Court mandates fresh affidavits from Union and Delhi Government detailing steps taken to implement welfare measures under Occupational Safety, Health and Working Conditions Code, 2020 and Code on Social Security, 2020
In a significant judgment dated October 1, 2026, the Delhi High Court (Division Bench comprising Chief Justice Devendra Kumar Upadhyaya and Justice Tejas Karia) has addressed the long-standing issue of inadequate implementation of welfare provisions for building and other construction workers. The Court took cognizance of the failure to utilize a massive cess corpus amounting to approximately Rs. 3,000 crore, collected from builders, meant for the benefit of construction workers.
The petitions, including W.P.(C) 2991 of 2020 and W.P.(C) 13120 of 2026, raised serious concerns regarding the lack of enforcement of the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996 ("the Act"), especially in the backdrop of the newly enacted labour legislations - the Occupational Safety, Health and Working Conditions Code, 2020 and the Code on Social Security, 2020. Both these Codes, which have come into force and repealed earlier laws including the 1996 Act and the Building and Other Construction Workers' Welfare Cess Act, 1996, aim to provide a comprehensive legal framework for the welfare, safety, and social security of workers in the construction sector.
The Court acknowledged submissions that the rules under these new Codes have already been framed and that the Welfare Board constituted under the old Act continues to function under transitional provisions. However, the Court expressed concern that despite the large cess corpus available, the authorities, including the Board, had failed to effectively utilize these funds to extend statutory benefits to the workers, thereby depriving them of their rightful dues.
To address this, the Court directed the Union of India, the Labour Department of the Delhi Government, and the Building and Other Construction Workers' Welfare Board to file fresh affidavits within four weeks. These affidavits must detail the steps taken to ensure the implementation of benefits under the new legal regime and disclose whether any action plan exists for the utilization of the cess corpus. In the absence of such an action plan, the Court mandated that one must be prepared and enforced in strict alignment with the statutory requirements of the new labour laws.
Further, the Court emphasized the importance of strict compliance with registration requirements under the new Codes. It directed that while registering employers and workers, all procedural mandates, including furnishing the list of construction workers employed by employers, must be followed diligently. The Court warned that failure to file proper affidavits or omission of requisite information would be viewed seriously.
The matter has been listed for further hearing on November 18, 2026, with the Court marking it as `High on Board' to ensure prompt and effective adjudication.
This judgment reinforces the judiciary's commitment to safeguarding the rights and welfare of construction workers in the evolving landscape of Indian labour laws and ensures accountability on the part of authorities responsible for the welfare schemes.
Bottom Line:
Building and Other Construction Workers - Non-implementation of welfare legislation - After enactment of Occupational Safety, Health and Working Conditions Code, 2020 and Code on Social Security, 2020, Court directed Union of India, State Labour Department and Welfare Board to file fresh affidavits disclosing steps taken to extend statutory benefits to construction workers and utilisation of cess corpus; further directed preparation/enforcement of action plan in alignment with new labour laws and compliance with registration requirements of employers and workers.
Statutory provision(s):
Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996 Section 18(1), Code on Social Security, 2020 Sections 153, 164, Occupational Safety, Health and Working Conditions Code, 2020 Section 143
Sunil Kumar Aledia v. Govt. of NCT of Delhi, (Delhi)(DB) : Law Finder Doc Id # 2992001
