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79th Annual Report and Accounts 2019-20 Flipbook PDF
79th Annual Report and Accounts 2019-20
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BUILDERS' ASSOCIATION OF INDIA (Apex Body of Construction Industry) Registered & Head Office:
Delhi Office:
G-1/G-20, Commerce Centre, J. Dadajee Road, Tardeo, Mumbai - 400 034 Tel : (022) 23520507 Fax : 022-23521328 Email : [email protected]
D1/203, Aashirwad Complex Green Park Main, New Delhi - 110 016 Mob. : (911) 9555448763 Telefax: (011) 40612800 Email: [email protected]
79th Annual Report and Accounts 2019-2020 www.baionline.in
BUILDERS' ASSOCIATION OF INDIA
1
79h Annual Report and Accounts – 2019-2020
BUILDERS’ ASSOCIA TION SSOCIATION
OF INDIA
(Apex Body of Construction Industry) G-1/G-20, 7th Floor, Commerce Centre, J. Dadajee Road, Tardeo, Mumbai 400 034 Tel.: (91-22) 23520507 • Fax (91-22) 23521328
[email protected] www.baionline.in @BAINational Builders Association of India
NOTI CE The Seventy Nineth (79) Annual General Meeting of the Members of Builders' Association of India, will be held on Friday 19th February 2021 at 5.00P.M. at Le Méridien, 762 Avinashi Road Neelambur, Village, Coimbatore, Tamil Nadu 641062, to transact the following business :1.
To confirm the Minutes of the Seventy Eight Annual General Meeting held on Saturday 17th August, 2019 at 4.00 P.M. at FEATHERS-A-RADHA HOTEL, 4/129, Mount Poonamalle Road, Manapakkam, Chennai - 600 089 (Minutes have already been circulated to Members and also printed in Indian Construction Journal, December 2019 issue - Page No. 65 to 70 and also hosted on BAI Website www.baionline.in).
2.
To take note of the result of BAI Organisational Election for the year 2020-21 (Enclosed).
3.
To take note of the election result of Trustee, West Zone for the year 2020-22. (Due to the resignation of Trustee, Shri Mohanlal S. Katariya). (Enclosed).
4.
To take note of the election result of State Chairman, Telangana for the year 2020-21. (Due to the death of State Chairman Shri P. Narasimha Rao) (Enclosed).
5.
To consider, and if thought fit, adopt the Annual Report of the Association for the year ending 31st March 2020.
6.
To consider, and if thought fit, adopt the Audited Balance Sheet and Income & Expenditure Account of the Association for the year ending 31st March 2020.
7.
To appoint Auditors to audit the accounts of the Association for the year 2020-21 and fix their remuneration.
8.
To consider, any other item, with the permission of the chair. (Written items to be received at BAI Headquarter on or before Monday 15th February 2021.)
PRADEEP NAGAWEKAR Hon. Gen. Secretary Builders' Association of India Place : Mumbai Dated: 06.01.2021
Note: (i)
The report is hosted on BAI Website www.baionline.in.
(ii)
Please bring this copy of Annual Report.
(ii)
Queries on Accounts and Reports should be communicated to BAI Headquarter on or before Monday 15th February 2021. Centres Chairmen are requested to kindly circulate this information amongst their members. Please note no floor queries on accounts will be entertained.
Delhi Office: D1/203, Aashirwad Complex, Green Park Main, New Delhi 110 016 • Tel.: 40612800 / 9555448763 E-mail:[email protected]
BUILDERS' ASSOCIATION OF INDIA
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79h Annual Report and Accounts – 2019-2020
BUILDERS' ASSOCIATION OF INDIA MANAGING COMMITTEE 2019-2020 President Mr. Sachin Chandra - (01-04-2019 to 23-12-2019) Vice Presidents Mr. K. Sriram Mr. Mathew Alex Vellapally Mr. Nimesh D. Patel Mr. O. P. Sharma Mr. Surojit Samanta Hon. Gen. Secretary Mr. Neerav Parmar
Hon. Gen. Treasurer Mr. Pradeep G. Nagawekar
Imm. Past President A. Puhazhendi STATE CHAIRMEN Andhra Pradesh : Mr. V. Venkateswara Rao
Chattisgarh : Mr. K. Chandrasekhar Rao
Delhi : Mr. H. S. Pasricha
Gujarat : Mr. Kirti M. Thacker
Haryana : Mr. Umesh Achaarya
Jharkhand : Mr. Shiv Kumar Burman
Karnataka : Mr. R. Ambikapathy
Kerala : Mr. Prince Joseph
Maharashtra : Mr. Prakash Panjwani
Rajasthan : Mr. Rameshwar D. Khandelwal
Tamil Nadu : Mr. R. Muthukumar
Telangana : Mr. D. V. N. Reddy
Uttar Pradesh : Mr. Sanjay Tyagi State Co-ordinators (2019-20) Assam : Mr. Pinak Pani Nath
Madhya Pradesh : Mr. Sharad Tamot
West Bengal : Mr. Ashok Kumar Chandak
Members of the Managing Committee representing Centres Mr. A. Manikkam Mr. Bhopinder R. Lal Mr. K. Padmanabhan Mr. K. J. George Mr. M. Thirusangu Mr. N. Sivakumar Mr. Paul T. Mathew Mr. R. Sivakumar Mr. S. Sunil Kumar
Mr. Alex P. Cyriac Mr. E. Dhanasekaran Mr. K. Rajakumaran Nair Mr. L. Shantha Kumar Mr. Mahendra Sethi Mr. P. Subramani Mr. Pratap Salunkhe Mr. R. R. Sridhar Mr. T. V. Chandrasekaran Mr. Vilas Birari
Mr. Ashok Agarwal Mr. G. Ved Anand Mr. K. Venkatesan Mr. M. Ravi Mr. N. Murugan Mr. P. P. John Mr. R. Ethirajan Mr. Ram M. Bhatia Mr. Taro T. Manghnani
Members of the Managing Committee representing Patron Members Dr. Anand J. Gupta Mr. Baburao L. Shakkarwar Mr. Gopalsingh Rathod Mr. K. Subramani Mr. Mahesh M. Mudda Mr. N. Shanmugam Mr. Prabir Kumar Mukherjee Mr. S. N. Reddy
BUILDERS' ASSOCIATION OF INDIA
Dr. Dharmesh Awasthi Mr. D. R. Sekar Mr. J. R. Sethuramalingam Mr. K. L. Mohan Rao Mr. Mu. Moahan Mr. Narendra Kumar Mr. Rajendra S. Athawale Mr. Soma Srinivas Reddy Mr. V. Satya Murthy
3
Dr. Rajiv B. Krishnani Mr. G. Ramamoorthi Mr. K. Ramanujam Mr. L. Venkatesan Mr. N. Ramalingam Mr. P. Narsimha Rao Mr. S. Ayyanathan Mr. V. Ayyamperumal
79h Annual Report and Accounts – 2019-2020
Members of the Managing Committee representing Affiliated Associations Mr. Arvind V. Patel
Mr. M. Jaisankar
Mr. K.G. Janakiraman
Mr. B. Ramesh
Trustees 2019-22 Mr. Ravindra Pradhan Mr. O.K. Selvaraj
Mr. Lal Chand Sharma Mr. B. Sugunakar Rao Mr. Mohanlal katariya.
Mr. V. Rajagopal Mr. C. G. Deochake
Chairpersons of various Committees of BAI for 2019-20 NAME OF COMMITTEES ........................................................................... CHAIRPERSON Banking & Finance Committee ..................................................................... Dr. Anand J. Gupta ............................................................................................................................ Dr. Tarro T. Manghnani CPWD/MES/RLY/NHAI Committee ........................................................ Mr. R. N. Gupta ............................................................................................................................ Mr. K. Venkatesan (RLY) ............................................................................................................................ Mr. Arvind V. Patel ............................................................................................................................ Mr. T.I. George Constitutional Amendment Committee ...................................................... Mr. Sanjay Tyagi BAI Members’ Welfare Committee .............................................................. Capt. A. Mohan ............................................................................................................................ Mr. D. V. N. Reddy ............................................................................................................................ Mr. S. I. Chunkhare Taxation Committee ....................................................................................... CA.M. Raveendaran, B.Sc., F.C.A. ............................................................................................................................ Mr. Tarun Ghia ............................................................................................................................ Ms. Pooja Jajwani CA Hosuing / RERA ............................................................................................. Mr. K. Ramanujam ............................................................................................................................ Mr. Chandrakant K. Raipat ............................................................................................................................ Mr. Sudhir Dnyandeo Gharge ............................................................................................................................ Dr. P. Prabhakar Indian Construction Journal Committee ..................................................... Mr. Neerav Parmar Membership Development Committee- East, North, South & West. .... Mr. Bhavesh Kumar (Chairman, East) ............................................................................................................................ Mr. Ram Avtar (Chairman, North) ............................................................................................................................ Mr. Mu. Moahan (Chairman (South) ............................................................................................................................ Mr. A. Arivoli ............................................................................................................................ Mr. Pratap B. Salunkhe (Chairman, West) Mechanization Committee ............................................................................ Mr. V. G. Sakthikumar ............................................................................................................................ Capt. George Thomas ............................................................................................................................ S. Kalamassery, ............................................................................................................................ Mr. Premraj Kashyap ............................................................................................................................ Mr. Ranjeet R. More Labour & Social Security Committee .......................................................... Mr. Rajiv Goel ............................................................................................................................ Capt. A. Mohan Legal & Arbitration ......................................................................................... Dr. Dharmesh C. Awasthi PR Committee .................................................................................................. Dr. Anand J. Gupta ............................................................................................................................ Mr. Sanjib Goyal Skill Development Committee ...................................................................... Mr. D.S. Shirole ............................................................................................................................ Mr. K.L. Mohan Rao CIDC Coordination ......................................................................................... Mr. CH. Ramakotaiah
BUILDERS' ASSOCIATION OF INDIA
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79h Annual Report and Accounts – 2019-2020
BUILDERS’ ASSOCIA TION SSOCIATION
OF INDIA
(Apex Body of Construction Industry) G-1/G-20, 7th Floor, Commerce Centre, J. Dadajee Road, Tardeo, Mumbai 400 034 Tel.: (91-22) 23520507 • Fax (91-22) 23521328
[email protected] www.baionline.in Builders Association of India (https://youtube.com/user/baihqmumbai)
@BAINational
Ref.: 130/ J/2020-21 dated 1st July , 2020 TO: THE TRUSTEES THE VICE-PRESIDENTS THE STATE CHAIRMEN / CENTRE CHAIRMEN THE MANAGING COMMITTEE AND THE GENERAL COUNCIL MEMBERS Dear Sirs,
Reg.: BAI Organisational Elections 2020-21
Further to our letter dated 30th March 2020, please be informed that, the election process for 2020-21 of Builders Association of India has been completed on 1st July 2020. Following are the election results:President
:
Shri Mu. Moahan [Chennai]
Vice Presidents
:
Shri Arun Sahai [North (Meerut) Centre]
Shri Chandrakant K. Raipat [Jharkhand (Ranchi) Centre]
Shri N. Sachitanand Reddy (South-I) [Hyderabad Centre]
Shri K. Chinnaswamy (South-II) [Coimbatore Centre]
Shri Baburao L. Shakkarwar [West (Nanded) Centre] Hon. Gen. Secretary
:
Shri Pradeep Gajanan Nagawekar - [Mumbai Centre]
Hon. Gen. Treasurer
:
Shri Gyan Madhani - [Mumbai Centre]
State Chairman
(Andhra Pradesh)
:
St. Co-ordinator
(Assam)
:
Shri Sanjib Goyal [Guwahati Centre]
State Chairman
(Chattisgarh)
:
Shri Dilip Singh Kushwaha [Jagdalpur Centre]
State Chairman
(Delhi)
:
Shri Ram Avtar [Delhi Centre]
State Chairman
(Gujarat)
:
Shri Kirti M. Thacker [Gandhinagar Centre]
State Chairman
(Haryana)
:
Shri Vijay Kumar [Karnal Centre]
State Chairman
(Jharkhand)
:
Shri Ran Vijay Pradhan [Jharkhand (Ranchi]
State Chairman
(Karnataka)
:
Shri U. M. Gurushanthappa (Mysore)
State Chairman
(Kerala)
:
Shri P. Hari Kumar (Trivandrum)
St. Co-ordinator
(Madhya Pradesh)
:
Shri Sanjay Sharma (Bhopal)
State Chairman
(Maharashtra)
:
Shri Bharat Gulabrao Wagh (Dhule)
State Chairman
(Rajasthan)
:
Shri Rameshwar D. Khandelwal (Jaipur)
State Chairman
(Tamil Nadu)
:
Shri R. Prakash (Chengalpattu)
State Chairman
(Telangana)
:
Shri P. Narasimha Rao (Hyderabad)
State Chairman
(Uttar Pradesh)
:
Shri Ravindra Tyagi (Modinagar)
St. Co-ordinator
(West Bengal)
:
Shri Mukti Binod Das (Haldia)
Shri D. Pankaj Reddy [Nellore Centre]
Members of the Managing Committee representing Centres (28 Nos): 1.
Shri B. Anandhan (Thanjavur)
BUILDERS' ASSOCIATION OF INDIA
2.
5
Shri B. R. Ravichandran (Chengalpattu)
79h Annual Report and Accounts – 2019-2020
3.
Dr. Dharmesh C. Awasthi (Kanpur)
5.
Shri G. Ved Anand (Kanyakumari)
6.
Shri K. Hanmantha Rao (Karimnagar)
7.
Shri K. Rajakumaran Nair (Butibori-Nagpur)
8.
Shri K. Venkatesan (Southern-Chennai)
9.
Shri K. Viswanathan (Coimbatore)
10.
Shri L. Carttigueane (Puducherry)
11.
Shri L. Venkatesan (Southern-Chennai)
12.
Shri M. V. Antony (Cochin)
13.
Shri Mathew Alex Vellapally (Kottayam)
14.
Shri N. Mohamed Abdul Khader (Dindigul)
15.
Shri N. S. Muralidhara (Mysore)
16.
Shri Narendra Kumar (Patna)
17.
Shri Naresh Madhavrao Painjane (Nanded)
18.
Shri Neerav Parmar (Mumbai)
4.
Shri Dinesh Nanji Patel (Hyderabad)
19.
Shri P. P. John (Alleppey)
20.
Shri Paul T. Mathew (Muvattupuzha)
21.
Shri Prakash S. Panjwani (Ulhasnagar)
22.
Shri Pratap B. Salunkhe (Ichalkaranji)
23.
Shri Prince Joseph (Cochin)
24.
Shri R. Nimrode (Southern-Chennai)
25.
Shri R. R. Sridhar (Southern-Chennai)
26.
Shri R. Rama Rao (Poonamallee)
27.
Shri S. K. Chandrasekar (Coimbatore)
28.
Shri T. V. Chandrasekaran (Chennai)
1.
Dr. Anand J. Gupta (Mumbai)
2.
Shri Basavaraj S. Totad (Karnataka-Bangalore)
3.
Shri D. V. N. Reddy (Nalgonda)
4.
Shri J. R. Sethuramalingam (Southern-Chennai)
5.
Shri K. Devender Reddy (Warangal)
6.
Shri K. John Paul (Kottayam)
7.
Shri K. Padmanabhan (Thanjavur)
8.
Shri K. Ramanujam (Southern-Chennai)
9.
Shri M. Thirusangu (Tiruchirapalli)
10.
Shri Mahendra Kumar Sethi (Rajasthan-Jaipur)
11.
Shri N. M. Patel (Baroda)
12.
Shri N. Shanmugam (Kumbakonam)
13.
Shri N. Sivakumar (Tiruchirapalli)
14.
Shri P. Subramani (Shimoga)
15.
Shri P. K. Mukherjee (Jharkahand-Ranchi)
16.
Shri Prakash H. Menda (Ulhasnagar)
17.
Shri R. Sivakumar (Southern-Chennai)
18.
Shri Rajendra Singh Kamboh (Durgapur)
19.
Shri Ram M. Bhatia (Mumbai)
20.
Shri S. Ayyanathan (Southern-Chennai)
21.
Shri S. Narasimha Reddy (Hyderabad)
22.
Shri S. Ramaprabhu (Southern-Chennai)
23.
Shri S. Shiva Prakash (Karnataka-Bangalore)
24.
Shri Shitalkumar Mohan Nawle (Dhule)
25.
Dr. Tarro T. Manghnani (Mumbai)
1.
Shri Arvind V. Patel
2.
Shri B. Ramesh
3.
Shri Mohan J.
4.
Shri R. Parthiban
Members of The Managing Committee - Representing Patron Members (Total 25 Posts)
Members of the Managing Committee representing Affiliated Associations (4 Nos) :
The new office bearers will assume charge of their respective offices with effect from 1st April 2020 for a period of 1 year as per the BAI Constitution. Thanking you, Yours faithfully,
RAJU JOHN RETURNING OFFICER BAI ORGANISATIONAL ELECTIONS 2019-20
Copy to:
1. 2. 3.
Shri Bhagwan J. Deokar Shri V. M. Fazal Ali Shri K. Subramani
BUILDERS' ASSOCIATION OF INDIA
}
Board of Scrutineers, BAI Organisational Elections 2020-21
6
79h Annual Report and Accounts – 2019-2020
BUILDERS’ ASSOCIA TION SSOCIATION
OF INDIA
(Apex Body of Construction Industry) G-1/G-20, 7th Floor, Commerce Centre, J. Dadajee Road, Tardeo, Mumbai 400 034 Tel.: (91-22) 23520507 • Fax (91-22) 23521328
@BAINational
[email protected] www.baionline.in Builders Association of India (https://youtube.com/user/baihqmumbai)
Ref.: 272/A/2020-21 dated August 21, 2020 TO: THE TRUSTEES THE VICE-PRESIDENTS THE STATE CHAIRMEN / CENTRE CHAIRMEN THE MANAGING COMMITTEE AND THE GENERAL COUNCIL MEMBERS Dear Sirs, The election process for Trustee – West Zone of Builders’ Association of India for one year term i.e. 2020-2022 has been completed on 30th July 2020. The Result of the Election is as follows:Shri Sham Chunkhare has been unanimously elected as Trustee – West Zone for 2020-2022. The new Trustee will assume charge with effect from 30th July 2020 for a period of 2 year as per the BAI Constitution. Thanking you, Yours faithfully,
RAJU JOHN RETURNING OFFICER BUILDERS’ ASSOCIATION OF INDIA TRUSTEES ELECTION FOR THE YEAR 2020-2022 COPY TO: GENERAL COUNCIL MEMBERS OF ALL OTHER ZONES. THE SCRUTINIZERS.
Delhi Office: D1/203, Aashirwad Complex, Green Park Main, New Delhi 110 016 40612800 / 9555448763 • E-mail:[email protected] BAI CENTRES AT Adilabad, Agra, Agra Cantt., Ahmedabad, Ahmednagar, Aligarh, Allahabad, Alleppy, Aluva, Amravati, Amaravathi, Andaman & Nicobar, Angamali, Aurangabad, Avadi, Baghpat, Bangalore, Baramati, Bareilly, Baroda, Bharuch, Bhopal, Bilaspur, Butibori, Calicut, Chandigarh, Changanacherry, Chengai, Chengalpattu, Chennai, Chettinadu, Chitradurga, Coimbatore, Delhi, Delhi East Shahadra, Delhi North, Delhi South, Delhi West, Dhanbad, Dharapuram, Dhule, Dindigul, Durgapur, Durg-Bhillai, Erode, Ettumanoor, Faridabad, Gautam Buddha Nagar, Gandhinagar, Ghaziabad, Goa, Greater Hyderabad, Greater Jaipur, Greater Noida, Guntur, Gurgaon, Guwahati, Haldia, Hapur, Hasan, Hyderabad, Ichalkaranji, Indore, Jabalpur, Jagdalpur, Jaipur, Jalgaon, Jaisalmer, Jamshedpur, Jodhpur, Kalapakkam, Kallakurichi, Kamareddy, Kanker, Kannur, Kanpur, Kanpur–South, Kanyakumari, Karaikal, Karimnagar, Karnal, Karnavati, Khammam, Kochi, Kodaikanal, Kodungullar, Kolhapur, Kolkata, Kollam, Kottayam, Kumbakonam, Kundli, Latur, Loni, Lucknow, Madhuranthakam, Madurai, Mahaboobnagar, Malegaon, Mangalore, Mayiladuthurai, Medak, Meerut, Meerut Cantt., Modinagar, Moradabad, Moradabad Nor. Rly., Mumbai, Muvattupuzha, Muzaffarnagar, Mysore, Nagapattnam, Nagpur, Nalgonda, Namakkal, Nanded, Nandurbar, Nasik, Nellore, Neyveli, Nilgiri, Nizamabad, Parbhani, Patna, Perambalur, Phaltan, Pink City Jaipur, Pondicherry, Ponneri, Poonamallee, Por-Ramangamdi, Pudukkottai, Pune, Raichur, Raigad, Raipur, Rajahmundry, Rajkot, Ramanathapuram, Ranchi, Ranga Reddy, Ravulapalem, Salem, Sangamner, Sangli, Satara, Shahda, Shimoga, Silchar, Sitapur, Solapur, Surat, Tambaram, Tanuku, Tezpur, Thanjavur, Theni, Thiruthuraipoondi, Thiruvalla, Thiruvannamalai, Thiruvarur, Thripunithura, Thrissur, Tiruchirapalli, Tirunelveli, Tirupu Tiruvallur, Thiruvananthapuram, Tuticorin, Udumalpet, Ulhasnagar, Vellore, Vijayawada, Vikarabad, Villupuram, Visakhapatnam, Vizag Steel City, Wai, Warangal, Western U.P. Electrical, Yadadri.
BUILDERS' ASSOCIATION OF INDIA
7
79h Annual Report and Accounts – 2019-2020
BUILDERS’ ASSOCIA TION SSOCIATION
OF INDIA
(Apex Body of Construction Industry) G-1/G-20, 7th Floor, Commerce Centre, J. Dadajee Road, Tardeo, Mumbai 400 034 Tel.: (91-22) 23520507 • Fax (91-22) 23521328
@BAINational
[email protected] www.baionline.in Builders Association of India (https://youtube.com/user/baihqmumbai)
Ref.: 273/A/2020-21 dated August 21, 2020 TO: THE TRUSTEES THE VICE-PRESIDENTS THE STATE CHAIRMEN / CENTRE CHAIRMEN THE MANAGING COMMITTEE AND THE GENERAL COUNCIL MEMBERS Dear Sirs, The election process for State Chairman-Telangana State of Builders’ Association of India for one year term i.e. 20202021 has been completed on 30th July 2020. The Result of the Election is as follows:-Shri V. Bhaskar Reddy has been unanimously elected as State Chairman-Telangana State for 2020-2021. The new Trustee will assume charge with effect from 30th July 2020 for a period of 1 year as per the BAI Constitution. Thanking you, Yours faithfully,
RAJU JOHN RETURNING OFFICER BUILDERS’ ASSOCIATION OF INDIA ELECTION FOR THE YEAR 2020-2021 COPY TO: GENERAL COUNCIL MEMBERS OF ALL OTHER ZONES. THE SCRUTINIZERS.
Delhi Office: D1/203, Aashirwad Complex, Green Park Main, New Delhi 110 016 40612800 / 9555448763 • E-mail:[email protected] BAI CENTRES AT Adilabad, Agra, Agra Cantt., Ahmedabad, Ahmednagar, Aligarh, Allahabad, Alleppy, Aluva, Amravati, Amaravathi, Andaman & Nicobar, Angamali, Aurangabad, Avadi, Baghpat, Bangalore, Baramati, Bareilly, Baroda, Bharuch, Bhopal, Bilaspur, Butibori, Calicut, Chandigarh, Changanacherry, Chengai, Chengalpattu, Chennai, Chettinadu, Chitradurga, Coimbatore, Delhi, Delhi East Shahadra, Delhi North, Delhi South, Delhi West, Dhanbad, Dharapuram, Dhule, Dindigul, Durgapur, Durg-Bhillai, Erode, Ettumanoor, Faridabad, Gautam Buddha Nagar, Gandhinagar, Ghaziabad, Goa, Greater Hyderabad, Greater Jaipur, Greater Noida, Guntur, Gurgaon, Guwahati, Haldia, Hapur, Hasan, Hyderabad, Ichalkaranji, Indore, Jabalpur, Jagdalpur, Jaipur, Jalgaon, Jaisalmer, Jamshedpur, Jodhpur, Kalapakkam, Kallakurichi, Kamareddy, Kanker, Kannur, Kanpur, Kanpur–South, Kanyakumari, Karaikal, Karimnagar, Karnal, Karnavati, Khammam, Kochi, Kodaikanal, Kodungullar, Kolhapur, Kolkata, Kollam, Kottayam, Kumbakonam, Kundli, Latur, Loni, Lucknow, Madhuranthakam, Madurai, Mahaboobnagar, Malegaon, Mangalore, Mayiladuthurai, Medak, Meerut, Meerut Cantt., Modinagar, Moradabad, Moradabad Nor. Rly., Mumbai, Muvattupuzha, Muzaffarnagar, Mysore, Nagapattnam, Nagpur, Nalgonda, Namakkal, Nanded, Nandurbar, Nasik, Nellore, Neyveli, Nilgiri, Nizamabad, Parbhani, Patna, Perambalur, Phaltan, Pink City Jaipur, Pondicherry, Ponneri, Poonamallee, Por-Ramangamdi, Pudukkottai, Pune, Raichur, Raigad, Raipur, Rajahmundry, Rajkot, Ramanathapuram, Ranchi, Ranga Reddy, Ravulapalem, Salem, Sangamner, Sangli, Satara, Shahda, Shimoga, Silchar, Sitapur, Solapur, Surat, Tambaram, Tanuku, Tezpur, Thanjavur, Theni, Thiruthuraipoondi, Thiruvalla, Thiruvannamalai, Thiruvarur, Thripunithura, Thrissur, Tiruchirapalli, Tirunelveli, Tirupu Tiruvallur, Thiruvananthapuram, Tuticorin, Udumalpet, Ulhasnagar, Vellore, Vijayawada, Vikarabad, Villupuram, Visakhapatnam, Vizag Steel City, Wai, Warangal, Western U.P. Electrical, Yadadri.
BUILDERS' ASSOCIATION OF INDIA
8
79h Annual Report and Accounts – 2019-2020
Report of the President and Managing Committee of Builders’ Association of India for the year 2019-20 Friends,
growth and higher per capita income etc. By 2051, India shall have highest population in world at 160 crores consisting of 80 crores each of urban and rural population respectively and likely to emerge as third biggest economy in terms of purchasing power parity. Urban areas would contribute about 70% of G.D.P. It is necessary to visualise emerging economic, scenario in next 34 years i.e. up to 2050. It is instructive to go back in last sixty years as to what economic growth India has achieved and resultant per capita income with future projections as shown in table below :
The President and the Managing Committee have great pleasure in presenting the 79th Annual Report of the Association along with the Statement of Accounts and the Auditors Report for the year 2019-20. CONSTRUCTION INDUSTRY OVERVIEW – India by 2050 India in July 2016 completed twenty five years of economic liberalisation initiated in 1991, resulted in increased G.D.P,
Sr. No.
Period
1
1950 to 1980
2
1981 to 2015
3
2015 to 2050
Per capita Average G.D.P. income in growth in dollar based Remark on purchasing percentage power parity 557 3.5 This period described by late Prof. Raj Krishna as "Hindu Rate of growth". 6.2 6100 Actually economic reform started in 1980, but liberalisation came in 1991. This growth period sustained over 34 years for giving goods result. 6 52000 Average growth rate of 6% over higher base rate of 6.2% will be much tougher to achieve. This is necessary to put India in to middle level economy. which ageing population would not like to work. Who else than young Indians fill the jobs around the world? There is going to be doubling of GDP growth in services like housing, education and health care. Services are labour intensive and their incremental return on capital is much faster than manufacturing.
Many feels that to achieve six percent growth rate during 2016 to 2050 is possible by creating huge manufacturing base like that of China, creating jobs and exporting goods, in the process creating wealth. Needless to state that when China started it’s development journey it had no established competition. Global overcapacity in manufacturing, rules out India following Chinese model of development. Domestic consumption will drive economic growth and not export. Economy will be service led and not manufacturing led. Small and medium business will lead rather than large corporation. Even otherwise services contribute almost sixty percent to G.D.P. against eighteen percent of manufacturing and twelve percent of agriculture, rest is by mining and other sectors.
Town Planning As stated earlier with migration of additional 423 million people from rural to urban to areas in next 35 years, additional 47 cities with more than a million plus population will get created. Town planners by compulsion of circumstances will have to restrict town planning area to bare minimum with higher F.S.I. / F.A.R. and go for vertical development in order to save on cost of providing civic infrastructure such as water main, sewer line, sewage treatment plant, civic roads etc. In respect of 53 existing cities with a million plus population, re-development of areas also have to be carried out with higher F.S.I. and vertical growth.
India is the largest young India in an ageing world and will continue to have a young population for next 25 years. Average age of Indian population is expected to increase from 29 years in 2015 to 38 years by 2050, whereas China has started ageing. As greying western economies faces a productivity challenges, health care providers around the world will come from India. Logistics, transportation and construction are hard and tough businesses activities in
BUILDERS' ASSOCIATION OF INDIA
Knowledge Economy Next thirty four years is going to be a period of
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geographic spread of city to save on resource starved municipalities in providing civic infrastructure. Construction and Housing Industry at present is by and large in unorganised sector. With massive housing requirement, huge spend on infrastructure, lot many companies will get listed in stock exchanges. As a matter of fact business houses such as Godrej, Adani’s, Piramal are already in real estate as one more business vertical. By 2050, about 200 companies both in Housing & Infrastructure may get listed in stock exchanges thus starting a process of moving from unorganised to organised sector. Higher prices of commercial properties in metro towns shall prompt IT / BPO and E-commerce companies to shift their operation to affordable price in Tier II and III towns. Thus majority of the future housing demand shall come from these towns. Construction on such massive scale shall create more jobs for architects – engineers & supervisors. It is estimated that India needs to double it’s annual investment in housing to 200 – 250 billion U.S. dollar to fullfill it’s housing demand. Buildings account for about 40% of total global emissions and are referred to as one of the biggest polluters. However the trend is expected to change in future. Spiralling energy prices, rising pollution levels and increasing consciousness towards sustainability drive development of efficient, smart and green buildings. Buildings in future need to be efficient in terms of energy consumption and space utility. With enactment of Real Estate Regulatory Act, real estate transactions are likely to be transparent and cashless. Selling and purchasing of flat is going to underwent fundamental change. This period is expected to see establishment of Housing stock exchange. Homes / flats being sold or given on rental will see a paradigm change from the present practice of visiting the construction site to have feel of house. Use of technology such as 3D printed will enable flat purchasers to have complete idea of how his flat would look like on completion, enabling him to decide for purchase of flat.
“knowledge economy”. Digitising life and work, smart physical systems, energy technologies and next generation of genomics are going to be part of knowledge economy. This has already started transforming banking, health care, energy, retail, government schemes like Jan-Dhan, Adhar & Mobile (JAM). Various multi-nationals have over 1000 R&D centres in India employing over 200000 scientists, engineers and technologists doing cutting edge research, design and development. In the process significant Intelligent Property is likely to get generated. Retailing has already seen a paradigm shift in business practice. Retailing companies will use virtual reality (visuals and haplographies sensors (for touch) in a big way to overcome Indian consumers “feel and touch” mentality. As a matter of fact technology based start-up called e-commerce like Ola, Uber, Flipkart, Zomato, Snapdeal etc have started dominating retail market. India is already a leader in manufacturing of patented expired drug called “generic drug” contribution 20% of in world supply. It is pioneer in research of “Bio-Chem Drug”. Software industry employed 35 lakh people and earned 100 billion dollar in 2015, likely to increase further. Housing Scenario Thirty five years from 2016, India’s urban population according to demographic projection is likely to be 800 million, same as that of rural population, having urbanisation rate of 50% with 100 cities having million plus population. Compare this with 2011 census figures having 377 million urban populations and 834 million rural populations and having urbanisation rate of 31.16% with 53 cities having more than a million plus population. Thus 423 million additional people will migrate from rural area in next 35 years into cities creating additional 47 cities with more than a million plus population. With higher disposable income in hands of young Indian, urge to own a flat is inevitable. Period from 2016 to 2050 shall also see expansion of middle class creating fast moving consumer goods demand and services. Housing industry in order to accommodate 42.30 crores migrant population will be called upon to provide 8.46 crores units x 5 persons per unit = 42.30 crores, during period of next 35 years (20162051). This 8.46 crore units required during 2016-2051 period, are in addition to shortage of 1.878 crores housing units under various categories in 2012. Thus total of 10.338 (8.46+1.878) crores housing units are required to be created by 2051. It means that housing industry has to provide yearly approximately 298000 units x 35 years = 10.318 crores against it’s present delivery capacity of eight to ten lakh unit per year. Bulk of demand is going to be for affordable housing and middle income group housing. Even today the dominant trend is a huge demand – supply mismatch in the housing sector, which will accentuate in coming years, resulting in rise in residential property price. In view of rising land prices future buildings / townships shall have higher F.S.I. with vertical growth, limiting
BUILDERS' ASSOCIATION OF INDIA
Construction opportunity As stated earlier housing industry shall have to provide 10.338 crores housing units from 2016 to 2050. Taking average unit size of 700 sft (includes EWS / LIG / MIG / HIG) construction industry have opportunity of 10.338 crores x 700 sft = 7236.60 crores sft. This will turn out to be 7230.60 / 35 years = 206.76 crore sft. of housing per year for next 35 years Present Government’s policy of providing housing to all by 2022 shall spur housing demand and construction opportunity. Exploitation of natural resources on massive scale such as crushing of stone into aggregate, sand dredging, limestone’s, murrum for bricks making, Iorn ore etc. shall take place. It is doubtful whether environment concern by Government and N.G.O’s would permit exploitation of resources on such massive scale. In such scenario, alternative to natural sand, Murrum, stone aggregate will have to be found out by Construction Industry in collaboration with research
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premium will vanish. Technology is expected to change education in time to come. It is reasonable to assume that by 2030, videos will be the standard medium of instruction. Lessons will be delivered in the video format, interaction with teacher and other students will be through video collaboration tool and assessment will also happen by the student submitting a video, which will replace text. Robots will be able to teach most of what teachers teach in classroom. Virtual Reality (VR) technology is an immersive multi-media computer technology that replicates an environment and allow user to participate or interact in that environment. Virtual Reality is now already used in training in-flight stimulators and for some architectural studies. By 2030, Virtual Reality could also become omnipresent in education. Of all the forms of learning’s apprenticeships i.e. learning while earning will substantially increase. India only has 300,000 apprentices, while Germany has 3 million, Japan 10 million and China 20 million. Employment will changed from being a lifetime contract to a taxicab relationship, because employers will not be permanent institutions.
organisation in order to maintain environment equilibrium. New Construction technologies such as preengineered buildings, pre cast – prefab housing units are evolving rapidly, Industry has therefore to come out with better cost effective, faster and easier mode of execution of building construction such as prefab housing components, steel structure etc. Housing Finance Housing finance sector in the India is underpenetrated in as much as it’s mortgage to G.D.P. ratio is 9% compare to 17% in Thailand, 20% in China and 34% in Malaysia all in India’s neighbourhood. Government did not accord priority to housing sector till early 1970’s, when HUDCO was established as wholesale lender. It was only in 1977, that HDFC was set-up as first retail mortgage finance company. Till late 1980’s, Insurance companies, public sector banks and a few private players set up housing finance companies. It was only in 1987 that National Housing Bank was established as regulator for housing finance companies. Pursuant to boom in IT/BPO sectors, employing educated young Indians, age of flat purchasers came down to 30 years from earlier 45. Housing finance companies need to come out with innovative finance scheme at lower interest rate as was the case in early 2004, when home loan rate was 7.5%, which pared way for buying a flat. Securitisation of home loan portfolio, together with appropriate ratings and guarantee structures, are imperative to support the growing resources need of finance system. The role of National Housing Bank is going to be crucial in the evolution of housing finance sector. N.H.B. may have to shift it’s focus from being merely a regulator-cum-refinancers to that of market maker. As the housing finance operations increases or deepens, a vibrant secondary mortgage market with securitisation will be critical in taking care of burgeoning demand for housing finance.
India's construction industry is an important growth driver of India’s economy, thus it one of the integral industries in India. The construction industry has around an 8% contribution to India’s GDP. The government construction projects are majorly providing a thrust to the rising India construction industry. Major construction activities accounting for growth are power generation projects, highway construction, and railway expansion and export and import cargo. Around 21% of the contribution is from cargo, 9.8% from highway construction and expansion and 6.6% from power generation. There are Government initiatives such as making 100 smart cities, world-class highways and shipping infrastructure, housing and urban development, which have attracted huge investments through FDI, private players, and government budgets.
Education Scenario
As per the economic survey 2017-18, India will require USD 4.5 trillion by 2040 for the development of infrastructure. The housing and township development sector has received USD 24.7 billion till 2017 through the FDI route. Moreover, backed by the implementation of the goods and service tax (GST) logistics sector is expected to reach USD 218 billion by 2020 from USD 160 billion in 2017. Various factors such as the current scenario of infrastructure that is inadequate to sustain the urban population, government new urban development mission and the partnership agreements between urban local bodies and foreign players are further expected to boost the growth of the India construction industry. Also, 100% FDI in construction development projects (housing, townships, hospitals, hotels, education institutes, etc.) and developing industrial parks is allowed through automatic route.
India has over 993 universities, 39931 colleges and 10725 stand alone institutions. For higher education the gross enrolment ratio in the age group of 18 to 23 years as a percentage of eligible population in that age group has moved upto 26.3% in 2018-19 from 23.5% in 2014-15. Of the 37.4 million young men and women in higher education, 79.8% of the students are enrolled in under graduate level programme. Unfortunately education is curriculum driven not helping students to think beyond classrooms. The mismatch between the needed capability and reality are leading to serious issues of employability of the graduates. Skill driven education related to practical and real world of work is needed for better employability. That is going to be trend hereinafter. In times to come the gap between college wage premium and skill wage
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Real Estate Regulatory Authority, Regulation a New Regime
Current Scenarion and BAI's Initiative It is now almost one year since the Real Estate (Regulation and Development) Act (RERA) has been introduced to the domestic real estate market. After having come into being the Central regulation has completely changed the dynamics of the real estate sector, which had been moving in an unorganized manner. RERA has been a watershed event for the real estate industry, which in the last couple of years, has witnessed a series of disruptive policy initiatives. While, post RERA, the industry is still under transition, the regulation presents tremendous potential to transform the entire landscape of the industry, going forward.
Reforms led by RERA are helping the property sector to commence its second growth phase, where market will move in a much transparent and organized manner. The process has started to create a market place, where all stakeholders act in a much accountable fashion and thus entail the much-needed depth to the market structure and its functions in the long run. While the market is gradually in the process of coming out of the short-term disruptions like demonetization, GST and others, the long-term reform such as RERA is showing its impact on the overall functioning of the real estate business in the country.
RERA – BAI’s representation with Shri Durga Shanker Mishra, Secretary (HUA), Government of India Government of India has taken up amendment of the Real Estate (Regulation and Development) Act, 2016 and in this direction had called for suggestions from the various stakeholders. BAI summited its suggestions, which is produced herein below. Ref: 366/S/2019-20 dated September 3, 2019
Shri Durga Shanker Mishra Secretary (HUA), Ministry of Housing and Urban Affairs, Government of India Room No.122, C Wing, Nirman Bhawan, Maulana Azad Road, NEW DELHI - 110 011 Respected Sir,
Sub.: New RERA Act Amendment 2019- Suggestions.
Builders' Association of India (BAI) is the apex body of Construction Industry founded in 1941, with more than 19,000 business entities as members through its 180 plus Centres (Branches) throughout the country. Regional Associations Affiliated to BAI from indirect membership of more than 1,00,000. The fundamental aim of the Association is to bring about all round improvements in the construction sector, while striving towards resolution of operational as well as policy level problems faced by the construction industry. This involves making efforts to obtain from policy makers and authorities, the level of attention that the construction industry deserves in view of its tremendous contribution and importance to the economy.
interpretation of different Clauses, to the extent that the same Clauses are being interpreted differently by different State RERA. This is leading to the number of litigations increasing day by day. In order to smoothen the process we have following suggestions to make: a) Kindly consider to have a single point platform, either with the RERA authorities, or with the Urban Development Ministry, so as to clarify the doubts of the State RERA as well as Stakeholders Associations (on the pattern of Tax Research Unit of Finance Department) which otherwise lead to litigations. b) At the same time we suggest that in view of this Law being new, a regular Sensitization Program for the members of RERA be organized in each state separately or collectively. Since in many states the Members RERA have no judicial or quazi judicial experience. So this Sensitization Program will help them in handling the cases judiciously.
Sir, BAI sincerely appreciate you for seeking comments / suggestions from the industry on the newly enacted RERA Act 2019. In this regard, we hereby enclose our comments / suggestions for kind consideration.
2.
Sir, we also request you to kindly consider the following points while introducing the RERA Act for the benefit of the public:1.
Within RERA, there are lots of ambiguities in
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Since the aim of this Act is not only to regulate, but at the same time to develop the Real Estate Industry. With this aspect in mind we suggest to bring in all the concerned departments involved in various types of Clearances in Real Estate Projects. Actually the financial investments happen much earlier than the 79h Annual Report and Accounts – 2019-2020
Registration of the Projects in RERA. Sometimes it takes more than three years to get all the Approvals/ Clearances. In some states the Projects need to get mid stage Clearances. Therefore bringing all the concerned departments like, Municipal Corporation, Planning Authority, Civil Aviation Departments, Fire Departments, and Environment Departments seems logical. This will facilitate time bound approval of the Projects and the Builder/Developer will have a window where he can seek redressal against delay in Approvals. It would also be booster to the Motto of the Government in providing Ease of doing businesses, to one and all. 3.
economic development of the country which will ultimately boost the GDP. Sir, A small delegation of BAI headed by the undersigned would like to visit to you in your office, on any day and time convenient to you to explain more on the current scenario of the industry, so that; the Government could consider providing stimulus package or similar measures to the industry. Thanking you, Yours faithfully,
Sir, Real Estate Sector /Construction Industry has huge backward and forward linkage with around 400 allied industries and as such providing encouragement to the industry would naturally propel the all around
Section
SACHIN CHANDRA PRESIDENT BUILDERS' ASSOCIATION OF INDIA
Suggested amendment
Reasons
2
(q)"completion certificate" means the completion certificate, or such other certificate, by whatever name called, issued by the competent authority certifying that the real estate project has been developed according to the sanctioned plan, layout plan and specifications, as approved by the competent authority under the local laws;
(q) "completion certificate" means the completion certificate, or such other certificate, by whatever name called, issued by the competent authority certifying that the real estate project has been developed according to the sanctioned plan, layout plan and specifications, as approved by the competent authority under the local laws and shall also include deemed completion as certified by the project architect.
It is common knowledge that completion and occupancy certificate are often delayed by the concerned authorities for reasons beyond the control of the promoter. In the interest of home buyers, it may be provided that in case completion or Occupation certificate not obtainable from planning authority after 60 days from the date of application, project can be closed by the promoter on the certificate provided by the project Architect stating that the said project has been completed.
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The registration granted under section 5 may be extended by the Authority on an application made by the promoter due to force majeure, in such form and on payment of such fee as may be specified by regulations made by the Authority.
The registration granted under section 5 may be extended by the Authority on an application made by the promoter due to force majeure, in such form and on payment of such fee as may be specified by regulations made by the Authority.
The period to grant extension in such cases is limited, in aggregate, for a period of 1 year only.
Provided that the Authority may in reasonable circumstances, without default on the part of the promoter, based on the facts of each
Provided that the Authority may in reasonable circumstances, without default on the part of the promoter, based on the facts of each case, and for reasons to be recorded in writing, extend the
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In certain genuine cases of delay which may not be attributed to the Promoter fault and yet will be put in a position to either let go of the project by facing tremendous losses and/or pay penalties for delay. Rather this aspect of genuineness of delay can be considered by the Authority and rather than limiting it in aggregate to 1 year, an extension at a time of 1 year may only be allowed.
79h Annual Report and Accounts – 2019-2020
Section
Suggested amendment
Reasons
case, and for reasons to be recorded in writing, extend the registration granted to a project for such time as it considers necessary, which shall, in aggregate, not exceed a period of one year:
registration granted to a project for such time as it considers necessary, which shall, not exceed a period of one year at a time.
6
Explanation.- For the purpose of this section, the expression "force majeure" shall mean a case of war, flood, drought, fire, cyclone, earthquake or any other calamity caused by nature affecting the regular development of the real estate project.
Explanation.- For the purpose of this section, the expression "force majeure" shall mean a case of war, flood, drought, fire, cyclone, earthquake or any other calamity caused by nature affecting the regular development of the real estate project and includes injunction or stay orders by any competent court.
Injunction/stay orders when issued by a competent courts of the land established under the rule of law are running against the project/promoter and can delay the project. This period of injunction/stay should not be calculated as part of the project registration period and the same can be considered by the Authority when extension of project period is applied.
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(3) In case any structural defect or any other defect in workmanship, quality or provision of services or any other obligations of the promoter as per the agreement for sale relating to such development is brought to the notice of the promoter within a period of five years by the allottee from the date of handing over possession, it shall be the duty of the promoter to rectify such defects without further charge, within thirty days, and in the event of promoter's failure to rectify such defects within such time, the aggrieved allottees shall be entitled to receive appropriate compensation in the manner as provided under this Act.
3) In case any structural defect or any other defect in workmanship, quality or provision of services or any other obligations of the promoter as per the agreement for sale relating to such development is brought to the notice of the promoter within a period of five years by the allottee from the date of handing over possession, it shall be the duty of the promoter to rectify such defects without further charge, within thirty days, and in the event of promoter's failure to begin rectification of such defects within such time, the aggrieved allottees shall be entitled to receive appropriate compensation in the manner as provided under this Act.
For better clarification and so as to reduce the aspect of litigation due to unnecessary claims and nonclarity in the provisions it is suggested that the 'structural defect' be clarified and explained. The same is in line with what has been stated by the Haryana RERA Rules.
BUILDERS' ASSOCIATION OF INDIA
Add Explanation: "structural defect" means actual physical damage/ defects to the designated ! ad bearing elements of the building, apartment or unit like faults, breakage or cracks, appearing over time in elements
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Section
Suggested amendment
Reasons
such as load bearing columns, walls, slabs, beams etc. which can affect the strength and stability of the apartment or the building and shall include any of the following, namely:(i) defects due to design attributes of reinforced cement concrete{RCC) or structural mild steel (MS) elements of an engineered {structurally designed) building structure; (ii) (ii) defects due to faulty or: bad workmanship of RCC or MS work; (iii) (iii) defects due to materials used in such RCC or MS work; (iv) (iv) major cracks in masonry work that are induced as result of failures of RCC or MS work; \ (v) (v) any defect which is established to have occurred on account of negligence, use of inferior materials or nonadherence to the regulatory codes of practice by the promoter. The promoter shall not be liable for any such structural / architectural defect induced by the allottee, by means of carrying out structural or architectural changes from the original specifications/ design. 79
No civil court shall have jurisdiction to entertain any suit or proceeding in respect of any matter which the Authority or the adjudicating officer or the Appellate Tribunal is empowered by or under this Act to determine and no injunction shall be granted by any court or other authority in respect
BUILDERS' ASSOCIATION OF INDIA
No Civil Court, Consumer Court, National Company Law Tribunal, Arbitral Tribunals or other Fora shall have jurisdiction to entertain any suit, complaint or any other proceedings in respect of the matters related to a 'Real Estate Project' coming under the definition of this Act."
This is to avoid multiple forums and multiplicity of litigations on the same project/issue against the Promoter when the intent of the government was to bring an authority in place through RERA to consider all aspects of a Real Estate Project under the jurisdiction of RERA. The RERA Act being a special law for Real Estate project and that the
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Section
Suggested amendment
Reasons
of any action taken or to Explanation: be taken in pursuance of any power conferred by or Real estate projects wherein the authority concludes that the under this Act. project cannot be completed by the promoter then such promoter can be referred for insolvency proceedings to be initiated.
original intent of the government to bring all issues of a Real Estate project comes under RERA, the first complaint on any Real Estate Project must come to Authority and based on the assessment of the project which if being unable to proceed then the aspect of insolvency of the promoter can be directed to the NCLT.
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Cognizance of offences
"80(3) No allottee or association is permitted directly to institute any police complaints or criminal complaints before any police officers or before Courts with respect to an allegation of 'fraud', 'cheating' etc. related to the nondelivery of possession of a unit/ apartment/ plot of real estate project or for refund of money invested in a real estate project.
