In Brief
The Supreme Court examined the failure of State Governments and Union Territory Administrations to implement the Building and Other Construction Workers Act, 1996 (BOCW Act) and Welfare Cess Act, 1996 despite collecting over Rs. 37,000 crores in cess. The Court upheld the constitutional validity of both statutes as social justice legislation derived from Article 21 (right to dignity) and Directive Principles of State Policy. However, it found massive implementation gaps: registration of workers remained incomplete, collected cess was not disbursed to beneficiaries, and welfare schemes were ineffectively administered. The Court issued comprehensive directions requiring States to strengthen registration machinery, establish welfare boards, frame statutory rules, conduct social audits, and develop a model welfare scheme. The judgment stressed that failure to implement statutory welfare legislation amounts to exploitation of a vulnerable unorganized sector and denial of fundamental constitutional rights.
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