted a petition challenging the action of the authorities in not paying cess to the AP Buildings and other Construction Workers Welfare Board.

The Board, represented by P.S. Ajay Kumar, moved the plea stating that the Building and other Construction Workers Welfare Cess Act 1996 mandates that cess has to be deposited with the Board for every construction activity under taken by the government.

He said construction works worth crores of rupees are being executed under and lakhs of people are employed with Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) in the state, but the cess was not deposited to the Board.

The petitioner told the court that non deposit of cess will lead to denial of several benefits like medical reimbursement, maternity benefit grant for marriage of daughters to lakhs of workers who are registered with MGNREGS.

While admitting the plea, the judge directed the government to file an affidavit explaining reasons for not paying cess within two weeks.