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The provisions of this Act shall be in addition to, and not in derogation of, the provisions of any other law for the time being in force (n) "common areas" mean(iii) the common basements, terraces, parks, play areas, open parking areas and common storage spaces;
However, institution of The same may be added in order complaints and legal proceedings to bring the provisions in with respect to a real Estate project consonance with each other. will be subject to the provisions of Section 79 and 80 of this Act."
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BUILDERS' ASSOCIATION OF INDIA
Since jurisdiction to try the disputes arising under the Act is provided for, the act must also provide for such a provision wherein an allottee or association of allottee as the case may be is prohibited from filing any police complaint or criminal complaint except in such cases where the Authority thinks fit to avoid harassment by the allottee or association of allottees in cases that Such a complaint can be made need not necessarily be dealt by the before the RERA Authority in police authorities. writing. After receipt of such complaint, the Authority has to conduct a preliminary enquiry with respect to such complaint and if the allegations are of serious nature, which in the view of the Authority, cannot be dealt in accordance with the provisions of this Act, in such case, the same may be forwarded to the concerned police authority for further investigation with its Preliminary Inquiry Report."
(n) "common areas" mean(iii) the common basements, common terraces, open spaces and common storage spaces;
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The definition of common areas covered even such areas which do not amount to being shared areas and can be exclusively given to an allottee for better management and better maintenance of these areas.
79h Annual Report and Accounts – 2019-2020
Section
Suggested amendment
Reasons
2
(n) "common areas" mean- (n) "common areas" mean-
2
(v) "estimated cost of real estate project" means the total cost involved in developing the real estate project and includes the land cost, taxes, cess, development and other charges;
(v) "estimated cost of real estate project" means the total cost involved in developing the real estate project and includes the land cost, taxes, cess, development and other charges such as marketing expense, administrative expenses, rent or any other expenses for the purpose of the project.
Aspect of all expenses for the purpose of doing the project should be allowed so that accounting for the same for project expenses are clearly disclosed.
3(1)
No promoter shall advertise, market, book, sell or offer for sale, or invite persons to purchase in any manner any plot, apartment or building, as the case may be, in any real estate project or part of it, in any planning area, without registering the real estate project with the Real Estate Regulatory Authority established under this Act:
Proviso to be added-
For the purpose of clarificationWhere a promoter does not wish to build a project for the purpose of sale or in any other manner and the same is completed with the promoter's own funds, then for such kind of projects the promoter need not Register the same with the Real Estate Regulation authority at the time of commencement/before of construction of the said project.
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Most of the times a real estate project also includes construction (vii) all community and (vii) all community facilities as of a shop lines. Therefore commercial facilities as provided in the real estate project; commercial facilities like these provided in the real estate should not be added in the said project; definition.
Provided that, registration shall not be required wherein a promoter does not advertise, market, book, sell or offer for sale, or invite persons to purchase in any manner any plot, apartment or building, as the case may be.
(3) The promoter at the Delete 3(b) time of the booking and issue of allotment letter shall be responsible to make available to the allottee, the following information, namely:-
These aspects are beyond the control and powers of the Promoter in outside of the project and the same can only be done by the appropriate authorities.
(b) the stage wise time schedule of completion of the project, including the provisions for civic infrastructure like water, sanitation and electricity
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Section 11
(4) The promoter shall(e) enable the formation of an association or society or co-operative society, as the case may be, of the allottees, or a federation of the same, under the laws applicable:
Suggested amendment
Reasons
Provided that in the absence of local laws, the association of allottees, by whatever name called, shall be formed within a period of three months of the majority of allottees having taken possession of their plot or apartment or building, as the case may be, in the project;
The formation of RWA at the stage of booking is premature as all bookings do not fructify into sale or conveyance. Therefore the Society or Association formation should be deferred until 6 months after completion or occupation and not on 51% of booking.
1) Unless mutually agreed upon, a promoter shall not accept a sum more than ten per cent of the cost of the apartment, plot, or building as the case may be, as an advance payment or an application fee, from a person without first entering into a written agreement for sale with such person and register the said agreement for sale, under any law for the time being in force.
Even though RERA was formulated for regulating Real Estate projects the aspect of contracts governed under Contract Act is not taken away and thus that flexibility between allottee and promoter can be maintained if done at their own accord.
Provided that in the absence of local laws, the association of allottees, by whatever name called, shall be formed within a period of three months of the majority of allottees having booked their plot or apartment or building, as the case may be, in the project; 13
(1) A promoter shall not accept a sum more than ten per cent of the cost of the apartment, plot, or building as the case may be, as an advance payment or an application fee, from a person without first entering into a written agreement for sale with such person and register the said agreement for sale, under any law for the time being in force.
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(1) The promoter shall execute a registered conveyance deed in favour of the allottee along with the undivided proportionate title in the common areas to the association of the allottees or the competent authority, as the case may be, and hand over the
BUILDERS' ASSOCIATION OF INDIA
As per the current provisions, within a period of three months from the date of occupancy certificate, the promoter shall execute a registered conveyance deed in favour of the allottees along with the undivided proportionate title in the common areas to the association of the allottees. This provision places a burden on the buyer to have the
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Section
Suggested amendment
Reasons conveyance carried out and meet the expenses with regard thereto, at a time when the burden financially on him may be too heavy. Therefore, a time period of one year from the date of occupancy may be provided for carrying out conveyance.
physical possession of the plot, apartment of building, as the case may be, to the allottees and the common areas to the association of the allottees or the competent authority, as the case may be, in a real estate project, and the other title documents pertaining thereto within specified period as per sanctioned plans as provided under the local laws Provided that, in the absence of any local law, conveyance deed in favour of the allottee or the association of the allottees or the competent authority, as the case may be, under this section shall be carried out by the promoter within three months from date of issue of occupancy certificate.
Provided that, in the absence of any local law, conveyance deed in favour of the allottee or the association of the allottees or the competent authority, as the case may be, under this section shall be carried out by the promoter within 1 Year from date of issue of occupancy certificate
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(2) The promoter shall compensate the allottees in case of any loss caused to him due to defective title of the land, on which the project is being developed or has been developed, in the manner as provided under this Act, and the claim for compensation under this subsection shall not be barred by limitation provided under any law for the time being in force.
(2) The promoter shall compensate the allottees in case of any loss caused to him due to defective title of the land, on which the project is being developed or has been developed, in the manner as provided under this Act, and the claim for compensation under this subsection shall be up to the period of conveyance of the entire project land.
The liability due to defective title of the land on the promoter must be restricted only up to the period of conveyance of the entire project to the Society or Association as the said promoter cannot be held liable for the same after conveying the project in perpetuity.
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(c) creation of a transparent and robust grievance redressal mechanism against acts of omission and commission of competent authorities and their officials;
(c) creation of a transparent and robust grievance redressal mechanism within 1 year of establishing Authority against acts of omission and commission of competent authorities and their officials;
A clear cut time line is required to be provided to the Authority for the effective operation of this mechanism.
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Section 34
Suggested amendment
Reasons
The functions of the The functions of the Authority The said provision may be added Authority shall include- shall includeto section 34 as there will be less scope for delay by the concerned (i) The power to issue directions authorities for issuing any to the planning authorities for document necessary to be obtained issuance of commencement or by the promoter in the interest of completion certificate under the the real estate project. Also, all relevant local laws in the interest necessary Stake holders of the of the real estate project. Project will come under the umbrella of the Authority.
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BAI Registered as an SRO with MahaRERA The concept of Self-Regulatory Organisation (SRO) has been introduced by MahaRERA and taking up a membership of a registered SRO has become mandatory from 1st December, 2019, for all real estate developers having MahaRERA registered real estate projects.
Shri Gautam Chatterjee, Chairperson, MahaRERA handed the SRO Certificate of BAI to Shri Prakash Panjwani, State Chairman, BAI Maharashtra on Tuesday 3rd December, 2019. Also present on the occasion were, Shri Vasant Prabhu, Secretary, MahaRERA; Shri Avinash Patil, Past President, BAI; Shri Gyan Madhani, Chairman, BAI Mumbai Centre; Shri Pradeep Nagawekar, Hon. Gen. Treasurer, BAI; Shri C. G. Deochake, Trustee, BAI; Shri Anand J. Gupta, Past Hon. Gen. Secretary, BAI; Shri Vijay Sukhwani, Past Chairman, BAI Ulhasnagar Centre and Shri S. Madhusudan, Head-Communications, BAI.
Builders' Association of India (BAI) has been registered as an SRO by MahaRERA.
The BAI delegation also met Shri D. R. Hadadare, Technical Hea, MahaRERA and Mr. Vasant Wani, Technical Officer 2, MahaRERA. MahaRERA has introduced Self-Regulatory Organization (SRO) in the real estate sector in Maharashtra, in order to ensure greater professionalism among promoters, bring a certain level of consistency in the practice of promoters, enforcement of the code of conduct and discourage fraudulent promoters. SRO's are expected to, encourage its members to comply with the provisions of the Act, applicable rules, regulations, orders or circulars issued by the MahaRERA from time to time; shall be responsible for carrying out awareness and education activities among its members; shall specify standard of conduct for its members and also shall be responsible for the implementation of the same by its members and shall discharge such other functions as may be specified by MahaRERA from time to time.
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GST: Construction Industry The Government of India has identified infrastructure and construction as the key drivers for economic growth of the country and major investment is planned in this sector under the current plan.
effectively. It is important that GST Act/Rules are modified suitably so that it facilitates the business and reduces legal hassles. This will enable the business houses focus on productive future.
Construction sector provides major employment opportunities to the citizens of the country.
Since its inception on 1st July, 2017, GST has had many contentious provisions, which BAI tackled by engaging in regular interaction with the Government. While some contentious issues were favourably addressed by the Government, some still remain. Mr. A Puhazhendi, President BAI has addressed a detailed all-encompassing representations to Government of India on theses contentious issues, which is reproduced below.
The changes in the GST Act and Rules will substantially increase the ease of doing the business in the country. It is pertinent to note that GST amendments reduces the cascading effect of tax by allowing seamless credit. Also it will increase compliance across the value chain very
BAI’s Representation on Goods and Service Tax (GST)
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GST Matter Ref: 161/M/2019-20 dated May 3, 2019 Special Secretary, GST Council Secretariat, The GST Council, Tower - II, 5th Floor, JeevanBharathi Building, New Delhi 110 001. e-mail: [email protected] Respected Sir, Subject :Non-implementation of the Proposal in terms of Act - Request for Implementation of the provisions of the Act in its true spirit inPortal - Reg. Builders' Association of India (BAI) is an apex all India body of Engineering Construction Contractors and Real Estate Companies founded in 1941, with more than 18,000 business entities as members through its 170 plus Centres (Branches) throughout the country. Regional Associations Affiliated to BAI form indirect membership of more than 1,00,000. The fundamental aim of the Association is to bring about all round improvements in the construction sector, while striving towards resolution of operational as well as policy level problems faced by the construction industry. This involves making efforts to obtain from policy makers and authorities, the level of attention that the construction industry deserves in view of its tremendous contribution and importance to the economy. 1.0
This is to bring to your kind notice that many of the Assessees have been issued Demand notices from the Department claiming interest on the delayed period against the output liability without giving adjustment to the input credit available as on the due date i.e. 20th.
2.0
The input credit claimed on all input services and capital goods used in providing supply of services and goods in terms of Section 16 and 17 of the CGST Act, 2017 ( 'Act' for the sake of brevity).
2.1
As per Section 50 of the CGST Act, interest is to be paid for the delayed period against the liability arising for the previous month on or before 20th of the subsequent month.
3.0
As a consequence to issue of the demand notice, one of the Assessee have filed a Writ Petition vide W.P.No.44517 of 2018 before the Hon'ble High Court of Telangana at Hyderabad and the Hon'ble High Court rejected the plea of the Assessee that the interest liability is only on the net Tax payable and not on the total tax payable on the grounds that as per Section 50 of the CGST Act, 2017 interest has to be paid on the tax short paid and that since the said Section 50 ibid has not been amended as per the recommendations of the GST Council.
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4.0
It is respectfully submitted that as per the provisions of the CGST Act 2017 i.e. Section 41 and 49 of the Act the input tax credit available to a Registered person is credited to the electronic credit ledger on filing of his return i.e. GSTR-3B and not before. Once the GSTR-3B is filed by the Registered Person by availing input tax credit available to him it goes back to the date on which the same was credited to the account of the Department and no interest can be demanded on the same. As per provisions of the CGST Act 2017, the credit of the ITC is postponed to the date of filing of the return but once the return is filed it goes back to the date on which the ITC available i.e. the due date for filing GSTR-3B return. Once GSTR-3B return is filed by offsetting duty liability partly from the ITC and partly from the cash ledger, the interest for the delay in payment of the tax can only be on the cash portion and not on the ITC credit which is already in the Government account before the prescribed date. The credit of ITC is linked to the filing of the return and once it is filed its dates back to the date on which the credit was available. The Department cannot demand interest on ITC and Section 50 of the CGST Act 2017, is applicable only to the cash payment of the Tax and not to the ITC. The department by misinterpreting the provisions of Section 50 of the CGST Act 2017, demanding interest even on the ITC portion of the tax paid.
5.0
It is respectfully submitted that unlike the earlier provisions of the Central Excise Act 1944, and the Rules framed there under, the maintenance of the registrars i.e. credit ledger and cash ledger, payment of the tax and filing of the returns are required to be completed by logging into the GST common portal. The GST portal is designed in such a way that the monthly tax return GSTR-3B can be filed only when the entire tax liability has been discharged and not before. The system does not accept the filing of the tax return when whole or part of the Tax is due. As per provisions of Section 41 and 49 of the CGST Act 2017, the credit of ITC to the Registered Persons
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amount is available with the Government and only its utilization is postponed by the Registered Person it can't be said that the Registered Person has not paid the tax. The amount is credited to the Government on a Tax challan as payment of Tax to the Government and only it's set off against liability of the Registered Person is postponed. No interest can be demanded on the amount lying with the Government and the same principle is applicable to the deposits made to the Government treasury and once the same is utilized for offsetting the duty liability, its dates back to the date of deposit in the Government treasury.
account is postponed to the date of filing of the returns. That being so, the demand of interest on the ITC portion of the tax paid is totally arbitrary, illegal, ultra virus the provisions of CGST Act 2017 and in violation of Article 14 of the Constitution of India. 6.0
7.0
It is respectfully submitted that a Registered Person is entitled for input tax credit on the inputs, raw materials, capital goods etc., are received into the factory and it's credit is postponed and linked to the filing of the return. Once return is filed it goes back to the date on which the credit was available and entitled to be utilized on filing of the return for offsetting tax liability. The very concept of demand of interest on the ITC is based on twisted logic and totally arbitrary. No interest can be demanded on the amount which is in the Government treasury paid by the Registered Person or their agent i.e. material suppliers. The provisions of SGST Act, 2017 or CGST Act 2017 i.e. section 41 and 49 of the Act only prescribe the method and manner of utilization of the ITC. That being so based on the said provisions, it is not open to the Registered Persons to demand interest on the ITC when the same is utilized for discharging the tax liability. As per the provisions of the act a Registered Person is entitled to claim ITC only when the return is filed and not before. Once ITC is utilized to set off the tax liability, no interest can be demanded on the same on the ground of delay in payment of the tax and filing of the return. The decision cited by the department in their counter is not applicable to the facts of the present case and the same is not relevant. The Registered Person followed the procedure prescribed for availing of ITC and its utilization. It is respectfully submitted that the department is demanding interest on ITC without any provision of law. Further the demand of interest on ITC is totally arbitrary and unreasonable and contrary to the concept of equality, equity, fair play and justice embodied in Article 14 of the Constitution of India. Once any amount is paid to the account of the Government and the same is utilized for payment of tax subsequently it goes back to the date of deposit in the Government treasury and no interest can be demand on the same. There is no payment of interest on the ITC credit or cash credit to the account of the Registered Person till the same is utilized for payment of tax, that being so the demand of interest on the ITC or cash which is in the account of the Government before the due date and utilized later on is totally arbitrary, illegal, and not supported by the provisions of law. The concept of Registered Persons cash ledger is only for account purpose, that so much of cash is available to the Registered Persons credit with the Government of India and it is not an account earning interest or otherwise. Once the
BUILDERS' ASSOCIATION OF INDIA
8.0
In this regard, we would like to submit that the Input Tax Credit availed by Assessees in terms of Section 16 of the CGST Act, 2017 is proper and correct and there appears to be no objection on the same. We would like to further submit that in the normal course such ITC accrued to Assessees shall be credited to their Electronic Credit Ledger and due to the non-implementation of GSTR 2 and GSTR3 the same is not being credited, even-though they have fulfilled all the requirements for availing the ITC. Now, it may also be noted that GSTR 3B has been created in such a manner the same while accepting their Credit is not being taken on record, if there is a failure on their part to pay the Net Amount, viz., Total Tax (-) ITC = Net Amount.
9.0
This, however, shall not take away the fact of accrual of ITC and therefore the ITC as available on the 20th of succeeding month shall be reckoned as paid and interest in terms of Section 50 shall arise only on the net amount payable thereon. It may also be kindly noted that ITC is available to Assessees only after the CGST, SGST or IGST has been paid to the Government and not before. In other words, ITC amount has already been credited to the Government and due to technical problems of the GST Authority, they cannot be made to pay the interest on the ITC element also.
10.0 In this regard, the Assessees would like to submit that in the 31stGST Meeting vide Agenda No.7(xx), the Council itself has recognized these facts which reads as under:
42
•
"Law permits furnishing of a return without payment of full tax as self-assessed as per the said return but the said return would be regarded as invalid return"
•
"No such facility has been yet made available on the common portal. The inflexibility of the system increases the interest burden" ;
•
GST only on value addition;
•
Accordingly, in principle approval for amendment in law ( as the proposed changes require amendment to CGST
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as well as SGST Acts) is sought so as to provide that: –
–
the debit of CENVAT Credit available and showing the balance payable as arrears of duty/tax payable.
Interest should be charged only on the net liability of the tax payer, after taking into account the admissible credit, i.e., the amount payable through the electronic cash ledger;
13.0 In view of the above factual statutory position, past and present, the Assessees would like to respectfully pray to make the required suggestions/proposals to Central Board of Indirect Tax & Customs, New Delhi for making suitable amendments/arrangements in the Portal to accept the returns, even when filed without of payment of full tax as self-assessed, which will allow the Registered Persons to utilize the ITC and reduce their interest liability.
Interest would be charge on tax calculated on taxable value where invoices or debits notes are uploaded late.
11.0 At the outset, the Assessees would like to respectfully submit that once the law permits furnishing of a return without payment of full tax as self-assessed the non-acceptance of such return, even if such return is invalid return, by the Portal is not correct and by denying acceptance of such return by the Portal the Government is denying an opportunity to the Assessees to utilize their legally earned ITC. It is also not out of place to respectfully submit that ITC is nothing but GST already paid to the Government.
14.0 Simultaneously, the Assessees request to propose a suitable amendment to section 50 so as to provide interest only on the outstanding liability after giving due credit to the input credit available in credit ledgers with retrospective effect i.e. from the date of 01.07.2017. Copy of the Minute book duly signed by Chairman is enclosed. Thanking you,
12.0 Therefore, the Assessees would like to submit that what is required to be done in such situation, at this stage is correcting the Portal to accept the Returns irrespective of the fact that such return is being filed without payment of full tax as self-assessed.
Yours faithfully,
12.1 The Assessees would like to respectfully submit that under the provisions of erst-while Central Excise Act, 1944 and rules made thereunder and under Chapter V of the Finance Act, 1994 and rules made thereunder no provision has been specifically made for payment of interest on the entire amount, when the returns e.g., ER-1/ER2/ST3 were filed showing
SACHIN CHANDRA President Builders' Association of India Copy to: The Chairman, Central Board of Indirect Taxes & Customs, North Block, New Delhi-110 001.
Impact of GST on Real Estate Composition Scheme Composition Scheme for Real-estate: War in London, Weapons to China
In this article, we have made an attempt to give a brief about the scheme proposed and summarize the intention of Government behind introduction of composition scheme and the viability of such option.
What will be the consequences if the patient is suffering from stomach ache and the physicist prescribes him paracetamol? What will happen if the war is taking place in London and the consignment of weapons reach China? In both of these cases, the problem will not be solved because the solutions proposed are completely out of the line.
The 33rd GST Council meeting was held on 24th of February 2019. Various significant decisions pertaining to real estate sector has been taken which are discussed as follows:
GST Rate Reductions A group of Ministers headed by Mr. Nitin Patel placed the final report on the composition scheme under GST for real estate sector. It has been proposed that:
i)
“GST shall be levied at effective GST rate of 5% without ITC on residential properties outside affordable segment.” The following points needs to be considered:
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¾
It is only applicable to residential properties comprising land value.
¾
The ITC benefit cannot be availed.
¾
The rate has been reduced to 5% to 12% for residential projects other than those falling under affordable housing scheme.
¾
The effective date shall be 1st April, 2019. 79h Annual Report and Accounts – 2019-2020
ii)
“GST shall be levied at effective GST of 1% without ITC on affordable housing properties.”
¾
The ITC benefit cannot be availed.
¾
The rate of affordable housing has shrunken from 8% to 1% for affordable housing schemes.
¾
The effective date shall be 1st April, 2019.
The following points needs to be considered: ¾
It is only applicable to affordable housing properties.
Meaning of Affordable Housing:
*Metropolitan cities - Bengaluru, Chennai, Delhi NCR (limited to Delhi, Noida, Greater Noida, Ghaziabad, Gurgaon, Faridabad), Hyderabad, Kolkata and Mumbai (whole of MMR).
GST Exemption on TDR/ JDA, long term lease (premium), FSI It has been proposed that:
residential property on which GST is payable."
"Intermediate tax on development right, such as TDR, JDA, lease (premium), FSI shall be exempted only for such
Transfer of development rights is exempted, provided the residential units are subject to GST at the aforementioned rates.
Challenges / Issues ¾
¾
for commercial units is not been dealt with.
No clarification has been provided for units comprising of both, residential and commercial units. There is no clarity on units which are in WIP. For example, a scheme consists of 100 units of which 30 units are sold and balance 70 are unsold and still under construction.
¾
The rules for transition from present system to new system shall follow the same are not yet specified
¾
The taxability and valuation of development rights
¾
What will be the tax rates if the consideration for construction of residential units does not involve land?
¾
No decision was taken for reduction in rates of cement from 28% to 18% which is the basic raw material in the construction sector required for building homes.
¾
Developers may increase the base price of the units to recover the loss of input tax credits.
Viability of implementing the new scheme by scrapping the existing one Intention of Government behind introduction of composition scheme
BUILDERS' ASSOCIATION OF INDIA
Honourable Finance Minister, Shri Arun Jaitley, in his press conference stated that the builders have not passed
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their consumers. However, some industries like restaurants and Real-estate sector failed to pass on the benefits extended to them. As a result, the industry witnessed inflationary trends and the buyers were reluctant to buy any Real-estate properties due to lack of confidence. Resultantly, in the last one and a half year, the quantity of unsold inventory also went up to a huge extend.
on the benefits of input tax credit accrued to them due to implementation of GST. Therefore, the GST Council intends to block the credit available to them with a reduced GST rate on Real-estate sector. The GST press release for 33rd GST Council meeting stated that:"Real estate sector is one of the largest contributors to the national GDP and provides employment opportunity to large numbers of people. "Housing for All by 2022" envisions that every citizen would have a house and the urban areas would be free of slums. There are reports of slowdown in the sector and low off-take of under-construction houses which needs to be addressed. To boost the residential segment of the real estate sector, following recommendations were made by the GST Council in its 33rd meeting held today:"
Due to all these issues, the Government thought to intervene and propose a solution. Now the next question that arises in our minds is:Whether the Government has succeeded in its intervention? The viability of proposed policy should be measured by the impact it has on total cost to the consumer. Let us take an example:-
After the implementation of GST, it was expected that all businesses will adhere to anti-profiteering provisions and will pass on huge amount of credits availed by them to
Effective tax rates on Affordable Residential Projects (Rs. in Lakhs)
Effective tax rates on Non-affordable Residential Projects (Rs. in Lakhs) Tax rates
Particulars Sale Price per unit (A) Land cost per unit (B) Construction cost (C=D+E)
per
I 50
II 70
III 100
10
23.4
25
II 30
III 45
50
4
10
22.5
28.6
30
10
12
13.5
35
51
80
14
22
36
18%
4.5
5.15
5.5
18%
1.8
2.16
2.43
12%
6
8
12
8%
2
2
4
6
8
12
2
2
4
12%
12%
12%
8%
8%
8%
2.5
3.5
5
0.2
0.3
0.45
7
8.65
10
2
2.46
2.88
14%
12%
10%
10%
8%
6%
unit
ITC in GST (G=C*Tax rate) Output in GST in Present scheme (H=A*tax rate) Effective Tax paid in Present Scheme (I=H) Effective Tax paid in Present Scheme (J=I/A) Output in GST in New scheme (K=A*tax rate) Effective Tax paid in New scheme (L=K/A) Effective Tax paid in Present Scheme (M=L/A)
5%
Assumptions:-
1%
and labour proportion in the construction cost and deemed profit margin are assumed.
The figures of sales price, construction cost, material
BUILDERS' ASSOCIATION OF INDIA
Tax rates
I 20
Total Cost per unit (F=B+C)
1.
*
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2.
increase in prices of Real-estate properties. If Government brings land under GST then, it is likely that the effective cost to customer might get reduced.
Some of the inputs is taxed at the rate of 28% and most of the inputs and input services are taxable at 18% under GST. Therefore, an average rate of 18% is assumed for inputs and input services. The rate of 18% is assumed after taking into consideration the requirement of credit reversal on 1/3rd value of land.
This might be a little unreasonable to expect from the Government at this stage so another alternative might be streamlining the anti-profiteering mechanism. Government claims that builders lobby has failed to adhere to anti-profiteering mechanism but if we look into the same closely, we may find that Government has left a great number of loopholes and if Government steps forward to cure those loopholes then, the prices might get actually reduced and this solution will be an optimum alternative of composition scheme.
Notes:1.
ITC shall not be allowed in the new scheme and therefore, effective tax rate is the addition of GST ITC lost and output tax paid under GST.
2.
In the new scheme, the tax rates are 5% and 1% for non-affordable and affordable housing projects respectively. Affordable projects are proposed to be defined as follows:-”A residential house/flat of carpet area of upto 90 sqm in non-metropolitan cities / towns and 60 sqm in metropolitan cities having value upto Rs. 45 lacs (both for metropolitan and non-metropolitan cities).”
3.
The issues that Government should focus on are as follows:•
Mr. Adam Smith once said, “Little else is requisite to carry a state to the highest degree of opulence from the lowest barbarism but peace, easy taxes, and a tolerable administration of justice: all the rest being brought about by the natural course of things”. Past regime speaks volumes on the attitude of businesses at times of uncertain tax system. With that experience, Government should come with a clear formulae to calculate and the methodology to pass on the benefits under anti-profiteering provisions. Without which, the builder cannot reduce their prices.
In the present scheme, applicable GST rate on output side is 18% with deduction of 1/3rd amount for the land value. So the effective tax rate on output is 12%. Looking at the above example, one may conclude that GST is implemented with an intent to consolidate all the indirect taxes so that the effective tax rates borne by the consumer is reduced to some extent. Looking at this objective, the scheme proposed by the GST Council may not be summarized as an optimum scheme because it results into increase in cost by 2% in less budget residential houses. The Government’s decision of reducing tax rate does not supplement the Housing for All by 2020 policy as low cost houses are the one suffering in the proposed scheme. Looking at the above outcome, one can contend that there is still a big gap between the anomaly that was sought to be rectified and the policy proposed. This takes us to our second question which is, what else could have been done to cure the anomaly.
Alternatives that were available with GST Council Although, it has been claimed that the rates prescribed are computed taking into account the present effective tax rate, we are not able to understand the math behind it. So at this stage, we believe that two of the best alternatives that GST Council had infront of them were:•
Bring Real-estate under GST.
•
Streamline anti-profiteering mechanism
•
Education to builders: - The Government has issued various press releases in the benefits of customers. However, they have not given much thought to educate the builders. Most of the builders do not know about the anti- profiteering mechanism introduced under GST. This is also a major cause why the prices of Real-estate properties have not been reduced upon introduction of the new tax regime.
•
Denial of benefits: - On one hand, entire builder lobby have been receiving notices questioning the amount of credits claimed by them and on the other hand, the Government is expecting the builders to pass on benefits. Hence, the builder’s community is in dilemma about the validity of credit claims made by them and when the credit claimed is itself not certain, how will they be able to pass on the benefits? If the Government would have focused on solving problems arising in present tax scheme, there might not be a need to revamp the entire tax structure. We vouch to the fact that the tax system cannot be perfected in one go however, there should be improvements and revamping should be avoided for all means and purposes as transition to a new scheme is an onerous task.
Land is subjected to Stamp duty. Therefore, GST can be levied on the construction component only. This system has created a lot of issues including double taxation and
BUILDERS' ASSOCIATION OF INDIA
To establish a formulae for calculating antiprofiteering benefits:-
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after 01.04.2019.
To conclude with, to our mind, composition scheme for Real-estate sector seems to be a punitive approach for forcing prices reduction in Real-estate. Had the GOM have brainstormed a bit before introduction of composition scheme, they should have simplified the present system. We also acknowledge the efforts and intention of Government to boost this sector, however, their bow has went in the wrong direction. For future, we hope that the new scheme turns out to be the right medicine for the disease/problems Real-estate is facing today. 3.
Note on the GST Council decision on real estate sector in the 34th meeting held on 19th March, 2019
Option in respect of ongoing projects:
1.1. The promoters shall be given a one -time option to continue to pay tax at the old rates (effective rate of 8% or 12% with ITC) on ongoing projects (buildings where construction is started and any booking is done before 01.04.2019 but not completed by 31.03.2019.
4.
New tax rates w.e.f 01.04.2019: The new tax rates which shall be applicable to new projects or ongoing projects which have exercised the above option to pay tax in the new regime are as follows. (i)
New rate of 1% without input tax credit (ITC) on construction of affordable houses shall be available for all houses which meet the criteria of affordable houses as laid down (not exceeding the carpet area 60 sqm in non- metros / 90 sqm in metros and value upto RS. 45 lakhs), and
(ii)
New rate of 5% without input tax credit shall be applicable on construction of,(a)
5.
commercial apartments such as shops, offices etc. in a residential real estate project (RREP) in which the carpet area of commercial apartments is not more than 15% of total carpet area of all apartments.
Conditions for the new tax rates:
(a)
Input tax credit shall not be available,
(b)
80% of inputs and input services (other than capital goods, TDR/ JDA, FSI, long term lease (premiums)) shall be purchased from registered persons. On shortfall of purchases from 80%, tax shall be paid by the builder @ 18% on RCM basis. If the rate of tax is higher, for eg., cement at 28% than tax shall be payable @ 28% under RCM. On capital goods tax shall be payable under RCM at applicable rates.
Transition for ITC for ongoing projects opting for the new tax rate:
Treatment of TDR/ FSI and Long term lease for projects commencing after 01.04.2019 The following treatment shall apply to TDR/ FSI and Long term lease for projects commencing after 01.04.2019.
all houses other than affordable houses in ongoing projects whether booked prior to or after 01.04.2019. In case of houses booked prior to 01.04.2019, new rate shall be available on instalments payable on or
BUILDERS' ASSOCIATION OF INDIA
(c)
The transition formula approved by the GST Council, for residential projects as stated above extrapolates ITC taken for percentage completion of construction as on 01.04.2019 to arrive at ITC for the entire project. Then based on percentage booking of flats and percentage invoicing, ITC eligibility is determined. Thus, transition would thus be on pro-rata basis based on a simple formula such that credit in proportion to booking of the flat and invoicing done for the booked flat is available subject to some safeguards as may be notified. For a mixed project (a residential project but having commercial area of more than 15 persons of total area), transition shall also allow ITC on pro-rata basis in proportion to carpet area of the commercial portion in the ongoing projects (on which tax will be payable @ 12% with ITC even after 1.4.2019) to the total carpet area of the project.
1.2. The option shall be exercised only one time within a prescribed time frame and where the option is not exercised within the that time limit, new rates shall apply. 2.
all houses other than affordable houses in new projects.
The new tax rates of 1% (on construction of affordable) and 5% (on other than affordable houses) shall be available subject to following conditions,-
GST Council in the 34th meeting held on 19th March, 2019 decided the modalities of implementation of the recommendations made by the council in its 33rd meeting for lower effective GST rate of 1% in case of affordable houses and 5% on construction of houses other than affordable house. The council also decided the modalities of claim of input tax credit and transition of the same as follows. 1.
(b)
5.1. Supply of TDR, FSI, long term lease (premium) of land by a landowner to a developer shall be
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79h Annual Report and Accounts – 2019-2020
5.4. The liability of builder to pay tax on construction of houses given to land owner in a JDA is also being shifted to the date of completion. Decisions from para 5.1 to 5.4 are expected to address the problem of cash flow in the sector.
exempted subject to the condition that the constructed flats are sold before issuance of completion certificate and tax is paid on them. Exemption of TDR, FSI, long term lease (premium) shall be withdrawn in case of flats sold after issue of completion certificate, but such withdrawal shall be limited to 1% of value in case of affordable houses and 5% of value in case of other than affordable houses. This will achieve a fair degree of taxation parity between under construction and ready to move property.
6.
Amendment to ITC rules:
5.2. The liability to pay tax on TDR, FSI, long term lease (premium) shall be shifted from land owner to builder under the reverse charge mechanism (RCM).
ITC rules shall be amended to bring greater clarity on monthly and final determination of ITC and reversal thereof in real estate projects. The change would clearly provide procedure for availing input tax credit in relation to commercial units as such units would continue to be eligible for input tax credit in a mixed project.
5.3. The date on which builder shall be liable to pay tax on TDR, FSI, long term lease (premium) of land under RCM in respect of flats sold after completion certificate is being shifted to date of issue of completion certificate.
The decisions of the GST Council have been presented in this note for easy understanding. However, one has to wait for notification to be issued before taking any position which alone shall have force of law.
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Cement Matter Brief Summary of Cement Cartel Case
it has also taken into consideration the net profits earned by these appellants, which are to say the least fabulous. The Commission has chosen to impose the penalty at 0.5 times of the net profit for 2009-10 that too from 20th of May, 2009. It is pointed out by the Commission that the amount of 3 times of net profit calculated, is higher than 10% of the average turnover. In that view, the Commission has inflicted the penalties of 0.5 times of the net profit for one year that is from 2009 to 2010 that too taking from 20th May, 2009 and 2010-11. Under such circumstances, we would chose to grant stay to the penalties, however with a condition that the appellants deposit 10% of the penalties inflicted. We make it clear that the deposit of the penalty should be within one month from today. We also make it clear that if the penalties are not so deposited, the appeal shall be treated as dismissed without further reference to the Court.
Builders Association of India (BAI) filed a complaint with the Monopoly & Restrictive Trade Practice Commission (MRTPC Commission) in February 2006 with regard to involvement of cement manufacturers in unfair trade practices / cartelization and requested the Commission to investigate the matter. Later on Commission sought some more information in support of complaint which were made available to them in November 2006. MRTPC registered the complaint vide case RTPE-52/2006. Consequent upon coming into existence Competition Commission of India (CCI) in the year 2009, the case was transferred to CCI. In July 2010, BAI filed another complaint with the CCI alleging unfair trade practices being adopted by the Cement manufacturing companies in jacking up artificially the price of cement. CCI registered the complaint as Case No.29/2010 and investigated the matter. The Director General (Investigation) investigated the matter and submitted his report to CCI. CCI forwarded the investigation report to the respective companies and directed them to file their replies / objections with the findings of the DG(I). The case was heard by CCI on 21st, 22nd & 23rd February 2012. CCI passed the order dated 20th June 2012, declaring 10 cement companies along with Cement Manufacturers Association indulging into unfair trade practices and ordered to deposit Rs.6307.32 Crore, as penalty within 90 days from the date of the order and directed companies to “Cease and Desist” from indulging in such activities in future
Thereafter, all the cement companies approached the Supreme Court of India for seeking stay on the orders of the Tribunal dated 17th May 2013 to deposit 10% of penalty amount imposed by the Commission, The matter was heard in detail on 12th June 2013 but the Hon’ble Court refused to intervene in to the interim orders but extended the last date of deposit of the penalty amount from 16th June 2013 to 24th June 2013 with the directions that the amount of penalty may be kept in the form of Fixed Deposits in the separate accounts of the each company The matter was argued in detail on the technicalities, in the Tribunal in October / November 2015 and the Tribunal in its order dated 11th December 2015, allowed the appeals and remanded the orders of the Commission for passing fresh orders. The relevant portion of the orders are reproduced below :-
CCI by its order dated 30th July 2012, in the case of RPTE52/2006, found 12 cement companies to be indulging into unfair trade practice. Since penalties were already imposed on 11 companies including CMA other than Shree Cement Ltd. in Complaint No.29/2010, a penalty of Rs.397.51 Crore was levied on Shree Cement Ltd. with “Cease & Desist” order for not indulging in such practice, in future.
98. In the result, the appeals are allowed. The impugned order is set aside and the matter is remitted to the Commission for fresh adjudication of the issues relating to alleged violation of Sections 3(3)(a) and 3(3)(b) read with Section 3(1) of the Act by the appellants. The appellant shall be entitled to withdraw the amount deposited by them in compliance of the interim order passed by the Tribunal.
All the cement companies, aggrieved with the orders of CCI, approached to Competition Appellate Tribunal to seek a stay on deposit of the penalty amount and for setting aside the orders of “Cease & Desist” in June / July 2012.
99. The Commission shall hear the advocates/ representatives of the appellants and BAI and pass fresh order in accordance with law. We hope and trust that the Commission shall pass fresh order as early as possible but within a period of three months from the date, which may be notified after receipt of this order.
On 17th May 2013, the Competition Appellate Tribunal passed the interim order of depositing 10% of the penalty amount imposed by the Commission (relevant portion of the order is given below) “In that view, we find that there is a prima-facie case for granting of stay at least in respect of the penalties, which are of very substantial nature. The total penalties would come in the range of Rs.6000 crores. While inflicting the penalties, the CCI has also taken into consideration, not only the 10% turnover, gross-turnover and other factors, BUILDERS' ASSOCIATION OF INDIA
100. The parties shall be free to advance all legally permissible arguments. They may rely upon the documents, which formed part of the record of the Jt. DG or which may have been filed by them before the commencement of hearing on 21.02.2012. The parties shall
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Government of India closed Competition Appellate Tribunal and all the matters pending for decisions in the Competiton Appelate Tribunal were transferred to National Company Law Appellate Tribunal (NCLAT).
also be free to press the applications already filed before the Commission. However, no application, which may be filed hereinafter for cross-examination of the persons, whose statements were recorded by the Jt. DG or for any other purpose shall be entertained by the Commission.
Bunch of cement appeals that were being heared in the Competition Appellate Tribunal came up for hearing in the NCLAT on 12th July 2017. Due to paucity of time the appeals could not be heard by the Hon’ble NCLAT and the appeals were fixed for final arguments on 3rd, 4th & 5th August 2017, at the request of the Senior Counsels.
The CCI, in its meeting held on 17th December 2015, discussed the orders passed by the Tribunal on 11.12.2015 and in accordance with the directions contained at Para No.99, listed the matter for final hearings from 19th Jan to 21st Jan 2016, as conveyed vide CCI Letter No.1(29)/ 2010Sectt & 1/RTPENo.52)/2006/Sectt dated 11.01.2016. Since the arguments could not be completed in three days as scheduled, CCI allowed the arguments to continue on 22 nd January 2016 which was kept reserved day for continuing the arguments in case the arguments are not completed in 3 days.
It was pleaded before bench that the leading case in the matter will be of Ambuja Cement Limited and other companies will plead / make their submissions before the bench where there is difference and / or company specific matter. Mr. C.A. Sundaram, learned Senior Counsel appearing on behalf of Ambuja Cement Limited argued the matter on 3rd August, 4th August & 8th August 2017 and concluded his arguments on 8th August. Cousels appearing on behalf of other companies argued the matter on 9th & 10th August 2017. All the appellant completed their arguments / submissions on 10th August 2017.
The Competition Commission of India passed fresh orders on 31.08.2016 and found cement companies of guilty of acting in concert and involved in the cartel. The Commission kept the amount of penalty, same for all the companies, as imposed on them in its earlier order in the year 2012 and directed them to deposit the penalty amount within 60 days from the date of order.
Shri Salman Khurshid, Senior Advocate assisted by Shri Vaibhav Gaggar and others, appearing on behalf of Competition Compitition of India, argued the matter on 23rd August, 24th August and 31st August 2017 (on 3 days) and also replied to the objections / queries raised by the counsels of cement companies & CMA. He completed his arguments on 31st August 2017.
The Cement companies started filing appeal in Competition Appellate Tribunal against the order of CCI dated 31.08.2016. The Tribunal directed all the cement companies to deposit 10% of amount of penalty imposed by the CCI before their appeals are taken up for consideration. Accordingly, the cement companies deposited the 10% of the amount of penalty amount as reflected in the orders of the CCI.
Shri C.A. Sundaram on behalf of Ambuja Cement Ltd. Learned counsel appearing on behalf of the other appellants further argued the matter on 19th September 2017 and 5th October 2017. The Tribunal was going to reserve the judgment on 5th October 2017 itself but Shri Vaibhav Gaggar appearing for CCI requested for 10 minutes time on next hearing for Shri Salman Khurshid for which the Chairman agreed and matter was posted for 11th October 2017 with the directions that Parties may file their respective written submissions by the next date.
Arguments started in the Tribunal from 8th March 2017. As agreed by all the cement companies except M/s. Shree Cement Ltd., the issue of Ambuja Cements Limited in Appeal No.61/2016 will be treated as lead case and other companies will be argue the matter before the Tribunal, if required, only on specific point which have not been covered in the arguments made by the counsel of M/s. Ambuja Cement Ltd.
On 11th October 2017 Shri Salman Khurshid did argued the matter for a brief time. Some of the Appellants filed their written submissions by 11th October 2017 which were kept on record. Tribunal further noted that hearing has already been concluded and reserved the judgment. Chairperson further ordered that Learned counsel for the Respondents, if so choose may file short written submissions by 16th October, 2017 of not more than three pages.
M/s. Shree Cement Ltd. argue the matter separately. The matter was again listed for hearing on 11th, 12th & 13th April 2017. When the proceedings in the Tribunal begin, Shri T. Srinivasa Murthy, learned counsel for M/s. Ramco Cements Limited (Appeal Nos. 54 and 64 of 2016) informed the Tribunal that in Civil Appeal Nos. 4300-4301 of 2017, the Hon’ble Supreme Court has stayed further proceedings till the next date of hearing i.e. 2nd May, 2017.
Finally the NCLAT have pronounced the order on 25th July 2018. The Tribunal Bench comprising of Justice S.J. Mukhopadhaya - Chairperson and Mr. Balvinder Singh - Member (Technical) have found the cement companies guilty of cartelization and upheld the amount of penalty. Last two paras of the orders about of the penalty and merit of the appeals are reproduced :-
Since the appeal came out of the case which was part of the bunch matters filed against the impugned order dated 31.08.2016 of the Competition Commission of India, the Tribunal consider it appropriate that all the cases led by Ambuja Cement Limited were adjourned for 4 th May, 2017 for further directions.
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109. So far as the quantum of penalty order is concerned, as we find that the Commission has imposed mere minimum penalty, no interference is called for against the same. 110.
Septmebr 2018 for admission.The matter was admitted on 5th October 2018 by Mr. Justice R. F. Nariman and Mr. Justice Navin Sinha with 10% deposit of Penalty with Hon’ble Supreme Court. For benefit our members, we give below proceedings on 5th October 2018 held at Hon’ble Supreme Court. Appeals filed by all cement companies against NCLAT’s order were listed before the Court No. 8 for hearing on 5 October 2018. The appeals were tagged and were listed at item 16. India Cements appeal was listed as lead matter and as soon as item 16 was called Mr. Kapil Sibal (Senior Advocate) appeared for India Cements. Competition Commission of India (CCI) was also represented by Mr. Salman Khurshid (Senior Advocate). Mr. Sibal started his arguments by saying that the CCI has not taken into consideration various parameters under section 19(4) of the Competition Act and CCI has not divided the markets appropriately. Mr. Justice Nariman, immediately said therefore we are required to admit the matter, so that we can hear you in detail. He also made a passing remark that there are two adverse orders against you (cement companies). He then enquired, was any interim relief granted to cement companies by the Appellate Court? Mr. Sibal mentioned that a stay was granted by the NCLAT/ COMPAT by depositing 10% penalty amount through FDR. Mr. Justice Nariman granted cement companies an interim stay on the same terms as granted by NCLAT earlier. At this stage, Mr. Salman Khurshid (Senior Advocate for CCI) mentioned that he has no problem in the stay being granted (in a statutory appeal) – however, let the cement companies deposit the entire amount of penalty (as in DLF case earlier). Mr. Justice Nariman asked CCI to file an application for seeking deposit of entire penalty amount – enumerating the principles adopted by Hon’ble Supreme Court in DLF matter. Mr. Justice Nariman stated that he will look at the application and then decide on deposit of the penalty amount.
We find no merit in these appeals. They are accordingly dismissed. All Interlocutory Applications filed in these appeals stand disposed of. No costs.
All the affected Cement Manufacturers by the Order of National Company Law Appellate Tribunal (NCLAT), on 25th July 2018, imposing penalty of Rs.6,307 Crore, have now filed their Appeal before the Hon’ble Supreme Court of India and matter is pending before the Hon’ble Supreme court of India. Builders’ Association of India being the original complainant, who filed the complaint in the MRTP in the year 2006 and in Competition Commission of India in the year 2010 will be required to defend the case the in Supreme Court of India alongwith the CCI. After meeting all the procedural requirements and filing of the appeals / counters, the matter will be listed for hearing / arguments etc. shortly. It is needless to state here that because of BAI been fighting the issue of malpractice / unfair trade practices in hiking the price of cement and the companies indulging in cartelization for more than two decades and following it at the appropriate level, the cement companies are playing at the back-foot with regard to price increase. The situation is under a bit control because of the efforts of this august body of the fellow contractors fraternity only.
The matter was came up for hearing on 7th Decemebr 2018 and adjourned to 14th February 2019.
Appeals filed by the Cement Company’s are listed for hearing before the Supreme Court (Court No. 8, Justice Nariman and Justice Indu Malhotra as item 27) on 28th ITEM NO.45
On 14th February 2019 the Register Court has passed the following order.
REGISTRAR COURT. 1
SECTION XVII
SUPREMECOURTOFINDIA RECORD OF PROCEEDINGS BEFORE THE REGISTRAR ANIL LAXMAN PANSARE Civil Appeal No(s). 9410-9411/2018 THE INDIA CEMENTS LTD. Appellant(s) VERSUS COMPETITION COMMISSION OF INDIA & ORS. Respondent(s) WITH C.A. No. 9744/2018 (XVII) (FOR ADMISSION and IA No.136086/2018-STAY APPLICATION) BUILDERS' ASSOCIATION OF INDIA
C.A. No. 9534-9535/2018 (XVII) (FOR ADMISSION and IA No.133083/2018-EX-PARTE STAY and IA No.133084/2018-PERMISSION TO FILE ADDITIONAL DOCUMENTS/FACTS)
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C.A. No. 9826/2018 (XVII) (FOR ADMISSION)
C.A. No. 9734-9735/2018 (XVII) (IA No.136013/2018-EXEMPTION FROM FILING C/C OF THE IMPUGNED JUDGMENT and IA No.136014/ 2018-STAY APPLICATION)
C.A. No. 9882-9883/2018 (XVII) (FOR ADMISSION and IA No.138895/2018-EX-PARTE STAY and IA No.140567/2018-PERMISSION TO FILE ADDITIONAL DOCUMENTS/FACTS [TO BE TAKEN UP ALONGWITH ITEM NO. 16 I.E. C.A.NO.9410-9411/ 2018])
C.A. No. 9538-9539/2018 (XVII) (FOR ADMISSION and IA No.133516/2018-EX-PARTE STAY and IA No.133520/2018-PERMISSION TO FILE ADDITIONAL DOCUMENTS/FACTS and IA No.135688/2018-PERMISSION TO FILE ADDITIONAL DOCUMENTS/FACTS)
C.A. No. 1281-1282/2019 (XVII) (FOR ADMISSION and I.R. and IA No.183973/2018 EXEMPTION FROM FILING C/C OF THE IMPUGNED JUDGMENT and IA No.183972/2018-STAY APPLICATION and IA No.183969/2018CONDONATION OF DELAY IN FILING APPEAL and IA No.183971/2018-CONDONATION OF DELAY IN REFILING)
C.A. No. 9555-9556/2018 (XVII) (FOR ADMISSION and IA No.134434/2018-EX-PARTE STAY and IA No.134433/2018-PERMISSION TO FILE ADDITIONAL DOCUMENTS/FACTS and IA No.134979/2018-PERMISSION TO FILE ADDITIONAL DOCUMENTS/FACTS)
Date : 14-02-2019 These appeals were called on for hearing today.
