CAG urges Kerala to register all construction establishments

The Comptroller and Auditor General of India (CAG) has recommended that the Kerala government improve registration of establishments to benefit construction workers. This request is part of a report on worker welfare for the year ending in March 2023, released in the State Legislative Assembly. The CAG emphasized the need for an effective system to validate data. This would ensure accurate records of all institutions that pay the cess, which is a type of tax supporting worker welfare. Currently, many employment details are missing from the registration portal. As of March 2023, only about 10,113 establishments were registered. The report highlights a significant gap in data collection. Of 7,312 buildings eligible for cess assessment, details were only reported for 4,294, with just 679 of these entered in the Labor Commissionerate Automation System (LCAS). Furthermore, there were delays in cess assessments in 282 cases, ranging from one to five years. The CAG suggested better organization by local self-government institutions to ensure timely assessments and collection of the cess. It pointed out that the Labor department faced a loss of ₹11.39 crore due to late cess payments. Out of almost 283,000 buildings assessed, less than half had paid their cess, leading to a collection shortfall of ₹542.17 crore. The report also urged the government to keep a complete database of beneficiaries receiving financial aid and their banking details, which is crucial for eligibility. Many applications for benefits were held up due to a lack of funds, and there were issues with inaccurate data during the distribution of COVID-19 aid. Additionally, the report mentioned that the Labor department did not reliably enforce safety regulations at construction sites, even after accidents occurred.