Builders in Noida and Greater Noida owe Rs 100 crore labour cess to government
There is no way of avoiding labour cess. Developers should pay it on time. At the same time, there is concern of proper utilization of money collected, said Getamber Anand, president elect, CREDAI
Feb 14, 2015
Source : The Times of India
Getamber Anand, president elect, CREDAI


NOIDA: The Uttar Pradesh labour department is struggling to recover over Rs 100 crore worth of labour cess from developers in Noida and Greater Noida. Officials have sent notices to the developers, many of whose projects are either completed or nearing completion. 

Gautam Budh Nagar is the highest contributor of labour cess in Uttar Pradesh. In the last four years, UP has recovered Rs 1,600 crore cess, of which Rs 416 crore has been collected from GB Nagar alone. 

According to a labour department official, a builder, with a project along the Yamuna Expressway, has failed to pay Rs 10 crore cess. A senior official said, "Both realtors and individuals, who spend over Rs 10 lakh on construction, have to mandatorily pay 1% of the construction cost to the labour department as cess. The government spends these funds on development and welfare schemes for labourers." 

From 2009 to January 2015, the labour department has recovered only Rs 416 crore labour cess from reluctant builders. "We found it difficult to recover the amount from developers, because they are well connected in the government. On many occasions, we desist from putting pressure on them, as it gets redirected upon us. In the last six months, the department has recovered Rs 110 crore, by issuing recovery notices and by adopting other means," said a senior labour official. 

"There is no way of avoiding labour cess. Developers should pay it on time. At the same time, there is concern of proper utilization of money collected," said Getamber Anand, president elect, CREDAI. 

There are around 89,000 registered labourers and 2 lakh unregistered ones working at 4,000 construction sites in the twin cities. 

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