C.A. No. 9851/2018 (XVII) (FOR ADMISSION and I.R. and IA No.137930/2018EXEMPTION FROM FILING C/C OF THE IMPUGNED JUDGMENT and IA No.137928/2018-STAY APPLICATION)
For Appellant(s) Mr. Aayush Agarwala, Adv. Mr. Pramod B. Agarwala, AOR Ms. Neha Agarwal, Adv. Mr. Gautam Chawla, Adv. Mr. E. C. Agrawala, AOR Mr. Shrey Patnaik, Adv. Mr. Aditya Verma, AOR Mr. Venkita Subramoniam T.r, AOR Ms. Shruti Iyer, Adv. Mr. T. Srinivasa Murthy, Adv. Mr. Senthil Jagadeesan, AOR Ms. Tanya Chaudhry, Adv. M/S. Parekh & Co., AOR Ms. Jannavi Sindhu, Adv. Ms. Shruti Narayan, Adv. Mr. Shadan Farasat, AOR Mr. Praveen Kumar, AOR Mr. Abhinav Raghuvanshi, Adv. Mr. Prateek Tewari, Adv. Mr. Piyush Upadhyay, Adv. Mr. D. K. Devesh, AOR Mr. Chandramauli Dwivedi, Adv. Mr. Abhay Kumar, AOR
C.A. No. 9864/2018 (XVII) (FOR ADMISSION and IA No.138179/2018-EX-PARTE STAY and IA No.139701/2018-PERMISSION TO FILE ADDITIONAL DOCUMENTS/FACTS and IA No.139703/2018-PERMISSION TO FILE ADDITIONAL DOCUMENTS/FACTS and IA No.139705/2018-PERMISSION TO FILE ADDITIONAL DOCUMENTS/FACTS and IA No.138180/2018-PERMISSION TO FILE ADDITIONAL DOCUMENTS/FACTS and IA No.139712/2018-PERMISSION TO FILE ADDITIONAL DOCUMENTS/FACTS and IA No.139678/2018-PERMISSION TO FILE ADDITIONAL DOCUMENTS/FACTS and IA No.139716/2018-PERMISSION TO FILE ADDITIONAL DOCUMENTS/FACTS and IA No.139684/2018-PERMISSION TO FILE ADDITIONAL DOCUMENTS/FACTS and IA No.139720/2018-PERMISSION TO FILE ADDITIONAL DOCUMENTS/FACTS and IA No.139688/2018-PERMISSION TO FILE ADDITIONAL DOCUMENTS/FACTS and IA No.139734/2018-PERMISSION TO FILE ADDITIONAL DOCUMENTS/FACTS and IA No.139698/2018-PERMISSION TO FILE ADDITIONAL DOCUMENTS/FACTS)
For Respondent(s) Mr. M.P. Srivignesh, Adv. Mr. B. Mathews, Adv. Ms. Sarah Shaji, Adv. Mr. Raju John, Adv. Mr. Shaji Sebastian, Adv. Mr. Jose Abraham, AOR Mr. Tushar Singh, AOR UPON hearing the counsel the Court made the following
C.A. No. 9763/2018 (XVII) (FOR ADMISSION and IA No.136411/2018-GRANT OF INTERIM RELIEF)
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ORDER Spare copies have not been in respect of the unserved respondents. Ld. Counsel for the petitioner requested for two weeks’ time for filing spare copies in all the matters. Strictly last opportunity is granted for filing spare copies within two weeks, as prayed for. Ld. Counsel for the petitioner to take fresh steps for service of the unserved respondents in all the matters mentioned in the office report within two weeks. Ld. Counsels appearing for the served respondents for the first time are granted four weeks’ time for filing counter affidavit. Ld. Counsels who are already appearing for the served respondents are
BUILDERS' ASSOCIATION OF INDIA
granted four weeks’ time, as last opportunity, for filing counter affidavit. List again on 9.4.2019. ANIL LAXMAN PANSARE Registrar On 14th March 2019, BAI have filled Counter Affidavit before the Hon’ble Supreme Court of India. The matter has then adjourned on to 9th April 2019 and now it is adjourned to 19th August 2019.
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Cement Matter BAI’s representation with Government on Cement Matter. Ref: 253/J/2019-20 dated June 17, 2019
To: Shri Anil Agarwal, Joint Secretary, Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry, New Delhi– 110 001 Respected Sir,
Sub: Abnormal increase of cement price due to the cartelisation by Cement Manufacturers. accounts for over 6% of the GDP in terms of value added. Construction accounts for about 50% of the gross investments in the country and 60% of the cost of Infrastructure. For every rupee invested in construction, 78 paise is added to the GDP.
Builders’ Association of India (BAI) is an apex body of Construction Industry, founded in 1941, it has more than 19,000 business entities as members through its 180 plus Centres (Branches) throughout the country. The fundamental aim of the Association is to bring about all round improvements in the construction sector, while striving towards resolution of operational as well as policy level problems faced by the construction industry. This involves making efforts to obtain from policy makers and authorities, the level of attention that the construction industry deserves in view of its tremendous contribution and importance to the economy.
Construction is the second largest employer after agriculture. It employs about 30 million persons directly and 20 million indirectly. It has added 11 million workers since 2012-13. It has doubled its share in total employment from 11% in 2011-12 to nearly 20% in 2017-18. It has recorded the highest growth rate in employment in the last two decades. Sir, Cement is one of the major construction materials used in all segments of Construction Industry namely, Housing (55% - 65%), Infrastructure (15% - 25%), Commercial and Industrial Construction (10% - 15%), and Industry (5% - 15%). There is no consumer other than Construction Industry for cement.
Sir, I Personally and on behalf of members of Builders Association of India (BAI) express my heartfelt gratefulness for inviting me to the ‘2 nd Meeting of Development Council for Cement Industry (DCCI)’ held on 7th June 2019 at 3.00 PM in Room No.152, Department for Promotion of Industry and Internal Trade, Udyog Bhawan, New Delhi-110011.
For the past 2 – 3 years, the growth of Construction Industry is ranging between 1% - 2%, which means that additional demand of cement from Construction Industry is nominal.
We are really thankful to you for your initiative in taking up the abnormal cement price increase as 1st agenda item of discussion in the above meeting, though it was not in the listed agenda. Sir, this gesture of yours have made the participants to understand the seriousness of the Government on taking up the manufacturers who indulges in unethical practices to enrich themselves. I am sure, you also would appreciate the fact that none from cement manufacturers present in the meeting, could clarify nor explain the reason for such a sudden increase of cement price when the construction industry, the sole consumer of cement, is showing negative growth.
It is also a fact that, cement is available at much cheaper Price at international market and even today, it is cheaper, if permitted to import without imposing the exorbitant Import Duty, Special Duty plus Countervailing Duty. Sir, however, through this representation, we would like to draw your kind attention that, Cement Manufacturers throughout the country have increased the cement price approximately by 30% to 40% per bag from the existing price without any corresponding increase either in demand or in input costs. Sir, the Construction Industry feel this cement price increase is the result of prearranged price fixing by Cement Manufacturers with profiteering purpose.
As promised by you during the meeting to deal with the matter further, your office have contacted BAI Office to send a detailed representation about the cement price increase. Sir, In this regard, we would like to brief you about the unethical practice fallowed by Cement Companies with the purpose of profiteering.
Sir, we would like to bring to your kind notice that, in the past, Cement Manufacturers were found engaged in cartel type of arrangement for jacking up the price and the following decisions of Monopolies & Restrictive Trade Practices (MRTP) Commission and Hon’ble Competition Commission of India (CCI) will prove our points.
Construction is an important constituent of every sector in the economy. It is one of the core sectors of economy with a gross value output of almost Rs.4,000 billion. It
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a)
b)
create chaos in the whole country, resulting the good work done by the Central Government to naught.
In Enquiry No.RTPE 99/1990 on 28th November 2006, Monopolies and Restrictive Trade Practices Commision directed Cement companies with ‘cease and desist order’. The Hon’ble M.R.T.P. Commission again in Enquiry No.RTPE 21/2001 decreed on 29th February 2008 observed that, “Cement companies are guilty of forming cartel and issued to cease and desist order. The M.R.T.P. Commission also directed them to file the Affidavit with effect that, they won’t do cartelization again”. Builders’ Association of India filed an application in the MRTP Commission in the year 2006, alledging the cartelization by cement companies which was registered vide No.RTPE 52/2006. Consequent upon closure of the MRTP Commission, the case was transferred to Competition Commission of India (CCI). The matter was investigated by the Director General – Investigation and CCI found Shree Cement Ltd., on the basis of matter investigated under case No.RTPE-52/2006 guilty and the Competition Commission of India imposed a panelty of Rs.397.51 Crores as well as served ‘cease’ and ‘desist’notice against Shree Cement Ltd. vide its order dated 30th July 2012.
We attached herewith a statement of Increase in cement prices on all India basis from December 2018 to April 2019 which give you an idea of the cement price increase without any corresponding increase in demand. Sir, we therefore, request you to kindly look into the matter and if satisfied, may kindly appoint a high level enquiry on the reasons of abnormal cement price increase when there is neither any corresponding demand from the Construction Industry nor any substantial rise in input cost, with a view to have a long term solution to the unethical practice being followed by Cement Manufacturers. Your immediate action in the matter will not only save the employment of around 50 million construction workers, but also save the construction sector, which includes affordable housing, from imminent shutdown. Further, you may also consider recommending to appoint ‘Cement Regulatory Authority’ to rein in Cement Manufacturers from cartel as it has appointed various Regulatory Authorities:
On 20 th June 2012, the Hon’ble Competition Commission of India in case No.29/2010 filed by BAI, conclusively found the existence of cartel arrangement amongst the Cement Manufacturers resulting the manipulation of sale price of cement, and imposed a penalty of Rs.6,307.32 Crore on 10 Cement Manufacturers plus Cement Manufacturers Association (CMA) and also issued ‘cease and desist order’. Against this order, the Cement Manufacturers have appealed before the Hon’ble NCALT and NCALT in its Order dated 25th July 2018 confirmed penalty. Against the NCALT Order, the Cement Manufacturers have filed appeal before the Hon’ble Supreme Court of India on 5th October 2018. The matter is admitted and pending.
(a)
Security Exchange Board of India (SEBI) in 1992 for stock markets.
(b)
Telecom Regulatory Authority of India (TRAI) in 1997 for Telecom Sector.
(c)
Insurance Regulatory & Development Authority of India (IRDAI) for Insurance Sector in 1999.
(d)
Real Estate Regulatory Authority (RERA) in 2016 for Real Estate Sector.
We are too eager to explain the matter to you in person, if you kindly grant us an audience at any place and time suiting to your goodself. Thanking you, Yours faithfully,
Sir, any increase of cement price will have consequential effect on the cost of housing and also will affect the infrastructure projects adversely, causing huge negative impact on the national economy. It would also render a large number of construction workers unemployed as the construction industry has no other way but to slow down or to shut down the projects. Sir, this scenario will
SACHIN CHANDRA PRESIDENT BUILDERS’ ASSOCIATION OF INDIA
Shri Anil Agarwal Joint Secretary, Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry NEW DELHI– 110 001
Ref: 255/J/2019-20 dated June 18, 2019
Respected Sir, Sub: Abnormal increase of cement price due to the cartelisation by Cement Manufacturers.
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79h Annual Report and Accounts – 2019-2020
Further to our letter No.253/J/19-20 dated 17th June 2019, on the above subject, and as desired by your office, we hereby send you the following information:-
Further, the undersigned would be in Delhi on 20th& 21st June 2019 and it would be my honour to meet you, at your office, on these days at any time of your choice.
1.
Annexure-I - Monthly Cement Price across Regions in India, From February 2017 – March 2019.
Thanking you,
2.
Annexure-II - Cement Industry, Installed Capacity / Production / % Capacity Utilisation and Cement Consumption from 2011-12 To 2018-19.
3.
Annexure-III - Brief Summary of Cement Cartel Case.
4.
Annexure-IV - Oral Submissions made by BAI before CCI.
Yours faithfully,
SACHIN CHANDRA PRESIDENT BUILDERS’ ASSOCIATION OF INDIA Encl: As above. Copy to:
Hope the above information will suffice with your requirement. Sir, even a first glance on Annexure-II, it could be noticed that, Cement Manufacturers are utilising a maximum of 60% to 70% with a deliberate intention of choking the supply to regulate the demand. We would be more than happy to provide you with any other information / clarification you may be required in this regard.
(1)
Shri Sunil Agarwal, Under Secretary, Department for Promotion of Industry & Internal Trade, Ministry of Commerce and Industry, UdyogBhawan, New Delhi.
(2)
Shri M. Zakaria Khan Yusufzai, Sr. Development Officer (Engg.), Department for Promotion of Industry & Internal Trade, Ministry of Commerce and Industry, Udyog Bhawan, New Delhi.
Brief Report on Second Meeting of Development Council for Cement Industry held on Friday, 7th June 2019 at 3.00 PM in Room No.152, Department for Promotion of Industry and Internal Trade, Ministry of Commerce & Industry, Udoyg Bhawan, New Delhi of recent steep price increase of cement though the point is not mentioned in the agenda.
Second Meeting of Development Council for Cement Industry (DCCI) was held on Friday, the 7th June 2019 at 3.00 PM in Room No.152, Department for Promotion of Industry and Internal Trade, Ministry of Commerce & Industry, Udoyg Bhawan, New Delhi to discuss various issues relating to the cement sector. The meeting was convened by Shri Mahendra Sanghi, Chairman – DCCI and Shri Anil Agrawal, Joint Secretary, Department for Promotion of Industry and Internal Trade, MoC&I chaired the meeting. Representatives from various cement companies and CMA attended the meeting.
After brief introduction of the participants and normal protocol courtesies, Shri Anil Agrawal started the meeting with the question - how and why the rate of cement increasing so rapidly, particularly from the last 4 – 5 months. There has not been any sudden increase in demand of the cement nor there is any increase in the input cost in cement production. This price increase is unwarranted and uncalled for and until and unless you people will not come out with the reasoning, no agenda will be discussed. He went on further and stated that if you increase the cement price like this then why should Government look into your problems / solve your problems. The way price is increasing, whatever you say but it is a clear case of cartelization.
Invitation to attend the DCCI meeting was also extended to Builders’ Association of India. Shri Sachin Chandra, President – BAI and Shri Satnam Singh Arora, Executive Officer-Delhi Office attended the said meeting. Before start of the meeting Shri M Zakaria Khan Yusufzai, Sr Development Officer (Engg) from the ministry contacted President – BAI Shri Sachin Chandra ji and asked if he can provide the some data on the recent cement price rise and accordingly some figures were provided to him within a time span of 4 – 5 minutes. Mr Yusufzai informed the President Shri Sachin Chandra Ji that the meeting is going to start with unscheduled single point
BUILDERS' ASSOCIATION OF INDIA
He asked representatives to speak on the subject. Ultratech representatives replied that he was not prepared for the question. One representative replied that the prices of cement were low for quite some time and same is increasing in tandem with the inflation. Almost all the cement companies’ representative avoided to reply the question but offered to discuss the matter in detail in his chamber. They were avoiding any discussion on price of
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Industry, but also Affordable Housing projects, Infrastructure projects, Highways, Roads etc. of the Government. He further informed that a comparison of international prices can be handy in such circumstances to have an idea of the prevailing price/cost. The price of Cement in Pakistan and Bangladesh are very cheap despite the input cost being the same as in India.
cement in front of BAI members. Shri Agrawal was not at all convinced with their replies and stated that how the Government can help the council in solving their problems when you people do not want to discuss the price in this meeting where all the representatives from cement companies / cement industry are sitting. Shri Agrawal inquired about the installed capacity of the cement industry and it was informed that at the moment it is 510 MT per annum. He was further informed that it is producing 65 – 70% of the installed capacity because of the low demand. When he raised the question of reasonable price of cement, the DCCI members replied almost in the same voice that the market forces determine reasonable price. Members also stated that the case filed by the BAI is sub judice and it is not appropriate for them to speak anything on the subject. Shri Agrawal stated that he is not convinced with their reply, it is not the market forces that determine the price of cement, it is the cement companies who are forcing the market to pay the price of cement and whatever you people say but we all know that what is happening. It is nothing less than the cartelization. President-BAI also stated that, the cement companies are acting in concert in the ongoing cement price and are indulging in cartelization. He further said that this is adversely affecting not only the Real Estate
After this hot and unscheduled discussion, the main agenda of the DCCI was discussed in detail and necessary directions were given to the officials of the ministry where the government was required / asked for by the DCCI. Even on various occasions during the discussion of agenda point, Joint Secretary pointed out that the cement companies are involved in cartelization and the Government will not allow them to derail various projects / schemes initiated by the Government. Shri Agrawal was required to leave the meeting with the instructions to complete the agenda and get the pointed noted with Shri Yusufzai. Left out issues were discussed and necessary instructions were passed on. During the discussions President-BAI suggested that as Government haves brought out RERA on the real estate sector, government should consider bringing such regulatory body for the cement industry also. Ref: 242/J/2019-20 dated June 6, 2019
Shri Narendra Modiji Hon’ble Prime Minister of India Government of India Prime Minister’s Office, South Block, NEW DELHI – 110 001 Respected Sir, Sub: Abnormal increase of cement price due to the cartelisation by Cement Manufacturers. sector in the economy. It is one of the core sectors of economy with a gross value output of almost Rs.4,000 billion. It accounts for over 6% of the GDP in terms of value added. Construction accounts for about 50% of the gross investments in the country and 60% of the cost of Infrastructure. For every rupee invested in construction, 78 paise is added to the GDP.
Builders’ Association of India (BAI) is an apex all India body of Engineering Construction Contractors and Real Estate Companies founded in 1941, with more than 19,000 business entities as members through its 180 plus Centres (Branches) throughout the country. Regional Associations Affiliated to BAI form indirect membership of more than 1,00,000. The fundamental aim of the Association is to bring about all round improvements in the construction sector, while striving towards resolution of operational as well as policy level problems faced by the construction industry. This involves making efforts to obtain from policy makers and authorities, the level of attention that the construction industry deserves in view of its tremendous contribution and importance to the economy.
Sir, Construction is the second largest employer after agriculture. It employs about 30 million persons directly and 20 million indirectly. It has added 11 million workers since 2012-13. It has doubled its share in total employment from 11% in 2011-12 to nearly 20% in 2017-18. It has recorded the highest growth rate in employment in the last two decades.
Sir, I personally and on behalf of Members of Builders’ Association of India (BAI) heartily congratulate you for your thumbing majority achieved during the recent LokSabha elections. It not only shows your leadership quality but also an acknowledgement by the masses to your vision of a new India.
Sir, Cement is one of the major construction materials used in all segments of Construction Industry namely, Housing (55% - 65%), Infrastructure (15% - 25%), Commercial and Industrial Construction (10% - 15%), and Industry (5% 15%). There is no consumer other than Construction Industry for cement.
Sir, Construction is an important constituent of every BUILDERS' ASSOCIATION OF INDIA
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For the past 2 – 3 years, the growth of Construction Industry is ranging between 1% - 2%, which means that additional demand of cement from Construction Industry is nominal.
NCALT in its Order dated 25 th July 2018 confirmed penalty. Against the NCALT Order, the Cement Manufacturers have filed appeal before the Hon’ble Supreme Court of India on 5th October 2018. The matter is admitted and pending.
Sir, however, through this letter, we would like to draw your kind attention that, Cement Manufacturers throughout the country have increased the cement price approximately by 30% to 40% per bag from the existing price without any corresponding increase either in demand or in input costs. Sir, the Construction Industry feel this cement price increase is the result of prearranged price fixing by Cement Manufacturers with profiteering purpose.
Sir, any increase of cement price will have consequential effect on the cost of housing and also will affect the infrastructure projects adversely, causing huge negative impact on the national economy. It would also render a large number of construction workers unemployed as the construction industry has no other way but to slow down or to shut down the projects. Sir, this scenario will create chaos in the whole country, resulting the good work done by the Central Government to naught.
Sir, we would like to bring to your kind notice that, in the past, Cement Manufacturers were found engaged in cartel type of arrangement for jacking up the price and the following decisions of Monopolies & Restrictive Trade Practices (MRTP) Commission and Hon’ble Competition Commission of India (CCI) will prove our points. c)
Sir, we therefore, request you to kindly look into the matter and if satisfied, may kindly appoint a high level enquiry on the reasons of abnormal cement price increase when there is neither any corresponding demand from the Construction Industry nor any substantial rise in input cost, with a view to have a long term solution to the unethical practice being followed by Cement Manufacturers. Your immediate action in the matter will not only save the employment of around 50 million construction workers, but also save the construction sector, which includes affordable housing, from imminent shutdown.
In Enquiry No.RTPE 99/1990 on 28th November 2006, Monopolies and Restrictive Trade Practices Commision directed Cement companies with ‘cease and desist order’. The Hon’ble M.R.T.P. Commission again in Enquiry No.RTPE 21/2001 decreed on 29th February 2008 observed that, “Cement companies are guilty of forming cartel and issued to cease and desist order. The M.R.T.P. Commission also directed them to file the Affidavit with effect that, they won’t do cartelization again”. Builders’ Association of India filed an application in the MRTP Commission in the year 2006,alledging the cartelization by cement companies which was registered vide No.RTPE52/2006. Consequent upon closure of the MRTP Commission, the case was transferred to Competition Commission of India (CCI). The matter was investigated by the Director General – Investigation and CCI found Shree Cement Ltd., on the basis of matter investigated under case No.RTPE-52/2006 guilty and the Competition Commission of India imposed a panelty of Rs.397.51 Crores as well as served ‘cease’ and ‘desist’noticeagainst Shree Cement Ltd. vide its order dated 30th July 2012.
Further, you may also consider recommending to appoint ‘Cement Regulatory Authority’ to rein in Cement Manufacturers from cartel as it has appointed various Regulatory Authorities: (e) Security Exchange Board of India (SEBI) in 1992 for stock markets. (f) Telcom Regulatory Authority of India (TRAI) in 1997 for Telecom Sector. (g) Insurance Regulatory & Development Authority of India (IRDAI) for Insurance Sector in 1999. (h) Real Estate Regulatory Authority (RERA) in 2016 for Real Estate Sector. We are too eager to explain the matter to you in person, if you kindly grant us an audience at any place and time suiting to your goodself.
d) On 20th June 2012, the Hon’ble Competition Commission of India in case No.29/2010 filed by BAI, conclusively found the existence of cartel arrangement amongst the Cement Manufacturers resulting the manipulation of sale price of cement, and imposed a penalty of Rs.6,307.32 Crore on 10 Cement Manufacturers plus Cement Manufacturers Association (CMA) and also issued ‘cease and desist order’. Against this order, the Cement Manufacturers have appealed before the Hon’ble NCALT and
BUILDERS' ASSOCIATION OF INDIA
Thanking you, Yours faithfully,
SACHIN CHANDRA PRESIDENT BUILDERS’ ASSOCIATION OF INDIA
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Labour Law Matters (i) ESIC Matter – BAI’s efforts pays off…..
May 2018 and ordered notices to be issued to the Respondents (ESIC Department).
On 31st July 2015, the ESIC Department issued a Circular covering the construction site workers in the provisions of ESIC Act from 1st August 2015. Immediately on this, BAI swung into action by filing Writ Petitions at various High Courts. As of now on ESIC matter, BAI have Stay Orders at the Hon’ble High Courts at Madurai, Hyderabad, Gujarat, Karnataka, Allahabad, Delhi and Rajasthan.
It was a very big day for Builders’ Association of India in the Supreme Court. On 6th July 2018, Supreme Court of India heard the arguments and passed a Stay Order on the orders of the Bombay High Court at Goa dated 14th March 2017 passed in W.P.No.846 of 2016 as well as the Circular dated 31 st July 2015 of the Employees State Insurance Corporation until further orders. The stay order of Supreme was a big relief for the contractor fraternity and forced the ESIC to issue Circular No.T.11/13/11/03/ 2015 Rev.II dated 26.09.2018 to All RDs/Directors/JD Incharge/Regional Office/SROd/DO, on the subject of Extension of ESI Scheme to Construction Site Workers and clarifying the positions to all officials responsible for extension of ESI Scheme “that no ESI contribution may be collected from the construction site workers and from their employers during the period of stay order by Hon’ble Supreme Court and also no benefits could be extended to such workers during the corresponding benefit period.”
In the meantime, Confederation of Real Estate Developers Association of India (CREDAI) filed a Writ Petition on ESIC before a Double Bench of Goa Bench of Bombay High Court and it was dismissed by the Bench making it compulsory for construction site workers also covered in the ESIC Scheme. As CREDAI did not filed a Review Petition on the matter, BAI’s various Stay Orders pending on ESIC matter at different Hon’ble High Courts, were to be vacated by the ESIC Department insistence on following the precedent of the Double Bench decision of Bombay High Court. To avoid this serious situation, on the advice of Senior Advocate, Shri Gopal Jain, BAI filed Special Leave Petition (SLP) 13351/2018, as an aggrieved party’ before the Hon’ble Supreme Court. This matter admitted by the Hon’ble Supreme Court of India on 7th
Copy of the Stay Order issued by the Hon’ble Supreme Court of India and ESIC Circular are given hereunder :
ITEM NO.59 COURT NO.2 SECTION IX SUPREMECOURTOFINDIA RECORD OF PROCEEDINGS PETITION(S) FOR SPECIAL LEAVE TO APPEAL (C) NO(S). 13351/2018 (ARISING OUT OF IMPUGNED FINAL JUDGMENT AND ORDER DATED 14-03-2017 IN WP NO. 846/2016 PASSED BY THE HIGH COURT OF JUDICATURE AT BOMBAY AT GOA) BUILDERS ASSOCIATION OF INDIA PETITIONER(S) VERSUS THE EMPLOYEES STATE INSURANCE CORPORATION & ORS. RESPONDENT(S) UPON hearing the counsel the Court made the following ORDER
Date : 06-07-2018 This petition was called on for hearing today. CORAM : HON’BLE MR. JUSTICE RANJAN GOGOI HON’BLE MR. JUSTICE S. ABDUL NAZEER
Upon hearing the learned counsels for the parties and taking into account the orders passed by several High Courts in respect of the same subject matter, we are of the view that an interim order would be justified in the facts of the present case. Accordingly, the order of the Bombay High Court at Goa dated 14th March 2017 passed in W.P. No. 846 of 2016 as also the Circular dated 31st July, 2015 of the Employees State Insurance Corporation shall remain stayed until further orders.
For Petitioner(s) Mr. Gopal Jain, Sr. Adv. Mr. Jose Abraham, AOR Ms. Prashanti, Adv. Mr. M.P. Srivignesh, Adv. Mr. B. Mathews, Adv. Ms. Neema Noor Mohamed, Adv. For Respondent(s) Mr. Rajeev Shukla, Adv. Ms. Shivani Kapoor, Adv. Mr. Lakshay Mangla, Adv. Mr. Prakash Ranjan Nayak, AOR
BUILDERS' ASSOCIATION OF INDIA
[VINOD LAKHINA] AR-cum-PS
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[ASHA SONI] BRANCH OFF
79h Annual Report and Accounts – 2019-2020
EMPLOYEES STATE INSURANCE CORPORATION PANCHDEEP BHAWAN, C.I.G. ROAD NEW DELHI - 110 002 Ph : (011) 23234092 ESIC...Chinta se Mukti No.T.11/13/11/03/2015 Rev.H
Dated : 26.09.2018
To, All RDs/Director/JD Incharge Regional Office/SROs, /DO Sub: Extension of the EST Scheme to Construction Site Workers-reg. Consequently, references have been received on the following points:
Sir, ESIC vide its Order dt.31.07.2015 had issued instructions regarding extension of EST Scheme to construction site workers through which site workers of construction companies were also to be covered under ESI Scheme.
During the stay period whether ESIC contribution may be collected or not in respect of construction site workers. During this period of nonpayment of contribution if any claim for benefit comes in notice of ESIC for construction site workers whether the same is to be accepted or not.
CREDAI and Several Builders filed Writ Petition No.846 of 2016 in the High. Court of Bombay at Goa challenging ESIC order dated 31.07.2015. The Hon'ble High Court dismissed the writ petition of CREDAI and others vide its order dated 14.03.2017
In view of above, it is clarified that no ESI contribution may be collected from the construction site workers and from their employers during the period of stay order by Hon'ble Supreme Court and also no benefits could be extended to such workers during the corresponding benefit period.
The Builder Association of India challenged the extension of ESI Scheme to construction site workers before Hon'ble Supreme Court of India vide SLP No.13351/2018.
This issues with the approval of the Director General.
Hon'ble Supreme Court of India vide its order dt.06.07.2018 has ordered that "an interim order would be justified in the facts of the present case. Accordingly, the order of the Bombay High Court at Goa dated 14th March 2017 passed in W.P. No. 846 of 2016 as also the Circular dated 31' July, 2015 of the ESIC shall remain stayed until further orders."
Yours faithfully (Mohit Raja) Dy. Director (REV.)
Copy to : Website Manager to upload.
BAI representation on ESIC Matter Ref: 628/N/2019-20 dated November 18, 2019 To: All Managing Committee and General Council Members of BAI Chairmen and Office Bearers of all BAI Centres. Dear Sirs,
Sub: ESIC & PF Notifications. by the proviso to sub-section (3) of section 1 of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952), the Central Government hereby extends the provisions of the said Act to apply to the establishments, employing ten or more persons and covered under the provisions of the erstwhile the Jammu and Kashmir
With reference to the above, please find attached herewith the following Notification No.3570 dated 31st October 2019, received from ESIC & EPF Department :(1)
On PF Matter. S.O.3962(E). ----In exercise of the powers conferred
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Employees’ Provident Funds and Miscellaneous Provisions Act, 1961 (XV of 1961), as it stood before its repeal by the Jammu and Kashmir Reorganization Act, 2019 (34 of 2019) , with effect from the 1st day of January, 2020. (2)
¾
Employee will have to collect their Biometric ESI Permanent Card from nearest Branch Office.
¾
Contribution against employee must be deposited within the due date. You shall not be able to deposit contribution online after 42 days from the end date of the contribution period.
On ESIC Matter:
Example : Payment of April – September cannot be deposited after 11th November, and Payment of October – March cannot be deposited after 11th May.
The Government of India in its pursuit of expanding the Social Secutiry Coverage to more and more people started a programme of special registration of employers and employees from December 2016 to June 2017 and also decided to extend the coverage of the scheme to all the districts in the country in a phased manner. The wage ceiling of coverage was also enhanced from Rs.15,000/- per month to Rs.21,000/- from 01.01.2017.
¾
Employee whose per day salary is Rs.176/- or less need not to pay Employee’s contribution and the same will be paid by Government. However, Employer will have to pay their share of contribution.
Changes in ESIC with effect from 1st October, 2019:
The above is for kind information and record.
Employers’ Share : 3.25%
Thanking you, Yours faithfully,
Employees’ Share: 0.75% ¾
Employees must be registered online on the date of appointment; the online system shall allow maximum 10 days to register the new employee. RAJU JOHN Executive Secretary Builders’ Association of India
Example – If Employee joins on 1st, the registration must be done by 10th else system will not accept it. If you register on 25th of month, Date of joining cannot be before 16th.
MINISTRY OF LABOUR AND EMPLOYMENT NOTIFICATION New Delhi, the 31st October, 2019 S.O.3962(E). ----In exercise of the powers conferred by the proviso to sub-section (3) of section 1 of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 BUILDERS' ASSOCIATION OF INDIA
(19 of 1952) , the Central Government hereby extends the provisions of the said Act to apply to the establishments, employing ten or more persons and covered under the 61
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provisions of the erstwhile the Jammu and Kashmir Employees' Provident Funds and Miscellaneous Provisions Act, 1961 (XV of 1961), as it stood before its repeal by the Jammu and Kashmir Reorganization Act,
2019 (34 of 2019) , with effect from the 1st day of January, 2020. (F.No.R.11011/02/2019-SS-II) R.K. GUPTA. Jt.Secy.
Changes in ESIC/ESI w.e.f. 1st October, 2019 Current ESIC contribution Rate:
The ESI Act 1948, encompasses certain health related eventualities that the workers are generally exposed to; such as sickness, maternity, temporary or permanent disablement, Occupational disease or death due to employment injury, resulting in loss of wages or earning capacity-total or partial. Social security provision made in the Act to counterbalance or negate the resulting physical or financial distress in such contingencies, are thus, aimed at upholding human dignity in times of crises through protection from deprivation, destitution and social degradation while enabling the society the retention and continuity of a socially useful and productive manpower.
Employers' share: 3.25% Employees share: 0.75% Changes in ESIC with effect from 1st October, 2019 ¾
Example - If Employee joins on 1st, then registration must be done by 10th else system will not accept it. If you register on 25th of month, Date of joining cannot be before 16th.
The Employees' State Insurance Act 1948 (the ESI Act) provides for medical, cash, maternity, disability and dependent benefits to the Insured Persons under the Act. The ESI Act is administered by Employees' State Insurance Corporation (ESIC). Benefits provided under the ESI Act are funded by the contributions made by the employers and the employees. The Government of India in its pursuit of expanding the Social Security Coverage to more and more people started a programme of special registration of employers and employees from December, 2016 to June, 2017 and also decided to extend the coverage of the scheme to all the districts in the country in a phased manner. The wage ceiling of coverage was also enhanced from Rs. 15,000/per month to Rs. 21,000/- from 01.01.2017.
BUILDERS' ASSOCIATION OF INDIA
Employees must be registered online on the date of appointment; the online system shall allow maximum 10 days to register the new employee.
¾
Employee will have to collect their Biometric ESI Permanent Card from nearest Branch Office.
¾
Contribution against employee must be deposited within the due date. You shall not be able to deposit contribution online after 42 days from the end date of the contribution period. Example : Payment of April-September cannot be deposited after 11th November,and Payment of OctoberMarch cannot be deposited after 11th May.
¾
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Employee whose per day salary is Rs. 176/- or less need not to pay Employee's contribution and the same will be paid by Govt. However, Employer will have to pay their share of contribution.
79h Annual Report and Accounts – 2019-2020
Mr. Lal Chand Sharma, Chairman, Board of Trustees, BAI & Past President, BAI led a BAI delegation to meet Mr. Santosh Gangwar, Union Minister of State for Labour and Employment (Independent Charge) on 28th January, 2020 in New Delhi. Others in the BAI delegation included Mr. Ram Avtar, Past State Chairman, BAI Delhi; Advocate Mukundan from Kerala; Advocate Narendra Kumar from Kerala; Mr. Raju John, Executive Secretary, BAI and Mr. Satnam Singh Arora, Executive Officer, BAI Delhi Offier. The delegation handed over BAI's comments / suggestions on the Draft Labour Code on Social Security. 2019, details of which are printed herein below. Ref: 798/J/2019-20 dated January 27, 2020
Shri Santosh Kumar Gangwar Hon'ble Minister of Labour & Employment Government of India, NEW DELHI.
Respected Sir, Sub: Submission of Comments / Suggestions by BAI on the Draft Labour Code on Social Security. 2019
Respected Sir,
Builders' Association of India (BAI) would like to congratulate the Government of India in fulfilling the compilation of Labour Laws into four Codes and presenting the fourth and final Code, the Code on Social Security.
Builders' Association of India (BAI) is an apex body of Construction Industry founded in 1941, with more than 19,000 business entities as members through its 180 plus Centres (Branches) throughout the country. Regional Associations Affiliated to BAI form indirect membership of more than 1,00,000. The fundamental aim of the Association is to bring about all round improvements in the construction sector, while striving towards resolution of operational as well as policy level problems faced by the construction industry. This involves making efforts to obtain from policy makers and authorities, the level of attention that the construction industry deserves in view of its tremendous contribution and importance to the economy
We hereby submit our proposal on the subject for kind consideration. Thanking you, Yours sincerely,
NEERAV PARMAR HON. GEN. SECRETARY BUILDERS ASSOCIATION OF INDIA
Encl. :- As above Copy to : 1. Shri Bhartruhari Mahtab, Chairperson, Standing Committee on Labour. 2. Shri Kulvinder Singh, Deputy Secretary, Standing Committee on Labour.
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Code on Social Security, 2019 The Suggestions submitted by Builders Association of India (BAI) - Apex Body of Construction Industry 1.
2.
The BAI would like to congratulate the Government of India in fulfilling the compilation of Labour Laws into four Codes and presenting the fourth and final Code, the Code on Social Security. In the statement of objections and reasons in para 3 it has been stated as under:
5.
The amalgamation of the said laws will facilitate the implementation and remove the multiplicity of definition and authorities without compromising the basic concepts of welfare and benefits to workers. The proposed legislation, namely, the Code on Social Security, 2019 would facilitate the use of technology ensuring transparency and accountability leading to effective enforcement of the provisions of the proposed legislation. Widening the scope of the benefits to the fixed term employees, and facilitating ease of compliance of labour laws would be a big step towards equity and promote setting up of more enterprises thus catalysing the creation of employment opportunities. 3.
4.
7.
The Cine Workers Welfare Fund Act, 1981,
8.
The Building and Other Construction Workers Welfare Cess Act, 1996 and
9.
The Unorganised Workers' Social Security Act, 2008.
The comprehensive Social Security is actually provided by the following Acts at present. 1.
The Employees' State Insurance Act, 1948,
2.
The Employees' Provident Funds and Miscellaneous Provisions Act, 1952 and
3.
The Payment of Gratuity Act, 1972.
By extending the provisions of the above three enactments to all establishments including households irrespective of the number of employees the sections relating to the following enactments can be excluded and the Code will be more simplified. Moreover the noble concept of social security coverage to one and all will also be materialised. By providing social security to each and every employee the directive principles enshrined in our Constitution will also be met.
We appreciate the Government for the proposal to ensure compliance by use of technology rather than traditional physical inspection based often leading to corrupt practices.
6.
The proposed legislation intends to amalgamate, simplify and rationalise the relevant provisions of the following nine central labour enactments relating to Social Security namely:
7.
Once the provisions of the ESI Act is extended to all employees the provisions relating to the following Acts are no longer required. 1.
The Employee' Compensation Act, 1923 and
2.
The Maternity Benefit Act, 1961.
Once the provisions of the ESI and the EPF Act are extended to all the employees the provisions relating to the following Acts are no longer required:
1.
The Employees' Compensation Act, 1923,
2.
The Employees' State Insurance Act, 1948,
3.
The Employees' Provident Funds and Miscellaneous Provisions Act, 1952,
1.
The Cine Workers Welfare Fund Act, 1981,
4.
The Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959,
2.
The Building and Other Construction Workers Welfare Cess Act, 1996 and
5.
The Maternity Benefit Act, 1961,
3.
6.
The Payment of Gratuity Act, 1972,
The Unorganised Workers' Social Security Act, 2008.
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8.
9.
16. Compounding of offence to be permitted after 3 years interval instead of the present 5 years in section 140 and also for proceedings under section 139.
By exclusion of the Maternity Benefit Act provisions Sections 59 to 65 and Sections 68 to 72 total 13 sections) can be omitted from the Code. Section 66 Nursing Breaks and Section 67 creche facility will have to be retained since those are not covered under the sections of the ESI Act.
The Government may kindly consider the above also before enacting the legislation of the Code on Social Security.
By exclusion of the Employees' Compensation Act, the sections from 73 to 99 (total 27 sections) can be omitted from the Code.
We would like to submit a few more suggestions or modifications to the provisions contained in the Code.
10. By exclusion of the Building and other construction Workers' Welfare Cess Act the sections from 100 to 108 (total 9 sections) can be omitted.
1.
For voluntary coverage under EPF Scheme and ESI Scheme the authority to grant it has been assigned to the CPFC and the Director General of the ESIC respectively. Centralising such powers, which are not having any serious consequences, on the Chief Executives of the respective schemes would result in unwarranted delays and procedural wrangles. If an employer comes forward to extend such benefits to his employees it should be welcomed and hassle free procedure to be followed. It is suggested that such powers may be vested on the Regional Heads of each Scheme. Further for voluntary coverage a Gazette notification is to be made. At present for a voluntary coverage under Section 1(4) of the existing EPF Act inordinate delay is happening for such cumbersome formalities. It is, therefore, suggested that the word 'by notification' appearing in both the above Sections may kindly be deleted.
11. By exclusion of the Un-organised Workers' Social Security Act the sections from 109 to 114 (total 6 sections) can be omitted besides section 6 and 7 from the Code. 12. By the above exercise the total sections of 163 in the present Code can be reduced to just 104 sections. 13. The provisions of Chapter V sections 53 to 58 relates to Gratuity and the employer is liable to pay the same on discharge of an employee. At present the liability is with the employer and provisions are made at section 57 to obtain an Insurance. Instead of this on each payment of wages a portion say 0.02 percentage to be collected towards gratuity from employers and entrust to existing EPF Board for its payment with accrued interest on it by invoking section 149 of the Code on superannuation or on death whichever is earlier or on happening any other event as may be notified by Central Government. This process will absolve the employers' liability at the time of termination and also ensure the employees the gratuity even if the establishment is in existence or not at the time of their exit from employment.
2. Chapter III, Section 15(1)(b)(i) At present under the EPF Pension Scheme, there are provisions for Early Pension (to those who have completed 10 years service and attained the age of 50) and for Nominee Pension. In clause (i) and in (ii) Early Pension and Nominee Pension may be added respectively.
14. The limitation of assessment to be made under section 125 is to be restricted to two years instead of five years since technology based assessment is possible on default on year to year basis. This will ensure speedy recovery of arrears and avoid accumulation of liability to employer.
3. Section 16 Under this Section the rates of contribution and other dues have been provided. In all other enactments like ESI Act, Gratuity Act the powers to notify the rates of contributions, wage ceiling etc. have been delegated to the Central Govt. This has been done to lessen the
15. The fine under section 135 is huge and to be reduced atleast by fifty percentage. BUILDERS' ASSOCIATION OF INDIA
Chapter I, Section 1(5) and 1(6)
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employees they have to be provided with opportunities to substantiate their contentions in a full fledged court of law. Under the provisions of the existing EPF Act or as per the proposed Code the employees or their dependents are not having any kind of judicial disputes redressal forum. It is suggested that there may be provision a in the proposed Code for the constitution of an EPF Court as in existence under Section 74 of the ESI Act or as provided under Section 48 of the proposed assessed code.
responsibilities of Parliament and to avoid unwarranted delays. Hence, the powers to fix the rates of contributions under EPF Scheme may be assigned to the Central Govt. as in the case of ESI Act. 4.
Chapter III, Section 20 The provision providing exclusion to CoOperative Societies appears to be irrelevant in the present economic scenario. There is no meaning in excluding the employees of the Society from the benefits provided under EPF Scheme.
5.
6.
Chapter III, Section 23
In the case of death of an employee his dependants only will be entitled to dependants benefit. But in the above clause the word dependants is not mentioned.
There may be an appeal provision within the EPFO at par with Section 45AA of the ESI Act. Further for the redressal of the disputes and grievances the Central Govt. Industrial Tribunals which are now functioning as EPF Appellate Tribunals may be assigned the powers at par with the Employees Insurance Courts as provided under Chapter VI of the ESI Act.
7.
To reduce the number of Labour Laws to the minimum.
2.
To make the provisions in each and every Labour laws uniform.
3.
To ensure Ease of doing business.
4.
To eradicate red tapism, corruption and despotism by the bureaucrats. 8.
By setting up independent Courts under EPF Act also there will be uniformity for the dispute redressal mechanism under both the EPF and ESI Schemes. At present the EPF Officers are acting as Judges on any disputes or grievances. It may be practically impossible for an employer to insist for the procedures as being done in a Court of law before a high officer of EPFO who is vested with vast powers. In the Appellate Tribunal also the employers are not having the opportunities to produce fresh documents or to examine witnesses for substantiating his contentions. In order to ensure justice to employers and BUILDERS' ASSOCIATION OF INDIA
Chapter V, Section 54A As per this clause even the absence from duty without leave (if no break in service declared) is to be treated for the purpose of calculating continuous service. This clause is highly unjustifiable. We have come across with umpteen number of instances where in casual and temporary employees have taken undue advantage by relying this provision. Employees who had left their workplace and returned after a long period are also taking advantage of this provision. Normally no employer will issue an order declaring such long period absence as break in service. It is suggested that the definition for the term continuous service as given under the existing ID Act or in the proposed IR Code may be followed in the SS Code also.
The reasons for making such a suggestion:The objectives behind the codification of Labour Laws are:1.
Chapter III, Section 42(1)(b)
Chapter VI, Section 60(2) It is advisable to authorise the Central Govt. the eligibility conditions for claiming maternity benefits. Section 60(3)- The word maximum is unwarranted. An unscruples employer may deny the benefits by misinterpreting the word maximum. Better to delete this word. Section 67(1) As per this Section an employer who is not having even a single female employee is required to maintain a creche unnecessarily.
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highly excessive. Moreover, the Courts have not being given any discretion to reduce the fine amounts.
It is suggested that the clause may be modified as 50 female employees. 9.
Chapter VII, Section 76(5)
Section 136- As per the provision to this Section a person who is already convicted by a Court repeats the same offence he shall be punishable with imprisonment for a term which may extend to 5 years but which shall not be less than two years and also be liable to fine of three lakh rupees. This provision is really draconian for the following reasons:-
Under this Section the employer is bound to reimburse the actual medical expenditure incurred by an employee towards his treatment for the injuries sustained by him. It is worth to note that EC Act is applicable even to households and small entrepreneurs. If the employee undergoes treatment for a very long period that also in a five star hospital then the expenses may be enormous. It may be crores. How a domestic employer or a small entrepreneur can meet such expenses. There was no such provision till the year 2010. Our suggestion is that there must be some provisions regulating the expenses. A ceiling for expenses is also desirable. Even under the ESI Scheme the employees are entitled to only for the medical treatment from ESI institutions as a matter of right.
1.
The tenure of imprisonment and the amount of fine are highly exorbitant and totally unjustifiable.
2.
Even for a small failure like maintenance of records or submission of returns the employer will have to undergo atleast two years imprisonment and to pay a fine of not less than three lakh rupees.
3.
It is worth to note that as per the provision to section 135 the Court for any adequate and special reasons to be recorded in the judgment., impose a sentence of imprisonment for a lesser term. In the proposed Code no such discretion is given to Courts even in exceptional circumstances. Hence, the Courts will have no option but to send an employer or his manager to jail at least for two years for a subsequent offence.
4.
It is surprising to note that even no time gap between the first offence and the second offence is provided. Thus, if an employer who was charged with a minor failure on his part had pleaded guilty and sentenced for a small fine will have to undergo imprisonment atleast for two years if a similar failure is happening after a long period of 20 or 30 years. It is suggested that the period of imprisonment and fines for the first offence and for the subsequent offences may be reduced considerably. Moreover, the provision for mandatory imprisonment and mandatory fine may be repealed. Courts may be given the discretion to reduce the period of imprisonment and fine amount in appropriate cases even for a second offence by recording the special circumstances for doing so.
10. Chapter XI, Section 122(6)(c) The inspectors have been given wide powers including power of seizure of records. At present the inspectors under the enactments like ESI, Maternity Benefit, Gratuity etc there is no such power. Conferring such powers on inspectors may lead to harassment of employers besides corruption. Section 125(3) The powers of a Court of Law have been entrusted for officers who are conducting enquiries. At present the officers under ESI Act, Gratuity Act, Maternity Benefit Act have no such powers. Conferring such powers on officers may lead to harassment of employers besides corruption. Section 131(2)(b) Arrest of the employer and his detention in prison should be in accordance with the provisions contained under Section 51(c) order 21 Rule 41 of the CPC, 1908. Otherwise even the women may be sent to jails. 11. Chapter XII The fine amounts proposed in the Code are BUILDERS' ASSOCIATION OF INDIA
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Industrial Relations Code, 2019 The Suggestions submitted by Builders Association of India (BAI) - Apex Body of Construction Industry 1.
Section 2(1)
As per section 2(oo)(bb) of the ID Act, the termination of a workman on the ground of continuous ill health will not come under the definition of retrenchment. Now it is shocking to note that in the exclusion clause termination of employment due to the continuous ill health of a worker has been omitted. As per this definition the employer will be incapable to terminate a worker even though he continues to be absent from duties for years together on medical grounds. This may create great hardships to the establishments. Employer will be prevented to appoint a new employee in his place. Moreover employer will be made liable to pay various benefits including gratuity for a long period though the employer has not derived any benefits from that worker.
In the definition given to the term ‘employee’ even the Manager is included. It is true that in the definition for worker as given in section 2 (zm), Manager has been excluded. Inclusion of Managers under the category of employees is not at all advisable. It may result in unwarranted issues in an establishment. It is worth to note that Manager has been included in the definition given for the term ‘Employer’ under Section 2(j). Thus a manger will be both employer and employee simultaneously. The inclusion of a manager under the definitions of both employer & employee may lead to unwarranted disputes. Hence, Managers may be excluded from the definition of employee. 2.
4.
Section 2(l)
Strike- as per the definition given to the term strike the striking even by a minority of workers will amount to a formal strike recognised by the Code. This is not at all advisable. A strike at least by 50% or more of the workers employed in an industry alone shall be treated as a legal strike. Otherwise a few employees may be able to upset the smooth functioning of an establishment by resorting to strikes raising some insignificant or unjustifiable issues.
Fixed Term Employment- as per this provision employer will be liable to pay Gratuity to an employee who has worked even for a short period say seven months. A minimum period of three years service may be provided as an eligibility condition for the purpose of gratuity payment. 3.
Section 2(zc) (ii) 5.
Retrenchment- As per this Section retirement of a worker on reaching the age of superannuation will not come under the term Retrenchment. But for that a condition to the effect that ‘the contract of employment between the employer and worker concerned should contain a stipulation in that behalf’ is added. That condition is unwarranted. In big industrial establishments in the contract of employment the management may incorporate such conditions. But we cannot expect small or medium establishments to be prudent enough to add such conditions in the appointment letters. The fact is that most of the establishments are not even issuing a formal appointment letter to their employees. Hence the said condition may kindly be deleted.
BUILDERS' ASSOCIATION OF INDIA
Section 2(zf)
Section 4(1) Grievance Redressal Committee- As per this Section grievances of an individual worker alone can be resolved by the committee. It will be advisable if the grievances of one or more workers are also covered under this Section.
6.
Section 4(5) The limitation period for submitting an application for the resolution of a dispute is given as three years. This three year period is too long. Better to reduce the time limit to three months from the date of cause of action.
7.
Section 4(8) This Section has incorporated a provision
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Registrar their intention to disassociate from the formation of that union. Then there will be only five genuine applicants. Still that application will be deemed as valid and the registration will be granted for such a minority union having just five members. It is suggested that this Section may be deleted altogether.
which permits even an individual worker, who is aggrieved by the decision of the Grievance Redressal Committee, to file an application for conciliation of his grievance, to the Conciliation Officer within a period of sixty days from the date of decision of Grievance Redressal Committee. As per the ID Act 1947 no individual dispute will be treated as an industrial dispute. The opportunity provided for conciliation of Individual Grievance and adjudication of that Grievance may result in the multiplicity of industrial disputes in various forums. Section 4(8) may kindly be deleted. 8.
10. Section 9(5) Under this Section two conditions have been specified for the withdrawal or cancellation of the registration of a trade union. One is upon an application made by the trade union itself and the other is the contravention of the provisions of this Code by the union. Our suggestion is that the registration of a union should be cancelled in the event of reduction in the number of members ie, 10% of total workers or 100 whichever is less. Otherwise the qualifying condition for the registration of a union will become redundant. In such a context even a single member union may be able to retain its registration. It is worth to recall that in the Trade Union Act, 1926 vide an amendment carried out in the year 2002, section 9A was inserted which made it obligatory for a union to have at least 10% membership of 100 workers whichever is less.
Section 6(2) Registration of Trade Unions- As per this Section a trade union can be registered by a minority of workers ie, just by 10% of the workers or 100 workers whichever is less. In a very large establishment having thousands of employees just a workforce of 100 can register a union. This will result in the multiplicity of trade unions in establishment leading to unhealthy confrontations among the unions and between employer and workers. Such a situation may also hamper the healthy relationship between the employer and employees. Hence it is suggested that the condition of 10% may be enhanced to 25% and the clause of minimum 100 workers may be deleted.
9.
11. Section 11(2) As per this Section the trade union shall inform the Registrar of any change in the particulars given by it in its application for registration. Our suggestion is that a trade union shall also be made liable to inform the Registrar about the reduction in the number of its members to less than 10% or hundred as the case may be.
Section 6(3) As per this Section even if some of the applicants are retracting from their applications for registration of a trade union the application will not become invalid. This is not at all justifiable. The intention of the Code is that there must be at least 10% of the workers or 100 workers whichever is less for making them eligible to apply for registration. The workers who had originally subscribed their signatures in the application for registration might have done under duress or due to misguiding by somebody. Such applicants have every right to retract. Suppose in an establishment, 10 workers out of the total 100 workers, are making an application for registration. Subsequently five of them realises that their action of signing in the application was a mistake on their part and informing the
BUILDERS' ASSOCIATION OF INDIA
12. Section14(2) Qualification to become a Negotiating Unionas per this Section if there is only one trade union in the establishment, then, the employer shall recognise such trade union as the sole negotiating union of the entire workforce. This is not only unfair but also against good conscience and equity. For example, in an establishment having thousands of employees the union having only 100 members will get the right to represent thousands of workers. That may not be in the good interest of the nonmembers which comes to more than 90% of the work force. 69
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16. Section 23
Our suggestion is that for a union to be qualified as Sole Negotiating Union it must have at least 50% membership of the total workforce.
As per this Section a union is permitted to have one third of its office bearers from outside. This is not at all advisable. Such a large number of outsiders as office bearers of a union may spoil a healthy employer employee relationship. Such outsiders are likely to have some political or vested interest. It is better to minimise the number of outsiders as not more than two.
13. Section 14(3) Support of workers on the muster rolls of the establishment The code stipulates that if more than one trade union registered under the Code are functioning in an Industrial establishment then the trade union having support of more than 75% of workers on the muster rolls of that establishment shall be recognized as sole negotiating union.
17. Section 26 This Section prescribes certain obligations for a trade union like submission of various information to the Registrar. Our suggestion is that there must be a provision in the Code which compel a trade union to submit a list of its live members to the employer every half year. Then only the employer may be able to ascertain the right of the union to take up the causes of a particular worker. The practice followed by the trade unions is to take up the so called issues of the non members also. Perhaps such non members may be even in darkness about it. Furnishing of the list of members by union may check such unhealthy practices by them.
The terminology or usage of words as muster rolls of that establishment may be changed/ modified as on the permanent rolls of that establishment. 14. Section 14(4) Negotiating Council- As per this Section a Negotiating Council consisting of the representatives of the trade unions which have the support of not less than 10% of the workers has to be constituted. Moreover, representation for such unions shall be in the ratio of one representative for each 10% of total workers. To include a minority union having just 10% of membership in the Negotiating Council is not at all advisable. That would result in the multiplicity of unions. In a small establishment say having around 50 workers the employer will have to negotiate with at least 10 representatives of workers. This cannot be appreciated. The 10% condition has to be increased at least to 20%.
18. Section 28(1) In this Section the word workers are seen omitted. That may be due to an oversight. 19. Section 30(1) as per this Section the employer is bound to prepare the draft Standing Order based on the Model Standing Order. In short the hands of employer are tied up. It is suggested that instead of the wordings “based on the model Standing Order referred to in section 29” the wordings based on the matters set out in the First Schedule may be substituted.
15. Section 22 Adjudication of disputes of Trade Unions- As per this Section disputes which are not of much importance like refusal of admission as a member of union etc. have to be adjudicated by the Tribunal. This may over burden the Tribunals with disputes leading to delay in settlement of other serious disputes. It is advisable to authorise the Registrar of Trade Unions to resolve such disputes of such minor nature.
BUILDERS' ASSOCIATION OF INDIA
20. Section 38(3) As per this section employer is liable to pay 50% of wages as subsistence allowance to a suspended worker during the first 90 days and 75% during the remaining period. Even if the worker is gainfully employed the employer will be liable to pay the allowance. This is unjustifiable. Only if the worker is not gainfully employed employer shall be made liable to pay the allowance. Further the 70
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24. Section 53 (1)
provision for 75% allowance to a worker who is suspended for a serious misconduct and not doing any work for the employer has no justification at all. The allowance shall be limited to 50% only. Further the continued payment of subsistence allowance to a suspended worker beyond 90 days of his suspension may be stopped if the completion of disciplinary proceedings against him is delayed due to his conduct.
Limitation for period for raising an Industrial Dispute- Proviso to the Schedule stipulates that Industrial Disputes which are older than 3 years shall not be considered and the Conciliation Officer shall not hold meetings on such Individual disputes. It is suggested to reduce the period of three years as one year, for raising Industrial disputes. Giving a long period of time like three years to raise an Industrial Dispute is not advisable in the interest of a healthy employer employee relationship.
21. Section 40 As per the provisio to this Section no notice to the workers is required for any change which is affected in pursuance of any settlement or award. It is suggested that in this clause the following may be also be added:- where the change is effected in pursuance of any settlement or award or orders issued by the appropriate Government.
25. Section 53(2) In the Second line after the words any right some words appears to be missing. 26. Section 55(3)(a) This clause is not much clear. It appears that this clause needs more clarity.
22. Section 49(3) and (4) As per this Section even to a conciliation officer the powers of a Civil Court have been assigned. In most of the States Labour Officers are acting as conciliation officers. The qualification to be appointed as a labour officer is only matriculation especially in the case of departmental promotion. Those officers having no judicial knowledge and background may not be competent to follow the procedures and exercise their rights judiciously. Conferring judicial powers to such officers may not yield the desired outcome and may result in the misuse of powers. He is acting only as a mediator in a dispute. Conferring the powers of a Court to a mediator may turn counter productive. They will start to impose terms as per their whims and fancies.
27. Section 56 This Section stipulates that the employer shall pay last drawn wages to a worker who is reinstated by the Tribunal, and when proceedings challenging the award of Tribunal are pending before High Court/ Supreme Court. It is quite natural that the order passed by a lower authority does not appear to be legally sound the aggrieved party may approach higher forums seeking relief. But unfortunately in many cases the dispute will have to be agitated before the Single Bench and the Division Bench of a High Court and thereafter before the Supreme Court. The normal period to have a final out come on such a dispute used to be around 20 to 25 years. The employer will be compelled to pay the last drawn wages to the worker/ workers for such a long period though he is not gaining any benefit out of such payments. Further even if the final outcome is in favour of an employer ie, the higher Court upholds the termination of a worker then also the worker has no obligation to refund the wages received by him for the period during which he had not extended any service to the employer. The only condition to make a worker eligible for the last drawn wages for such a long period is that he has to file an affidavit before the Higher Court
It is suggested that conciliation officers need not be vested with the powers of a Court. It is worth to note that in sub clause (d) the term conciliation officer is omitted. 23. Section 49(5) As per this Section Government has been authorised to appoint persons having special knowledge of the matter under consideration as an Assessor to advise the Tribunal. It is felt that the word ‘assessor’ may be renamed as subject expert. BUILDERS' ASSOCIATION OF INDIA
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Off provisions are also not applicable to an establishment which is not a factory or mine or plantation. While enacting ID Act, 1947 the intention of the Legislature was not to trouble small establishments by fastening the rigid lay off conditions on them. It was a concession to them. But as per the judgment of the Supreme Court of India in workmen of M/s Firestone Tyre and Tyre Company of India Vs. Firestone Tyre and Tyre Company of India (1976 AIR 1775) an establishment which does not attract the lay off provisions is liable to pay full wages to the workers who have been laid off. It is very clear that it was not the intention of the law makers. As per the rationale of the supreme Court an industry which attracts lay off provisions with a large number of employees is liable to pay only 50% of the wages to a worker who has been laid off. Whereas a small industry, with less than 50 employees that may be just two or three is liable to pay full wages. The absence of a provision in the ID Act which specifically excludes the small industries from the liability of lay off wages had prompted the Supreme Court to order full wages to the laid off workers of a small unit.
declaring that he is not gainfully employed. It is a matter of common knowledge that now a days a person willing to work need not remain unemployed for such a long period. Even then he will file an affidavit claiming himself as unemployed. In view of the foregoing it is suggested that A time limit say three years may be fixed for the payment of last drawn wages to a terminated worker or the date of normal retirement whichever is earlier OR The employer may be made liable to pay only half of the last drawn wages to a terminated worker OR If the above suggestion cannot be accepted this section may be modified requiring the employer to pay half wages to the terminated worker and to deposit the other half before the Court. If the final outcome from a higher Court has upholded the termination of the worker then the employer shall be refunded half monthly wages deposited by him in the Court during the litigation period. If the final outcome is in favour of worker then such deposit amounts may be released to the worker.
It is therefore suggested that -
28. Section 62 (1)(a)
an explanation may be inserted under section 69 as under:-
Strikes and Lock outs- as per this Section a trade union is required to serve a 14 days notice for a strike. This 14 days is too short. To explore the possibilities of a settlement and to avoid a strike a longer period ie, at least 21 days is required. Hence in sub section (b) instead of 14 days 21 days may be inserted.
a worker who is employed in an industrial establishment to which Sections 67, 68, 69 and 78 do not apply shall not be entitled to any lay off compensation unless otherwise provided in his contract of employment. 31. Section 66
29. Section 62(6)
As per this Section the period of service of a worker interrupted on account of sickness or authorized leave or an accident or a strike or a lock out or a cessation of work which is not due to any fault on his part shall not be treated as interruption of service. Thus it can be seen that interruptions in service due to sickness or accident which may be years together have also to be treated as the worker has actually worked for the establishment. For example, a worker after one or two months of service meets with an accident (it need not be even out of employment) or contracts a long term diseases
As per this Section employer is required to report to the Govt. the number of strike notices received by him. It appears not to be correct. Employer may be enjoined to submit attested copies of the strike notices received by him instead of merely reporting the number of notices. 30. Chapter IX- Lay Off, Retrenchment & Closure As per the provisions contained in Chapter IX and X conditions relating to Lay Off not applicable to an industrial establishment in which less than 50 workers are employed. Lay BUILDERS' ASSOCIATION OF INDIA
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completed year of service. But as per the provisio the compensation shall not exceed his average pay for three months if the undertaking is closed down on account of unavoidale circumstances beyond the control of the employer. It is seen that in the explanation given under the provisio ‘financial difficulties including financial losses’ shall not be deemed as an unavoidable circumstance beyond the control of the employer. Excluding the financial losses of an employer from the purview of unavoidable circumstances is not at all justifiable. The plunging into a deep financial crisis by the employer might have forced him to close down his undertaking. In many cases the workers may also have an active role in pushing the establishment to such a crisis which resulted in the closing down of the undertaking. Employer might have become a bankrupt. In such a circumstance it is totally unjustifiable to compel an employer for payment of full compensation to the workers as in the case of ordinary circumstances. It is, therefore, suggested that from the explanation first clause financial difficulties (including financial losses) may be omitted.
and he absents from duties for a long period. Still the employer will be required to treat such long term absence as uninterrupted service and to grant all benefits to such a worker at par with the worker who has actually served the employer without any such long break. Fastening an employer with a liability to grant benefits to a worker from whom he has not received any service is highly unjustifiable. It is worth to note that for the computation of 240 days the number of days on which a worker has worked shall include only those days during which he has been absent due to temporary disablement caused by an employment related accident. But as per the main clause the accident need not be even employment related. It is suggested that the words “sickness or an accident” may be deleted from Section 66. 32. Section 69. As per this section employer is not required to pay lay off compensation to a worker who has been laid off under certain circumstances. The following clause may also be added.
35. Section 75(4)
If such laying off is due to shortage of power or due to natural calamity.
If an undertaking set up for the construction of buildings, bridges, roads etc. is closed down on account of completion of the work within two years from the date of setup, no worker shall be entitled to any compensation. If the construction activity is completed after two years then employer will be liable to pay closure compensation. This two year period is too short. This two year period may be enhanced to five years.
33. Section 70 (b). As per this Section, compensation to a retrenched worker to be paid at the time of retrenchment. A similar clause in the I.D Act has been causing great hardships to the employers. The Courts have declared many retrenchments as illegal resulting in the reinstatement of workers only for reason that compensation was not paid simultaneously. Even one or two days delay has rendered retrenchments illegal which was otherwise legal and justifiable in all respects. Hence the sub clause (b) may be modified as “the worker has been paid, within 30 days compensation from the date of retrenchment”. In the 3rd line, after the word Appropriate Government the words whichever is higher may be inserted.
36. Chapter X As per the provisions contained in this Chapter the employer of an industrial establishment with 100 workers is not permitted to lay off his workers, to retrench his workers or to close down his industry without prior permission from the Government. Stringent punishments including imprisonment of the employer have also been provided for any failure on his part to comply with the above requirements.
34. Section 75 As per Section 75(1) where the undertaking is closed down every worker be entitled to compensation ie, 15 days wages for every
BUILDERS' ASSOCIATION OF INDIA
37. Section 78 Permission for Lay Off The employer will be prepared to declare layoff 73
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letter employer is unlikely to incorporate such a condition. Hence the condition ‘if there is an agreement to that effect between the worker and the employer’ may be deleted from the provisio. Further this provisio has not been incorporated for the industries to which Chapter X applies. It is suggested that this provisio may also be added under section 78(1).
only in unavoidable circumstances like break down of machinery, shortage of raw materials etc. If layoff is declared he will be liable to pay layoff compensation (half salary) to the workers who are laid off. It is worth to note that the employer is forced to make such payments even though he is not receiving any service from such workers. It has also been provided that before granting permission for a layoff the Govt. has to undergo various procedures like issuance of notices to all necessary parties and conducting hearings. Normally, the employer will be required to declare a layoff in an emergency situation. How he can declare a layoff after obtaining prior permission from the Govt for which it has to complete cumbersome procedures as stated above. Practically employers will be prevented from declaring a layoff and he will be forced to pay full wages to the workers from whom he has not received any service. It is, therefore, suggested that the condition of prior permission to declare a layoff as provided under Section 78 may be kindly deleted. If this suggestion is not acceptable then the provision for prior permission may be modified as to apply for approval within one month after the lay off period is over. Then if the Govt. refuses to approve a layoff then the employer will be held liable to pay the full wages for the lay off period. By this way also the purpose of this section can be fulfilled.
38. Section 79 Prior permission for Retrenchment As per this section no worker shall be retrenched unless he has been paid three months notice and compensation at the rate of 15 days for every year of completed service. This three months period is too long. This may kindly be reduced to one month. Then the condition that for a retrenchment of worker prior permission from the Govt is required has no justification at all. Our experience is that the Govt. may not grant permission for retrenchment of workers owing to various factors including political considerations. Hence it is suggested that the requirement of prior permission from the Govt. for the retrenchment of a worker may kindly be omitted. As per Section 79(7) the retrenchment of a workman without prior permission from the Govt. shall be deemed to be illegal and the worker shall be entitled to all the benefits as if he was not served any retrenchment notice. This provision is very rigid. Normally a dispute regarding the validity of retrenchment may come to a finality after a long period of litigations in various Courts. In such circumstances the employer will be fastened with obligations not only to reinstate the retrenched workers but also to pay huge amounts towards their wage arrears and other benefits. As such the Courts of Law may be given a discretion to award a reasonable amount as compensation to the retrenched worker which will serve the interests of justice.
The provisio to section 67 provides that it will be lawful for an employer to retrench a worker who has been laid off for more than 45 days in a calendar year and when he does so any compensation paid to a worker for having laid off during the preceding 12 months may be set off against the compensation payable for retrenchment. This provisio is not made applicable to the establishments coming under Chapter X. This provisio may be made applicable to the establishments coming under Chapter X also.
39. Section 80 Closure
As per the provisio to this section if a worker is laid off for more than 45 days during any period of 12 months no compensation shall be payable to him if there is an agreement to that effect between the worker and the employer. Normally no employer will have any contract of employment. Even if there is an appointment
BUILDERS' ASSOCIATION OF INDIA
As per this section an employer who intends to close down his undertaking shall apply for prior permission at least 90 days before the intended date of closure. Copies of this application have to be served on the workers also. It is a matter of common knowledge that
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establishment on account of heavy financial losses. While effecting retrenchment of workers or closure of establishment the employer will have to organise huge amounts towards the retrenchment compensation, closure compensation, gratuity etc. payable to the workers involved. Normally an entrepreneur who is forced to close down his industry will be settling such dues by selling even his residential properties. In such a circumstance fastening an employer by imposing additional contributions of huge amounts to the Skill Development Fund is highly objectionable. We welcome the proposal of Govt. to setup a Fund for the re skilling of workers who lost their employment on account of retrenchment or the closure of the industry. But our request is that the employers who are already in financial crisis on account of closure / retrenchment may not be saddled with any additional liability towards this Fund.
no employer will think of closing down his establishment unless there are some genuine and unavoidable reasons. It will be a matter of great mental pain and stress for an employer to close down his industry. To insist for some cumbersome procedures like obtaining prior permission to close down an industry owned by an employer has no justification at all. As such the condition as provided under Section 80 that the employer has to obtain prior permission for the closure of his industry may kindly be omitted. The rigid conditions for the retrenchment and lay off of a workman and the closure of a unit are made applicable to the establishments having 100 or more workers. It is worth to note that the second Labour Commission had recommended to enhance the said limit of 100 to 1000. The Ministry of Labour was also aggrievable to that recommendation. But it appears that under pressure from the trade unions the Ministry has drafted the Code retaining the bench mark of 100 for the applicability of Chapter X.
41. Chapter XIII- Offences and Penalties We are shocked to learn that the penalties proposed in the Code for the failures which may cause on the part of an employer in complying with the provisions are draconian in nature. It is all the more astounding to see that in many cases imposition of huge amounts have been provided as mandatory. Thus even the Courts of Law will have no discretion to reduce the fine amounts below such mandatory amounts. For example, under section 86 fine of rupees 10 Lakhs for first offence and fine of 20 Lakh rupees for second offence are provided. Even for violations of minor nature fines upto four Lakh and five Lakh are provided besides imprisonment for a term of six months. This is not at all in tune with the Ease of Doing Business propounded by the Govt. of India. Such hectic punishments may lead to wide spread harassment and corruption from the part of unscrupulous bureaucrats. It is, therefore, requested that the punishments provided in the Code may be reduced to a considerable extent.
As per Section 80(6) the closure of an establishment without prior permission from the Govt. shall be deemed to be illegal and the worker shall be entitled to all the benefits as if the industry had not been closed down. This provision is very rigid. Normally a dispute regarding the validity of a closure may come to a finality after long period of litigations in various Courts. In such circumstances the employer will be fastened with obligations to pay huge amounts towards their wage arrears and other benefits. As such the Courts of Law may be given discretion to award a reasonable amount as compensation to the workers involved which will serve the interests of justice. 40. Section 83 Re-skilling Fund Section 83 of the Code prescribes about setting up of a fund to be called the worker Re-skilling fund. It is shocking to note that the Govt. want to impose an additional burden on establishments by making them liable to pay fifteen days wages of the workers who have been retrenched and who have lost employment on account of the closure of his establishment to the fund. An employer will normally be forced to close down his BUILDERS' ASSOCIATION OF INDIA
42. Chapter XIV As per Section 90 where an industrial dispute pertaining to an establishment is already pending before a Conciliation Officer or an
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43. Section 94(1)
Arbitrator or a Court no employer shall in regard to any misconduct connected with dispute, punish a worker without the express permission in writing of the authorities before which the proceeding is pending. Such a rigid provision may disable an employer from initiating any disciplinary actions against a worker even if he had committed an offence of serious nature. It is, therefore, suggested that instead of the requirement of obtaining prior permission for such actions an employer may be permitted to execute such disciplinary actions on condition that he should obtain an approval for such actions as provided under sub- section 2(b).
BUILDERS' ASSOCIATION OF INDIA
As per this section a worker is entitled to be represented in any proceedings by any member of executive or other office bearer of his union. Whereas under sub- section 2 an employer is entitled to be represented only by an officer of his association. It is suggested that as in the case of workers the employers also may be permitted to represent them in any proceedings by any member of executive or other office bearer or officer of an association in which he is a member.
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(ii)
Provident Fund Matter
the Department has enormous power to levy heavy penalty on the Employer. For instance, not only the Department can freeze the Bank Account of the Contractor, but it can also even collect the amount directly from the Creditors of the Contractor towards P.F. contribution for and on behalf of workers.
Coverage of casual and temporary construction site worker is a contentious issue between Contractors and EPF Authorities for a long time. Builders’ Association of India (BAI) have filed Writ Petitions at various Hon’ble High Courts, challenging the very applicability of the provisions of the EPF Act, insisting to cover the construction site workers from day one. BAI have also represented the matter to the Authorities emphasising about the difficulty of covering the daily workers in the P.F. coverage due to their peripatetic nature. Both the above measures have resulted in limited success.
Against the retrospective levy of EPF contribution, BAI and many of its members have appealed before the EPF Tribunal, High Courts and Supreme Court and received favourable orders to the effect that, ‘PF contribution is not a Cess, but a saving to the worker and therefore, deduction should be made when the worker could be identified, so that he could avail the benefits’.
Though the Department as well as the Court realises the practical difficulty of covering the daily workers in the E.P.F. Scheme, who generally work only for a limited period, even for 1 day, have not offered any solution to clear the situation. Many a times, the EPF Department have taken an aggressive stand against the Employer by levying 25% of the labour components from the Balance Sheet with interest and penalty resulting huge financial crisis to the Business as a whole. Notice from the EPF Authorities on demand of contribution for past period, have instilled fear and panic amongst the contractors as
In this regard, BAI Headquarter have compiled a few Court Orders as mentined below, these Orders are not a blanket permission for not to cover the casual and temporary construction site workers in the EPF Scheme, but to notify your right to not to fall into the coercive methods adopted by the Departments, to levy of EPF contribution of past liabilities from percentage of the labour components mentioned in the Books of Accounts, without identifying the workers on whose behalf these deductions are effected..
Chronology of events in respect of The Employees’ Provident Fund and Miscellaneous Provisions Act, 1952. S.No
Date
Events
1.
4/3/1952
2.
31/10/1980
The Act has come into force in whole of India except State of Jammu & Kashmir. Central Government by Notification No. G.S.R. 1069 dated 23.9.1980 published in official gazette at India, Part-II, 5.3(I) dated 11.10.1980, page 2200 made applicable the provision of this Act to Building & Construction Industry. The qualifying period of employment for applicability of the scheme to employee was 240 days later on was reduced to 180 days and the establishment having 20 or more persons.
3.
16/1/1981
Government issued G.S.R. No.130 effective from 31.1.1981 wherein eligibility criteria U/ s.26 is reduced to 90 days continuous service or has actually worked for not less than 60 days within a period of three months to become member of fund.
4.
7/2/1985
Government of India in Ministry of Labour, vide Resolution No.R-43011/2/82-RW has appointed a Tripartite Working Group consisting of Government Officers, Employers’ representative (BAI is one of the members) and representative of employees reference was to:1)
Identify specific difficulties of Construction Industry in implementing Provident Fund Scheme, ESIS, Gratuity Scheme.
2)
To work out type of social security measures to be formulated for construction workers.
5.
21/3/1988
B.A.I. by it’s application No.2385/F/88 addressed to the Secretary, Ministry of Labour, Government of India, U/s.19A of E.P.F. Act requested him to remove difficulties in implementation of the Act in view of temporary and casual workers and seasonal works of Industry.
6.
31/1/1990
The Tripartite Working Group submitted final report to Government stating that extension of social and security benefit to Building & Construction Industry, including E.P.F. were necessary. However, in view of the difference of opinion within the group alternatives
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Events regarding the function of proposed Construction Labour Board for administering social security were left for consideration of Government.
7.
19/10/1990
Government issued G.S.R. No.689 amended para 26, wherein eligibility criteria is reduced to date of joining the factory or establishment.
8.
26/8/1991
Central Provident Fund Commissioner issued circular No.12/Misc/91/E-I. After consulting Ministry of Law, Government of India and directed all Regional Provident Fund Commissioners not give effect to part of para 26 of E.P.F. Scheme 1952 to ensure uniformity of treatment. This was in view of stay orders granted various High Courts.
9.
9/3/1992
Piyarelal Hari Singh & Others filed Civil Writ Petition No.792 of 1991 challenging para 26(2) of E.P.F. Scheme. In Civil Motion Hon’ble High Court Delhi wanted to know from P.F. Department whether they have a scheme under which a peripatetic labour would be in a position to know balance in his account and draw money from his account anywhere in the country.
10.
19/5/1992
Shri K.C. Jain filed Additional Affidavit with revised accounting procedure having a pass book to be given to each beneficiary with ten digit permanent account number in Civil Writ Petition No.792 of 1991. Hon’ble High Court by it’s order stated that, “we have perused scheme and we have our apprehension about the same only with regard one aspect viz. whether it will be easy or convenient for the workers to be able to realise the amount due to them. …………………….. Therefore, every effort should be made to see that the scheme is made workable and will be lesser evil if worker obtain their money before it would ordinarily be due to them rather than workman losing the money in toto. …………………………… All the aforesaid suggestions should again be examined by the Board and a detailed scheme be made available to the Court on 8th July 1992 for final disposal”.
11.
9/7/1992
E.P.F.O. inserted para 40A to E.P.F. Scheme 1952 under which every Employee was to be provided pass book effective from the date to be stipulated by C.P.F.C.
12.
14/10/1992
Legal Adviser to the Ministry of Labour, Government of India passed preliminary order in the matter of application filed by B.A.I. U/s.19A of the Act, as under:-1) Objections is raised by Central Provident Fund Commissioner that relief sought by BAI is not covered by items provided U/s.19A of the Act.2) BAI has no locus standi. 3) The question of implementing the Act in respect of temporary or casual employees is subjudice. All substance and the No.3 on the ground of there being no stay granted by Supreme Court.
13.
28/10/1992
Hon’ble Delhi High Court passed order in Civil Writ Petition No.792 of 1991 that, “Additional affidavits has been filed by the respondents. Some of the suggestions made by this Court have been accepted including the one operated upon, then without any formal application the amount standing to the credit of employee will be remitted to him by the P.F. Department by money order”. …………………………………. Interim order to continue subject to the condition that with effect from 1.11.1992, the Petitioners shall maintain a P.F. account of all the employee as per the Notification of 1990 and shall furnish regular statements to P.F. Authorities as required by law. Counsel for the Petitioners have undertaken to this Court that as and when the Court orders, the contribution of the Employers as per the said statement will be handed over to P.F. Authorities or such other authority as may be directed by the Court.
14.
31/12/1992
Writ Petition No.6963 filed by Udipi Manorama Lodge & 3 others V/s. R.P.F. Visakhapatnam & Union of India challenging procedural part of legal requirement part of para 26 and parliament did not approve Notification U/s.7. Court ordered that there are no legal requirement and notification was placed before Lok Sabha on 7.1.1991.
15.
8/2/1994
Legal Adviser to the Ministry of Labour, Government of India gave order in petition filed by B.A.I. U/s.19A of E.P.F. Act in which respondents were Central Provident Fund Commissioner and Secretary of All India Construction Workers Union. The question considered by him was whether “the workers employed at the work site of Construction Industry are “employee” as defined U/s.2 or not ? The order states “Employee within terms of definitions is that he should be employed for wages in or in connection with work of the establishment”. “The workers employed for wages necessarily enjoins some
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Events sort of contract of service. In other words there must be a Master and Servant relationship, a contractor postulated by section 2 (f) is purely a Labour Contractor and not an independent contractor undertaking to deliver a finished product to the establishment and who for the purpose of manufacturing/production/building such a finished product, engaged a labour for his own purpose”. In such a situation, the employee working under direct control of sub-contractor, thekedar cannot be held to be employees under the principle employer for attracting provision of the Act”.The casual workers of the nature discussed above are not covered in the definition of employee and the scheme, find support from the decision of the Orissa High Court in Executive Engineer, National Highway Division, Balasore V/s. Regional Provident Fund Commissioner (1988 Lab IC 690) as well as of the Karnataka High Court in Jyothi Home Industries & Others V/s. R.P.F.C. & Others (1993 II LIN 146).The matter is disposed of accordingly.
16.
31/8/1994
M.P. High Court at Jabalpur in it’s order in Writ Petition No.3030 of 1991 filed by J.P. Tobacco Product Ltd. V/s. Regional Provident Fund Commissioner challenging the contention that : 1)
The amendment to para 26(2) of scheme is invalid for non compliance of 5.7 (2) of the Act.
2)
The compulsory contribution amounts to denial of minimum wages.
3)
The amendment is impractical and unworkable.
4)
The amendment is ultra vires of the Act and Article in and Article 19 (I)(9) of Constitution. Court observed that para 26(2) of the scheme is legal, valid and constitutional.
17.
23/12/1994
Being aggrieved against the order passed by the Legal Adviser, Ministry of Labour, Govt. of India, U/s.19A of the Act, the Employees’ Provident Fund Organisation through Central Provident Fund Commissioner brought to the notice of Jt. Secretary to Central Government, difficulties arising out of this order which is contrary to the provision of the Act and Scheme. They required to review the order. The arguments put forward by BAI was that any order passed U/s.19A by a competent Authority who has been delegated authority to exercise power does not provided for any review and the order is final and as such this hearing is without jurisdiction. The mere reading of section 19A itself gives powers to Central Government for review reconsideration or setting aside of orders in the event of difficulties in implementation of the Act. Jt. Secretary to the Government of India, Ministry of Labour, passed order canceling the earlier order passed by the Legal Adviser on 8.2.1994 and directed the Employees’ Provident Fund Organisation to enforce the provision of the Act applying it to employees of Building & Construction Industry as per Section 2(F) and Notification dated 11.10.1980. This order was issued with approval of Minister of State of Labour.
18.
17/4/1995
Supreme Court in it’s order in SLP No.21762/94 and 6475/95 and 21149/94 arising out of judgment and order of M.P. High Court dated 31.8.1994 in the matter of J.P. Tobacco Product V/s. Union of India observed that the question before High Court was whether amended para 26 (2) of E.P.F. Scheme was invalid and unconstitutional. The High Court answered the question in the negative, we see no ground to interfere with impugned judgment. We agree with the reasoning and consequences reached by High Court SLP’s are dismissed.
19.
24/4/1995
B.A.I. filed writ petition in Rajasthan High Court bearing No.1570195 of 1995 seeking for decision. 1)
Whether workers engaged at work sites on daily wages and on purely casual, temporary and mobile are covered in the scheme.
2)
Whether in Building & Construction Industry where they are carried out in multitier system, there is relationship of employer and employee between the main contractor and workers, casual, temporary and mobile engaged at sites.
3)
Whether in absence of relationship of employer and employee between the main contractors are liable to follow the scheme even in respect of those workers.In addition
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Events challenge is to amendment to clause 26(2) of the scheme. This writ is admitted and notices to various authorities are given before hearing of Notice of motion.
20.
2/5/1995
Order of Division Bench of Delhi High Court in C.M. No.2921/1994 in Writ Petition No.792/ 1991 filed on 9.3.1992 challenging para 26(2) of P.F. Scheme that, “We however direct Respondent No.1 & 2 complying with modified scheme, the Petitioners shall deduct Provident Fund and deposit the same with Respondent No.1 & 2 in respect of casual workers also”.
21.
28/6/1995
Central Provident Fund Commissioner issued circular No.12(Misc)/91/E-1 to all Regional Provident Fund Commissioners stating Supreme Court’s order dated 17.4.1995 and requesting compliance of scheme under amended para 26 of E.P.F. Scheme for current period effective from 1.5.1995. It further states that as regards past period the matter is under consideration with Central Government and further communication will follow.
22.
7/3/1996
In Writ Petition No.6542 of 1996 and 6543 of 1996 in Bangalore High Court filed by Bhandari Builders, B.G. Shirke Construction Pvt. Ltd., & B.A.I. v/s. Central Provident Fund Commissioner, R.P.F. Commissioner & Union of India requesting Court to declare Para 26221 of E.P.F. Scheme illegal and unconstitutional and ultra vires tax provision of E.P.F. Act since it is unworkable and impracticable Court admitted writ and granted stay for four weeks which was further extended by Court till further orders by order dated 3.4.1996.
23.
19/9/1996
Final Order of Division Bench of Delhi High Court in Piyarelal Hari Singh & Others and connected Writ Petitions vs. Union of India in C.W.P. No.792 of 1991. Held that ipso-facto, the Government Notification dated 19.11.1990 amending para 26 of the scheme shall not apply to casual workers as identified by Supreme Court in case of The Regional Provident Fund Commissioner vs. T.S. Hariharan. However, Branch stated that which casual worker is covered by the scheme and the Act will be a question of determination in facts and circumstances of each case.Mr. Nayyar appearing for the Petitioners brought to our notice additional affidavit filed on behalf of respondent by Shri R.C. Jain, Regional Provident Fund Commissioner, New Delhi, dated 26th November 1991. Inter-alia, stating that a pass book system has been introduced w.e.f. November 1991. The order dated 2nd May 1995 directs that on respondents 1 and 2 complying with the modified scheme, the Petitioners shall deduct the Provident Fund and deposit the same with respondents 1 and 2 in respect of casual workers also. It is admitted that reference to modified scheme in the order dated 2nd May 1995 is in fact reference to the modified procedure as mentioned in the aforesaid affidavit dated 26th November 1991. On objection being raised by Mr. Nayyar that modified procedure as stated in the affidavit dated 26th November 1991 has not been introduced. Mr. Mukherjee explained that the same was introduced w.e.f. 1st November 1991 as stated in the affidavit. We only record this submission as it is not necessary to say anything more on this aspect in view of what has been stated by Mr. Mukherjee.Accordingly, this and the connected writ petitions are disposed of in the above terms. No costs.
24.
4/9/1997
BAI and 36 other contractors filed Writ Petition No.2593 of 1997 before Nagpur Bench of Bombay High Court challenging provisions of amended para 26(2) of Provident Fund Scheme as far as temporary and casual site workers.
25.
8/9/1997
Nagpur Bench issued stay against operation of scheme para 26(2) in respect of casual and temporary workers.
26.
24/12/1997
Central Provident Fund Commissioner issued a Circular No.12(Misc)/91/E.I. 76161 directing all R.P.F. Commissioners to : 1)
The Enforcement Authorities should take all necessary action in the first instance to implement the amendment from 1.11.1990 in respect of those employees who are continuing to be in employment and are still on rolls.
2)
In respect of person who left service but still can be identified their enrollment should be ensured from 1.11.1990.
3)
In respect of persons who are not in employment of the establishment and can not be identified at present, their cases can be complied and necessary information may be sent to Head Office for further orders.
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27.
3/7/1998
Central Provident Fund Commissioner issued Circular No.17(3)/93/EI/KAI to all Regional Provident Fund Commissioners that the practice of allotment of separate code number to Contractor is contrary to provision of section 6 of E.P.F. Act and para 30(3) of E.P.F. Scheme. The responsibility of depositing contribution and various return lies with Principal Employer and R.P.F.C’s are requested to stop allotment of code number to Contractors.
28.
13/11/1998
Central Provident Fund Commissioner issued a Circular bearing No.7(20)97/MH/E-I/ 73725 informing all Regional Provident Fund Commissioners that, Delhi High Court order dated 19.9.1996 has not diluted applicability of scheme to casual and temporary workers and informing them that E.P.F. Organisation has set up E.D.P. Computer Centres for its office and networking through modem has been completed in 25 offices and directing them to enforce provision of law in the best interest of workers engaged in building and construction industry.
29.
15/11/1999
Minute of the Meeting held with Members of BAI by Regional Provident Fund Commissioner, Delhi states that, “the direction of the Hon’ble High Court for technical purpose is very much on record and Joint Task Force of the Officer of the Department and few members of Builders’ Association of India may be constituted to draft out Permanent Account Number of 10 digit to be earmarked”.
30.
13/2/2001
Central Provident Fund Commissioner issued Circular No.EF/17(3)/93/Vol.III to all Regional Provident Fund Commissioners that, matter of not allotting code numbers to Contractors was examined and clarified that Employers rendering service on contract basis having 20 or more employees be allotted separate code numbers.
31.
22/8/2003
Regional Provident Fund Commissioner issued Circular No. Coord 5912)2002/MOL that a Sub Committee is formed under Chairmanship of Shri Ravi Wig for extending social security benefit to construction workers and that the Committee should submit report before 31.12.2003.
32.
3/2/2004
Central Board of Trustees in 166th Meeting discussed the following:a)
Sub Committee headed by Chairman Shri Ravi Wig recommended E.P.F.O. should ensure that the Act is made applicable to establishment / workers hitherto not covered be covered from the date of declaration by the establishment and only on the issue of S.S.N. Number.
b)
Doubts were raised about maintenance of uniqueness of S.S.N. by dropping biometric component. C.P.F.C. clarified that the product offered by M/s. C.M.C. failed to meet the acceptance test as such it was decided to drop bio-metric component.
33.
23/2/2004
Central Board of Trustees 167th Meeting confirmed minutes of 166th Meeting.
34.
6/9/2004
Addl. Central Provident Fund Commissioner issued letter that Central Board of Trustees formed a Committee under Chairmanship of Shri Ashok Sing with Shri B.N. Rai, Shri Ravi Wig and Shri Sharad Patil as other members for monitoring the extention of social security to construction workers.
35.
3/5/2006
Addl. Central Provident Fund Commissioner by his letter No.Co-ord(12)02/MOL/Pt. wrote to BAI President that, “work relating to issue of NSSN number to construction workers have been started and all Regional Provident Fund Commissioners have been directed to issue NSSN Number to construction workers on priority basis.”
36.
4/8/2006
Addl. Central Provident Fund Commissioner issued Circular No.Co-ord/5(12)02/MOL/ Pt/BAI/11083 directing all Regional Provident Fund Commissioners to issue S.S.N. Number to construction worker falling in your jurisdiction on priority basis.
37.
22/2/2007
Addl. Central Provident Fund Commissioner by his letter No.Co.ord/5(71)/06/MOL/ Sub.Com/Constn.Work/86040 issued to all Regional Provident Fund Commissioners to approach various Centres of BAI and allot Business Number to Construction Industry immediately without any further delay and also to secure compliance.
38.
1/1/2008
Regional Provident Fund Commissioner compliance issued a Circular No.Co-ord/5(71)/06/ MOL/Sub.Com/Constn.Worker directing all R.P.F.Cs to take proactive steps to cover all establishment in Construction Industry by seeking their co-operation and address their genuine problems and that Co-operative Employers are not to be unduly harassed by field formation.
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39.
18/7/2008
Regional Provident Fund Commissioner issued Circular No.SSN/HO/07-08/01 directing all R.P.F.Cs that under revised strategy, for the time being, S.S.N. is not a prerequisite for the proposed application that is being developed by E.P.F.O. in collaboration with N.I.C. Regional Provident Fund Commissioners were directed not to insist upon S.S.N. forms at the time of submission of claims.
40.
7/9/2011
Hon’ble High Court Gujarat in Civil Application No.11011/2009 filed by Hind Kisan Mazdoor Panchayat directing E.P.F.O. for implementation of pass book under para 40A of E.P.F. Scheme, granted time to E.P.F.O. for response upto 20.10.2011.
41.
20/10/2011
Hon’ble High Court Gujarat passed further order in Civil Application No.11611 of 2009 extending time upto 4 months from 30.11.2011 to E.P.F.O. to give it’s response with a rider that no application for extention of time will be filed.
42.
20/1/2012
Hon’ble Employees’ Provident Fund Appellate Tribunal, Chandigarh, in Petition No.ATA No.217 (II)/2011 decided that, “Until and unless, the beneficiaries are identified, the determined dues as decided by the Enforcement Officer would not help the workers as the money would not reach to them till the time they are identified”.
43.
20/7/2012
Hon’ble Patna High Court in Civil Writ No.11499/2006 in the matter of Roxy Cinema V/ s. State of Bihar stated that, under Section 7A of E.P.F. Act liability can not be saddled upon establishment in the name of compliance of law without identification of employee entitled for the same. EPF Authority can not make collection or contribution for faceless, nameless or non identifiable workman on mere head count or herd count. To collect fund for welfare of workman who are required to be taken care of after their superannuation and not to gather money to meet any pre-conceived target.
44.
8/10/2012
E.P.F. Appellate Tribunal, Ludhiana in Appeal No.ATA No.331(11)/2011 filed by Food Corporation against R.P.F.C., Ludhiana observed that “according to rules of Contract Labour (Regulation & Abolition) Central Rules 1971, all the registers and other records shall be preserved for a period of three calendar years from the date of entry therein. Hence the Appellant can not be directed to produce the records pertaining to contractors workers for the long back period.
45.
17/10/2012
Hon’ble Employees’ Provident Fund Appellate Tribunal, Chandigarh, in Petition No.ATA No.630 (II)/2006 observed that, the respondent determined the P.F. dues without identification of concerned Employees / Beneficiaries”.
46.
30/11/2012
Central Provident Fund Commissioner issued Circular No.7(12)2012/RCS-Review Meeting to all Regional Provident Fund Commissioners that there shall be no assessment under Section 7A of E.P.F. Act 1952 without identifying members whose account fund is to be credited and that no enquiry or investigation shall ordinarily go beyond seven years.
47
18/12/2012
Central Provident Fund Commissioner issued Circular No.7(1)2012/R.C’s Review Meeting/21224 keeping circular of 30.11.2012 in abeyance till further orders.
48.
26/3/2013
Chairman, BAI Delhi Centre written letter to Central Provident Fund Commissioner that, “modified accounting procedure scheme” be notified for implementation and Enquiry U/s.7A of P.F. Act be restricted to maximum of past 3 years and liability of Employers be not worked out on basis of 25% contract amount.
49.
6/5/2013
Regional Provident Fund Commissioner in response stated that, issue of ten digit permanent P.F. number is not possible.
50.
23/9/2013
Hon’ble Bombay High Court passed order in Writ Petition No.1901/2011 in the matter of M/s. Rallis India Limited V/s. The Asst. Provident Fund Commissioner & Ors that, “Determination of money should not be on the basis of presumption and assumption but after identification of beneficiaries”.
51.
02/05/2016
The Hon’ble Supreme Court of India in the Petition for Special Leave to Appeal (C) No. 8035 of 2016 in the case of Builders’ Association of India V/s. Union of India & Ors. (Arising out of Impugned final judgment and order dated 16/10/2015 in LPA No. 728/2014 passed by the High Court of Delhi at New Delhi). Apprehension of the petitioner appears to be that without identifying the beneficiary workmen, the contribution is being sought. Without identification, the petitioner will not be liable to make the contribution, it is submitted.
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Events That process of identification will arise only at the stage of enquiry that is to be conducted by the respondent – organization. Therefore, it is made clear that during the process of enquiry conducted by the respondent-organization, the steps will also be taken to identify the workmen either of the petitioner or engaged through contractors.
52.
23/03/2018
The Nagpur bench of the Hon’ble Mumbai High Court on 23rd March 2018, in Writ Petition No. 1674 / 2016 filled by Kaushik K. Chatterjee Engineers and Contractors Versus Assistant Provident Fund Commissioner have ordered that ‘The amount collected from an employer towards provident fund contribution on behalf of workers should be returned, in case the Provident Fund Department could not identified the name and address of such worker on whose behalf this contribution is collected.’
53.
28/02/2019
Supreme Court on 28th February, 2019 passed an order that certain allowances paid uniformly normally and ordinarily should all come within the definition with basic wages under the provisions of ‘EPF Act, 1952’. Using this order EPF authorities have now started issuing notices to employers for including the allowances also while remitting the PF contribution with retrospective effect. This will have serious implications on any business, particularly building and construction business. BAI has written to Government of India for implementing the order prospectively.
Though the matter of Provident Fund is a settled issue as far as the BAI is concerned after the orders of the Hon'ble Superme Court of India in the LPA filed by BAI and orders of the Court on 2nd May 2017. The Builders Association of India Headquarter always remain alert and vigilant and come to action as well as helping hand to the members of the industry in fighting the injustice. The recent incident of harassment at the hands of EPFO officials came in to the Press which reproduced below for the information of members so that they should be aware of what is going on around with regard to the labour matters :-
that "The amount collected from an employer towards provident fund contribution on behalf of workers should be returned by the Department, in case the Provident Fund Department could not identify the name and address of such worker on whose behalf this contribution is collected." To make it more clearer the Hon. General Secretary stated that, The Hon'ble High Court has attributed the responsibility of disbursing the Provident Fund amount to the workers and if no such workers could be identified, such amount so collected by coercive measures mentioned under section 8-B and 8-F of the Provident Fund Act should be returned to the employer from whom the amount is collected. (This sections speaks about attaching the bank account of the employer or to collect the amount directly from the creditors whose bill are pending /outstanding)
Nagpur Bench of the Hon'ble Mumbai High Court on 23rd March 2018, in Writ Petition No. 1674 / 2016 filled by Kaushik K. Chatterjee Engineers and Contractors Versus Assistant Provident Fund Commissioner have ordered
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Provident Fund Matter
's BAI ent vem e i h Ac
Supreme Court on 28th February, 2019 passed an order that certain allowances paid uniformly normally and ordinarily should all come within the definition with basic wages under the provisions of 'EPF Act, 1952'. Using this order EPF authorities had started issuing notices to employers for including the allowances also while remitting the PF contribution with retrospective effect. This would have had serious implications on any business, particularly building and construction business. BAI had written to Government of India for implementing the order prospectively. The Supreme Court Order, the EPF notice and BAI letter were all printed in the May 2019 issue. BAI has been constantly following up on its letter. Now, EPFO has issued Notification No.C-I/1(33)2019/ Vivekanand Vidyamandir/717 dated 28.08.2019, directing the Provident Fund Commissioners that, "There is no reason or justification to initiate roving inquiries into the wage structure of the complying establishments on the surmise that certain allowances in the nature of basic wages might not have been treated as part of pay for EPF contributions". The Notification further stated that, "In all the cases where notices have been issued without any prima facie evidence of arbitrary bifurcation of wages with intention to avoid EPF liability, such notices should not be pursued further". We are printing below the said notification. EMPLOYEES' PROVIDENT FUND ORGANISATION (Ministry of Labour & Employment, Government of India) Head Office Bhavishya Nidhi Bhawan, 14, Bhikaji Cama Place, New Delhi - 110 066
No.C-I/1(33)2019/Vivekanand Vidyamandir/717
Date: 28.08.2019
To, All Addl. Central P F Commissioners (Zones) All Regional P F Commissioners (Regional Offices) Sub: Notice to establishments for inspection in the wake of judgment dated 28.02.2019 of Hon'ble Supreme Court of India in civil appeal 6221 of 2011 and batch of SLPs - Regarding. the employers, quoting the aforesaid judgment of Hon'ble Apex Court of India, proposing inspection of records for past three to five years to ascertain the wage structure to find out if any allowances which were part of basis wages have been omitted for the purpose of compliance. There is no reason or justification to initiate roving inquiries into the wage structure of the complying establishments on the surmise that certain allowances in the nature of basic wages might not have been treated as part of pay for EPF contributions.
Sir, 1.
Please refer to this office letter No. LC-2(578)/ 2007/WB/18855 dated 14.03.19 regarding the judgment dated 28.02.19 of Hon'ble Supreme Court of India in the Civil Appeal 6221 of 2011 and other connected matters. It is further informed that review petition has been filed by some aggrieved parties before Hon'ble Supreme Court and is pending for adjudication.
2.
It has come to notice of the EPFO, Head Office that several field offices have issued notice to
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3.
In all the cases where notices have been issued without any prima facie evidence of arbitrary bifurcation of wages with intention to avoid EPF liability, such notices should not be pursued further. Such action amounts to roving inquiries / investigations which is impermissible in law. Anyone found indulging in such practices may face administrative action.
5.
4.
Inspections / investigations shall be carried out after taking permission from CAIU and following the administrative guidelines and policy only in those cases where credible basis is available for forming a view that the employer has prima facie indulged in illegal practice of avoiding EPF liability by splitting the basic wages. Also the provision of Para 2(f) of the EPF Scheme, 1952 must be kept in view while computing any liability on account of illegal wage splitting.
(This issues with the approval of Central PF Commissioner)
BUILDERS' ASSOCIATION OF INDIA
In the ongoing cases under Section 7A in which such issue has been framed the assessing officer may assess the dues, if any, after consideration of facts of the case. No coercive action shall be taken for recovery of dues till disposal of the review petition filed by concerned employers which is pending before Hon'ble Supreme Court of India.
Yours faithfully,
Sd/(Jagmohan) Addl. Central PF Commissioner-HQRS. (Compliance)
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CPWD Matters
Mr. Sachin Chandra, President, BAI led a delegation of BAI members for meeting with Mr. Prabhakar Singh, Director General, Central Public Works Department in Nirman Bhawan, New Delhi on Thursday, 7th November 2019, to discuss various issues being confronted by the CPWD contractors, particularly BAI members. Earlier a representation was sent to DG, CPWD vide BAI Letter No.598/N/2019-20 dated 1st November 2019 (printed herein below), bringing out the difficulties being faced by contractors relating to the enlistment of rules / revalidation of registration of the existing contractors with CPWD consequent upon uploading of Rules of Enlistment of contractors in CPWD-2019 on 31st May 2019. The BAI delegation consisted of, Mr. Sachin Chandra, President; Mr. R. N. Gupta, Past VicePresident; Mr. Ram Avtar, Past State Chairman, BAI Delhi; Mr. Ved Khurana, Chairman, Delhi Centre and Mrr. Satnam Singh Arora, Executive Officer-Delhi Office. DG-CPWD while welcoming the BAI Delegation stated that trend in construction is changing very fast and what CPWD is looking for is the contractors who can change the working / technology with the requirement of time. He further stated that the CPWD clients are asking for prompt delivery of their projects and they are not interested in longer duration and that CPWD expects not the contractor who believe in rescinding the work and going for arbitration but the contractor who employs skilled work force / latest construction technology, capable of world class construction, iconic buildings, etc. If the contractors will not come forward and undertake such time of challenging projects, CPWD probably may lose the clients / agencies and work load / projects may come down drastically. The BAI delegation consented with the observations of the DG and assured him of the support of the contractors' fraternity in meeting with the challenges of time. The main contention of the BAI was to extend the period applying for revalidation of enlistment so that contractors can apply for the same. Mr. Ram Avtar started the discussion as per CPWD Enlistment Rules uploaded 31st May 2019, contractors are required to apply for the revalidation atleast 6 to 9 months in advance and to do that the last date for applying for such revalidation is required to extended reasonably. BAI members debated the issue with CPWD Officials and it was ultimately agreed by the CPWD Officials to extend the date to 31st December 2020. The matter of bank solvency certificate and net worth of the company was taken up. CPWD officials informed that they will not be insisting for the Bank solvency certificate. Other issues were also taken up for discussion and CPWD officials agreed to come out with office memorandum shortly. While concluding the discussion which continued for more than an hour, DG assured the delegation to take the genuine grievances of the contractors at any time and requested the contractors for timely and quality construction. Ref: 598/N/2019-20 dated November 1, 2019 To The Director General Central Public Works Department, Nirman Bhavan, New Delhi - 110 108 Respected Sir, Sub :
Initiation of ameliorative measure to ensure the continuance of at least active contractors in your esteemed Department; their dependent lakhs of workers and members of their families throughout the length and breadth of Bharath beyond 31.03.2020 - Prayed for.
Builders' Association of India (BAI) is the apex body of Construction Industry, founded in 1941, with more than 19,000 business entities as members through its 180 plus Centres (Branches) throughout the country. Regional Associations Affiliated to BAI
BUILDERS' ASSOCIATION OF INDIA
from indirect membership of more than 1,00,000. The fundamental aim of the Association is to bring about all round improvements in the construction sector, while striving towards resolution of operational as well as policy level problems faced by the
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least that of the appropriate magnitude within the stipulated period, the existing contractors of all Classes irrespective of their proven experience and sustainable capabilities are compelled to vie / compete among themselves irrationally throwing all the established standards that has been scrupulously / meticulously cherished and nourished by the Department for years together. As you are well aware taking works for the sake of complying with the eligibility criteria for revalidation that too at an abnormally minus rates shall, verily within a predicable time, have an adverse effect on the quality of the works, culminating to devastating effect on the reputation of the India's premier construction Department. In this connection, the contents of Para 17 of Rules for Enlistment of contractors in Central Public Works Department, 2019 uploaded on 31st May, 2019 is reproduced below for ready reference:
construction industry. This involves making efforts to obtain from policy makers and authorities, the level of attention that the construction industry deserves in view of its tremendous contribution and importance to the economy. As you are well aware as per the guidelines enunciated in DGW's Office Memorandum No.DG/ SE/CM/ENLIST.RULES/12, dated the 31st March, 2015 all the then existing Civil; Internal & External Electrical Installation category and E & M services contractors of all Classes were brought under the category of "Composite" and the validity of their then existing registration was extended upto 31.03.2018 besides enhancing their tendering limits. Subsequently, the validity of their changed Composite category was extended upto 31.03.2020 as per the instructions / guidelines contained in DGW's Office Memorandum No.DG/SE/CM/ ENIST.RULES/30, dated the 04th October, 2017. As a spin-off of change of category, they are eligible to participate in Composite tenders of Central Public Works Department upto their respective enhanced tendering limits. In this connection, we, perforce, put forth the ensuing insurmountable / ineluctable facts for your comprehensive perusal and benign order:
Revalidation of enlistment - Enlisted contractors, including revalidated contractors, who have completed or secured works of appropriate nature and appropriate magnitude (lowest of the cost of eligible work for the category and class given in Rule 10.1.1) either (i)
At the very outset, we asseverate that the active existing contractors, leave alone the in-active / dormant contractors have been executing works of their respective category for Central Public Works Department, State Government Departments, and Public Sector Undertakings etc. for decades together. The successful completion of many prestigious projects throughout the length and breadth of Bharath stands testimony to their workmanship and they are also presently having / executing respective faculty of works of the values of their tendering.
(ii) in Central or State Government Department or Autonomous body or Public Sector Undertaking, provided, however, that the contractor has participated in tendering process for at least three works in the CPWD having Estimated Cost equal to or more than the appropriate magnitude, for which participation certificate from the concerned Executive Engineer/DDH shall be provided may apply for revalidation of enlistment under one of the two divisions as detailed below:-
We hasten to record here in an unambiguous terms that our intention is to apprise you of the trials and tribulations the existing contractors of various categories have been experiencing sequel to the merger/ change of category of all categories of contractors. As their continuance as an empanelled / registered contractor with your esteemed Department squarely depends upon their successful completion of the requisite nature and appropriate magnitude of works in Central Public Works Department and if not, in Central or State Government Department or Autonomous body or Public Sector undertaking provided the contractors have participated in tendering process for at least three works in the CPWD having estimated cost at BUILDERS' ASSOCIATION OF INDIA
in CPWD or
Division A- Enlistment of such contractors who satisfy one of the following two criteria shall be considered for revalidation for a period of five years. (i)
Securing two works of appropriate nature and magnitude during last enlistment/revalidation period and at least one of them has been completed 100% and the second having value of work done completed more than 50% of the appropriate magnitude.
(ii) Securing and completion of one work of value two times the appropriate magnitude (for class V Composite contractor, it shall be 1.5 times).
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We hasten to bring to your benign attention that in the recent Rules for enlistment of contractors in Central Public Works Department, 2019 uploaded on 31.05.2019, the appropriate magnitude for revalidation of contractors in various Classes has been enhanced ranging from 1.5 times to 1.8 times of the previous magnitude besides the texture of Sr. No.
Class & category
Tendering Limit
1. 2. 3. 4. 5.
I (Composite) II (Composite) III (Composite) IV (Composite) V (Composite)
Rs.30 crores Rs.10.5 crores Rs.3.0 crores Rs.1.0 crore Rs.30 lakhs
building i.e. two storied three storied with internal electrification and any one or more of the E&M services of the minimum of 5 % the value of the eligible work and enhanced Annual Turnover. The same has been crystal clearly illustrated in the ensuing table:
Appropriate nature and magnitude of work for revalidation for a period of 5 years As per E.R. 2017 As per E.R.2019 Rs.6 crores Rs.9 crores Rs.2.10 crores Rs.3.15 crores Rs.50 lakhs Rs.90 lakhs Rs.12 lakhs Rs.30 lakhs Rs.5 lakhs Rs. 9lakhs
It may not be irrelevant to apprise you of the tenable fact that most of the existing contractors of various Classes have somehow (i.e. at an exorbitant minus rates) managed to grab works of requisite magnitude as enunciated in the Rules for enlistment of contractors in CPWD, 2017 - Amended upto 03.01.2018 with internal electrical installation works only but not with E&M services with the cherished hope of getting their existing registration re-validated for a period of five years with effect from 01.04.2020. The present abnormal enhancement in the appropriate magnitude as illustrated in the foregoing Table coupled with execution of E & M Services has virtually / literally / physically thrown them out of your esteemed Department. It is bereft of even basic element of legal sanctity. It stands to reason that they should be given sufficient span of time to complete requisite magnitude of work more specifically so as these contractors have been associating themselves with your esteemed Department for decades together.
1.5 times 1.5 times 1.8 times 1.8 times 1.8 times
shall also qualify for consideration of revalidation. The value of executed works in last 5 years shall be brought to current costing level by enhancement, as provided in Rule 10.1 of the actual value of work, calculated from the date of completion to the last date of validity of enlistment / revalidation. In case the works of appropriate magnitude have been executed / in-progress in govt. departments as mentioned above other than CPWD, the department will get the work inspected from appropriate authority of CPWD and evaluation of the performance in Annexure X and Annexure-IV A shall be done based on this inspection report. It may not be impertinent to bring to your kind notice the contents of Para 18 of Rules for Enlistment of contractors in Central Public Works Department, 2019 uploaded on 31st May, 2019 for your kind perusal. It stipulates that the contractors shall apply for revalidation of enlistment in the prescribed form 'Annexure VIII' along with all documents as per Annexure IX so as to reach the Enlistment Authority at least 6 but not more than 9 months before expiry of his enlistment with 50% processing fee. The revalidation application with all documents shall however be accepted up to the date of expiry of enlistment/revalidation with processing fee as mentioned in Rule 11.
Division B: Enlistment of contractors, who secured only one work of appropriate nature and appropriate magnitude during last enlistment/revalidation period and even that work is not completed, shall be extended for a period of two years. Revalidation for the balance period of years shall be granted, only when the contractor satisfies the criterion laid down in Division A above i.e. execution of requisite works in the extended period of two years also. The work completed/secured of the appropriate magnitude as an associate contractor of the main contractor, to whom a composite contract was/has been awarded, BUILDERS' ASSOCIATION OF INDIA
Increase of
Para 21 of Rules for Enlistment of contractors in Central Public Works Department, 2019 uploaded on 31st May, 2019 stipulates that "the revalidation shall be done on the basis of review of performance of the contractor for works executed during the
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SE/CM/ENLIST.RULES/35, dated the 30th May, 2018 therein it is stated in an unambiguous term that–
period of enlistment/revalidation as well as on the basis of inspection of ongoing works. This shall be based on evaluation (as per Annexure X and Annexure-VII) of performance reports/Inspection reports of works given in Annexure-III (1 & 2) & eligibility as per Rule 17.0 or as decided by the enlisting authority.
"……. The application for revalidation of existing Horticulture contractors of all Classes and Nursery category received upto 31.03.2020 shall be processed as per Enlistment Rules of contractors in Central Public Works Department, 2017 amended upto 03.01.2018".
We further submit that all the existing nay active contractors say more than 90% of the contractors have not succeeded themselves for one reason or the other in their hectic race for satisfying the eligibility criteria as stipulated in the Rules for enlistment of contractors in Central Public Works Department, 2019 for submitting their application for revalidation before the stipulated period i.e. 31.03.2020 not to elaborate on conditions like execution of E & M services and mandatory on-going works. It is hanging like a Damocles sword and it may fall on the majority of the sincere and hard working active contractors of your esteemed Department. Resultantly, they shall be left with no other alternative but forced to sever their relationship with your esteemed Department culminating to dearth of eligible registered CPWD contractors. Needless to elaborate on their chances of getting them registered afresh in Central Public Works Department taking cognizance of the stringent Rules of Enlistment of contractors in CPWD, 2019 uploaded on 31st May, 2019. We sincerely and honestly request you, Sir, to benevolently gauge the gravity of this major serious issue, predominantly concerning the very survival of crores of workers throughout the length and breadth of Bharat and take an ameliorative / remedial measure to ensure the continuance of at least all the active contractors in your esteemed Department.
On the same analogy, DG would like to consider issuance of modification/ corrigendum to Rules for Enlistment of contractors in Central Public Works Department, 2019 uploaded on 31st May, 2019 and ensure the very survival of 90% of the existing registered contractors who have been associating themselves with your esteemed Department for decades together. Once again, we reiterate that we are not finding fault with the system of change of category of contractors. We earnestly request you, Sir, to take real stock of the situation and issue suitable order as the circumstances so warrant so that lakhs of dependent workers and their corresponding members of their families can be saved from the clutches of starvation and ultimate death. Soliciting your August intervention and issue of an ameliorative order in the interest of crores of construction workers throughout the length and breadth of Bharath. Thanking you, Yours sincerely,
SACHIN CHANDRA President Builders' Association of India
It is pertinent to bring to your magnanimous perusal the contents of your Office Memorandum No.DG/
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In our November 2019 issue we had mentioned that a BAI delegation led by Mr. Sachin Chandra, President, BAI met Mr. Prabhakar Singh, Director General, Central Public Works Department in Nirman Bhawan, New Delhi on Thursday, 7th November 2019, to discuss various issues being confronted by the CPWD contractors, particularly BAI members. We had also printed a representation was sent earlier to the DG, CPWD. We are printing herein below the minutes of the meeting and office memorandum of CPWD issued due to decisions taken in the meeting Sub: Minutes of the Meeting with BAI members and DG CPWD on 07.11.2019. proposed that net worth is better parameter to decide the financial strength of contractor. DG CPWD advised CE (CSQ)(C) to go into detail and propose relevant OM considering all the aspect.
The meeting was held at 11.30 am on 07.11.2019, chaired by DG, CPWD and attended by CPWD Officers and Builders Association of India and Contractor Association of India as per attendance sheet at annexure. 3.
The issues deliberated and decided as follows:1.
Extension of validity of enlistment/ revalidation of CPWD Contractors
BAI members informed that CPWD has recently published an OM regarding Deviation/EI/SI. In this OM it is stated that payment cannot be made without sanction of Deviation/EI/SI. They requested to withdraw this OM and EI/SI may be paid even before sanction as per the current practice. This proposal was not agreed. The aim of the OM was to urge all the officers to sanction Deviation/EI/SI in a timely fashion OM will help in avoiding the disputes and timely settlement of the final bills.
BAI Members informed that new Enlistment Rules 2019 were published on 31.05.2019. All the composite category contractors have been given extension upto 31.03.2020. Since experience of work condition has been made stringent so extension upto 31.03.2020 is inadequate. BAI members requested to extend the date upto 31.12.2020 DG CPWD considered this matter and had detailed discussions with CPWD Officers present in the meeting, and it was decided to extend all the composite category enlistment/revalidation upto 31.12.2020. 2.
Deviation/EI/SI
Meeting ended with vote of thanks to DG CPWD. These minutes are issued with the approval of DG CPWD. Superintending Engineer (C&M)
Solvency Copy to:
BAI members informed that they are required to deposit solvency certificate issued from bank to CPWD. The bank charges hefty amount as fee and does not take any responsibility. Members felt that bank solvency certificate does not serve any useful purpose. They
BUILDERS' ASSOCIATION OF INDIA
Builders Association of India, IP Bhawan, New Delhi for information please. Sd/Superintending Engineer (C&M)
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Central Public Works Department, Office Memorandum No. DG/SE/CM/Enlist. Rules/Misc./15 Issued by Authority of Director General, CPWD Nirman Bhavan, New Delhi
Dated : 10.12.2019
Subject: Validity of enlistment/revalidation of CPWD enlisted Contractors in all categories upto Class-I Composite Category Reference: Point number 19 of Technical committee meeting held on 04.11.2019. The request of Builders Association of India and CPWD Contractor Association to extend the validity of enlistment/revalidation of CPWD registered contractor beyond March 2020 was deliberated in Technical Committee meeting. On the request of the members. DG CPWD acceded the request to further extend the validity for nine months.
This issues with the approval of DG, CPWD.
Accordingly on request of Builders Association of India and CPWD Contractor Association it has been decided by DG CPWD to extend the validity of all CPWD registered contractors, whose validity expired/expiring during the period 28.02.2019 to 31.03.2020 stands extended upto 31.12.2020.
Copy to:
BUILDERS' ASSOCIATION OF INDIA
Sd/Superintending Engineer (C&M) Issued from file no. CSQ/CM/18(4)/2019 e-file No.9079266
All the officer of CPWD through CPWD website for information and necessary action. Sd/Superintending Engineer (C&M)
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Royalty Matters With reference to 'Royalty on Minor Minerals', Mumbai High Court has passed a final order on 30th April 2019, ruling that Royalty need not be paid for excavation of ordinary earth. We are printing herein below the order.
IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION WRIT PETITION NO. 13308 OF 2018 Tata Projects Limited.
…
Petitioner. V/s.
The State of Maharashtra and others.
…
Respondents.
Mr.Sriram Sridharan with Mr.Jas Sanghavi and Mr.Viraaj Bhate i/b. PDS Legal for the petitioner. Mr.A.B.Vagyani, GP with Mr.Y.S.Khochare, AGP for the respondents. CORAM :
A.S.OKA AND M.S.SANKLECHA, JJ.
DATE
30th April 2019.
:
ORAL JUDGMENT : (Per A.S. Oka, J.) permission for excavation of secant piles at Siddhivinayak Station and disposal of the muck. In exercise of powers under Rule 59 of the Maharashtra Minor Mineral Excavation (Development and Regulation) Rules, 2013 (for short "the said Rules of 2013"), the Additional Collector, Mumbai City granted permission for excavation of minor minerals having quantity of 648 brass subject to terms and conditions incorporated in the said letter.
The parties were put to notice on the earlier date that the petition will be disposed of finally at the stage of admission. Rule. Learned Government Pleader (GP) waives service for the respondents. 2.
3.
The petitioner claims to have formed a Joint Venture with other entities as pleaded in paragraph4 of the petition. A tender notice was published by Mumbai Metro Rail Corporation Limited (for short "MMRCL") inviting bids for excavation and construction of underground tunnels for Mumbai Metro. The aforesaid Joint Venture submitted a bid which was accepted and a contract dated 24th August 2016 was executed by MMRCL.
4.
On 13th January 2017, an application was made on behalf of the Joint Venture for grant of permission for excavation and disposal of excavated material for the design and construction of underground stations at Siddhivinayak, Dadar and Shitladevi Temple. A reply was issued by the Superintendent of Land Records, Mumbai calling upon the Joint Venture company to make certain compliances by submitting the documents. Another application was made on 8th March 2017 by the Joint Venture seeking
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A letter was addressed by the Joint Venture to the third respondent on 9th May 2017 contending that the Joint Venture has not made any excavation of minor minerals and only ordinary earth is excavated for noncommercial purposes. It is alleged that the amount of royalty as mentioned in the said letter has been deposited under protest and, therefore, a prayer was made for refund. The said letter was followed by a reminder dated 22nd June 2017. As the said applications were not decided, the present petitioner filed Writ Petition No.10845/2017 in this Court which was disposed of by the order dated 8th November 2017 wherein this Court directed the Additional Collector, the third respondent therein, to take appropriate and reasoned decision on the 79h Annual Report and Accounts – 2019-2020
applications made by the petitioner for refund. On the basis of the said order, an order was passed on 27th March 2018 by the Additional Collector, Mumbai City by which the prayer for refund was rejected. Being aggrieved by the said order that the present writ petition has been filed by the petitioner wherein various declarations are claimed and writ of mandamus is also prayed for directing refund of the premium paid by the petitioner under protest. 5. The submission of the learned counsel appearing for the petitioner is that what is excavated by the petitioner is an ordinary earth which is not per se covered by the definition of "minor mineral" under clause (e) of section 3 of the Mines and Minerals (Development and Regulation) Act, 1957 (for short "the said Act of 1957"). It is pointed out that in exercise of powers under section 3(e) of the said Act of 1957 various notifications have been issued including the notification dated 3rd February 2000 which declares "ordinary earth" used for filling or levelling purposes in construction of embankments, roads, railways, buildings to be a minor mineral in addition to the minerals already declared as minor minerals. It is contended that all categories of ordinary earth does not become minor minerals unless the same is used for the purposes specified in the notification dated 3rd February 2000. The submission is that in the impugned order, the Additional Collector has come to an incorrect conclusion that ordinary earth is also covered by definition of minor minerals by virtue of the said notification. Reliance was placed by the petitioner on the decision of this Court dated 29th March 2019 in the case of Ircon International Limited and others v. The State of Maharashtra and others in Writ Petition No.3704/2018. It is submitted that the case is covered by the said decision. The learned GP tenders across the bar a letter dated 3rd March 2018 issued by the District Mining Officer to the Additional Collector of Mumbai. He submitted that the said letter indicates that from the technical report submitted by the petitioner, it appears that excavation of mixture of gravel, sand silt and clay was being carried out and not only of ordinary earth. He pointed out that what is excavated will fall in the category of building stones. He submitted that what is excavated is mixture of gravel, sand silt and clay and, therefore, what is excavated is covered by the definition of minor minerals. He, therefore, submitted that a finding of fact has been recorded by the Additional Collector and no interference is called for. He submitted that the decision of this Court in Ircon International Limited and others (supra) is in the peculiar facts of that case before the Division Bench. 6.
dated 8th November 2017 in Writ Petition No.10845/ 2017 filed by the petitioner, the petitioner was given an opportunity of being heard by the Additional Collector. The petitioner filed written submissions dated 6th December 2017. A specific contention was raised therein (paragraph A.8) that what is excavated by the Joint Venture of the petitioner is nothing than the ordinary earth and the said material does not satisfy the test of the notification dated 3rd February 2000. Now we turn to the impugned decision of the Additional Collector. The impugned decision does not dispute that the amount of royalty was paid as per the said Rules of 2013 and that the royalty was paid under protest. We have carefully perused the findings recorded by the Additional Collector. The Additional Collector observed that as per the agreement between the Joint Venture and the principal, it was the responsibility of the Joint Venture to pay the royalty. It is observed in the impugned order that as the petitioner is doing the work of digging tunnel and construction of underground stations for the Metro Project, the excavation of minerals will be covered by the definition of minor minerals under the said Act of 1957 and, consequently the said Rules of 2013. In the subsequent paragraphs of the impugned order, it is mentioned that certain categories of stones were excavated. In fact, in the impugned order, it is mentioned that only with a view to avoid stoppage of work of the Metro Railway, the petitioner deposited the royalty amount.
8.
In the written submissions submitted by the petitioner on 6th December 2017 on the basis of the order dated 8th November 2017 passed in the earlier petition filed by the petitioner, a specific contention has been raised that what is excavated by the petitioner is an ordinary earth which is not used for any of the purposes specified in the notification dated 3rd February 2000 and, therefore, the said ordinary earth will not fall in the definition of minor minerals and, therefore, royalty was not payable.
9.
As far as the issue whether ordinary earth excavated will be covered by the definition of minor minerals under the said Act of 1957 is concerned, the same is no longer res integra. The same has been decided by the Division Bench of this Court in the case of Ircon International Limited and others (supra). Paragraphs 8 to 11 of the said judgment reads thus: "8. Before adverting to deal with the aforesaid rival submissions, it may be apposite to note the statutory and regulatory framework, which governs the situation at hand. The Mines and Minerals (Development and Regulation) Act, 1957 contains the provisions for the regulation of mines and
We have given a careful consideration to the submissions. In terms of the judgment and order
BUILDERS' ASSOCIATION OF INDIA
7.
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operations" appearing in Section 3(d) of the Act of 1957 may contemplate a somewhat elaborate process of extraction of a mineral, in view of the Notification dated 3.2.2000, insofar as ordinary earth is concerned, a simple process of excavation may also amount to a mining operation in any given situation. However, as seen, the operation of the said Notification has an inbuilt restriction. It is ordinary earth used only for the purposes enumerated therein, namely, filling or levelling purposes in construction of an embankment, road, railways and buildings which alone is a minor mineral. Excavation of ordinary earth for uses not contemplated in the aforesaid Notification, therefore, would not amount to a mining activity so as to attract the wrath of the provisions of either the Code or the Act of 1957. " (emphasis added)
development of minerals. The 'minor mineral' is defined in Section 3(e) of the said Act, 1957 as under: "3(e) "Minor minerals" as 'building stones, gravel, ordinary clay, ordinary sand other than sand used for prescribed purposes, and any other mineral which the Central. Government may, by notification in the Official Gazette, declare to be a minor mineral" 9.
Evidently, the ordinary earth is not specifically defined as 'minor mineral'. However, the Central Government is empowered to declare any other mineral as a minor mineral. In pursuance of such power, the Central Government issued the Notification on 3rd February 2000 ('the Notification') and thereby declared ordinary earth as a 'minor mineral'.
10.
Since the construction of the terms of the said Notification has a material bearing on the issue at hand, it is extracted below :
11.
In the light of this well settled law, now, coming back to the impugned order, firstly, we find that there is no specific finding recorded by the Additional Collector on the question whether what is excavated by the petitioner's Joint Venture is ordinary earth or some other material. If answer to the said question is that ordinary earth was excavated by the petitioner's Joint Venture, the other issue which arises is whether the ordinary earth was used by the petitioner for any of the purposes specified in the notification dated 3rd February 2000. There is no other notification placed on record issued under clause (e) of section 3 of the said Act of 1957 dealing with the ordinary earth. If it is established before the Additional Collector that what is excavated is an ordinary earth which is not used for any of the purposes specified in the notification dated 3rd February 2000, the royalty paid by the petitioner for excavation will have to be refunded. If the Additional Collector comes to the conclusion that the petitioner's Joint Venture has not extracted ordinary earth but some other minerals which are covered by the definition of minor minerals under the said Act of 1957, the petitioner will have to satisfy the Additional Collector regarding its entitlement for refund.
12.
In this view of the matter, by setting aside the impugned order passed by the Additional Collector, the matter will have to be remanded to the Additional Collector, Mumbai.
"NOTIFICATION New Delhi, the 3rd February, 2000 C.S.F. 95 (E)In exercise of the powers conferred by clause (e) of Section 3 of the Mines and Minerals (Development and Regulation) Act, 1957 (67 of 1957), the Central Government hereby declares the 'ordinary earth' used for filling or levelling purposes in construction of embankments, roads, railways, buildings to be a minor minerals in addition to the minerals already declared as minor minerals hereinabove under the said clause." 11.
Section 15 of the said Act, 1957 empowers the State Government to make the rules in respect of minor minerals. The State Government, in exercise of the powers conferred by Section 15 has framed rules entitled, "Minor Mineral Extraction (Development and Regulation) Rules, 2013"." The Division Bench proceeded to hold that ordinary earth will not qualify test of the minor minerals under clause (e) of section 3 of the said Act of 1957 unless it is used for the purposes specified in the Government Notification dated 3rd February 2000.
10.
In fact, the Division Bench relied upon the decision of the Apex Court dated 3rd December 2014 in Civil Appeal No.10717/2017 (Promoters and Builders Association of Pune v. The State of Maharashtra). In paragraph12 onwards of the said decision, the Apex Court dealt with the issue after quoting the definition of minor minerals and the contents of the notification dated 3rd February 2000. In paragraph15, the Apex Court held thus:
Accordingly, we pass the following order: ORDER (i)
"15. Though Section 2(j) of the Mines Act, 1952 which defines 'Mine' and the expression "mining BUILDERS' ASSOCIATION OF INDIA
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The impugned order dated 27th March 2018 is hereby quashed and set aside. We direct that the representative of the petitioner shall appear before the Additional Collector, Mumbai City on 3rd June 2019 at 11.00 a.m. for fixing the schedule of hearing. As observed earlier, the Additional Collector will decide whether the 79h Annual Report and Accounts – 2019-2020
held in this judgment and order;
material excavated by the petitioner was an ordinary earth. If he finds that what is excavated by the petitioner was an ordinary earth and if he finds that it was not used for any of the purposes specified in the notification dated 3rd February 2000, the Additional Collector shall pass an order of refund of royalty paid on the excavation of ordinary earth as prayed for; (ii)
(iv) We reiterate that the excavation of ordinary earth will not amount to excavation of minor minerals within the meaning of the said Act of 1957 and the said Rules of 2013, unless it is established that the ordinary earth excavated is used for the purposes specified in the notification dated 3rd February 2000; (v)
If the Additional Collector finds that the petitioner excavated some other minor minerals, appropriate order shall be passed by the Additional Collector on the prayer for refund;
(vi) Rule is made absolute on the above terms. (vii) No order as to costs.
(iii) We make it clear that the Additional Collector will make an adjudication in terms of what is
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The Additional Collector shall pass a fresh order on or before 31st August 2019;
(M.S.SANKLECHA, J.)
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(A.S.OKA, J.)
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Income Tax Matters Section 194N of the Income Tax Act states that TDS will be applied on cash withdrawals made by any individual more than 1 Crore in a financial year. TDS is normally calculated at the rate of 2% on every cash withdrawal. Considering the peculiar nature of the Indian building and construction industry BAI has written a letter to Hon'ble Union Finance Minister, which is printed herein below. Also printed herein after is a note studied opinion the 'TDS On Cash Withdrawal'. A press release issues by CBDT is also printed herein below. Ref: 449/O/2019-20 dated October 1, 2019 To: Smt. Nirmala Sitharaman Hon'ble Finance Minister Government of India Room No. 134, North Block, NEW DELHI - 110 001 Respected Madam, Sub.: BAI -Exemption of Section 194-N of Income Tax Act 1961 to Infra Sector - Proposal submitted for orders-Request-Regarding. Builders' Association of India (BAI) is the apex body of Construction Industry, founded in 1941, with more than 19,000 business entities as members through its 180 plus Centres (Branches) throughout the country. Regional Associations Affiliated to BAI from indirect membership of more than 1,00,000. The fundamental aim of the Association is to bring about all round improvements in the construction sector, while striving towards resolution of operational as well as policy level problems faced by the construction industry. This involves making efforts to obtain from policy makers and authorities, the level of attention that the construction industry deserves in view of its tremendous contribution and importance to the economy.
2)
In most of the occasions the contractors is to take up the projects in most remote areas where, even no basic facilities will be available viz., Road connectivity, Banks, Medical and marketing facilities etc., and they have to create everything on their own for execution.
3)
Keeping in view of the fixed time line for completion of the projects, the contractors shall have to mobilize/procure most of the required inputs i.e. Metal, Sand, Mud Bricks, allied items, Engaging labour force for both skilled & unskilled, etc., from the unorganized sector by paying cash only due to lack of resources in those areas.
With reference to the subject cited it is to submit that Infra Industry in India is facing many challenges in implementation of the government schemes i.e. in execution of the projects. In this regard, we would like to submit the following grievances to your good selves for kind perusal and consideration.
4)
Further it is to submit that with an aim to discourage cash transaction and move towards a cashless economy, in the union budget it has proposed to levy @2% TDS on cash payment in excess of RS 1.00 Cr in aggregate made during the year, by a Banking company or Corporate Bank or Post office, to any person from recipient.
1)
The Infra Industry is acting major role to build the Nation by creating Infrastructural facilitates wherever required for the public utility viz., Development of Roads including National Highways, Irrigation, Water Supply/Drainage, Rural Housing, Hospitals & Electricity, etc.,
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The provision under section 194-N Income tax Act 1961 which has been introduced, at first glans appears to address the need of the hour to come back the menace of black money and to aid a cashless economy.
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5)
6)
7)
In this regard it is further to submit that though the work done bills were submitted for payment, contractors are not getting their payments timely from the respective government departments with one reason or other and their huge capital amount is held up for quite long time, apart from this additional @2% TDS on cashless transactions. Due to block up of huge amount they are facing lot of financial problem and not able to achieve the progress in timely completion of the projects.
Therefore, we request you to kindly arrange to issue necessary directions to that extent at an early date.
Early favorable action in the matter is highly solicited in order to save the Infra Industry in the Country & for timely completion of the projects without any hurdle. Thanking You, Yours faithfully,
Keeping in view of the above, there is every need to interfere your good selves in the matter and arrange to issue orders to exempt the section 194-N of Income tax Act 1961 to the Infra Sector at least 10 years, in order to overcome from their cash flow crunch and to complete the projects timely without any hindrance.
SACHIN CHANDRA PRESIDENT BUILDERS' ASSOCIATION OF INDIA
TDS on Cash Withdrawal - Tax Deducted but not on 'Income'
- a Legal Conundrum by the recipient with it shall, at the time of payment of such sum, deduct an amount equal to two per cent. of sum exceeding one crore rupees, as income-tax:
With an aim to discourage cash transactions and move towards a cashless economy, the first budget of Modi Government 2.0 has proposed to levy TDS @ 2% on cash payments in excess of Rs. 1 CR in aggregate made during the year, by a banking company or corporate bank or post office, to any person from one or more accounts maintained by the recipient.
Provided that nothing contained in this sub-section shall apply to any payment made to, ––
The provision which has been introduced, at first glance appears to address the need of the hour to combat the menace of black money and to aid a truly cashless economy. However, the devil lies in the details.
i.
the Government;
ii.
any banking company or co-operative society engaged in carrying on the business of banking or a post office;
iii.
any business correspondent of a banking company or co-operative society engaged in carrying on the business of banking, in accordance with the guidelines issued in this regard by the Reserve Bank of India under the Reserve Bank of India Act, 1934;
iv.
any white label automated teller machine operator of a banking company or co-operative society engaged in carrying on the business of banking, in accordance with the authorization issued by the Reserve Bank of India under the Payment and Settlement Systems Act, 2007;
v.
such other person or class of persons, which the Central Government may, by notification in the Official Gazette, specify in consultation with the Reserve Bank of India.”
Section 194N is reproduced below – “194N. Every person, being, –– i.
a banking company to which the Banking Regulation Act, 1949 applies (including any bank or banking institution referred to in section 51 of that Act);
ii.
a co-operative society engaged in carrying on the business of banking; or
iii.
a post office, who is responsible for paying any sum, or, as the case may be, aggregate of sums, in cash, in excess of one crore rupees during the previous year, to any person (herein referred to as the recipient) from one or more accounts maintained
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[Emphasis Added]
accounts maintained with a bank, cooperative society engaged in the business of banking or a post office, does not partake the character of income of the recipient and hence cannot be said to be a payment. They are merely returning the money, which belongs to the recipient, on demand of the recipient. Hence, cash withdrawal from banks cannot under any stretch of imagination be treated as the income generated by the recipient as one cannot make income from himself.
The provisions keep a seemingly large cap, that is for a cash withdrawals of more than Rs 10 million. However the same will commercially hurt the liquidity of various manufacturing industries with huge labor requirements where cash payment is essential. In fact, the tea industry which is largely not in well connected places, will be the worst hit. This article focuses on the details to identify whether the said section can at all be legally valid. A.
Further, Section 198 of the Act clearly states that the tax deducted at source is income received. The provisions of Section 198 are reproduced below –
TDS can be imposed only on income of the assessee The concept of TDS was introduced with an aim to collect tax from the very source of income. As per this concept, a person (deductor) who is liable to make payment of a specified nature to any other person (deductee) shall deduct tax at source and remit the same into the account of the Central Government. The deductee from whose income tax has been deducted at source would be entitled to get credit of the amount so deducted on the basis of Form 26AS or TDS certificate issued by the deductor. Therefore, withholding tax is an income tax to be paid to the Government by the payer of the income on the behalf of the payee.
Tax deducted is income received. “198. All sums deducted in accordance with the foregoing provisions of this Chapter shall, for the purpose of computing the income of an assessee, be deemed to be income received: Provided that the sum being the tax paid, under subsection (1A) of section 192 for the purpose of computing the income of an assessee, shall not be deemed to be income received.” [Emphasis Added] The above section was amended by the Notice of Amendments to Finance Bill, 2019 as introduced in the Lok Sabha on 18 July 2019 by adding a proviso to Section 198 and now is a part of the Finance Act, 2019, which is reproduced as under –
In fact, section 190 of the Act clearly states as under: “Section 190 – Deduction at source and advance payment under Chapter XVII of the Act – Collection and Recovery of Tax 190. (1) Notwithstanding that the regular assessment in respect of any income is to be made in a later assessment year, the tax on such income shall be payable by deduction or collection at source or by advance payment or by payment under sub-section (1A) of section 192, as the case may be, in accordance with the provisions of this Chapter.
“Provided further that the sum deducted in accordance with the provisions of Section 194N for the purpose of computing the income of an assessee, shall not be deemed to be income received.” The above amendment itself intends to mean that the tax deducted on withdrawal of cash shall not be the income of an assessee and hence clearly shows that the TDS on withdrawal of cash is not on income and therefore is in violation of Section 190 of the Act.
(2) Nothing in this section shall prejudice the charge of tax on such income under the provisions of subsection (1) of section 4.” [Emphasis Added]
B.
From the perusal of the above provisions of the Act, it is clear that tax can be deducted or collected at source only on the income of the assessee. Cash withdrawal from one or more BUILDERS' ASSOCIATION OF INDIA
The new provision does violation to the existing provisions of the Act Section 199 of the Act read with Rule 37BA of the Income Tax Rules, 1962 (the Rules), states that taxes deducted by the payer shall deemed
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198 itself states not to treat the tax deducted under section 194N as income of the assessee.
to be tax paid on behalf of the payee on the its income. The same is reproduced for the sake of convenience –
Therefore, the question remains unanswered as to how the credit of the tax deducted under section 194N would be given to the assessee as there is no corresponding income. Hence, the provisions of Section 194N are in violation to the existing provisions of the Act as TDS is only allowable against income assessable under section 199 of the Act read with Rule 37BA(3) of the Rules.
Credit for tax deducted. “199. (1) Any deduction made in accordance with the foregoing provisions of this Chapter and paid to the Central Government shall be treated as a payment of tax on behalf of the person from whose income the deduction was made, or of the owner of the security, or of the depositor or of the owner of property or of the unit-holder, or of the shareholder, as the case may be.
C.
...”
The provisions of Section 194N is leading to tax the expenditure of the recipient of money from the bank. The sum of money withdrawn from the bank is not the income generated by the recipient. Such sum of money withdrawn shall be expended by the recipient either for personal use or for meeting his business expenditure. Thus, TDS on cash withdrawal is leading to a tax on the expenditure of the recipient.
[Emphasis Added] Credit for tax deducted at source for the purposes of section 199 “37BA (1)... ..
Article 265 of the Constitution of India states that ”no tax shall be levied or collected except by authority of law.” Further, Seventh Schedule of the Constitution of India defines and specifies the allocation of powers and functions between the Union and the States. None of the lists (Union List or Concurrent List) of the Seventh Schedule empowers the levy of tax on expenditure. Hence, the expenditure tax is unconstitutional.
(3) (i) Credit for tax deducted at source and paid to the Central Government, shall be given for the assessment year for which such income is assessable. (ii) Where tax has been deducted at source and paid to the Central Government and the income is assessable over a number of years, credit for tax deducted at source shall be allowed across those years in the same proportion in which the income is assessable to tax.”
D.
[Emphasis Added] From the perusal of the above, it is clear that the credit of tax deducted shall be given in the assessment year in which such income is assessed. However, tax deducted under section 194N is not against any income and the recipient is never going to treat the cash withdrawn as its own income. Further the amendments made in Section 198 of the Act also clearly states that the tax deducted on cash withdrawal under section 194N of the Act shall not be treated as income of the assessee. No corresponding amendment has been made in Section 199 of the Act so as to state that how the credit of the tax deducted under section 194N will be given to the assessee since the amendment in Section BUILDERS' ASSOCIATION OF INDIA
The proposition leads to an Expenditure Tax which is prima facie unconstitutional
Parallel provisions of Banking Cash Transaction Tax (“BCTT”) (2005-2009) and rejection of recommendations of the Tax Administration Reforms Commission (“TARC”) for re-introduction of BCTT BCTT was introduced vide Finance Act, 2005 by the then Finance Minister P. Chidambaram. The intention of the levy of BCTT was explained in the Budget Speech which has been reproduced below – “I am concerned about large cash transactions, especially withdrawals of cash, when there is no ostensible purpose to withdraw such large amounts of cash. These cash withdrawals leave no trail, and presumably become part of the black economy. Therefore, I propose to introduce two anti-tax-
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evasion measures: Firstly, I propose to levy a tax on withdrawal of cash on a single day of over Rs.10,000 or more from banks at the rate of 0.1 per cent. Thus, a person withdrawing Rs.10,000 in cash would have to pay a small sum of Rs.10. Secondly, I propose to require banks to report to the Government all deposits which are exempt from TDS on interest. I intend to observe the results of these steps before I propose any further measures.”
Government of India set-up TARC vide its Notification No. F.No.A.50050/47/2013-Ad.I., dated 21 August 2013, with thirteen terms of reference.
The BCTT was levied in respect of cash withdrawals in a day exceeding Rs. 50,000 in the case of an individual or HUF and Rs. 1,00,000 in the case of other persons from their bank accounts other than savings accounts to track unaccounted money and trace its source and destination.
“There is no instrument at present that captures details of cash withdrawals from bank accounts, other than savings accounts. The availability of such information would help the I-T department widen its information base on the use of black money since excessive cash withdrawal can help it understand the extent of the cash economy. Hence, Rule 114E of the IT Act should be suitably revised to include in its ambit cash withdrawals exceeding specified amounts in a day from bank accounts other than savings accounts. Alternatively, BCTT should be reinstated as an effective administrative measure.”
The following recommendations were made to the CBDT by the TARC headed by Dr Parthasarathi Shome in its third report released on 30 November 2014 –
It remained in the statute for about four years and was withdrawn with effect from 1 April 2009. While withdrawing the levy, the Finance Minister in his budget speech had stated: “The Banking Cash Transaction Tax (BCTT) has served a very useful purpose in enlarging the information system of the Income Tax Department. Since the information is also being gathered through other instruments introduced in the last few years, I propose to withdraw this tax with effect from April 1, 2009.”
However, such recommendation was not accepted by the CBDT. In view of the above, with the introduction of the TDS provisions on cash withdrawal, various industries whose operations are majorly cash oriented and labor intensive, like sugar, jute, tea, construction of infrastructure, etc. will be affected adversely since the liquidity of these industries would be affected with the introduction of the TDS provisions. The provisions being prima facie unconstitutional will affect industries which in turn may affect the 5 trillion-dollar roadmap for the Indian economy.
The Government of India in its Budget, 2013-14, had, inter alia, announced the setting-up of TARC for reviewing the application of Tax Policies and Tax Laws in the context of global best practices and to recommend measures for reforms required in Tax Administration to enhance its effectiveness and efficiency. Accordingly, the Ministry of Finance,
Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes New Delhi, 30th August, 2019 PRESS RELEASE Clarification on applicability of Tax Deduction at Source on cash withdrawals In order to discourage cash transactions and move towards less cash economy, the Finance (No. 2) Act, 2019 has inserted a new section 194N in the Incometax Act, 1961 (the 'Act'), to provide for levy of tax deduction at source (TDS) @2% on cash payments in excess of one crore rupees in aggregate made BUILDERS' ASSOCIATION OF INDIA
during the year, by a banking company or cooperative bank or post office, to any person from one or more accounts maintained with it by the recipient. The above section shall come into effect from 1st September, 2019.
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Since the section provided that the person responsible for paying any sum, or, as the case may be, aggregate of sums, in cash, in excess of one crore rupees during the previous year to deduct income tax @2% on cash payment in excess of rupees one crore, queries were received from the general public through social media on the applicability of this section on withdrawal of cash from 01.04.2019 to 31.08.2019. The CBDT, having considered the concerns of the people, hereby clarifies that section 194N inserted in the Act, is to come into effect from 1st September, 2019. Hence, any cash withdrawal prior to 1st September, 2019 will not be subjected to the TDS
BUILDERS' ASSOCIATION OF INDIA
under section 194N of the Act. However, since the threshold of Rs. 1 crore is with respect to the previous year, calculation of amount of cash withdrawal for triggering deduction under section 194N of the Act shall be counted from 1st April, 2019. Hence, if a person has already withdrawn Rs. 1 crore or more in cash upto 31st August, 2019 from one or more accounts maintained with a banking company or a cooperative bank or a post office, the two per cent TDS shall apply on all subsequent cash withdrawals.
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(Surabhi Ahluwalia) Commissioner of Income Tax (Media & Technical Policy) Official Spokesperson, CBDT
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Skill Development in Construction Sector Government of India established National Skill Development Corporation (NSDC) on 31st July 2008 as not for profit company licensed under Section 25 of the Companies Act, 1955. NSDC has targeted to train 150 million people by 2022, out of incremental demand of 240 million. As mandated under NSDC's programme Construction Industry need to form a Construction Skill Development Council to establish occupation standards, operations and delivery mechanism, certification and accreditation and Labour Market Information System (LMIS). Ultimately in
a meeting held on 23rd August 2012 in the office of Mr. Ramadorai, the then Adviser to Prime Minister on Skill Development and present Chairman of National Skill Development Corporation, Construction Sector Skill Development a Council of India was formed jointly by four Associations namely Builders' Association of India (BAI), Construction Federation of India (CFI), Confederation of Real Estate Developers Association of India (CREDAI), and National Highway Builders' Federation (NHBF). Members of the Governing Council are as follows:-
Name of Member Mr. Ajit Gulabchand Mr. S.N. Subramanian Mr. B. Seenaiah Mr. Sushanta Kumar Basu Mr. Lalit Kumar Jain Mr. C. Shekar Reddy Mr. V.C. Verma Col. Surinder Kuda of M/s. Ashoka Buildcon Mr. Niranjan Hiranandani Mr. Phillie Karkaria Mr. Devendra Choudhary, Additional Secretary, Ministry of power Mr. J. Ganguly
CSDCI aims to develop, establish, standardize and sustain Industry Competency Frameworks, Skills Levels, Occupational Standards, Build, create and deliver Capacity, Investment and Skilling outcomes which shall meet or exceed customer expectations through ethical, transparent and effective management of the Construction and Infrastructure Industry Skill Development Fund. CSDCI endeavours to establish, constantly monitor, update and sustain corporate values & ethics for all its participants, employees, industry members and related stakeholders. VISION Be the leading apex body of the Construction & Infrastructure Industry in Development & support of Skilling Solutions and advocacy of all connected Services for ensuring the skill needs of the Construction Industry. The basic objective behind the formation of CSDCI is to create a credible and effective mechanism with the support of relevant and interested stakeholders to manage the task of skill development across the country and meet the current and future skill needs of the construction industry. CSDCI ROLE Developing National Occupation Standards, Curriculum and Assessment Guidelines. Building the capacity - Training providers, Trainers and
BUILDERS' ASSOCIATION OF INDIA
Name of Organisation Chairman, C.F.I. C.F.I. Past President, BAI Past President, BAI Chairman, CREDAI President, CREDAI President of NHBF NHBF Additional Industry Nominee Additional Industry Nominee Planning Commission Nominee Additional Industry Nominee Technical Adviser to be decided by Governing Council later.
Assessors. Skill and Assess - Responsibly ensure quality training and conduct fair assessments. Certify - Certifications of the trained manpower as per NOS and align them to NSQF levels". CSDCI office is at present situated at 204, Ashirwad Complex, D-1, Green Park, New Delhi - 110 016 and they use BAI Delhi office Conference Hall for holding its Conference. This arrangement is considered as a contribution from BAI as a 'kind'. It is now decided by CSDCI to shift the Corporate office of CSDCI to Gurgaon, Haryana and in this regard, Shri S.K. Basu, Past President, BAI in consultation with Shri B. Seenaiah, Past President, BAI, requested BAI to permit the use of a table space at our Delhi office as the registered office of CSDCI. The matter was discussed in the Managing Committee of BAI and as directed by the Managing Committee, a Memorandum of Understanding (MOU) have been signed between Builders' Association of India (BAI) and Construction Skill Development Council of India (CSDCI) to provide a space at BAI office situated at D-1/203, Ashirwad Complex, Green Park Main, New Delhi - 110 016 and also to place CSDCI Logo / Nameplate outside the office premise.
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Construction Workers Training / Assessment Brief Report on Construction Workers Training / Assessment Builders Association of India (BAI) signed MoU with Construction Skill Development Council of India (CSDCI) on 20th June 2019 at New Delhi for the certification of 1,02,500 construction workers under RPL TYPE 4 ("Best in Class Employer"). As per the proposal sent to CSDCI, BAI was to assess 1,02,500 construction workers upto 31.3.2020 in seven trades. BAI officially launched the process of certification of workers on 26th July 2019 by organizing first orientation session of Assessors at Patna - Bihar in association with CSDCI. 57 candidates attended the orientation programme on 26th July 2019 for assessing / certifying the construction workers in various trades and out of 57 candidates, login-ID of more than 50 candidates were created in CSDCI / NSDC which is the first step for any candidate to become an Assessor and assess / certify the construction worker, After completing the required formalities of creation of the Assessors login-id who attended the orientation programme and and login-id of the construction sites where the construction workers to be assessed, the certification / assessment of construction workers started in the State of Bihar from October 2019. By the end of October 2019, 10 site locations were got approved from CSDCI / NSDC and assessment / certification of
BUILDERS' ASSOCIATION OF INDIA
construction workers started. BAI assessed / certified 100 workers in October 2019, 422 workers in November and 445 workers in December 2019, 1190 workers in January 2020, 1637 workers in February 2020 and 1595 workers in March 2020, totaling 5389 workers upto 31st March 2020. Another 1033 have also been enrolled on NSDC Portal, upto 31.03.2020, but could not be assessed due to declaration of lockdown by the Govrnment because of pandemic Covid-19. In continuation ot its efforts of Certification / Assessment of construction workers, BAI organised orientation programme for second batch of assessors at Pune on Monday, the 10th February 2020 at Institution of Engineers - Pune Centre in Firodia Hall which was organised and co-ordinated by Shri D S Shirole, Chairman - Skill Development Committee, Builders' Association of India. The orientation was conducted by Shri Hemant Dhallu (nominated by CSDCI) and attended by 43 candidates. The assessment could not be started there because of declaration of lockdown. As on date BAI have received an amount of Rs.1,80,346/ -, payment in respect of 522 workers @ Rs.346/- and submitted three invoices for Rs.16,83,982/- to CSDCI for the remaining 4867 workers assessed till 31.3.2020. The payment has been delayed due to lock-down. It is given to understand that the CSDCI is processing the payment
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CONSTRUCTION SKILL DEVELOPMENT COUNCIL OF INDIA REPORT UPDATED TILL 31ST MAR 2020 training/orientation duration varies from 12 to 80 hours and are carried out in three types (Type 1- Camp based, Type 2 - Site based & Type 3 Training centre based).
The construction skilling eco system is facing a daunting task in upscaling & attracting the youth to make their career in the sector. The very nature of work involved in the sector & the wide applicability across the ministries, demands & stakes are very high.
b) RPL Type 4 (Best in Class Employer (BICE)) RPL Type 4 was introduced by the government in Feb 2018 for recognition of existing work force employed by Best in Class Employers of the industry. Best in Class Employer was defined by SSCs. This is in addition to RPL Type- 1, 2 and 3 under PMKVY 2016-20. Under this program, assessment will be carried out by employer & certificate will carry the logo of the employer along with SSC & Skill India. This will help in achieving certification at larger scale while ensuring its economy and quality of certification. This scheme is available for workers of those employers who fall in best in class category (annual turnover over 20 Cr & minimum 100 employees as principal employer). A target of 2,00,000 certifications was sanctioned to CSDCI under the scheme and CSDCI has successfully achieved 1,53,200 certifications by 31stMar 2020.
CSDCI has taken the training targets under different government projects, increase regional presence & improve the quality of assessments & certification to a new height. CSDCI now plans to upscale the efforts in development of new Qualifications Packs on our futuristic job roles and training aids to address the skill issues of industry.The active participation of industry in skilling efforts holds the key of success in the sector. Going online in training & assessment and offering varying options, training module to suit the industry needs & candidate convenience will increase the upscaling efforts and we will be taking up on utmost priority. Training, assessment & certification came to stand still after19 Mar 2020 as per NSDC guidelines & national lockdown owing to Covid19 crisis. 1.
PRADHAN MANTRI KAUSHAL VIKAS YOJNA (PMKVY) a) The PMKVY 2.0 was launched on 15 Jun 2016. The scheme requires the training centres to be uploaded and approved through the SMART NSDC portal (http://www.smartnsdc.org/). Seven Job Roles have been included under the program for STT. Under the program the targets have been allocated toTraining Centres directly.
c)
b) PMKKVY 2.0 has been closed on 31 Mar 2020 for any further enrolment under the scheme except N-E region where it is allowed till 30 May 2020. PMKVY 3.0 is likely to be launched soon and will be effective from 2020 to 2025. Budgetary support of 23600 crore have been earmarked for the scheme for 5 years(2020-25) c)
2.
3.
Draft guidelines of PMKVY 3.0 were received for which views/comments have already been submitted to NSDC.
RECOGNITION OF PRIOR LEARNING (RPL) a) Under the Flagship scheme of PMKVY 2.0, RPL program was launched for those workers, who already possesses the skill but are yet to be certified. The recognition & certification of such workers are being done based on NSQF level Qualification Packs. Under the RPL program,
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RPL Type 5 (Demand based RPL)- RPL Type 5 was introduced by the government in Oct 2018 for recognition of existing self-employed work force or working with small organizations and want to get certified. The candidates can apply on line for assessment on demand aggregation portal of NSDC for certification on an existing Training Centres of their choice. Training centres (PMKK centres) are authorized to create a batch for these candidates.
NIRMAN KAUSHAL VIKAS YOJANA a) Ministry of Housing & Urban Affairs has planned scheme Nirman Kaushal Vikas Yojana under Champion sectors to improve vocational training and certification for Skilled Workers in the Construction Industry with the aim to meet the demands of construction sector - domestic and overseas. The scheme will comprise of the followings:i.
Strengthening existing line of migration and for that Establishing international equivalence of the existing qualifications
ii. Improving infrastructure of existing ITIs /
79h Annual Report and Accounts – 2019-2020
implementation in initial phase.
government and private training institutes working in construction sector iii. Facilitating Recognition of Prior Learning (RPL) and Dual Certification for Returnees/ Domestic workers
Incentivizing to Construction companies
•
Advocacy to employ certified/ trained personnel in construction projects
c) 6.
v. Undertaking appropriate Research and Innovation in the Construction Sector
• Developing training modules about newer technologies and job roles after skill gap study • Establishing Construction Workforce & Market Information System
4.
7.
a) CSDCI is facilitating training, assessment & certification of Rural Masons through the scheme PMAY-G. Affiliated Training Providers are working in Maharashtra, Chhattisgarh, Madhya Pradesh, West Bengal, Jharkhand, Bihar, UP, Gujarat, Odisha for construction of houses under PMAY-G. State Rural Department of other states like Rajasthan, Odisha, Punjab are also progressing under the scheme in skilling of Rural Masons.
c) 5.
The Scheme was launched on 25 Feb at Jhajjar, Haryana.
BoCW FUNDED TRAINING CONSTRUCTION WORKERS
FOR
CENTRAL PUBLIC WORKS DEPARTMENT (CPWD)- SKILLING INITIATIVE
b) CPWD IIT BHU Varanasi, IIT Ropar Punjab and Roorkee, Raipur, Nagpur, Bhopal, Delhi, Jodhpur, Teen Murti Delhi, Amethi, Chandigarh, Meghalaya & Manipur divisions have signed aMoU. 8.
Total 1,41,244 have been enrolled and 1,05,099 have been trained so far.
JAL JEEVAN MISSION (JJM)- MINISTRY OF JAL SHAKTI a) CSDCI is facilitating training, assessment & certification of construction workers who will be involved in implementation of the scheme on bridge RPL module. Two job roles have been identified from construction sector for
BUILDERS' ASSOCIATION OF INDIA
Asst Electricians
a) Central Public Works Department (CPWD) Divisions and Construction Skill Development Council of India (CSDCI) have entered into MoU for RPL with Bridge course and certification of Construction Workforce working at their respective sites. This project was implemented as per PMKVY Norms, RPL Type 2 and the entire program is being funded by the CPWD.
PRADHAN MANTRI AWAS YOJNA-GRAMIN (PMAY-G) - MINISTRY OF RURAL DEVELOPMENT
b) Efforts are being made with other states also to take skilling of Rural masons through PMAYG. Efforts are also being made to promote bridge RPL course for existing Rural masons.
•
CSDCI has signed MoU with TPs for assessment under BoCW. These TPs have targets allocated by the State Boards. Assessment have started but due to very slow compliances with the guidelines, progress has been slow. Efforts with all stake holders are needed to be expedite utilisation of BoCW funds for skilling of construction workers by all state governments.
• Incentivizing Research
b) Tripartite agreement is being signed between MoHUA, NSDC and CSDCI for the same for implementation. CSDCI will act as knowledge partner for the scheme.
Mason General
b) The scheme will be implemented through SIP of NSDC and planning for implementation is in progress with various state governments. Plumbing SSC is also participating in the Scheme.
iv. Developing facilities for onsite training and apprenticeship of workers by •
•
110
MINISTRY OF ROAD TRANSPORT AND HIGHWAYS (MORTH) - SKILLING SCHEME a) MoRTH in collaboration with MSDE, NSDC and CSDCI has taken up an initiative for training and certification of construction workers engaged at ongoing roads/highway sites. b) Ministry of Skill Development and Entrepreneurship (MSDE) is providing the skill ecosystem of content, curriculum, training norms, assessment and certification for RPL through NSDC and CSDCI. c)
Ministry of Road and Highway (MoRTH) has issued the necessary directions and the guidelines to their allied organization such as 79h Annual Report and Accounts – 2019-2020
c)
NHAI, NHIDCL etc. PWD and State departments involved in highway construction and other organisations. 9.
APPRENTICESHIP AND NATIONAL APPRENTICESHIP PROMOTION SCHEME (NAPS) a) Apprenticeship act has been made Industry friendly & contextual to encourage employment of apprentices. Under the optional trade industry can design courses for their job specific courses. Processes have been automated and hiring & reporting requirements have been made minimal & through single portal. Industry can engage apprentices from 2.5% to 15% of its workforce. b) CEO, SSC have been made Joint Apprenticeship Advisor (JAA). The SSCs have been asked to provide support and take up this initiative for their respective sectors. The Apprenticeship portal has been developed at NSDC and is operational. c)
d) The Committee has met once at Pune and discussed the various steps to be taken on all issues. Fund requirements& support requirements are also being worked out for approval by competent authority. e) The regional competition will be held for the WSC at de-escalated level due to prevailing situation caused by Covid 19 & restrictions imposed. 11.
Under National Apprenticeship Promotion Scheme (NAPS) apprenticeship is being promoted by the government to enhance employability of certified candidates. Curriculum development for the job roles are under progress. Under NAPS government is providing financial assistance of Rs. 7500/- for BTP & Rs. 1500/- pm (maximum) up to 2 years.
b) After due considerations and analysing the challenges, it was decided that common online assessment platform to be developed/provided by CSDCI for all assessments. The issue was discussed during GC meet the necessary sanction was taken. c)
WORLDSKILLS COMPETITIONS a) CSDCI participated in four construction trades at WorldSkills Competitions Kazan Russia from 22 Aug to 27 Aug 2019in following trades:i.
Brick Laying - Kushal Pune Metro, Credai
EOI was floated and offers were evaluated at CSDCI for technical suitability. Various meetings & presentations by selected bidders were conducted. However due to financial implications, Steering committee has not agreed to the bids.The steering committee hasnow advised to prepare a detailed scope of work document & share with every bidder of RFP for their revised proposal, if interested.
d) We are making efforts to facilitate a platform, where CSDCI will only be involved in monitoring & administration, there will not be any fee for the assessment to be paid by CSDCI.
ii. Wall & Floor Tiling - Kushal Pune Metro, Credai iii. Concrete Construction Work - L&T at CSTI Kanchipuram
12.
iv. Plastering & Drywall Systems - Saint Gobain b) Competitor from 'Wall and Floor Tiling' and 'Bricklaying' won Medallions in the competitions. Kushal Credai, L&T, Saint Gobain, ATS & others were involved in training & supported the skilling efforts.
BUILDERS' ASSOCIATION OF INDIA
ONLINE ASSESSMENTS a) As per NSDC instruction, online assessment needs to be adopted by all SSCs. Since the assessments were conducted till date on penpaper mode in construction sector, few batches on pilot basis were conducted (last year) to understand the feasibility and way forward.
d) CSDCI - JAA has approved 4000+ contracts till 31 Mar 2020 in this FY 2019-20. L&T has taken the lead in generating the maximum contracts & CSDCI has signed MoUs with NBCC & B G Shirke also. 10.
WorldSkills 2021 will be held at Shanghai, and GC, CSDCI approved formation of a committee to take steps to ensure more participation from Industry, better facility for training to competitors, more coordinated efforts and establish a synergy between industry, CSDCI, NSDC & the Government and fund requirement planning.
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JOB MELA & SKILL EXHIBITIONS a) CSDCI is conducting & participating in Job Melas & Skill Exhibition at various cities in India. CSDCI is also conducting demand-based job melas at the training provider's premise. CSDCI has received appreciation for actively participating in all these events and promoting the skill development in the sector. The job melas not only provide the job opportunities to 79h Annual Report and Accounts – 2019-2020
candidates but also promotes skilling among the target group.
the offer letter to the candidate selected by CSDCI's industry partner. 13.
b) Recent job mela was concluded at "Kaushal Mahotsav" in Varanasi in the month of February & Hon'ble PM Shri Narendra Modi presented
TRAINING OF TRAINERS/ ASSESSORS PROGRAMME (TOT/TOA) a) TOT/TOA Update
FY 2019-20
Particulars
Overall
Target
Achieved
ToT / ToA programs
100
137
Field Trainer/Lead Trainer
1050
1642
141
3913
Field Assessor/ Lead Assessor
500
766
85
1917
14.
QUALITY ASSURANCE IN ASSESSMENTS
"Mason General", "Assistant Electrician" job roles. Two are already uploaded on the CSDCI's YouTube Channel and website.
Quality team has been set up at CSDCI to ensure & assure quality in assessments being carried out under CSDCI. Various steps are taken to ensure quality in assessments. a) Surprise Visit of CSDCI during assessments.
c)
b) The RFP for developing more such audio visuals was floated & the proposals were received. 16.
b) Desk monitoring of assessments for timely arrival of assessors, carrying of question papers, progress of assessments etc.
LMIS SYSTEM a) Labour Management Information System (LMIS) for Construction sector was launched and is working slowly with low participation. It has been named as Construction Skilled Workers Management Information System (CSWMIS).
Scrutiny of results and evidences post assessments.
d) Measures against assessments.
malpractice
during
b) Free registration has been provided to construction industry partners, training partners & labour contractor with child login facility. Registration from industry, labour contractor & training provider has started at slow pace. However, it is hoped that it will pick up & industry will take advantage of the platform of CSWMIS. CSWMIS will be able to provide the much-needed platform for construction industry for getting skilled workforce. This year more than 7000 job postings have been received from the registered industry leaders.
e) Provision of question sets by CSDCI. Quality team continuously monitors various other aspects also:a) Tools & Equipment required for Training Centres b) Question sets availability 15.
DEVELOPMENT OF AUDIO-VISUAL CONTENT a) CSDCI has developed the audio-visuals pertaining to the participant's handbook of
Re-Certification
17.
OPERATIONS UPDATE: Training Detailstill 31 Mar 2020
Financial Year
Enrolled
Trained
Pass/Certified
Fail
Absent
Drop out
2018-19
204735
189448
142140
23454
23257
3365
2019-20
511342
350910
287894
26821
31481
3006
Total
996575
803994
607178
92615
98726
10485
PMKVY UPDATE (Till 31 Mar 2020) SN
Program
Enrolled
Assessed
Pass/Certified
1
PMKVY-STT
55382
34514
28771
2
PMKVY-RPL
118438
52662
45662
3
RPL 4
141560
119786
119379
BUILDERS' ASSOCIATION OF INDIA
112
79h Annual Report and Accounts – 2019-2020
SN
Program
Enrolled
Assessed
Pass/Certified
4CSSM
14186
8670
7501
5
PMKVY-SPL
4454
2534
2124
6
Other RPL
779
708
627
7
RPL 5
775
633
523
TOTAL
335574
219507
204587
NON-PMKVY UPDATE (Till 29 Feb 2020) SN
Program
Enrolled
Assessed
Pass/Certified
1
PMAY-G
86184
45547
37099
2
CPWD
942
610
428
3
CSR
6058
4860
4299
4
AICTE_TI
15041
11007
9495
5
MoRTH
3806
1748
1068
6
BOCW
14874
5006
3478
7
MES
704
319
316
18.
8
School
4898
3300
3272
9
Non-PMKVY
43261
27525
23852
Total
175768
99922
83307
STANDARDS & RESEARCH UPDATE (Qualification Packs&Model Curriculum) a) CSDCI have developed 96 QP, comprising of 102 job roles, all approved as national qualifications by National Skill Development Authority(NSDA). All 96 QP were due for revision and NSDC has informed that these revisions to be completed and submitted to NSQC of National Skill Development Authority for approval.
validations so that these can be submitted to National skill development authority for further approvals. The industry validations are awaited.The model curriculum in new format for 50 QPs have been completed till now. d) The development of new QPs for unaddressed demand/area/higher NSQF levels/futuristic job roles are being discussed/explored and will be taken up as per industry demand. 19.
b) CSDCI have revised 29 QP have been approved by National Skill Qualification Committee (NSQC) on 22nd August 2019. Out of the 29 QP, 14 QP and model curriculum have been approved by qualification registering committee (QRC), NSDC.15 QP along with model curriculum have been submitted to QRC, NSDC for approval. c)
CSDCI has further revised 32 QPs comprising of 39 Job roles after obtaining NOS committee approvals .Therefore, total 71 QP has been revised till now. The revision for the balance 27 QP is also under progress. The feedbacks and suggestions had been collected through various industry workshops and meetings. CSDCI conducted five industry workshops for QP revision purpose. The workshops were conducted to cover North, East, South and western regions of India. (NCR, Mumbai Hyderabad and Kolkata). All the revised qualifications require minimum five Industry
BUILDERS' ASSOCIATION OF INDIA
CONTENT BOOK DEVELOPMENT a) Total 19 participant hand books (PHB) content books have been developed till now. 16 participant hand books have been developed by CSDCI individually and 3 PHB supported by NIMI. Out of 19 content 7 have been translated in Hindi & 3 in Marathi. In the current year content for construction Electrician completed .The content for mason marble, granite stone job role and Assistant mason is under progress. b) CSDCI has also developed ten Trainers handbooks till now which has been submitted to NSDC and one trainer handbook for false ceiling and drywall installer is under progress.
20.
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ASSESSMENT CRITERIA AND QUESTION SET DEVELOPMENT Assessment criteria for 44 job roles have been developed and Sample questions for 25 job roles have been completed till now.
79h Annual Report and Accounts – 2019-2020
President Shri Sachin chandra's resignation and subsequent events Date: 23 December 2019 Dear Sirs,
Subject: Resignation from the Office of President.
I am writing this letter to tender my resignation from the Office of the President of Builders’ Association of India. After almost nine months working as President, I believe I have tried hard to serve the members of the Association. And I can honestly say that the working environment is made extremely toxic, negatively oriented by our Honorary Secretary and his coterie of people. To put the problem in the simplest terms, the interests of our members continue to be sidelined in the way our Association operates. Right from the beginning I have been trying to appoint a Liasioning Officer at Delhi so that our members may be benefitted by his policy advocacy. Although General Council and Managing Committee approved of the same, Honorary Secretary continued to oppose it tooth and nail even after the House approved it and his obstructionist approach reached its height when he categorized the Appoint Letter issued by me Null and void, in complete disregard of the Office of President – working under the overall approval of the GC as well as MC. Similar opposition was faced when a meager sum was to be spent for the renovation of Delhi Office. Here I would like to mention that all these steps had all out support of MC, not once or twice but thrice. We must think why Honorary Secretary and his coterie of people are opposed to these developments? Do they have a feeling that once Delhi Office starts policy advocacy work, their position will be weakened? Is the Association for the purpose of maintaining the position of few people?
Is not our primary duty as Office Bearers of Association is to look after the larger interest of our each and every Member? We need to think over these points seriously. To me it appears that since Honorary Secretary & Honorary Treasurer are nominated from Mumbai Centre, they somehow have developed a “Taken for granted” approach towards their Office and never think themselves accountable to the Managing Committee, General Council or the members of the Association. To me this is a very dangerous situation for our Association. My elevation to the Office of President of BAI was the proudest moment of my career in BAI. And I went all out to serve my fellow brothers of the Association. But the obstructionist and negative orientation of Honorary Secretary and his coterie doesn’t allow me to complete the task assigned to me by MC & GC – the task which are of utmost importance for our members. Therefore, it doesn’t feel appropriate to me to be here anymore. I, therefore, tender my Resignation from the Office of President of Builders’ Association of India with immediate effect. I hope this can be a wake-up call to the people who matter in the Association. Please make service to the members the focal point of our activity. Without service to our members, we cannot win their trust and we will not exist. Regards Sachin Chandra Ref: 712/D/2019-20 dated December 26, 2019
To: All Office Bearers of BAI Headquarter All Past Presidents of BAI All Trustees of BAI Respected Sirs, Sub : Notice of an Informal Meeting at Vedic Village Spa Resort, Kolkata on 3rd January 2020 at 11.00.A.M. As directed by the Hon. General Secretary, Shri Neerav Parmar, an informal meeting of Office Bearers of BAI Headquarter, Past President of BAI and Trustees of BAI, is called on Friday, 3rd January 2020 at 11.00 A.M. at Vedic Village Spa Resort, Kolkata, to discuss the situation arising out of the resignation tendered by the President, Shri Sachin Chandra.
the meeting. Thanking you,
You are requested to kindly make it convenient to attend
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114
Yours faithfully,
RAJU JOHN Executive Secretary Builders’ Association of India 79h Annual Report and Accounts – 2019-2020
Dated : 28 December , 2019 Dear Sirs,
Subject : Withdrawal of Resignation
On the persuasion of Past Presidents, Office bearers, senior members, fellow brothers and well wishers of the Association, I had a realization that in the larger interest of Association, and more particularly in view of the Convention I should withdraw the resignation.
I understand that my step might have caused anguish and pain to many of my seniors and friends. The inconvenience caused is deeply regretted. My intention has always been to serve the BAI in best possible way and I will continue to do so till my last breadth.
I, therefore, withdraw my Resignation which I tendered on 23rd December, 2019.
Regards
Minutes of Informal Meeting of Office Bearers of BAI Headquarter, Past Presidents of BAI and Trustees of BAI, at Vedic Village Spa Resort, Kolkata, on 3rd January 2020. The Hon. General Secretary, Shri Neerav Parmar welcomed the members to the informal meeting. Members present felt, the discussion being on the resignation of Shri Sachin Chandra and also pertaining to the Email written by Shri Neerav Parmar, addressed to the President, marking a copy to the proposed candidate Shri Sanjiv Kumar, the House requested both of them to excuse from the meeting. Shri Sachin Chandra and Shri Neerav Parmar immediately left the meeting. At the start of the meeting, Shri B.N. Dikshit, Past President, stood up and expressed that, the participants of this meeting being Past Presidents, Trustees and BAI Headquarter Office Bearers, it is advisable, if the meeting be presided over by the senior most Past President & Past Trustee. He then proposed the name of Shri R. Radhakrishnan to Chair the informal Meeting. Members present unanimously accepted the proposal and requested Shri R. Radhakrishnan to Chair the meeting called to discuss the resignation submitted by Shri Sachin Chandra, on 23 rd December 2019, from the post of President of BAI. Shri R. Radhakrishnan, Past President & Past Trustee, thanked the members for the faith reposed on him and stated that, in his long association with Builders’ Association of India (BAI), this is the first time that, a meeting is called to discuss about the resignation of a President, which is very unfortunate and more so to him now as members have selected him to Chair such a meeting. He then stated that, it is imperative for all to know that, that the institution is always higher even when an individual considers he is right in his action. He felt, any action by the individual who sits at the top of the institution should be measured with this principle of institution is first and the individual and the merit of his actions come second. He then expressed that, BAI’s motto is ‘Unity is strength’, whereas it is very sad to state that, he could not even see such a Unity even amongst the handful of Office bearers of BAI Headquarter. He lamented at the lack of Team Spirit amongst the Office Bearers. He then stated that, one could gauge the style of functioning of the President, when he unilaterally BUILDERS' ASSOCIATION OF INDIA
discarded the ‘National Advisory Council’ constituted at Bangalore on 29th January 2019, wherein Mr. Sachin Chandra himself was present and approved its formation. He did not even feel the necessity of consulting the seniors, who after much homework and deliberation have brought a Road map for BAI to follow in the next decades. He also felt the actions of President like circulating resignation with vehement criticism of a few office bearers and questioning the very functioning of BAI Headquarter, withdrawal of the resignation without giving any valid reasons, justifications of his actions by another WhatsApp, again accusations etc…, through WhatsApp to all groups, is not the a good attitude of a statesman. He then requested members to express their opinion on the action to be recommended to the Managing Committee arising out of the resignation letter dated 23rd December, 2019, submitted by Shri Sachin Chandra from the post of President. He concluded by stating that, the decision of this Committee, will be conveyed to the Managing Committee as a recommendation for it to finally take a decision on the matter. Shri B. Seenaiah, Past President, requested a member, who is in the know of the entire matter to brief him about the circumstances which lead to the resignation of Mr. Sachin Chandra from the Post of President of BAI. Shri K. Sriram, Vice President (South Zone-I) volunteered to brief him on the matter, which was appreciated by members. Shri K. Sriram, expressed that, according to him, the whole scenario of resignation has arised due to the communication gap coupled with Trust deficit exist amongst and between the office bearers of BAI Headquarter. He felt, the President of BAI, appears to be in a hurry to do many things during his tenure as President, without having knowledge about procedurals aspects and internal functioning of BAI. He felt, Shri Neerav Parmar, Hon. Gen. Secretary is more on the procedurals aspects of BAI’s functioning, which normally delays the matter, which President at time felt frustrating and avoidable. He then brought to the attention of members that, the difference of perception between the President and Hon. Gen. Secretary reached its pinnacle
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79h Annual Report and Accounts – 2019-2020
when the Hon. General Secretary written a mail to the President, countering the appointment letter issued by him, to Shri Sanjiv Kumar to be appointed at Delhi Office as Officer on Special Duty. He then brought to the attention of members that, The Hon. General Secretary in his mail have mentioned that the Appointment to the proposed candidate is ‘Null and Void’ due to procedural lapses. Shri Sriram, continued by stating that, marking a copy of an internal communication, to the candidate with words like ‘Null and Void’, would have been avoided, as this could be considered as an open defiance to the President’s authority. He also felt, Shri Sachin Chandra sending WhatsApp after WhatsApp without consulting anybody has created a lot of avoidable controversies. As a conclusion, he requested the house to consider closing further discussion on the matter, by reprimanding both Shri Sachin Chandra and Shri Neerav Parmar, as the National Convention should not be affected by petty politics and disputes. He requested the house not to consider accepting the resignation till the completion of the XXIX All India Builders’ Convention. Shri B. Seenaiah, Past President, opined that, appointing a person at BAI Delhi office is though very much required, the cost factor, which is to be recurring every month or year should also be seriously considered before actually going ahead with the appointment. He felt, it is necessary for the Office Bearers to identify the source of income and a well thought plan should be made in place as BAI is not a private body for one person to take a decision. He vehemently criticized the Hon. Gen. Secretary for using words like ‘Null and Void’ to a mail addressed to the President with a copy marked to the proposed candidate. He felt the Hon. General Secretary should have been careful while drafting the letter and felt, instead of Null and Void, words like ‘Kept in abeyance’ would have been much better, though both the words send the same message. He then stated that, BAI is a very large organisation and a President who purely acts on his emotions or impulse should not be heading it and requested the house to accept the resignation of Shri Sachin Chandra as President of BAI. Shri Nimesh D. Patel, Vice President, expressed that the resignation of Shri Sachin Chandra should be accepted immediately, in light of his autocratic style of functioning. He then informed members that, during the last ten months as President of BAI, Shri Sachin Chandra have never discussed or consulted him on any matter concerning BAI or sent any communication to him. He then reminded members that, Ahmadabad is the first Centre to felicitate Shri Sachin Chandra as President, by arranging a gala function, wherein Mr. President was the Chief Guest. He felt, from the beginning of his tenure itself, the President has given an impression that, he is there to appoint a man of his choice in Delhi and a PR Agency without taking the office bearers into confidence, though both of this would have heavy financial burden on BAI. BUILDERS' ASSOCIATION OF INDIA
Shri Lal Chand Sharma, Past President & Trustee, observed that, the position of the President is highest in BAI hierarchy. He felt, since the inception of BAI in 1941, no President ever have resigned from the post and this has shown Shri Sachin Chandra have done the resignation to blackmail the members, so that his action could be justified. If the Hon, General Secretary had made a mistake, the President would have called a meeting of Past Presidents, Trustees or seniors who would have supported the President and brought an amicable solution. He felt the resignation of Shri Sachin Chandra, with whatsoever provocation from any one, is not acceptable and therefore, should be accepted as he is not matured enough to lead an organization like BAI. He also felt, the interest of President to have an office with his own chosen person at Delhi and a PR Agency at his disposal have created a doubt in the minds of the seniors of the Association as to the real intention of Shri Sachin Chandra. He also observed that, the President used to make statements in BAI’s national forums that BAI has done nothing for the construction industry in the past due to the lack of a PR Agency. He then stated that, he was surprised to note that, the President has only got two agenda for BAI in his tenure that is a man at Delhi and PR Agency. He felt, Shri Sachin Chandra lack knowledge about BAI, its various activities and more so about the issues of construction industry. He then stated that, though he not being much educated, the co-operation and support of the then office bearers coupled with the sincere co-operation of Executive Secretary have made him to complete his Presidential assignment smoothly. He requested the house to accept the resignation straightaway, so that no bad precedent should be there, as Shri Sachin Chandra was trying to blackmail the Association just at the eve of the much awaited All Builders Convention. He concluded by saying that, no man should be allowed to run the Association according to his autocratic way. Shri O.P. Sharma, Vice President, observed that, in his 22 years of Association with BAI, he has not come across a President, who is very impulsive and emotional even on petty issues, whereas the aim of BAI is address the concerns of contractors and builders and the time and energy of President should be focused on this. He felt, Shri Sachin Chandra is immature and not really capable of holding the President post as his decisions are solely dependent upon by emotions rather than rational thinking. He requested the house to accept the resignation of Shri Sachin Chandra immediately. Shri Ravindra Pradhan, Trustee, observed that, members should consider giving one more opportunity to the President as he has acted emotionally due to his immaturity. He also felt, the absence of President in the All India Builders Convention would dampen the spirit of the proceedings of the Convention, which is to be attended by members from all over the country.
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79h Annual Report and Accounts – 2019-2020
Shri B. Sugunakar Rao, Trustee, expressed that, members should look into the allegation leveled by the President against the Hon. General Secretary and Hon. General Treasurer in his resignation letter as it is important that, BAI should have a unity in its approach. He felt, no action should be initiated in haste on the resignation matter and if any action is contemplated, the same could be considered after the completion of the XXIX All India Builders’ Convention.
of our beloved President to the Convention. He felt, the President resigning without even consulting a single office bearer is equal to leaving BAI without a ‘Head’ at the crucial juncture of Convention should neither be tolerated nor be pardoned. He requested the house to immediately accept his resignation. He also felt, the Hon. Gen. Secretary should also be reprimanded for marking a copy of the letter to the proposed candidates with harsh words as it will send a wrong signal to outsiders.
Shri C.G. Deochake, Trustee, observed that, resignation from a responsible post by the President at the time of All India Builders’ Convention shows the immaturity of the person who is holding the highest position of BAI. He requested the house to immediately accept the resignation and consider alternate arrangement in place of President for conducting MC / GC Meetings and All India Builders’ Convention. He also stated that, Mumbai Centre is not ready to accept the apology and close the matter.
Shri Prakash Panjwani, State Chairman, Maharashtra observed that, the President was not executing the Presidential position in a proper way and not communicating with the office bearers to understand about the issues faced by Construction Industry at national level. He felt, the President would have called a meeting of Office Bearers to discuss about the issues raised in the resignation letter and if he had done so, the current situation could have been avoided. He requested the Chair to accept the resignation with immediate effect as the President is always acting single handedly on all matters concerning BAI and even would not find it worth to discuss any matter with his office bearers.
Shri O.K. Selvaraj, Trustee, at the outset requested the Chair to accept the resignation immediately and appoint a well respected eligible Past President as an interim President to Chair both the MCGC and XXIX All India Builders’ Convention. He also observed that, people with in-depth knowledge of BAI should only be elected or nominated as President otherwise this type of issues would arise in future. Shri R. Muthukumar, State Chairman, Tamil Nadu, Puducherry & Andaman Nicobar, stated that, since the first meeting of the Managing Committee held at Patna, the President has given an impression that, the only pending agenda in BAI is to appoint a ‘Liasioning Officer’ at Delhi office and appointing a PR Agency. Not only the President repeatedly tried to push these two items as the most important one in all meetings, but also vehemently opposed any objection on the same. The President repeatedly argues for implementing his pet agenda by pointing the huge Corpus Fund available with BAI Headquarter. He then informed the house that, the President so far has not even shown the courtesy of replying mails sent to him, both concerning organizational matters as well as seeking clarification on industry issues. He continued by stating that, the priorities of the President appears to be only two and with all his persuasion power he sought help from others to implement the same at any cost. He then stated that, resigning as President of BAI just before the All India Builders’ Convention is not only immature but also shows his irresponsibility towards the highest position occupied by him. He requested the house to accept the resignation and appoint a senior person to preside over the MCGC Meeting and Convention. Shri D.V.N. Reddy, State Chairman, Telangana, stated that, the President was selected from the East Zone, mainly with the purpose of organising XXIX All India Builders’ Convention at Kolkata, by all means. He also requested Shri S.K. Basu to explain in detail about the contribution
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Shri Kirti M. Thacker, State Chairman, Gujarat stated that, as the meeting is called to discuss about accepting or rejecting of the resignation of BAI President, he felt, it should be accepted with immediate effect. Shri Ashok Kumar Chandak, State Co-ordinator, West Bengal observed that, the President should not have resigned on the eve of XXIX All India Builders’ Convention to be held at Kolkata, between 3rd – 5th January 2020. He felt, accepting the resignation should be considered only after the completion of the Convention. Shri Sushanta Kumar Basu, Past President expressed that, from day one of Shri Sachin Chandra assuming the charge as President of BAI, the problems start coming up. First, it was dismantling of ‘National Advisory Council’ even without consulting the members who constituted it, though he himself was a party to the formation. He also felt, appointment of a person in BAI Delhi office, is not the issue but the capacity of a person to take the right decision at the right time by carrying his flocks united with him, makes him a leader, whereas Shri Sachin Chandra absolutely lacks these qualities. He felt, the resignation would not have been come at a worst time, as he lost the support of a good number of prospective Exhibitors and Sponsors, who were mentioning about the internal chaos going on BAI and were apprehended about the real happening or not happening of the Convention. He answered to the pointed question of Shri D.V.N. Reddy on Presidents contribution to the Convention, by mentioning that, it is nil and nil only, though he was having high expectation about him in the conduct of the Convention. He also stated that, this avoidable, man made chaotic situation has made a huge financial loss to the convention and he finds it difficult to generating funds
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for the XXIX All India Builders’ Convention and stated Shri Sachin Chandra alone is responsible for it. He felt, accepting the resignation at this hour is not a solution and suggested a resolution to be passed restricting the powers of the President to take any financial decision for the next 3 months. Shri B.N. Dikshit, Past President, observed that, Shri Sachin Chandra showed his autocratic way of functioning by dismantling ‘National Advisory Council’ at the first meeting, which he was chaired as President. He felt, BAI should not tolerate indiscipline and should immediately accept the resignation, which will act as deterrent for others who take such foolish steps in future. He requested the house to appoint Shri Sushanta Kumar Basu or Shri B. Seenaiah as a ‘Guardian President’ for presiding over the Managing Committee / General Council Meeting and XXIX All India Builders’ Convention. Shri H.N. Vijaya Raghava Reddy, Past President observed that, the resignation matter of the President, would have been discussed as an item in the agenda of Managing Committee Meeting as this informal meeting has no ‘locus standi’ to discuss and decide on the matter. He felt, the President would have called an Office Bearers Meeting to discuss about the non co-operation experienced by him, from the Hon. Gen. Secretary and Hon. Gen. Treasurer, and resigning abruptly from the highest post of BAI President is never a solution to the problem. He felt, no action should be taken in haste and both Shri Sachin Chandra and Shri Neerav Parmar should be made to apologize to each other and if both agree the matter should be closed then and there. He also stated that, any decision of this meeting should be brought before the Managing Committee Members meeting for its ratification as it is the body meant for accepting the resignation of members. Shri A. Puhazhendi, Past President, brought to the attention of members to the allegation made by Shri Sachin Chandra in his resignation letter, which gives an impression that, he was mentally tortured by the Hon. Gen. Secretary and Shri Hon. Gen. Treasurer. He felt, writing the letter to the candidate and mentioning words like ‘Null and Void’ on the appointment order issued by the President is not at all acceptable. He felt, as per BAI hierarchy, the President is supreme and his decision on any matter should be accepted by other office bearers. He felt with an apology from both the members, that is, Shri Sachin Chandra and Shri Neerav Parmar the matter should be ended amicably. Shri Bhagwan J. Deokar, Past President, brought to the attention of members to the allegation made in the resignation letter of Shri Sachin Chandra against BAI Mumbai Centre. He felt, the allegation made against the Hon. Gen. Secretary and Hon. Gen. Treasurer is not only a personal attack on them but also exceeds the limits of decency. He then stated that, Shri Sachin Chandra has hurt, injured and murdered the prestige of BAI Mumbai Centre by mentioning in the resignation letter that, the BUILDERS' ASSOCIATION OF INDIA
‘COTERIE’ from Mumbai Centre is blocking the development of BAI. This allegation from Shri Sachin Chandra exposes his utter lack of knowledge about how BAI is functioning thus far as also to the great contribution made by Mumbai Centre, that is always referred as a Head Quarter Centre. He requested learned members to teach Shri Sachin Chandra about BAI, its functioning and particularly about the legends of construction industry from Mumbai Centre, who adorned the Chair of President of BAI in the past. He categorically refused to accept apology from the President and defuse the matter by stating that, no apology could restore the pride of Mumbai Centre, dented by the wide allegation of a man, who is neither competent nor matured to hold the coveted position as BAI President. He requested the house to immediately accept the resignation and appoint a new capable leader to Chair the Managing Committee / General Council Meeting and XXIX All India Builders’ Convention at Kolkata. Before concluding his words, he reiterated his words that, no apology should be enough to pacify the sentiments of Members of BAI Mumbai Centre, which is the Headquarter Centre and made the Association grow from a few members to the current level of membership and Centres. Dr. S.P. Goel, Past President observed that, the resignation should not be accepted without a detailed deliberation. He felt, the allegations raised by the President against the Hon. Gen. Secretary should also be deliberated in detail before concluding the decision on the matter. He requested the house to seek a detailed explanation from Shri Sachin Chandra and Shri Neerav Parmar, so that a proper decision could be arrived at. He felt, taking a decision without getting all information and explanation from both sides is, like a Judge delivering an order without properly understanding of all matters concerning the dispute. Shri Pradeep Nagawekar, Hon. Gen. Treasurer observed that, the main reason of resignation of the President is, he being ignorant of the procedures to be followed by BAI, particularly taking decisions on matters related to financial implications on BAI. The President feels, he can spent the funds of the Associations on any matters which he thinks important and used to take unilateral decision on which, he expect the office bearers to endorse the same without any question. He then observed that, while the President is supreme in the organisation, other office bearers are not inferior to him and they are not there to implement the whims and fancies of President. All Office Bearers are individual members of the association and if the President thinks, he can impose his authority on the office bearers by projecting his position as President, he is grossly mistaken. He then brought to the attention of members on the contents of the letter written by Hon. Gen. Secretary with chronological details and stated that, the Hon. Gen. Secretary was requesting the President to follow the procedures before taking a final decision. He then stated that, as the President is not given any response to
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the Hon. Gen. Secretary and felt, it is necessary to inform the candidate about his appointment being not valid due to procedural lapses. He further stated that, the President has listed expenditure of around Rs.60 Lakhs with a prospective generation of funds from ‘National Preferred Partners’ for Rupees One Crore. He felt, while the President is more interested to spend the money on his pet agenda like appointment of a Liasioning Officer at BAI Delhi office, appointing a PR Agency, launching a new Website, renovation of BAI Delhi office etc., etc., conveniently ignored and silent about the income generation through National Preferred Partners. He also stated that the words written by the Hon. Gen. Secretary ‘Null and Void’ is written without any offence to the President, whereas the candidate, who will join our Association by leaving a job, would be the ultimate looser. He also stated that, members who are talking about the Convention and President’s role in it should ask him about his contribution to the Convention. He also stated that, BAI President though visited Pune a place very near to Mumbai. last week, did not find time to visit BAI Mumbai and this plainly speak about his commitment and dedication to BAI. Shri R. Radhakrishnan, Past President, while concluding the discussion stated that, out of 23 participants, 20 have proposed to accept the resignation subject to certain conditions. He brought to the attention of members on Shri Sushanta Kumar Basu’s contention of loosing Revenue from Exhibitors / Sponsors due to the resignation of Shri Sachin Chandra as it has sent a wrong signal to the market. He asked the members who will recoup the loss of the Convention due to the irresponsible action of the President. Shri R. Radhakrishnan, Chairman of the meeting then made the ruling by summarizing all the discussions stated that, Shri Sachin Chandra would have behaved more responsibly before resigning from his post. He felt, Shri Sachin Chandra would have called a meeting of the seniors and the matter would have been concluded in an amicable manner. He also narrated a past incident happened in 1984, where the then President Shri Amarjit Sing Chowdhury apologised to the house for his irrational behavior. He also mentioned a few members making statement like, the President tendering an apology to BAI Mumbai Centre, Hon. Gen. Secretary using alternate word to ‘Null and Void’ etc., which are also good suggestions. He also requested members to consider the suggestion of closing the matter with an apology from Shri Sachin Chandra, which was categorically refused by participants of BAI Mumbai Centre.
/ General Council meeting and XXIX All India Builders’ Convention. As such he stated that, the majority opinion of the house is to accept the resignation and appoint an alternate arrangement in his place to complete the MC / GC meetings and All India Builders Convention to be held between 3rd January 2020 to 5th January 2020 at around 3.00 PM. Shri R. Radhakrishnan then proposed the name of Shri O.P. Sharma, who is the senior most Vice President from the current team of office bearers to Chair the ensuing MCGC Meeting to be held later on the same day and also to preside over the XXIX AIBC. Shri O.P. Sharma declined the offer by stating that, it is better to appoint an experienced person, to chair the MCGC Meeting and XXIX AIBC as it is necessary on the part of the Chairman of the meeting to apprise about the issues of Construction Industry to the Chief Guests of XXIX All India Builders’ Convention. He then proposed the name of Shri B. Seenaiah to the honoured post. Members also agreed to Shri Sharma’s proposal. Shri B. Seenaiah, Past President, at the outset thanked the members and stated that, it would have been his honour to preside over BAI meetings once again had he not been pressed with some urgent official engagement which needs him to travel a lot in the coming 2 to 3 months and requested Shri R. Radhakrishnan, senior most Past President & Past Trustee, to take up the position. Members present in the meeting also endorsed the views of Shri B. Seenaiah and requested Shri R. Radhakrishnan to accept the position and preside over the Managing Committee Meeting / General Council Meeting and XXIX All India Builders’ Convention. Shri R. Radhakrishnan, Past President & Past Trustee acceded the request of members and agreed to preside over the Managing Committee Meeting / General Council Meeting to be held immediately after this meeting and also to preside over the inaugural function and Valedictory Session of XXIX All India Builders’ Convention. The House also requested Shri B. Seenaiah, Past President and Shri R. Radhakrishnan, Past President & Past Trustee to brief about the unanimous decision or opinion of this informal meeting arrived at to the Managing Committee Members, as it is the Managing Committee to finally accept or reject the resignation of its members. With a hearty vote of thanks to the Chair, the meeting terminated.
After explaining the whole facts and figures he stated that, out of 23 members 20 members have proposed to accept the resignation and appoint an alternate in place of Shri Sachin Chandra to preside over the Managing Committee
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List of Members present in the Informal Meeting held on 3rd January 2020 at Kolkata. Following members were present in the meeting:1.
Shri Nimesh D. Patel
:
Vice President
2.
Shri O.P. Sharma
:
Vice President
3.
Shri K. Sriram
:
Vice President
4.
Shri Pradeep Nagawekar
:
Hon. Gen. Treasurer
5.
Shri R. Radhakrishnan
:
Past President
6.
Shri B. Seenaiah
:
Past President
7.
Shri Lal Chand Sharma
:
Past President & Trustee
8.
Shri Sushant Kumar Basu
:
Past President
9.
Shri B.N. Dikshit
:
Past President
10.
Shri H.N. Vijaya Raghava Reddy
:
Past President
11.
Shri Bhagwan J. Deokar
:
Past President
12.
Dr. S.P. Goel
:
Past President
13.
Shri A. Puhazhendi
:
Past President
14.
Shri B. Suganakar Rao
:
Trustee
15.
Shri C.G. Deochake
:
Trustee
16.
Shri O.K. Selvaraj
:
Trustee
17.
Shri V. Rajagopal
:
Trustee
18.
Shri R. Muthukumar
:
State Chairman, Tamil Nadu, Puducherry & Andaman Nicobar
19.
Shri D.V.N. Reddy
:
State Chairman, Telangana
20.
Shri Prakash Panjwani
:
State Chairman, Maharashtra
21.
Shri Kirti M. Thacker
:
State Chairman, Gujarat
22.
Shri V. Venkateswara Rao
:
State Chairman, Andhra Pradesh
23.
Shri Ashok Kumar Chandak
:
State Co-ordinator, West Bengal
24.
Shri Raju John
:
Executive Secretary
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Court Case filed by Shri Sachin Chandra against BAI
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BAI's Budget Proposal - Direct Tax & Indirect Tax 2019 The Union Budget has been structured on the overall theme of “Ease of Living.” This has been achieved by farmer friendly initiatives such as Agriculture credit target of Rs 15 lakh crore for 2020-21; schemes of “Kisan Rail” and “Krishi Udaan” for a seamless national cold supply chain for perishables; and expansion of PM-KUSUM to provide 20 lakh farmers for setting up stand-alone solar pumps. In the health sector, the Budget proposes more than 20,000 empanelled hospitals under PM Jan Arogya Yojana for poor people; and expansion of Jan Aushadhi Kendra Scheme to all districts offering 2000 medicines and 300 surgicals by 2024. Infrastructure receives a boost, with 100 more airports by 2024 to support Udaan scheme; and operation of 150 passenger trains to be done through PPP mode. Starting apprenticeship embedded courses through 150 higher educational institutions by March 2021 and a proposal to establish Indian Institute of Heritage and Conservation are some of the other major highlights. The Finance Minister said that the Union Budget Aims: •
To achieve seamless delivery through Digital governance
•
To improve physical quality of life through National Infrastructure Pipeline
•
Risk mitigation through Disaster Resilience
•
Social security through Pension and Insurance penetration.
of
services
The budget is woven around three prominent themes: •
Aspirational India in which all sections of the society seek better standards of living, with access to health, education and better jobs.
•
Economic development for all, indicated in the Prime Minister’s exhortation of “SabkaSaath, SabkaVikas, SabkaVishwas”.
•
Caring Society that is both humane and compassionate, where Antyodaya is an article of faith.
The three broad themes are held together by •
Corruption free – policy-driven good governance
•
Clean and sound financial sector.
The three components of Aspirational India are- a) Agriculture, Irrigation and Rural Development , b) Wellness, Water and Sanitation and c) Education and Skills. Agriculture, Irrigation and Rural Development BUILDERS' ASSOCIATION OF INDIA
The Finance Minister said that more than Rs 2.83 lakh crore would be spent on Agriculture, Rural Development, Irrigation and allied activities as farmers and rural poor continue to remain the key focus of the Government. Reiterating the commitment of doubling farmers’ income by 2022, She said, Government has already provided resilience for 6.11 crore farmers insured under PM Fasal Bima Yojana. Agriculture credit target for the year 202021 has be set at Rs 15 lakh crore. All eligible beneficiaries of PM-KISAN will be covered under the KCC scheme. Moreover, comprehensive measures for one hundred water stressed districts, proposal to expand PM-KUSUM to provide 20 lakh farmers for setting up stand-alone solar pumps and for another 15 lakh farmers to solarise their grid-connected pump sets, setting up of efficient warehouses at the block/taluk level and in Horticulture sector with focus on “one product one district” for better marketing and export are some of the steps in that direction. Foot and Mouth disease, brucellosis in cattle and also peste des petits ruminants(PPR) in sheep and goat to be eliminatated by 2025, Coverage of artificial insemination to be increased from the present 30% to 70%, MNREGS to be dovetailed to develop fodder farms, doubling of milk processing capacity from 53.5 million MT to 108 million MT by 2025 to be facilitated. Similarly on the Blue Economy, raising of fish production to 200 lakh tonnes is proposed by 2022-23. Youth to be involved in fishery extension through 3477 Sagar Mitras and 500 Fish Farmer Producer Organisations. Fishery exports hoped to be raised to Rs 1 lakh crore by 2024-25. DeenDayalAntyodayaYojana- for alleviation of poverty, half a crore households are mobilized with 58 lakh SHGs and it will be further expanded. Wellness, Water and Sanitation Dwelling on the Wellness, Water and Sanitation theme, Smt Sitharaman said Rs 69,000 crore is being provided for Health care including Rs 6400 crores for Prime Minister Jan ArogyaYojana (PMJAY). She said, under PM Jan ArogyaYojana (PMJAY), there are more than 20,000 empanelled hospitals more in Tier-2 and Tier-3 cities for poorer people. Setting up hospitals in the PPP mode mainly in Aspirational Districts, using machine learning and AI, in the Ayushman Bharat scheme, “TB Harega Desh Jeetega” campaign to end Tuberculosis by 2025, expansion of Jan Aushadhi Kendra Scheme to all districts offering 2000 medicines and 300 surgicals by 2024 are some of the other wellness measures in the Budget. On sanitation front, Government is committed to ODF Plus in order to sustain ODF behaviour and the total allocation for Swachh Bharat Mission is Rs.12,300 crore in 2020-21. Similarly, Rs 3.60 lakh crore approved for Jal Jeevan Mission and Rs 11,500 crore in 2020-21. Education and Skills
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Economic Development
tracks. She said that within 100 days of assumption of this government, it has commissioned 550 wi-fi facilities in as many stations. Four station re-development projects and operation of 150 passenger trains would be done through PPP mode. The process of inviting private participation is underway. More Tejas type trains will connect iconic tourist destinations. High speed train between Mumbai to Ahmedabad would be actively pursued. Similarly, 100 more airports would be developed by 2024 to support Udaan scheme. Air fleet number expected to go up from the present 600 to 1200 during this time. Allocation of Rs 1.70 lakh crore proposed for transport Infrastructure in 2020-21. Similarly, allocation of Rs 22,000 crore proposed for power and renewable energy sector in 2020-21. Expansion of the national gas grid from the present 16,200 km to 27,000 km proposed.
Industry, Commerce and Investment
New Economy
Referring to the theme of Economic Development, the Finance Minister said that Rs 27300 crore would be allocated for development and promotion of Industry and Commerce for the year 2020-21. An Investment Clearance Cell will be set up to provide “end to end” facilitation. It is proposed to develop five new smart cities in collaboration with States in PPP mode. A scheme to encourage manufacture of mobile phones, electronic equipment and semi-conductor packaging is also proposed. A National Technical Textiles Mission would be set up with a fouryear implementation period from 2020-21 to 2023-24 at an estimated outlay of Rs 1480 crore to position India as a global leader in Technical Textiles. To achieve higher export credit disbursement, a new scheme, NIRVIK is being launched to support mainly small exporters. Government e-Marketplace (GeM) is moving ahead for creating a Unified Procurement System in the country for providing a single platform for procurement of goods, services and works. It is proposed to take the turnover of GeM to Rs 3 lakh crores. 3.24 lakh vendors are already on this platform.
On New Economy, Smt Sitharaman said that a policy to enable private sector to build Data Centre parks throughout the country will be brought out soon. Fibre to the Home (FTTH) connections through Bharatnet will link 100,000 gram panchayats this year. It is proposed to provide Rs 6000 crore to Bharatnet programme in 2020-21. Measures proposed to benefit the Start-ups include a digital platform for seamless application and capture of IPRs, Knowledge Translation Clusters to be set up across different technology sectors including new and emerging areas. For designing, fabrication and validation of proof of concept, and further scaling up Technology Clusters, harbouring test beds and small scale manufacturing facilities to be established. It is proposed to provide an outlay of Rs 8000 crore over a period five years for the National Mission on Quantum Technologies and Applications.
Infrastructure
Harping on the theme of Caring Society, the Finance Minister said that Rs 35,600 crore proposed for nutritionrelated programmes for the financial year 2020-21. Rs 28,600 crore proposed for programs that are specific to women. Moreover, Rs 85000 crore would be allocated towards the welfare of Scheduled Castes and Other Backward classes for 2020-21. Similarly, for furthering development and welfare of Scheduled tribes, Rs 53,700 crore is proposed for 2020-21. She said, the government is mindful of the concerns of senior citizens and Divyang. Accordingly, an enhanced allocation of Rs 9,500 crore is being provided for 2020-21.
On Education and Skill front, the Finance Minister said Rs 99,300 crore is being allocated in 2020-21 and Rs 3000 crores for skill development. New Education Policy will be announced soon. About 150 higher educational institutions will start apprenticeship embedded degree/diploma courses by March 2021. Degree level full-fledged online education programme to be started. Under its “Study in India” programme, an Ind-SAT is proposed to be held in Asian and African countries. A National Police University and a National Forensic Science University are being proposed in the domain of policing science, forensic science, cyber-forensics etc. It is proposed that special bridge courses be designed by the Ministries of Health, Skill Development.
On Infrastructure sector as highlighted by the Prime Minister that Rs 100 lakh crore would be invested over the next 5 years, National Infrastructure Pipeline was launched on 31st December 2019 of Rs 103 lakh crore. It consists of more than 6500 projects across sectors and are classified as per their size and stage of development. She said that about Rs 22,000 crore has already been provided as support to Infrastructure Pipeline. Accelerated development of highways will be undertaken. This will include development of 2500 Km access control highways, 9000 Km of economic corridors, 2000 Km of coastal and land port roads and 2000 Km of strategic highways. DelhiMumbai Expressway and two other packages to be completed by 2023. Chennai-Bengaluru Expressway also be started. It is proposed to monetise at least 12 lots of highway bundles of over 6000 Km before 2024. Indian Railways aims to achieve electrification of 27000 Km of
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Caring society Women and Child, Social Welfare
Culture and Tourism On Culture and Tourism, establishment of an Indian Institute of Heritage and Conservation under Ministry of Culture proposed with the status of a deemed University. 5 archaeological sites to be developed as iconic sites with on-site Museums – Rakhigarhi (Haryana), Hastinapur
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(Uttar Pradesh) Shivsagar (Assam), Dholavira (Gujarat) and Adichanallur (Tamil Nadu). Re-curation of the Indian Museum in Kolkata, announced by Prime Minister in January 2020. Museum on Numismatics and Trade to be located in the historic Old Mint building Kolkata. 4 more museums from across the country to be taken up for renovation and re-curation. Support for setting up of a Tribal Museum in Ranchi (Jharkhand). Maritime museum to be set up at Lothal- the Harrapan age maritime site near Ahmedabad, by Ministry of Shipping. Environment and Climate Change On Environment, States that are formulating and implementing plans for ensuring cleaner air in cities above one million to be encouraged. Parameters for the incentives to be notified by the Ministry of Environment, Forests and Climate change and the allocation for this purpose is Rs 4,400 crore for 2020-21. Governance Dwelling on the issue of Governance as clean, corruptionfree, policy driven and good in intent and most importantly trusting in faith, the Finance Minister announced setting up of a National Recruitment Agency (NRA) as an independent, professional, specialist organisation for conduct of a computer-based online Common Eligibility Test for recruitment to Non-Gazetted posts. A test-centre in every district, particularly in the Aspirational Districts would also be set up. It is also proposed to evolve a robust mechanism for appointment including direct recruitment to various Tribunals and specialised bodies to attract best talents and professional experts. Deliberation to strengthen the Contract Act is also on. Financial Sector The Finance Minister said that In the last few years, Government of India has infused about Rs 3,50,000 crore by way of capital into Public Sector Banks for regulatory and growth purposes. Governance reforms would be carried out in these banks, so that they become more competitive. Government has already approved consolidation of 10 banks into four. Further, the Deposit Insurance and Credit Guarantee Corporation (DICGC) has been permitted to increase Deposit Insurance Coverage for a depositor, which is now Rs one lakh to Rs five lakh per depositor. The limit for NBFCs to be eligible for debt recovery under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act 2002 is proposed to be reduced from Rs. 500 crore to asset size of Rs 100 crore or loan size from existing Rs 1 crore to Rs 50 lakh. To meet the need for greater private capital, it is proposed to sell the balance holding of Government of India IDBI Bank to private, retail and institutional investors through the stock exchange. To help easy mobility while in jobs, we wish to infuse into the Universal Pension coverage with auto enrolment. More than five lakh MSMEs have benefitted BUILDERS' ASSOCIATION OF INDIA
from restructuring of debt permitted by RBI in the last year. The restructuring window was to end on March 31, 2020. Government has asked RBI to consider extending this window till March 31, 2021. For selected sectors such as pharmaceuticals, auto components and others, it is proposed to extend handholding support – for technology upgradations, R&D, business strategy etc. A scheme of Rs 1000 crore will be anchored by EXIM Bank together with SIDBI. Financial Markets On Financial Markets, about deepening of the bond market, certain specified categories of Government securities would be opened fully for non-resident investors, apart from being available to domestic investors as well. Government also proposes to expand by floating a new Debt-ETF consisting primarily of government securities. This will give retail investors access to government securities as much as giving an attractive investment for pension funds and long-term investors. To address the liquidity constraints of the NBFCs/HFCs, post the Union budget 2019-20, the government formulated a Partial Credit Guarantee scheme for the NBFCs. The Government and RBI has taken various measures to permit Rupee derivatives to be traded in the International Financial Services Centre at GIFT city, Gujarat. Disinvestment On Disinvestment, the Finance Minister said that listing of companies on stock exchanges discipline a company and provides access to financial markets and unlocks its value. It also gives opportunity for retail investors to participate in the wealth so created. The government now proposes to sell a part of its holding in LIC by way of Initial Public Offer (IPO). Fiscal Management On Fiscal Management, the Finance Minister said that XV Finance Commission has given its first report pertaining to Financial Year 2020-21. In the spirit of co-operative federalism, Government in substantial measure, accepted the recommendations of the Commission. The commission would submit its final report to the President during the latter part of the year, for five years beginning 2021-22. She also announced to transfer to the GST Compensation Fund balances due out of collection of the years 2016-17 and 2017-18, in two instalments. Hereinafter, transfers to the fund would be limited only to collection by way of GST compensation cess. The Revised Estimates of Expenditure for the Financial Year 2019-20 are at a level of Rs 26.99 lakh Crore and the receipts are estimated at Rs.19.32 lakh crore. She said, Government has estimated nominal growth of GDP for year 2020-21, on the basis of trends available, at 10%. Accordingly, receipts for the year 2020-21 are estimated at Rs. 22.46 lakh cr and, keeping in mind
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commitment of the Government towards various schemes and need for improvement in quality of life, level of expenditure has been kept at Rs 30.42 lakh cr. A good part of the borrowings for the financial year 2020-21 would go towards Capital expenditure of the Government that has been scaled up by more than 21%. She said that the measures would spur growth impulses in the economy.
than one hundred exemptions and deductions of different nature are provided in the Income Tax Act. She said that she has removed around 70 of them in the new simplified regime. She said that the remaining exemptions and deductions would also be reviewed and rationalized in the coming years, with a view to further simplifying the tax system and lowering the tax rate.
Personal Income Tax and Simplification of Taxation
Dividend Distribution Tax
In order to provide significant relief to the individual taxpayers and to simplify the Income-Tax law, the Finance Minister has proposed to bring a new and simplified personal income tax regime, wherein income tax rates will be significantly reduced for the individual taxpayers who forego certain deductions and exemptions. The proposed changes in tax slabs are listed in the following table: Taxable Income Slab(Rs.)
Existing Tax Rates
New Tax Rates
0-2.5 Lakh
Exempt
Exempt
2.5-5 Lakh
5%
5%
5-7.5 Lakh
20%
10%
7.5-10 Lakh
20%
15%
10-12.5 Lakh
30%
20%
12.5-15 Lakh
30%
25%
Above 15 Lakh
30%
30%
In order to remove the cascading effect, the Finance Minister has proposed to allow deduction for the dividend received by holding company from its subsidiary. The removal of DDT will lead to estimated annual revenue foregone of Rs. 25,000 crore. This will further make India an attractive destination for investment. Concessional Tax Rate for Electricity Generation Companies
Surcharge and cess shall be continued to be levied at the existing rates. In the new tax regime, substantial tax benefit will accrue to a taxpayer depending upon exemptions and deductions claimed by him. For example, a person earning Rs. 15 lakh in a year and not availing any deductions etc., will pay only Rs. 1,95,000 as compared to Rs. 2,73,000 in the old regime. Thus, his tax burden shall be reduced by Rs. 78,000 in the new regime. He would still be the gainer in the new regime, even if he was taking deduction of Rs. 1.5 Lakh under various sections of Chapter VI-A of the Income Tax Act under the old regime. The new tax regime shall be optional for taxpayers. An individual who is currently availing more deductions and exemption under the Income Tax Act may choose to avail them and continue to pay tax in the old regime. The new personal income tax rates will entail estimated revenue foregone of Rs. 40,000 crore per year. Measures have been initiated to pre-fill the income tax return so that an individual who opts for the new regime would need no assistance from an expert to file his return and pay income tax. The Finance Minister said she had reviewed all exemptions and deductions which got incorporated in the income tax legislation over the past several decades. Currently more
BUILDERS' ASSOCIATION OF INDIA
Currently, companies are required to pay Dividend Distribution Tax (DDT) on the dividend paid to its shareholders at the rate of 15% plus applicable surcharge and cess, in addition to the tax payable by the company on its profits. In order to increase the attractiveness of the Indian Equity Market and to provide relief to a large class of investors, the Finance Minister has proposed to remove DDT, and adopt the classical system of dividend taxation, under which the companies would not be required to pay DDT. The dividend shall be taxed only in the hands of the recipients at their applicable rate.
New provisions were offering a concessional newly incorporated manufacturing sector 31st March, 2023.
introduced in September 2019, corporate tax rate of 15% to the domestic companies in the which start manufacturing by
In order to attract investment in the power sector, it has been proposed to extend the concessional corporate tax rate of 15% to new domestic companies engaged in the generation of electricity. Tax Concession for Foreign Investments To incentivize investment by Sovereign Wealth Fund of foreign governments, the Finance Minister has proposed to grant 100% tax exemption to their interest, dividend and capital gains income in respect of the investment made in infrastructure and other notified sectors before 31st March, 2024 and with a minimum lock-in period of 3 years. Start-ups The Finance Minister noted that during their formative years, Start-ups generally use Employee Stock Option Plan (ESOP) to attract and retain highly talented employees. Currently, ESOPs are taxable as perquisites at the time of exercise. In order to give a boost to the start-up ecosystem, the Finance Minister has proposed to ease the burden of taxation on the employees by deferring the tax payment for five years or till they leave the company or when they sell their shares, whichever is earliest.
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An eligible Start-up having turnover upto 25 crore is allowed deduction of 100% on its profits for three consecutive assessment years out of seven years if the total turnover does not exceed 25 crore rupees. The Finance Minister has proposed to increase this limit to Rs. 100 crore. She has also proposed to extend the period of eligibility for claim of deduction from the existing 7 years to 10 years. Concessional Tax Rate for Cooperatives Cooperative societies are currently taxed at a rate of 30% with surcharge and cess. As a major concession, and in order to bring parity between the cooperative societies and corporates, the Finance Minister has proposed to provide an option to cooperative societies to be taxed at 22% plus 10% surcharge and 4% cess with no exemptions/ deductions. She has also proposed to exempt these societies from Alternative Minimum Tax (AMT), just like companies under the new tax regime are exempted from the Minimum Alternate Tax (MAT). Medium, Small and Micro Enterprises In order to reduce the compliance burden on small retailers, traders, shopkeepers who comprise the MSME sector, the Finance Minister has proposed to raise by five times, the turnover threshold for audit from the existing Rs. 1 crore to Rs. 5 crore. In order to boost less-cash economy, she has proposed that the increased limit shall apply only to those businesses which carry out less than 5% of their business transactions in cash. Affordable Housing In the last budget, the Finance Minister had announced an additional deduction of upto one lakh, fifty thousand rupees for interest paid on loans taken for purchase of an affordable house. The date of loan sanction for availing this additional deduction is proposed to be extended by one year, beyond 31st March, 2020. Charity Institutions Income of Charity Institutions is fully exempt from taxation. Donation made to these institutions is also allowed as deduction in computing the taxable income of the donor. It is proposed to pre-fill the donee’s information in taxpayer’s return on the basis of information of donations furnished by the donee. In order to claim the tax exemption, charity institutions have to be registered with the Income Tax Department. It is proposed to make the registration completely electronic under a unique registration number (URN) to be issued to all new and existing charity institutions. Faceless Appeals In order to impart greater efficiency, transparency and accountability to the assessment process, a new faceless assessment scheme has already been introduced. It is proposed to amend the Income Tax Act so as to enable Faceless appeal on the lines of Faceless assessment.
BUILDERS' ASSOCIATION OF INDIA
„
Vivad se Vishwas scheme
Under the proposed „Vivad se Vishwas’ scheme, a taxpayer would be required to pay only the amount of the disputed taxes and will get complete waiver of interest and penalty, provided he pays by 31st March, 2020. Those who will avail the scheme after 31st March, 2020 will have to pay some additional amount. The scheme will remain open till 30th June 2020. Instant PAN through Aadhaar In order to further ease the process of allotment of PAN, a system will be launched under which PAN shall be instantly allotted online on the basis of Aadhaar, without any requirement for filling up of detailed application form. Indirect Tax GST A simplified GST return shall be implemented from the 1st April, 2020. It will make return filing simple with features like SMS based filing for nil return, return prefilling, improved input tax credit flow and overall simplification. Dynamic QR-code is proposed for consumer invoices. GST parameters will be captured when payment for purchases is made through the QR-code. Customs On the Customs side, India has taken a quantum leap in the “Trading Across Border” parameter of Ease of Doing Business rankings by the World Bank. India’s rank has improved from 146 to 68. Imports under Free Trade Agreements are on the rise. Undue claims of FTA benefits have posed threat to domestic industry. In the coming months, Rules of Origin requirements shall be reviewed, particularly for certain sensitive items, so as to ensure that FTAs are aligned to the conscious direction of our policy. Labour intensive sectors in MSME are critical for employment generation. Cheap and low-quality imports are an impediment to their growth. Keeping in view the need of this sector, customs duty is being raised on items like footwear and furniture. Rate of Duty for footwear is being raised from 25% to 35%; and for “parts of footwear” from 15% to 20%. Rate of Duty for specified Furniture goods is being raised from 20% to 25%. To give impetus to domestic industry, and to generate resource for health services, it is proposed to impose a nominal health cess of 5% on imports of specified medical equipment. Basic customs duty on imports of newsprint and light-weight coated paper is being reduced from 10% to 5%. An increase is proposed in National Calamity Contingent Duty (NCCD) on Cigarettes and Tobacco products. NCCD on Bidis remains unchanged.
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XXIX All India Builders' Convention Theme : Construction Technology - Way to US $ 5 Trillion Economy 3rd, 4th and 5th January, 2020 Vedic Village Spa Resort, Kolkata A big reason for going to Conferences / Conventions is to meet with likeminded people and industry peers. Conferences / Conventions bring together people from all different geographical areas who share a common discipline or field, and Conferences / Conventions are a great way to meet new people in one’s field. Hence the organising of XXIX All India Builders’ Convention on 3rd, 4th and 5th January 2020 in the picturesque Vedic Village Spa Resort, Kolkata. The XXIX All India Builders’ Convention (XXIX
AIBC) was organised by Builders’ Association of India (BAI) and was hosted by BAI Eastern (Kolkata) Centre. The die was cast for BAI Eastern (Kolkata) Centre to organise XXIX AIBC, when the Managing Committee in its meeting held on 4th August, 2019 in Visakhapatnam authorised BAI Eastern (Kolkata) Centre to organise XXIX AIBC. Seniors of BAI Eastern (Kolkata) Centre immediately sat on the drawing board and got down to brasstacks ably led by Shri Sushanta Kumar Basu, Past President of BAI.
A ‘Convention Committee’ was formed, consisting of : Shri B. D. Mundhra, ........................................................... Chairman, Convention Committee Shri Sachin Chandra, ......................................................... President Shri B. Seenaiah, ................................................................. Chief Patron Shri Sushanta Kumar Basu, .............................................. Chairman, Organising Committee Shri R. Radhakrishnan, ..................................................... Chief Advisor Shri K. Sriram, .................................................................... Vice-President Shri Mathew Alex Vellapally, .......................................... Vice-President Shri Nimesh Patel, ............................................................. Vice-President Shri O. P. Sharma, .............................................................. Vice-President Shri Surojit Samanta, ......................................................... Vice-President Shri Neerav Parmar, .......................................................... Hon. Gen. Secretary Shri Pradeep Nagawekar, ................................................. Hon. Gen. Treasurer Shri A. Puhzhendi, ............................................................. Imm. Past President Shri Ashok Kumar Chandak, ........................................... State Chairman, West Bengal Shri Pradeep Chowdhury, ................................................ Secretary, Organising Committee Shri Pradip Mukherjee, ..................................................... Treasurer, Organising Committee Shri Shankar Chandra Dey, .............................................. Chairman, Eastern (Kolkata) Centre Shri V. G. Sakthikumar, .................................................... Convenor, Exhibition Committee Shri Raju John, .................................................................... Chief Co-Ordinator An ‘Advisory Committee’ was also formed, consisting of : Shri R. Radhakrishnan, ..................................................... Shri P. R. Mundle, .............................................................. Shri Bhagwan Deokar, ...................................................... Shri Lal Chand Sharma, .................................................... BUILDERS' ASSOCIATION OF INDIA
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Past President & Past Trustee as Chief Advisor Past President Past President Past President 79h Annual Report and Accounts – 2019-2020
Shri Sri Prakash Goel, ....................................................... Shri B. N. Dikshit, .............................................................. Shri H. N. Vijaya Raghava Reddy, .................................. Shri Mu. Moahan, .............................................................. Shri V. M. Fazal Ali, ..........................................................
Past President Past President Past President Past Vice-President Past Vice-President
The Organising Committee ahead with full gusto, scouted around and fixed the event dates as 3rd, 4th and 5th January 2020 and the venue as the picturesque Vedic Village Spa Resort, Kolkata.
An exhibition of building materials and methods was also held along with XXIX AIBC in Vedic Village Spa Resort, Kolkata. Shri Tathagata Roy, Governor of Meghalaya formally inaugurated the exhibition on 3rd January, 2020.
In the Managing Committee meeting held in Patna on 20th April, 2019, the Organising Committee released the brochure giving information on delegate fees, accommodation charges in the venue, souvenir advertisement charges, sponsorship opportunities, etc. The Organising Committee, BAI Eastern (Kolkata) Centre and BAI head office in Mumbai regularly coordinated and ensured registration of delegates from BAI Centres across India, solicited technical papers for the souvenir-cum-technical volume, collected advertisements from BAI Centres and BAI’s wellwishers for the souvenir-cum-technical volume, ensured delegates who register send their travel plans, etc. On the D-Day i.e. 3rd January, 2020 XXIX All India Builders’ Convention was inaugurated in the postlunch session by Shri Tathagata Roy, Governor of Meghalaya. The keynote address on the theme ‘Construction Technology – Way to US $ 5 Trillion Economy’ was delivered by Shri Ajit Gulabchand, Chairman and Managing Director, M/s Hindustan Construction Company. Others who graced the dais during the inauguration were : Shri B. D. Mundhra, Chairman, Convention Committee; Shri B. Seenaiah, Chief Patron; Shri Sushanta Kumar Basu, Chairman, Organising Committee; Shri R. Radhakrishnan, Chief Advisor; Shri K. Sriram, Vice-President; Shri Nimesh Patel, Vice-President; Shri O. P. Sharma, VicePresident; Shri Neerav Parmar, Hon. Gen. Secretary; Shri Pradeep Nagawekar, Hon. Gen. Treasurer; Shri A. Puhzhendi, Imm. Past President and Shri Ashok Kumar Chandak, State Chairman, West Bengal. During the inaugural session of XXIX AIBC, ‘BAI Awards 2018-19’ were presented by Shri Tathagata Roy to the recipient BAI Centres and members, which had been earlier announced during the 78th AGM of BAI held on 17th August, 2019 in Poonamallee, Chennai.
BUILDERS' ASSOCIATION OF INDIA
On 4th January, 2020 the ‘Technical Session’ of XXIX AIBC was inaugurated by Shri Tathagata Roy, Governor of Meghalaya. Others who graced the dais during the inauguration were : Shri B. Seenaiah, Chief Patron; Shri Sushanta Kumar Basu, Chairman, Organising Committee; Shri R. Radhakrishnan, Chief Advisor; Shri Neerav Parmar, Hon. Gen. Secretary; Shri Pradeep Nagawekar, Hon. Gen. Treasurer and Shri A. Puhzhendi, Imm. Past President. The ‘Souvenir-cum-Technical Volume’ of XXIX AIBC was released by Shri Tathagata Roy, Governor of Meghalaya on the occasion. After the inauguration, the first session was on ‘Importance of Standards in Construction Industry’, which was chaired by Shri B. Seenaiah, Past President, BAI. The main speaker was Shri Sanjay Pant, Head of the Civil Engineering Department, Bureau of Indian Standards, New Delhi. The second session was on ‘Legal Issues in Construction Industry’, which was chaired by Justice Shri Asok Kumar Ganguly, Retd. Judge, Supreme Court of India. The speakers were : Shri Jayanta Mitra, Barrister and former Advocate General of West Bengal; Shri Tathagata Roy, Governor of Meghalaya; Shri Ganesh Chandra Kabi, Formerly Arbitrator Government of India & Chief Engineer, CPWD and Shri Sushanta Kumar Basu, Past President, BAI. On 5th January, 2020, in the morning, the second technical session on ‘Construction Industry’ was held, which was chaired by Shri Amitabha Ghoshal, President, Consulting Engineering Association of India. The speakers were : Shri Amit Dang of M/s SREI Equipment Finance Ltd., who spoke on ‘Construction Equipment Financing’; Shri Partha Sarathi Sengupta, Eminent Engineer, who spoke on ‘Construction Technology’; Col. Sanjay M. Adsar of M/s B. G. Shirke Construction Technology Ltd., who
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spoke on ‘Precast Modern Construction’; Col. N. B. Saxena, Consultant, M/s Simplex Infrastructures Ltd., who spoke on ‘Skill Development’ and Smt. Jaya Bhattacharyya, Sr. Vice-President, M/s Simplex Infrastructures Ltd., who spoke on ‘HR in Construction Industry’. Thereafter a ‘Special Session’ was held, wherein Swami Atmapriyananda, Vice Chancellor of Ramakrishna Mission, Vivekananda Education & Research Institute (Deemed to the University as declared by Government of India) spoke. Thereafter the customary ‘Open House’ as done in all BAI’s All India Builders Conventions was held, which was chaired by Shri R. Radhakrishnan, Chief Advisor. Others who graced the dais during the ‘Open House’ were : Shri B. Seenaiah, Chief Patron; Shri Sushanta Kumar Basu, Chairman, Organising Committee; Shri Nimesh Patel, Vice-President; Shri Neerav Parmar, Hon. Gen. Secretary; Shri Pradeep Nagawekar, Hon. Gen. Treasurer; Shri Ashok Kumar Chandak, State Chairman, West Bengal and Shri Shankar Chandra Dey, Chairman, Eastern (Kolkata) Centre. Subsequent to the ‘Open House’, the “Resolutions of XXIX All India Builders; Convention” were proposed to the delegates, who approved the same after discussion. The resolutions passed are : 1.
2.
3.
It is RESOLVED that, the Government of India should consider establishing a separate Ministry for Building and Construction Industry due to the heavy investment opportunities expected to be in Building and Construction Sector – that is, Infrastructure Development and Housing – in the next two decades. It is RESOLVED that, the Government of India should recommend to Reserve Bank of India (RBI) for relaxing the Non Performing Asset (NPA) Norms for contractors, as the repayment of the loan by the contractors are mainly due to the non payment / delayed payment of bills by the Works Authorities of the Government Department. It is RESOLVED that, the Government contracts should include in their tenders, a clause for resolving of disputes only through Institutionalised Arbitration instead of Adhoc Arbitration, which is as per the Arbitration Amendment Act 2019.
BUILDERS' ASSOCIATION OF INDIA
4.
It is RESOLVED that, NITI Aayog should give directive to all the State PWD that, they should adopt CPWD contract conditions, so we have uniform form of contract across the country. It is also RESOLVED that, NITI Aayog should release the Standard Contract Document for EPC Contractors, finalised by all concerned.
5.
It is RESOLVED that, the Government of India should consider relaxing Coastal Regulation Zone (CRZ) Rules due to the large scale urbanisation and consequential requirement of more housing units expected in the next two decades.
6.
It is RESOLVED that, the Government of India should consider promoting construction of steel composite structures as it is faster and economically beneficial. It is also RESOLVED that, the Government of India should encourage use of Precast material for quicker completion of construction projects, both in housing and commercial complexes.
7.
It is RESOLVED that, the Government of India should consider releasing the land bank to Real Estate Developers for constructing Affordable Houses to fulfil the dream of the Government to provide “Housing for All by 2022”.
8.
It is RESOLVED that, the Government of India should accept the recommendation of Shri Vijay Kelkar Panel on PPP and BOT projects, so that Public-Private-Partnership (PPP) projects in infra sector will have more takers.
9.
It is RESOLVED that, the Government of India should encourage research and establish a Unit for exploring to find alternate material in place of sand, as sand dredging is banned by the Supreme Court. This will also be environmental friendly.
10. It is RESOLVED that, the Government of India should consider rationalising the Labour Laws by combining all the social security welfare measures with a TDS form of collection. This will facilitate the builder and contractor to concentrate on his business as Government will take care of the social security welfare of the workers. 11. It is RESOLVED that, the Government of India should consider constituting a ‘Cement Regulatory Authority’ as Cement
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Manufacturers are known for indulging in cartelisation with profiteering purpose. 12. It is RESOLVED that, the Government of India should consider establishing a single point window for permission of major infra projects as well as housing projects.
20. It is RESOLVED that, the Government of India should ensure the availability of land at the contractors’ disposal at the time of awarding the contracts. In other words, the execution of projects should not be delayed due to acquisition of land.
13. It is RESOLVED that more deserving contractors from building and construction industry should be encouraged and given ‘Padma Awards’ as it is being given to other industries/professionals.
21. It is RESOLVED that, the Government of India should consider establishing Internship Programme / Skill Upgradation Institutes / Agencies for fresh Diploma and Degree Engineers before recruiting them for doing the actual job.
14. It is RESOLVED that, the Government of India should consider easing the implementation procedure of Goods and Service Tax (GST) Rules for Construction Industry.
It was decided that the resolutions will be sent to Hon’ble Prime Minister of India and also to concerned Ministries of Government of India.
15. It is RESOLVED that, the Real Estate Regulatory Act (RERA) should include the sanctioning authorities and service providers from the Government side also with in the provision of the Act for achieving the desired result envisaged by the legislature. 16. It is RESOLVED that, the Government should provide land at free of cost for creating skill upgradation Centres at various parts of the country. It is also RESOLVED that, the Government should permit the use of Labour Welfare Cess collected under the Building and Other Construction Workers Welfare Cess Act, 1996 for skilling the construction workers. 17. It is RESOLVED that, the Government of India should include representatives from Builders’ Association of India (BAI) in the Committees constituted by the Government of India and also representation in the Government for the development of Construction Industry. 18. It is RESOLVED that, the Government of India should consider exempting the levy of Goods and Service Tax (GST) for the membership collected by Charitable Institution like Builders’ Association of India (BAI) as it’s main object is enhancing the image of Construction Industry. 19. It is RESOLVED that, before calling tender for work, the Government agencies should allocate proper budgetary fund for such work, to avoid delay of reimbursement to the contractors as also to avoid subsequent litigation.
BUILDERS' ASSOCIATION OF INDIA
In all the Technical Sessions, Special Session and Open House, delegates participated wholeheartedly and raised queries, which were aptly answered by the speakers. On 5th January, 2020 in the post lunch session, the ‘Valedictory Session’ of XXIX AIBC was held. Shri Babul Supriyo, Hon’ble Union Minister of State for Environment, Forest and Climate Change was the Chief Guest. Others who graced the dais during the ‘Valedictory Session’ were : Shri B. D. Mundhra, Chairman, Convention Committee; Shri B. Seenaiah, Chief Patron; Shri Sushanta Kumar Basu, Chairman, Organising Committee; Shri R. Radhakrishnan, Chief Advisor; Shri O. P. Sharma, Vice-President; Shri Neerav Parmar, Hon. Gen. Secretary; Shri Pradeep Nagawekar, Hon. Gen. Treasurer; Shri Ashok Kumar Chandak, State Chairman, West Bengal and Shri Shankar Chandra Dey, Chairman, Eastern (Kolkata) Centre. During the ‘Valedictory Session’, all Past Presidents, members of the Organising Committee and sponsors were felicitated by Shri Babul Supriyo. During “XXIX All India Builders’ Convention”, the meetings of the 4th Managing Committee and 3rd General Council meetings for 2019-20 were also held. It was not all business and business in “XXIX All India Builders’ Convention”, but the organisers had arranged tour for the accompanying delegates, tour for all the delegates and cultural programmes during the fellowship dinner.
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The recipients of ‘BAI Award 2018-19’ were : Overall Best BAI Centre (Below 200 Members)
– Ettumanoor and Visakhapatnam Centres
Overall Best BAI Centre (Above 200 Members)
– Southern (Chennai), Karnataka (Bangalore) Centre, Mumbai and Mysore Centres
Image Building Activities by a Centre
– Durgapur, Pune, Ghaziabad Centres
Organising Best Training Programme or Seminar
– Coimbatore and Kollam Centres
Maximum Membership Growth
– Tiruchirappalli and Coimbatore Centres
Best Efforts by any Centre for Quality Construction
– Angamaly, Ahmednagar and Thrissur Centres
Best Builders’ Day Celebrations
– Madurai, Kanyakumari, Tirunelveli and Kerala (Trivandrum) Centres
Maximum Membership Retention
– Vellore Centre
Best publication by a BAI Centre
– Southern (Chennai) Centre
Best performing Chairman of BAI’s functional Committees
– Dr. Dharmesh C. Awasthi, Chairman, Legal & Arbitration Committee
Best Performing State Chairman
– Shri S. Ayyanathan, State Chairman, Tamil Nadu, Puducherry & Andaman Nicobar and Shri Paul T. Mathew, State Chairman, Kerala
Best Vice President Award
– Shri M. Thirusangu, Vice President (South-II) and Shri Rajendra Singh Kamboh, Vice President (East)
Special Award
– ‘For Best efforts by a Member of the Centre for Quality Construction’ to Dr. S. Vijaya Kumar of M/s. Vijay Nirman Company Pvt. Ltd., Patron Member from BAI Visakhapatnam Centre - he had constructed ‘Tallest Residential Towers in the State of Andhra Pradesh’.
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Muvattupuzha
and
79h Annual Report and Accounts – 2019-2020
BAI AWARDS 2018-19
the elections.
Awardees of ‘BAI Awards 2018-19’ had been announced during the XXIX All India Builders’ Convention on 3rd, 4th and 5th January 2020 in the picturesque Vedic Village Spa Resort, Kolkata. The trophies were presented to the recipient Centres and individuals during the Managing Committee Meeting held at Gurgaon on 11th December 2018. The following is the list of awardees :-
Mr. Sachin Chandra was unanimously elected as the President of BAI for 2019-20.
¾
Overall Best BAI Centre (Below 200 Members) – Ettumanoor and Visakhapatnam Centres
¾
Overall Best BAI Centre (Above 200 Members) – Southern (Chennai), Karnataka (Bangalore) Centre, Mumbai and Mysore Centres
¾
Image Building Activities by a Centre – Durgapur, Pune, Muvattupuzha and Ghaziabad Centres
¾
Organising Best Training Programme or Seminar – Coimbatore and Kollam Centres
¾
Maximum Membership Growth – Tiruchirappalli and Coimbatore Centres
¾
Best Efforts by any Centre for Quality Construction – Angamaly, Ahmednagar and Thrissur Centres
¾
Best Builders’ Day Celebrations – Madurai, Kanyakumari, Tirunelveli and Kerala (Trivandrum) Centres
¾
Maximum Membership Retention – Vellore Centre
¾
Best publication by a BAI Centre – Southern (Chennai) Centre
¾
Best performing Chairman of BAI’s – Dr. Dharmesh C. Awasthi, Chairman, Legal functional Committees & Arbitration Committee
¾
¾
¾
Mr. A. Puhazhendi, President, BAI (2018-19) formally announced the results of “BAI’s Organisational Elections for 2019-20" in the evening of 29th March 2019. Results of the elections held for ‘Trustees of BAI for 201922’ were also announced. Mr. B. Sugunakar Rao, Mr. C.G. Deochake, Mr. Lal Chand Sharma, Mr. Mohanlal S. Katariya, Mr. O.K. Selvaraj, Mr. Ravindra Pradhan and Mr. V. Rajagopal were elected as ‘Trustees of BAI for 2019-22’. In the afternoon of 30th March 2019, Mr. Lal Chand Sharma, Trustee and Past President, BAI, formally installed Mr. Sachin Chandra as President of BAI for 2019-20 by adorning him with the “BAI’s President’s Medallion of 2019-20. Subsequently, Mr. A. Puhazhendi handed over the ‘BAI Key’ to Mr. Sachin Chandra, symbolizing handing over of charge. A large number of senior functionaries of BAI from many Centres were present, which included BAI’s office-bearers for 2018-19 and 2019-20 also. An informal meeting of BAI office-bearers 2018-19 and 2019-20 was held in the late afternoon of 30th March, 2019. BAI WEBSITE ‘www.baionline.in’
Best Performing State Chairman – Shri S. Ayyanathan, State Chairman, Tamil Nadu, Puducherry & Andaman Nicobar and Shri Paul T. Mathew, State Chairman, Kerala Best Vice President Award – Shri M. Thirusangu, Vice President (South-II) and Shri Rajendra Singh Kamboh, Vice President (East) Special Award – ‘For Best efforts by a Member of the Centre for Quality Construction’ to Dr. S. Vijaya Kumar of M/s. Vijay Nirman Company Pvt. Ltd., Patron Member from BAI Visakhapatnam Centre he had constructed ‘Tallest Residential Towers in the State of Andhra Pradesh’.
CHANGES OF GUARD AT BAI
BAI launched its website ‘www.baionline.in’ at the Managing Committee Meeting at Nashik on 9th August 2008. With the launch of www.baionline.in, BAI too aims at giving its members top-of-the-line service. As of now www.baionline.in offers the following services: 9
All circulars meant for BAI Centres and senior functionaries will be hosted.
9
Important Judgements, Circulars and Notifications by Government(s) and /or Departments will be hosted.
9
Tender information.
9
Latest Price Index Numbers.
9
Construction industry related exhibition/trade fair information.
9
Information on all publication of BAI and its Centres.
9
Details of office-bearers of BAI.
9
Links to important websites i.e. like minded national & international organisations, Government organisations concerning having dealings with
BAI’s Organisational Elections for 2019-20 culminated on the 29th March 2019, Mr. Raju John, Executive Secretary, BAI officiated as the ‘Returning Officer’ for conducting BUILDERS' ASSOCIATION OF INDIA
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construction industry, service construction companies, etc.
BAI MEMBERSHIP / AFFILIATIONS
providers,
•
Affiliated to International Federation of Asian & Western Pacific Contractors’ Associations (IFAWPCA), Philippines.
•
Founder Member of Construction Industry Development Council (CIDC), New Delhi.
•
BAI members can get their membership number through www.baionline.in.
Member of IMC Chamber of Commerce & Industry, Mumbai.
•
Member of Indian Council of Arbitration, New Delhi.
Services to be introduced over a period, include :
•
Member of Employers’ Federation of India, Mumbai.
9
Website based email service to BAI members.
•
Member of Indian Roads Congress.
9
‘News & Discussion Board’ – news concerning the construction industry will be hosted and members/ visitors can air their opinion on the same.
•
Member of Federation of Indian Chambers of Commerce & Industry, New Delhi.
9
‘Meeting Room’ – akin to the concept of ‘chatting’, senior functionaries can hold meetings via video conferencing.
•
Member and Promoter of Construction Skill Development Council of India (CSDCI), New Delhi.
BAI members / visitors can download : 9
BAI Constitution (BAI Rules & Regulations)
9
Membership Application Form
9
Membership Data Updation Form
9 9
Archives of ‘Indian Construction’ and other publications by BAI Centres.
BAI’s REPRESENTATIVES COMMITTEES.
FINANCE OF THE ASSOCIATION: The Headquarter, due to its better financial discipline, was generating surplus for the last 18 years and the current year also we have a surplus of Rs. 89,36,910/-. This is a major achievement, though there was a marked decline in interest income. It is also a fact that, the Trustees are prompt and alert in keeping the Fixed Deposits with Banks which offers the highest return. FUNCTIONS OF BAI HEADQUARTER OFFICE: BAI Headquarter and BAI Delhi Office with a stall of 14 members functioning exceptionally well under the control of Executive Secretary, Mr. Raju John. MEETINGS : During the financial year 2019-20 under report, 4 (Four) Managing Committee and 3 (Three) General Council Meetings were held at : 1.
Patna on 20th April 2019. (MC & GC)
2.
Poonamalee on 17th August 2019. (MC & GC)
3. 4.
Kottayam on 18th October 2019. (MC) Kolkata on 3rd January 2020. (MC & GC)
BUILDERS' ASSOCIATION OF INDIA
VARIOUS
•
Shri A. Puhazhendi, President, BAI as Member, Board of Governors of National Institute of Construction Management & Research (NICMAR).
•
Shri A. Puhazhendi, President, BAI as Member, Board of Governors of Construction Industry Development Council (CIDC).
•
Shri A. Puhazhendi, President, BAI as Member, Board of Governors of National Academy of Construction (NAC).
•
Shri B. Seenaiah, Member, Review Committee for Contract Management System formed by Ministry of Statistics & Programme Implementation (MOSPI).
•
Shri A. Puhazhendi, President, BAI, as Member, National Council of Construction Federation of India (CFI).
•
Shri A. Puhazhendi, President, BAI in the focus group formed for WTO.
•
Shri A. Puhazhendi, President, BAI as a Chief Delegate of 44th IFAWPCA Convention.
•
Shri Sushanta Kumar Basu represent BAI on the Working Group of Construction constituted by Planning Commission for the 12th Five Year Plan (2012-17).
•
Shri S. Narsimha Reddy as Board Member on the Executive Board of IFAWPCA.
•
Shri Mahesh M. Mudda on the Expert Committee and SHri Neerav Parmar on the State Level Advisory
Total detailed membership database of BAI.
‘Wheeling & Dealing’ – is a platform for BAI members and others for offering machinery to be given on hire or request machinery on hire / offer specialised service or request for specialised service, etc.
ON
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•
Committee of Building & Other Construction Workers (Regulation of Employment and Conditions of Service) Act 1996 for Government of Maharashtra.
are Andhra Pradesh (Hyderabad), Delhi, Eastern (Kolkata), Karnataka (Bangalore), Nanded, Nashik, Pune, Rajasthan (Jaipur), Sangli and Southern (Chennai).
Dr. Anand J. Gupta on Central Advisory Committee constituted by the Ministry of Labour, Government of India, under the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act 1996.
INDIAN CONSTRUCTION’ JOURNAL Shri Neerav Parmar was the Chairman, Indian Construction Journal Committee for 2018-19. The printing of the magazine has been continued with a marked change and your journal is becoming more and more popular.
•
Shri H.S. Pasricha, Member, Central Advisory Contract Labour Board, Ministry of Labour, Government of India.
•
Shri R.N. Gupta. Member, Central Public Works Department (CPWD) Technical Committee.
•
Shri R.N. Gupta & Shri Rajiv Goel, Member, Ministry of Housing & Urban Affairs (MoHUA), Ministry of Human Resource Development (MHRD).
OFFICES OF BAI CENTRES There has been a growing trend amongst BAI Centres to go in for their own office premises, with facilities for conducting meetings, training, etc. The premises owned by these Centres are registered under the name of “Trustees Builders’ Association of India”. As on date, the Centres who have their own office premises
The journal has admittedly established a numero-uno position in construction related trade magazines as is evident from non-member subscribers, which includes, Engineering Institutes, Government Departments and Undertakings including many Works Authorities. The Association is also sending around 1000 complimentary copies to like-minded organisations in the country and abroad, Government Authorities Engineering Colleges, Department Heads, Works Authorities etc. The rising paper, printing and postal costs coupled with low advertisement revenue forces BAI General Fund to cross subsidise the publication as it is not self sufficient. BAI MEMBERSHIP SUBSCRIPTION 2019-20 The subscription for various categories of membership with the Association were as follows:-
Annual Membership: Annual Subscription
Rs. 2,904
Entrance Fee
Rs. 100
'INDIAN CONSTRUCTION'
Rs. 200
GST
Rs. 541
Total
Rs. 3,745
Patron Membership One time Subscription - Membership for 20 (Twenty) years. 'INDIAN CONSTRUCTION'
Rs.25,000 Rs. 200
GST
Rs.4,500
Total
Rs.29,700
Affiliated Association Membership Annual Subscription
BUILDERS' ASSOCIATION OF INDIA
Rs. 5,324
158
79h Annual Report and Accounts – 2019-2020
Entrance Fee
Rs. 500
'INDIAN CONSTRUCTION'
Rs. 200
GST
Rs. 1,048
Total
Rs.7,072
Affiliated Association - Patron Membership Membership (One time Subscription)
Rs.30,000
'INDIAN CONSTRUCTION'
Rs. 200
Service Tax
Rs. 4,500
Total
Rs.34,550
Corporate Membership Membership (One time Subscription)
Rs.3,00,000
Annual Subscription
Rs. 10,000
Service Tax
Rs. 46,500
Total
Rs.3,56,500
NEW CENTRES For the year 2019-20, BAI opened centres at PorRamangamdi in Gujarat State, Avadi,Chengai, Dharapuram, Kalpakkam, Tenkasi, Thiruporur, Udumalpet, Villupuram in Tamil Nadu State. 2019-20 was an eventful year for BAI as far as growth of the BAI movement is concerned. MEMBERSHIP STRENGTH
About the theme CONSTRUCTION TECHNOLOGY – WAY TO US $ 5 TRILLION ECONOMY It is said that, there is no greater fulfilment as the pursuit of dreams! The nation is dreaming to achieve a USD 5 Trillion economy in next five years. And people who matter in Economics, Banking, Finance etc, are saying “yes, it’s possible”.
As on 31st March 2020, the membership was 19,607, which included 16,229 Patron Members 3,378 Annual Members. BUILDERS’ DAY 2019 BAI celebrates Builders’ Day every year to commemorate its founding in 1941. Builders’ Day is celebrated in the last quarter of the calendar year. For celebrating Builders’ Day, the Managing Committee of BAI decides on a theme. BAI Centres organise various event with the decided theme as the focal point. Using the theme, BAI Centres organsing, elocution competitions amongst engineering students, lectures by intellectuals, panel discussion, workshop, etc. BAI Centres also use the opportunity of celebrating Builders’ Day to build the image of the building and construction industry and in this direction, BAI Centres organise, health check-up camps for building and construction workers, blood donation camps, sports competitions for the building and construction workers, etc.
BUILDERS' ASSOCIATION OF INDIA
For Builders’ Day 2019, the Managing Committee at its meeting held in Poonamallee on 17th August 2019, selected the theme “CONSTRUCTION TECHNOLOGY – WAY TO US $ 5 TRILLION ECONOMY”.
The Hon’ble Prime Minister of India, has not only dreamt about a 5 Trillion USD economy but also has set the ball rolling by announcing in the Budget that INR 100 Lakh Crore will be invested in infrastructure in the next five years. Well, the national will is there, money has been provisioned but, are we, the construction industry ready to face the challenge? Probably not, unless we grab the latest globally available technology and move fast from tradition to technology. The challenge is huge — so is the chance of success. So friends jump for construction technology and make the Prime Minister’s dream a grand success.
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OBITUARIES The Association lost the following members who left for the heavenly abode. BAI in their death has lost sincere and hardworking members. •
•
•
•
•
Mr. Harshad Bhayani left for his heavenly abode on 22nd March, 2019. Mr. Harshad Bhayani was Past Managing Committee Member, BAI left for his heavenly abode on 22nd March, 2019. Mr. Jiwanlal Motiram Bhatia left for his heavenly abode on 22nd March 2019. Mr. Jiwanlal Motiram Bhatia was the father of Mr. Jaiprakash Bhatia, Hon. Treasurer, BAI Mumbai Centre). Er. N. Selvaraj left for his heavenly abode on 26th March, 2019. Er. N. Selvaraj was a member of BAI from Tiruchirappalli Centre. He was a qualified engineer and contractor. He was elected as a member of the Lok Sabha in 1980-84. He was Minister for Forests, Government of Tamil Nadu from 2006 till 2011. Mr. Sajan George left for his heavenly abode on 21st April, 2019. Mr. Sajan George was the son of Mr. K. J. George, Managing Committee Member of BAI and Director of M/s George Construction Company, Patron Member of BAI from Nagpur Centre. Mr. Sajan George was the incumbent Chairman of BAI Nagpur Centre. Mr. Sajan George was also Treasurer of S.F.S School Old Boy's Association (SFS OBA) and Past President of Nagpur Junior Chamber. Mr. Ramlal Wadhwan left for his heavenly abode on 2nd May, 2019. Mr. Ramlal Wadhwan was the Chairman & Managing Director of M/s PBA Infrastructure Ltd., Patron Member of BAI from Mumbai Centre. Mr. Ramlal Wadhwan was also Executive Committee member of BAI Mumbai Centre.
•
Mr. S. V. Rao left for his heavenly abode on 27th May, 2019. Mr. S. V. Rao was a Patron Member of BAI from Southern (Chennai) Centre and had been the State Chairman of BAI Tamilnadu.
•
Mr. J. V. R. Naidhruva left for his heavenly abode on 16th June, 2019. Mr. J. V. R. Naidhruva was the incumbent Chairman of BAI Mysore Centre.
•
Mr. Rajashekaran Nair left for his heavenly abode on 16th July, 2019. Mr. Rajashekaran Nair was proprietor, M/s Raj Constructions, Pala - Patron Member of BAI Kottayam Centre.
•
Mr. S. P. Periasamy left for his heavenly abode on 1st September, 2019. Mr. S. P. Periasamy was the founder Chairman of BAI Erode Centre. He was also one of the founder Trustee of 'Erode Builders Education Trust', formed under the aegis of BAI
BUILDERS' ASSOCIATION OF INDIA
Erode Centre, which manages the prestigious engineering college 'Builders Engineering College, Erode'. •
Mrs. Shudhaben Chokshi left for her heavenly abode on 14th August, 2019. Mrs. Shudhaben Chokshi was mother of Mr. Sudhir Chokshi, Patron Member of BAI Baroda Centre.
•
Shri Bhupatbhai T. Panchani left for his heavenly abode on 25th September, 2019. Shri Bhupatbhai T. Panchani was the Chairman of BAI Rajkot Centre.
•
Mr. Hukumchandji B. Punjabi left for his heavenly abode on 7th October, 2019. Mr. Hukumchandji B. Punjabi was Chairman of BAI Pune Centre during 1989-90.
•
Dr. Mahadeo Ramachandran Vaidya left for his heavenly abode on 9th October, 2019. Dr. Mahadeo Ramachandran Vaidya was the father-in-law of Mr. C. G. Deochake, Trustee, BAI.
•
Mr. K. Sreeramulu left for his heavenly abode on 30th September, 2019. Mr. K. Sreeramulu was the father of Mr. K. Chandrashekhar Rao, State Chairman, BAI Chhattisgarh.
•
Mr. Gurushantappa Lature left for his heavenly abode on 21st October, 2019-11-07. Mr. Gurushantappa Lature was a founder member of BAI Latur Centre and also founded BAI Nanded Centre. Mr. Gurushantappa Lature was father of Mr. Shivshankar Lature, Executive Committee Member, BAI Mumbai Centre.
•
Mr. S. A. Reddi left for his heavenly abode on 31st October, 2019. Mr. S. A. Reddi was Dy. Managing Director (Retd.) of M/s Gammon India Ltd. and Independent Director of M/s Universal Construction Machinery & Equipments Ltd.
•
Mr. M. Raju left for his heavenly abode on 3rd November, 2019. Mr. M. Raju was Past Hon. Jt. Secretary of BAI Southern (Chennai) Centre.
•
Ms. Fathima Najeeb left for her heavenly abode on 12th November, 2019. Ms. Fathima Najeeb was the daughter of Mr. Najeeb Mannel, founder Chairman of BAI Kollam Centre, Kerala.
•
Mrs. Dipa Mukherjee left for her heavenly abode on 1st November, 2019. Mrs. Dipa Mukherjee was the wife of Mr. P.K. Mukherjee, Past Vice President, BAI.
•
Mr. Raja Kashinathji Dronkar left for his heavenly abode on 14th November, 2019. Mr. Raja Kashinathji Dronkar was Past Chairman of BAI BAI Nagpur Centre.
•
Mr. C.R. Subramanian left for his heavenly abode
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Dayaramani was Director of M/s Shankar Mahadev & Co., Patron Member of BAI from Ulhasnagar Centre.
on 14th November, 2019. Mr. C. R. Subramanian was father of Mr. S. Ramaprabhu, Chairman, BAI Southern (Chennai) Centre. •
Mr. Eswar Dattjileft for his heavenly abode on 24th November, 2019. Mr. Eswar Dattji was the fatherin-law of Mr. Lal Chand Sharma, Trustee & Past President, BAI.
•
Mrs. Ranjit Kaur left for heavenly abode on 12th January, 2020. Mrs. Ranjit Kaur was the mother of Mr. Rajendra Singh Kamboh, Past Vice-President, BAI.
•
Mrs. Gita Samanta left for her heavenly abode on 2nd December, 2019. Mrs. Gita Samanta was the mother of Mr. Satinath Samanta, Administrative Officer, BAI Eastern (Kolkata) Centre.
•
Mr. Futbal Jinappa Chougule left for his heavenly abode on 13th January, 2020. Mr. Futbal Jinappa Chougule was the father of Mr. S. F. Chougule, Past Chairman, BAI Sangli Centre.
•
Mrs. Muthammal left for her heavenly abode on 3rd January, 2020. Mrs. Muthammal was the mother of Mr. L. Moorthy, Past Vice-President, BAI.
•
•
Mrs. Umang Khattar left for her heavenly abode on 8th January, 2020. Mr. Umang Khattar was the mother of Mr. Rajeev Khattar, General Council Member of BAI from Agra Centre.
Mr. Terrence Titus left for his heavenly abode on 27th January, 2020. Mr. Terrence Titus was Executive Committee Member of BAI Cochin Centre and Director of M/s Kunnel Engineers & Contractors, Patron Members of BAI from Cochin Centre. Mr. Terrence Titus was also Co-Brother of Mr. M. V. Antony of M/s Kunnel Engineers and Contractors.
•
Mr. Mohandas Rupchandani left for his heavenly abode on 9th January, 2020. Mr. Mohandas Rupchandani was the father of Mr. Uddhav Rupchandani, Past Chairman, BAI Ulhasnagar Centre.
•
Mr. Brahmadev Salunkhe left for his heavenly abode on 13th February, 2020. Mr. Brahmadev Salunkhe was the father of Mr. Pratap Salunkhe, Past VicePresident, BAI.
•
Shri Arvind Kumar Shangle left for his heavenly abode on 3rd March, 2020. Shri Arvind Kumar Shangle was Director of M/s Anshum Builders, Patron Members of BAI from Delhi Centre.
•
Mr. Satyapal N. Dayaramani left for his heavenly abode on 11th January, 2020. Mr. Satyapal N.
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Attendance Sheet forming part of Annual Report for the year 2019-20 Attendance (Out of Four Meetings) Name
Attendance
Name
Attendance
Shri Sachin Chandra - President
4
Shri Mathew Alex Vellapally -Vice President South Zone-II
3
Shri Surojit Samanta -Vice President
3
Shri K. Sriram -Vice President (South Zone - I)
4
Shri O.P. Sharma -Vice President
4
Shri Nimesh D.Patel - Vice President
4
Shri A. Puhazhendi, Imm Past President
3
Shri Neerav Parmar -Hon. Gen. Secretary
4
Shri Pradeep G. Nagawekar - Hon. Gen. Treasurer
4 Past Presidents
Dr. Brahm Datt
-
Shri Cherian Varkey
1
Dr. S.P. Goel
2
Shri H.N.Vijaya Raghava Reddy
4
Shri A.K. Yussouf
3
Shri P.R. Mundle
-
Shri Ajit Gulabchand
-
Shri R. Radhakrishan
3
Shri Avinash M. Patil
2
Shri S.K. Basu
4
Shri B. Seenaiah
2
Shri V. Ramachandan
1
Shri B.N. Dikshit
3
Shri S. A Vichare
-
Shri Bhagwan J. Deokar
4
Shri Lal Chand Sharma
3
State Chairmen / State Co-ordinators Shri Ashok Kumar Chandak (West Bengal)
3
Shri R. Ambikapathy (Karnataka)
3
Shri D.V.N. Reddy (Telangana)
4
Shri R. Muthukumar (Tamil Nadu)
3
Shri H.S.Pasricha (Delhi)
-
Shri Rameshwar D. Khandelwal (Rajasthan)
1
Shri K. Chandrasekhar Rao (Chhattisgarh)
1
Shri Sanjay Tyagi (Uttar Pradesh)
3
Shri Kirti M. Thacker (Gujarat)
4
Shri Sharad Tamot (Madhya Pradesh)
-
Shri Pinak Pani Nath (Assam)
3
Shri Shiv Kumar Burman (Jharkhand)
2
Shri Prakash Panjwani (Maharashtra)
2
Shri Umesh Acharya (Haryana)
-
Shri Prince Joseph (Kerala)
2
Shri V. Venkateswara Rao (Andhra Pradesh)
4
Trustees Shri B. Sugunakar Rao
4
Shri O.K. Selvaraj
4
Shri C. G. Deochake
3
Shri Ravindra Pradhan
3
Shri Lal Chand Sharma
3
Shri V. Rajagopal
3
Shri Mohanlal S. Katariya
3 Members Of The Managing Committee
Dr. Anand J. Gupta
4
Shri L. Venkatesan
3
Dr. Dharmesh Awasthi Dr. Rajiv B. Krishnani
4
Shri M. Ravi
2
-
Shri M. Thirusangu
1
Shir Alex P. Cyriac
3
Shri Mahendra Sethi
2
Shri Ashok Agarwal
1
Shri Mu. Moahan
4
Shri K. Padmanabhan
2
Shri N. Murugan
1
Shri N. Sivakumar
1
Shri N. Ramalingam
1
Shri P.P. John
2
Shri N. Shanmugam
1
Shri Paul T. Mathew
3
Shri Narendra Kumar
4
Shri S.N. Reddy
3
Shri P. Narsimha Rao
4
BUILDERS' ASSOCIATION OF INDIA
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79h Annual Report and Accounts – 2019-2020
Name
Attendance
Name
Attendance
Shri A. Manikkam
1
Shri P. Subramani
2
Shri Baburao L. Shakkarwar
4
Shri Prabir Kumar Mukherjee
1
Shri Bhopinder R. Lal
3
Shri Pratap Salunkhe
-
Shri D.R. Sekar
2
Shri R. Ethirajan
3
Shri E. Dhanasekaran
1
Shri R. Sivakumar
3
Shri G. Ramamoorthi
4
Shri R.R. Sridhar
3
Shri G. Ved Anand
2
Shri Rajendra S. Athawale
1
Shri Gopalsingh Rathod
2
Shri Ram M. Bhatia
4
Shri J.R. Sethuramalingam
2
Shri S. Ayyanathan
4
Shri K. Rajakumaran Nair
-
Shri S. Sunil Kumar
3
Shri K. Ramanujam
3
Shri Soma Srinivas Reddy
4
Shri K. Subramani
3
Shri T.V. Chandrasekaran
3
Shri K. Venkatesan
2
Shri Taro T. Manghnani
3
Shri K.J. George
-
Shri V. Ayyamperumal
2
Shri K.L. Mohan Rao
2
Shri V. Satya Murthy
4
Shri L. Shantha Kumar
3
Shri Vilas Birari
-
Shri Prakash Menda
4 Representative Of Affiliated Association Members
Shri Arvind V. Patel
-
Shri K.G. Janakiraman
1
Shri B. Ramesh
2
Shri M. Jaisankar
-
Members Co-opted To Managing Committee Shri John Paul K.
3
Shri N. Sachitanand Reddy
3
Shri L. Moorthy
2
Shri Ram Janam Singh
2
Special Invitees Dr. D. Thukkaram
1
Shri R. Murugesan
2
Shri Ajit Singh Alag
-
Shri R. Sivanathan
1
Shri B. Babu Rao
-
Shri R. Soundarajan
1
Shri C. Kumaravelu
-
Shri R.C. Chouhan
2
Shri G. Arulalan
1
Shri Rajendra Bhupal Khanderajure
-
Shri Gopal Sukhwani
1
Shri Rajendra M. Upadhye
-
Shri H.V. Nagesh
2
Shri Rajendra Mulchand Gothi
2
Shri Hanamant Gangadhar Kulkarni
1
Shri Rakesh Goel
1
Shri Hariom Sharma
3
Shri Ramesh Marda
1
Shri Joshy Joseph
2
Shri K. Chandrasekar Shri K. Narasimha Reddy
1
Shri S. Pandian Shri S. Sathiya Moorthy
1
Shri S.M. Sait
-
Shri K. Rajavel
2
Shri Sanjeev Agarwal
-
Shri K. Rama Rao
1
Shri Sharad D. Kharade
-
Shri K. Sivakumar
1
Shri Siddharth Shah
-
Shri M. Baaldwin Bruce
1
Shri Stanley Scaria
1
Shri M. Murugan
2
Shri Sudip Kumar Dutta
2
Shri M.A. Jesu Raja Rajan
2
Shri Sukumar F. Chougule
-
Shri Mahesh Gangadhar Mahajan
-
Shri Suresh B. Patil
-
Shri Mahesh R. MIrani
1
Shri T. Kamalanath Naidu
2
Shri Manish Kumar
1
Shri T. Rajasekaran
1
BUILDERS' ASSOCIATION OF INDIA
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79h Annual Report and Accounts – 2019-2020
Name
Attendance
Shri N. Anbhazhagan
1
Name Shri Uday N. Gokhale
Attendance -
Shri N.C. Sundaramurthy
-
Shri V. Bhaskar Reddy
-
Shri N.M. Krishnamurthy
1
Shri V. M. Fazal Ali
1
Shri Narendra P. Patel
1
Shri V. Sathiyaraj
-
Shri Naresh M. Singh
-
Shri V. Sudarsan
2
Shri Navin Kumar Thakur
1
Shri Vijay Ambratlal Sukhwani
1
Shri P. Sivagnanam
1
Shri Vinod Gamdiwala
1
Shri Pradeep Kumar Jain
1
Shri Vinod Ninan
2
Shri R. Elancheran
1
Shri V. Srinivasan
1
Shri R. Ganesh Kumar
-
Shri M. Aravinth
1
Shri R. Kalyana Venkatesan
1 Chairpersons Of Committee
Dr. Anand J. Gupta
4
Shri M. Raveendran
2
Shri K. Ramanujam
3
Shri Mu. Moahan
4
Dr. Dharmesh C. Awasthi
4
Shri Neerav Parmar
4
Dr. Tarro T. Manghnani
3
Shri Pratap B. Salunkhe
-
Shri Bhavesh Kumar
1
Shri R.N. Gupta
2
Shri CH Ramakotaiah
4
Shri Rajiv Goel
4
Shri D.S. Shirole
2
Shri Ram Avtar
3
Shri D.V.N. Reddy
4
Shri Sanjay Tyagi
3
Shri V.G. Sakthikumar
2
Co-chairpersons Of Various Committees Capt. A. Mohan
Shri N. Sivumar
1
Capt. George Thomas
2
Shri Premraj Kashyap
-
Dr. P. Prabhakar
-
Shri Ranjeet R. More
2
Ms. Pooja Jajwani
-
Shri S.I. Chunkhare
1
Shri A. Arivoli
-
Shri Sanjib Goyal
-
Shri Arvind V. Patel
-
Shri Sudhir D. Gharge
-
Shri Chandrakant K. Raipat
2
Shri T.I. George
2
Shri K. Venkatesan
2
Shri Tarun Ghia
-
Shri K.L. Mohan Rao
2 Name Of Centre Chairmen
Shri Arun Kumar Singh (Patna Centre)
1
Shri Sabu Cherian (Muvattupuzha Centre)
2
Shri Vidya Sagar Bhatt (Dhanbad Centre)
-
Shri Radheshyam Khandelwal (North Malabar Centre)
-
Shri Bipin Bihari Prasad (Jamshedpur Centre)
2
Shri Kurian Philip (Thiruvalla Centre)
3
Shri Rohit Agarwal (Ranchi Centre)
-
Shri Binu John Easo (Thripunithura Centre)
2
Shri Anup Mazumder (Durgapur Centre)
4
Shri Sujith Sreenivasan (Thrissur Centre)
3
Shri Shankar Chandra Dey (Eastern Kolkata Centre)
3
Shri E. Venkatesan (Chengalpattu Centre)
3
Shri Uttam Jana (Haldia Centre)
1
Shri K. Nagarajan (Chettinadu Centre)
1
Shri Suresh Agarwalla (Guwahati Centre)
-
Shri V. Sivarajan (Coimbatore Centre)
3
Shri Chiranjit Ghosh (Silchar Centre)
1
Shri U. Meenakshi Sunderam (Dindigul Centre)
2
Shri Ved Khurana (Delhi Centre)
2
Shri P. Balasivakumar (Erode Centre)
3
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Name
Attendance
Shri Mohd. Aslam (Delhi East Shahdara Centre)
-
Name Shri S. Bharathi (Kallakurichi Centre)
Attendance -
Shri Anil Gambhir (Delhi North Centre)
-
Shri H. Saravana Subbiah (Kanyakumari Centre)
2
Shri Ashok Tiwari (Delhi South Centre)
-
Shri M. Karunanidhy (Kodaikanal Centre)
1
Shri Abhay Goel (Delhi West Centre)
1
Shri S. Gopalan (Kumbakonam Centre)
1
Shri Sanjay Daga (Gurgaon Centre)
-
Shri S. Balan (Madurai Centre)
2
Shri Siddharth Khosla (Faridabad Centre)
-
Shri P. Satheesh Kumar (Maduranthagam Centre)
-
Shri Pawan Gupta (Karnal Centre)
-
Shri N. Kumar ( Mayiladuthurai Centre)
1
Shri Sandeep Gupta (Chandigarh Centre)
1
Shri A. Nawab John ( Nagapattinam Centre)
-
Shri Deepak Kumar Aggarwal (Kundli Centre)
-
Shri K. Venkatachalam ( Namakkal Centre)
2
Shri Ravi Kumar Kheria (Rajasthan (Jaipur) Centre)
1
Shri V. Loganathan (Neyveli Centre)
-
Shri Pankaj Shrivastava (Jodhpur Centre)
-
Smt. P. Punithavathi (Nilgiri Centre)
1
Shri Shubham Jain (Greater Jaipur Centre)
-
Shri C. Rajaram (Perambalur Centre)
1
Shri Surendra Khandelwal (Pinkcity Jaipur Centre)
-
Shri A. Rajesh (Ponneri Centre)
-
Shri Mahesh Manghrani (Agra Centre)
-
Shri E. Manohar (Poonamallee Centre)
4
Shri Rajiv Tyagi (Agra Cantt. Centre)
-
Shri N. Ramadoss (Pudukkottai Centre)
3
Shri Ashok Kumar Sharma (Allahabad Centre)
1
Shri M. Rathinavel (Ramanathapuram Centre)
1
Shri Sudhir Tyagi (Aligarh Centre)
2
Shri M. Ranganathan (Salem Centre)
2
Shri Varun Tyagi (Bagpat Centre)
-
Shri S. Ramaprabhu (Southern Chennai Centre)
4
Shri Jai Kumar Agarwal (Gautam Budh Nagar Centre)
-
Dr. Ruby R. Manoharan (Tambaram Centre)
1
Shri Satish Kasana (Ghaziabad Centre)
3
Shri T. Kalyanasundaram (Thanjavur Centre)
2
Shri Ravinder Nagar (Greater Noida Centre)
1
Shri T. Mathavan (Thiruthuraipoondi Centre)
-
Shri Devendra K. Sharma (Hapur Centre)
2
Shri K. Senthilkumar (Thiruvarur Centre)
1
Shri Sunil Garg (Kanpur Centre)
2
Shri D. Ramesh (Tiruchirappalli Centre)
1
Shri Sanjiv Dixit (Kanpur - South Centre)
1
Shri S. Jayabalan (Tirupur Centre)
1
Shri Yoginder Singh (Loni Centre)
1
Shri S. Chidambaram Karthikeyan (Tirunelveli Centre)
1
Shri Kishore Kumar (Tiruvallur Centre)
1
Shri Sanjay Kumar Shukla (Lucknow Centre)
2
Shri Manvir Singh Tyagi (Meerut Centre)
2
Shri R. Kumaresan (Tuticorin Centre)
1
Shri Mayank Tyagi (Meerut Cantt. Centre)
-
Shri C. Manivannan (Vellore Centre)
1
Shri Vipin Kumar (Modi Nagar Centre)
-
Shri P. Parameswaran (Udumalpet Centre)
4
Shri Ajay Sharma (Moradabad Northern Railway Centre)
-
Shri Sharnjit Singh Saluja (Andaman & Nicobar Centre)
-
Shri Vipul Tyagi (Muzaffarnagar Centre)
-
Shri S. Parthasarathi (Puducherry Centre)
2
Shri Ankur Singhal (Western UP Electrical Centre)
-
Shri K. Mohandoss (Karaikal Centre)
1
Shri M.B. Phani Kumar (Amaravati Centre)
1
Shri K. Raghava Rao (Bilaspur Centre)
1
Shri Daruvuri Nageswara Rao (Guntur Centre)
1
Shri Ajay Bafna (Durg-Bhilai Centre)
--
Shri B. Malyadri Reddy (Nellore Centre)
2
Shri Rohit Kumar Chawla (Jagdalpur Centre)
-
Shri Gali Subbaraju (Rajahmundry Centre)
-
Shri Sanjay Krishnani (Kanker Centre)
-
Shri M. Anjaneya Reddy (Ravulapalem Centre)
1
Shri Prakash Jadwani (Raipur Centre)
-
Shri K.V.S.B. Rayudu (Tanuku Centre)
2
Shri Deepak Talaulikar (Goa Centre)
-
Shri B. Raghava Rao (Vijayawada Centre)
2
Shri Sanjay Shah (Vadodara Centre)
-
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Name
Attendance
Name
Attendance
Shri A. Kasivisweswara Rao (Visakhapatnam Centre)
3
Shri Jayesh Patel (Bharuch Centre)
-
Shri Nekkalapu Nageswara Rao (Vizag Steel City Centre)
2
Shri Paresh Vachhani (Gandhinagar Centre)
3
Shri M. Ravinder Rao (Adilabad Centre)
-
Shri Dinesh Kumar Patel (Gujarat Ahmedabad Centre)
3
Shri V. Ravinder Reddy (Greater Hyderabad Centre)
-
Shri Vinit Patel (Karnavati Centre)
1
Shri Anirudh Gupta (Hyderabad Centre)
-
Shri Bhuwan Giri Goswami (Surat Centre )
Shri L. Narsing Rao (Kamareddy Centre)
-
Shri Ashin Shrivastava (Bhopal Centre)
-
Shri P. Devender Reddy (Karimnagar Centre)
3
Shri Arun Kumar Jain (Indore Centre)
-
Shri Semineni Venkateshwar Rao (Khammam Centre)
-
Shri Anil Grover (Jabalpur Centre)
-
Shri Y. Gopal Reddy (Mahaboobnagar Centre)
-
Shri Machindra Pagire ( Ahmednagar Centre)
-
Shri B. Venkat Reddy (Medak Centre)
-
Shri Rajivkumar M. Bhele (Amravati Centre)
-
Shri S. Sathyanarayana (Nalgonda Centre)
3
Shri Sunil S. Deshmukh (Baramati Centre)
-
Shri N. Nagesh Reddy (Nizamabad Centre)
-
Shri Prakash Nathuji Dewalkar (Butibori (Nagpur) Centre)
1
Shri N. Madhusudhan Reddy (Ranga Reddy Centre)
2
Shri Shitalkumar Mohan Nawle (Dhule Centre)
1
Shri L. Laxmikant Reddy (Vikarabad Centre)
1
Shri Mohan D. Satpute (Ichalkaranji Centre)
1
Shri Challa Linga Reddy (Warangal Centre)
3
Shri Anil Bhaidas Patil (Jalgaon Centre)
-
Shri A. Sathi Reddy (Yadadri Centre)
-
Shri Rajeev Suhas Lingras (Kolhapur Centre)
1
Shri G. Madhava Naik (Chitradurga Centre)
-
Shri V.M. Reddy (Latur Centre)
-
Shri D. Rangaswamy (Hassan Centre)
2
Shri Ravi Ahire (Malegaon Centre)
-
Shri S. Shiv Prakash, Karnataka (Benglore) Centre
3
Shri Gyan Madhani (Mumbai Centre)
4
Shri J.V.R. Naidhruva (BAI Mysore Centre)
1
Shri Sajan George (Nagpur Centre)
-
Shri K. Sharana Reddy, (Raichur Centre)
-
Shri Manikrao Ramchandra Hendre (Nanded Centre)
1
Shri S.P. Patil (Shimoga Centre)
-
Shri Rahul G. Suryawanshi (Nashik Centre)
-
Shri Thomas J. Pooniyil (Alleppey Centre)
2
Shri Sudhir Patil (Parbhani Centre)
-
Shri Abdu Rahman V.K. (Aluva Centre)
-
Shri Vikram Mahadeorao Zanjurne (Phaltan Centre)
-
Shri Charles J. Thayil (Angamaly Centre)
2
Shri Manoj Rajaram Deshmukh (Pune Centre)
2
Shri Vinod Kumar (Calicut Centre)
2
Adv. Rajiv A. Sable (Raigad Centre)
-
Shri Joby Joseph (Changanacherry Centre)
1
Shri Santosh Karwe (Sangamner Centre)
-
Shri Aby M. Ponnattu (Ettumanoor Centre)
3
Shri Shripal A. Khemalapure (Sangli Centre)
-
Shri S. Suresh Kumar (Trivandrum Centre)
2
Shri Ashok Anandrao Shinde (Satara Centre)
Shri C. K. S. Panicker Kochi (Cochin Centre)
1
Shri Kishor Kashinath Patel (Shahada Centre)
-
Shri Buhari K.A. (Kodungallur Centre)
1
Shri Dattatray S. Mule (Solapur Centre)
1
Shri K. Jyothikumar (Kollam Centre)
2
Shri Keshav Chandnani (Ulhasnagar Centre)
3
Shri Raji Mathew (Kottayam Centre)
3
Shri Sunil Appaji Sankpal (Wai Centre)
-
Shri A. Kumar (Theni Centre)
1
Shri K.Madurai Muthu (Kalpakkam centre)
2
Shri RM Meenakshi Sundaram (Avadi Centre)
1
Shri S. Ganapathy (Villupuram Centre)
3
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Team 2020-21 President Mr. Mu. Moahan Vice Presidents Mr. Arun Sahai Mr. Chandrakant K. Raipat Mr. N. Sachitanand Reddy Mr. K. Chinnaswamy Mr. Baburao L. Shakkarwar Hon. Gen. Secretary Hon. Gen. Treasurer Mr. Pradeep G. Nagawekar Mr. Gyan Madhani State Chairman St. Co-ordinator State Chairman State Chairman State Chairman State Chairman State Chairman State Chairman State Chairman St. Co-ordinator State Chairman State Chairman State Chairman State Chairman State Chairman St. Co-ordinator
(Andhra Pradesh) (Assam) (Chattisgarh) (Delhi) (Gujarat) (Haryana) (Jharkhand) (Karnataka) (Kerala) (Madhya Pradesh) (Maharashtra) (Rajasthan) (Tamil Nadu) (Telangana) (Uttar Pradesh) (West Bengal)
: : : : : : : : : : : : : : : :
Mr. D. Pankaj Reddy [Nellore Centre] Mr. Sanjib Goyal [Guwahati Centre] Mr. Dilip Singh Kushwaha [Jagdalpur Centre] Mr. Ram Avtar [Delhi Centre] Mr. Kirti M. Thacker [Gandhinagar Centre] Mr. Vijay Kumar [Karnal Centre] Mr. Ran Vijay Pradhan [Jharkhand (Ranchi] Mr. U. M. Gurushanthappa (Mysore) Mr. P. Hari Kumar (Trivandrum) Mr. Sanjay Sharma (Bhopal) Mr. Bharat Gulabrao Wagh (Dhule) Mr. Rameshwar D. Khandelwal (Jaipur) Mr. R. Prakash (Chengalpattu) Mr. V. Bhaskar Reddy (Hyderabad) Mr. Ravindra Tyagi (Modinagar) Mr. Mukti Binod Das (Haldia)
1. 3. 5. 7. 9. 11. 13. 15. 17. 19. 21. 23. 25. 27.
Members of the Managing Committee representing Centres Mr. B. Anandhan (Thanjavur) 2. Mr. B. R. Ravichandran (Chengalpattu) Dr. Dharmesh C. Awasthi (Kanpur) 4. Mr. Dinesh Nanji Patel (Hyderabad) Mr. G. Ved Anand (Kanyakumari) 6. Mr. K. Hanmantha Rao (Karimnagar) Mr. K. Rajakumaran Nair (Butibori-Nagpur) 8. Mr. K. Venkatesan (Southern-Chennai) Mr. K. Viswanathan (Coimbatore) 10. Mr. L. Carttigueane (Puducherry) Mr. L. Venkatesan (Southern-Chennai) 12. Mr. M. V. Antony (Cochin) Mr. Mathew Alex Vellapally (Kottayam) 14. Mr. N. Mohamed Abdul Khader (Dindigul) Mr. N. S. Muralidhara (Mysore) 16. Mr. Narendra Kumar (Patna) Mr. Naresh Madhavrao Painjane (Nanded) 18. Mr. Neerav Parmar (Mumbai) Mr. P. P. John (Alleppey) 20. Mr. Paul T. Mathew (Muvattupuzha) Mr. Prakash S. Panjwani (Ulhasnagar) 22. Mr. Pratap B. Salunkhe (Ichalkaranji) Mr. Prince Joseph (Cochin) 24. Mr. R. Nimrode (Southern-Chennai) Mr. R. R. Sridhar (Southern-Chennai) 26. Mr. R. Rama Rao (Poonamallee) Mr. S. K. Chandrasekar (Coimbatore) 28. Mr. T. V. Chandrasekaran (Chennai)
1. 3. 5. 7. 9. 11.
Members of the Managing Committee representing Patron Members Dr. Anand J. Gupta (Mumbai) 2. Mr. Basavaraj S. Totad (Karnataka-Bangalore) Mr. D. V. N. Reddy (Nalgonda) 4. Mr. J. R. Sethuramalingam (Southern-Chennai) Mr. K. Devender Reddy (Warangal) 6. Mr. K. John Paul (Kottayam) Mr. K. Padmanabhan (Thanjavur) 8. Mr. K. Ramanujam (Southern-Chennai) Mr. M. Thirusangu (Tiruchirapalli) 10. Mr. Mahendra Kumar Sethi (Rajasthan-Jaipur) Mr. N. M. Patel (Baroda) 12. Mr. N. Shanmugam (Kumbakonam)
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13. 15. 17. 19. 21. 23. 25.
Mr. N. Sivakumar (Tiruchirapalli) Mr. P. K. Mukherjee (Jharkahand-Ranchi) Mr. R. Sivakumar (Southern-Chennai) Mr. Ram M. Bhatia (Mumbai) Mr. S. Narasimha Reddy (Hyderabad) Mr. S. Shiva Prakash (Karnataka-Bangalore) Dr. Tarro T. Manghnani (Mumbai)
14. 16. 18. 20. 22. 24.
Mr. P. Subramani (Shimoga) Mr. Prakash H. Menda (Ulhasnagar) Mr. Rajendra Singh Kamboh (Durgapur) Mr. S. Ayyanathan (Southern-Chennai) Mr. S. Ramaprabhu (Southern-Chennai) Mr. Shitalkumar Mohan Nawle (Dhule)
Members of the Managing Committee representing Affiliated Associations 1. 3.
Mr. Arvind V. Patel Mr. Mohan J.
2. 4.
Mr. B. Ramesh Mr. R. Parthiban
Trustees 2019-22 Trustee (East) Trustee (North) Trustee (South)
: : :
Trustee (West)
:
Shri Ravindra Pradhan Shri Lal Chand Sharma 1. Shri V. Rajagopal 2. Shri O.K. Selvaraj 3. Shri B. Sugunakar Rao 1. Shri C. G. Deochake 2. Shri Shyam Chunkhare
: : : : : : :
(Jharkhand (Ranchi) Centre) (Gautam Budh Nagar Centre) (Thanjavur Centre) (Southern (Chennai) Centre) (Karimnagar Centre) (Mumbai Centre) (Pune Centre)
BAI Past Presidents Year
Name
Year
1941-1942 1942-1943 1943-1944 1944-1945 1945-1946 1947-1950 1959-1951 1952-1954 1955-1957 1957-1958 1959-1961 1962-1963 1964-1965 1965-1966 1966-1967 1967-1968 1969-1971 1971-1972 1973-1974 1974-1978 1978-1980 1980-1982 1982-1984 1984-1986 1986-1988 1988-1989 1989-1990
Shri M. P. Shah Shri Motichand G.Shah Shri E. M. Billmoria Shri Ranade Shri P. P. Kapadia Shri Motichand G.Shah Shri P. P. Kapadia Shri G. S. Dugal Shri P. P. Kapadia Shri Rao Sahib Bagwandas C.Hemrajani Shri H. J. Shah Shri G. R. Jolly Shri Y. G. Patel Shri B. V. Apte Shri J. S. Ajmera Shri U. S. Patel Shri R. G. Gandhi Shri K. L. Sapra Shri M. Nilakandan Shri S. Harcharan Singh Duggal Shri Harbans Lal Arora Shri M. N. Rajaraman Shri Amarjit Singh Choudhary Dr. T. N. Subba Rao Shri S. A. N. Ranganatha Achar Shri R.Radhakrishan Shri S. R. Kar Roy
1990-1991 Shri Ajit Gulalbhand 1991-1992 Shri Lalit Sangtani 1992-1994 Shri M. Karthikeyan 1994-1995 Shri Tilak Raj 1995-1996 Shri H. H. Rijhwani 1996-1997 Shri A. S. Chinaswamy Raju 1997-1998 Shri N. D . Golani 1998-1999 Shri C. L. Verma 1999-2001 Shri S. A. Vichare 2001-2003 Shri V. Ramachandran 2003-2005 Dr. Brahm Datt 2005-2006 Shri B. N. Dikshit 2006-2007 Shri C. Raghava Reddy 2007-2008 Shri P. R. Mundle 2008-2009 Shri S. P. Goel 2009-2010 Shri A. K. Yussouf 2010-2011 Shri Bhagwan J. Deokar 2011-2012 Shri Cherian Varkey 2012-2014 Shri B. Seenaiah 2014-2015 Shri Sushanta Kumar Basu 2015-2016 Shri Lal Chand Sharma 2016-2017 Shri Avinash M. Patil 2017-2018 Shri H. N. Vijaya Raghava Reddy 2018-2019 Shri A. Puhazhendi 2019-2020 Shri Sachin Chandra
BUILDERS' ASSOCIATION OF INDIA
Name
(1-4-2019 to 23-12-2019)
168
79h Annual Report and Accounts – 2019-2020
K V S & COMPANY
B-34, Ground Floor, Rolex Shopping Center Station Road, Goregaon - West Mumbai - 400 062, Telefax - 66991469 Email : [email protected]
CHARTERED ACCOUNTANTS REPORT
AUDITORS’ REPORT TO THE MEMBERS OF BUILDERS’ ASSOCIATION OF INDIA We have audited the attached Balance Sheet of BUILDERS’ ASSOCIATION OF INDIA, Mumbai, as at 31st March, 2020 and the Income and Expenditure Account for the year ended on that date annexed thereto. These financial statements are the responsibility of the Association’s management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. Further to our comments, we report that: a.
We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;
b.
In our opinion, proper books of accounts as required by law have been kept by the Association, so far as appears from our examination of those books;
c.
The Balance Sheet and Income and Expenditure Account dealt with by this Report are in agreement with books of accounts;
d.
In our opinion, and to best of our information and according to the explanations given to us, the said accounts, subject to the comments given below, give a true and fair view; I.
In case of the Balance Sheet, of the state of affairs of the Association as at 31st March, 2020 and
II.
In case of the Income & Expenditure Account, of the surplus of the Association for the year ended on that day.
COMMENTS 1.
The Association is registered under the Societies Registration Act under Registration No. BOM/14/83 (BD-51) and also with Charity Commissioner under the Bombay Public Trust Act under Registration No. F-9027 dated 8th February 1984.
2.
In view of the legal opinion received by the Association no provision is made in the accounts towards contribution to charity commissioner under the Bombay Public Trust Act, 1950.
3.
The Balance Sheet and the Income & Expenditure Account represent the state of affairs of the head-quarter and its Delhi Branch.
4.
Balance under the heads Current Assets, Loans, Advances and Deposits, Sundry Creditors, Amounts due to and from Centers are shown as per books of account and are subject to confirmation, reconciliation and adjustment, if any.
5.
Accounting of membership subscription is made as per the Bye-Laws of the Association. (a)
Renewal subscription received up to 31st March, 2020 is accounted for in the relevant accounting year as income.
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169
79h Annual Report and Accounts – 2019-2020
(b) 6.
Share of membership subscription from the Centers is accounted, as per the Association norms. These figures are not reconciled with Centers’ figures and are subject to confirmation.
Previous year’s figures are regrouped / reclassified to confirm current year’s presentation. For K V S & COMPANY Chartered Accountants FRN NO - 121478W Sd/K V Sahasrabudhe Proprietor M.No.106172 Place: Mumbai. Dated: 25.11.2020
BUILDERS' ASSOCIATION OF INDIA
170
79h Annual Report and Accounts – 2019-2020
BUILDERS' ASSOCIATION OF INDIA
171
79h Annual Report and Accounts – 2019-2020
Sd/K V S & COMPANY Chartered Accountants
399,459,355
8,621,853 52,440,493
52,018,640 8,200,000 43,818,640 – 43,818,640
4,062,468 387,421 4,449,889 8,200,000 12,649,889 1,611,003 17,610,686 14,473,543
387,100 – 387,100 5,371,353
277,582,788 57,500 17,275,000 294,915,288
Previous Year
FUNDS AND LIABILITIES
5,195,810
387,100 –
294,915,288 77,300 21,775,000
Sd/Mu. Moahan President
TOTAL Sd/Arun Sahai Vice President
Add /(Less) : Excess / defecit of income & over expenditure
Add : Balances of Centres w/off
8,936,910
52,440,493 – 52,440,493 26,707 52,467,200
399,459,355
1,903,732
17,156,045
83,854,313
3,962,197 290,604,939 294,567,136
Sd/N. Sachitanand Reddy Vice President
425,981,885
61,404,110
13,373,683 1,611,003 12,283,206 14,959,385
212,430
387,100
316,767,588
1,765,699
Current Year Previous Year
Sd/Chandrakant K. Raipat Vice President
Office Renovation Fund V. Current Liabilities & Provision ( Sch - F) VI. Amount Due to Viable Centers VII. Income & Expenditure A/c : Balance as on 1.4.2019 Less : Transfer to Earmarked Fund
12,649,889 723,794 13,373,683 Add : Transfer from Income & Expenditure a/c –
III. Legal Fund ( Sch - E) IV. Earnmarked Fund (Major Repair & Renovation of Office Premises) Balance as on 1.4.2019 Add : Interest From Investment
II. General Fund Balance as on 1.4.2019 Add : Contribution from Members
I. RESERVE FUND CORPUS Balance as on 1.4.2019 Add : Enterance Fees Add: Patron Membership fees
Sd/Baburao L. Shakkarwar Vice President
TOTAL Sd/Pradeep G. Nagawekar Hon. Gen. Secretary
425,981,885
22,160,974 130,535 2,935,679
82,132,195
317,056,051
1,566,451
Current Year
Sd/Gyan Madhani Hon. Gen. Treasurer
3,962,189 313,093,862
Current Assets, Loans, Advances & Deposits ( Sch - C) Amount Due From Centers Cash & Bank Balance ( Sch -D)
Investment in Legal, Head Quarter & Earmarked Fund (Sch B -1)
Investments From Corpus In Immovable properties ( Sch - A) In Banks & Financial Institutions ( Sch -B)
FIXED ASSETS Moveable properties ( Sch A-1)
ASSETS
BUILDERS ASSOCIATION OF INDIA BALANCE SHEET AS AT 31st MARCH, 2020
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79h Annual Report and Accounts – 2019-2020
To Salary & Wages To Provident Fund Contribution for Staff To Exgratia Payment to Staff To Contribution to Staff Gratuity Fund with LIC To Printing & Stationery To Printing charges for Annual Report To Postage & Telegraph To Electricity Expenses To Society Maintenance ( Paid to society ) Less : Contribution From Mumbai Center To Meeting & Travelling Expenses To Telephone Expenses To Subscription & Membership Fees ( IFAWPCA,IMC EFI ,ICA etc) To Conveyance To Auditor's Remuneration To Bank charges To Miscellaneous Expenses To House Keeping Charges To Staff Welfare Expenses To Repair & Maintenance To Internet & Website Expenses To Insurance Premium To Depreciation To Seminar Expenses To P.R. Activities & Publicity To Award and Memento To Expenses for Holding Exhibition & Convention To Traning Expenses To Legal & Professional Fees To Election Expenses To Deficit Of Indian construction Journal (Sch-H) To Interest & Others To Loss on Mutual Fund
EXPENDITURE
654,393 160,572
14,098,522
493,821 341,718 51,782 332,595 94,755 20,000 8,416 35,029 13,820 66,760 112,369 74,600 13,015 220,055 21,431 264,573 244,968 1,342,250 1,454,727 145,180 1,731,180 2,929 –
4,297,740 603,535 658,604 333,993 528,093 118,370 364,835 107,379
Current year
150,000
612,316
2,459,800
By Rent Received
By Sundry Balances W/off
By Exhibition / Convention income
By Training Income
By Interest & Dividend Received (Sch-G)
9,195,665 –
7,126,560
By Headquarter share on income from interest of Patron Membership fees investment
6,735,690
187,500
11,515
1,500,000
1,864,594
9,766,992
3,690,512 34,260
Current Year
By Membership Subscription From Centers From Affiliate Association & Others
INCOME
3,872,816 64,260
Previous Year
BUILDERS ASSOCIATION OF INDIA INCOME & EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31ST MARCH 2020
BUILDERS' ASSOCIATION OF INDIA
173
79h Annual Report and Accounts – 2019-2020
Sd/-
Sd/-
10,200 28,210
To Conveyance
To Miscellaneous
Sd/-
Mu. Moahan President
K V S & COMPANY Chartered Accountants
Arun Sahai Vice President
Chandrakant K. Raipat Vice President
Sd/-
Total
Sd/-
INCOME
Baburao L. Shakkarwar Vice President
23,090,547
Previous Year
N. Sachitanand Reddy Vice President
Total
Sd/-
8,936,910 24,181,933
To Excess of Income over Expenditure
1,146,501
1,535 11,428
2,696
To Printing & Stationery
To Meeting Expenses
12,469
To Telephone
To Postage & Telegram
81,790
To Electricity
701
71,794
To Society Maintenance
To Depreciation
925,678
Current year
To Salary & Wages
Delhi Office Expense
EXPENDITURE
Pradeep G. Nagawekar Hon. Gen. Secretary
Sd/-
Gyan Madhani Hon. Gen. Treasurer
Sd/-
24,181,933
Current Year
BUILDERS' ASSOCIATION OF INDIA
174
79h Annual Report and Accounts – 2019-2020
Jackson Hut Associations' Share in Centres' office premises Delhi Centre Eastern Centre Karnataka Centre Southern Centre Nashik Centre Sangali Centre Pune Centre Associations' office at Commerce Centre, Tardeo, Mumbai Associations' office at Aashirwad Complex, Delhi
SCHEDULE 'A - 1' :- Fixed Assets - Movable Properties AT MUMBAI Furniture & Fixtures Office Equipments Type Writer Library Fanking Machine Air-conditioners Computers Laminating Machine Electronic PBX Telephone Tape Recorder Photocopy Machine Fax Machine Printer & Scanner Mobile
d.
c.
a. b.
Particulars
Rate of Dep 10 15 15 15 15 15 60 15 15 15 15 15 15 15
A
1,238,350 49,071 33 31 911 334,401 25,566 12 3,194 28 48,351 1,001 19,014 40,099
3,962,197
1,000,000
1,066,300
– – – – – – 21,500 – – – – – – –
–
–
–
– – – – – – –
75,784 119,176 198,496 150,000 150,000 150,000 1,052,364
– – – – – – – – – – – – – –
–
–
–
– – – – – – –
–
Rs.
Rs. –
Deductions
Additions /
77
Balance as on 31.3.2019 (WDV) Rs.
SCHEDULE 'A':- Fixed Assets - Immovable Properties
BUILDERS ASSOCIATION OF INDIA Schedule to Balance Sheet as at 31st March, 2020
1,238,350 49,071 33 31 911 334,401 47,066 12 3,194 28 48,351 1,001 19,014 40,099
3,962,197
1,000,000
1,066,300
75,784 119,176 198,496 150,000 150,000 150,000 1,052,364
77
Rs.
Total
123,835 7,361 5 4 137 50,160 21,790 2 479 4 7,253 150 2,852 6,015
8
–
–
– – – – – – –
8
1,114,515 41,710 28 27 774 284,241 25,276 10 2,715 24 41,098 851 16,162 34,084
3,962,189
1,000,000
1,066,300
75,784 119,176 198,496 150,000 150,000 150,000 1,052,364
69
Depreciation Balance as on for the year 31.3.2020 (WDV) Rs. Rs.
BUILDERS' ASSOCIATION OF INDIA
175
79h Annual Report and Accounts – 2019-2020
TOTAL OF FIXED ASSETS Immovable Property Movable Property
AT DELHI Furniture Air-conditioner Fax Machine Printer
Particulars
5,528,640
Total :
2,014,769 3,962,189 1,566,451
1,765,699
A-1 Previous Year A A-1
2,883 461 269 2,024
10 15 15 15
Balance as on 31.3.2019 (WDV) Rs.
14,000
21,500 –
–
– – – –
Rs.
Rs. – – – –
Deductions
Additions /
2,028,769
1,787,199
2,883 461 269 2,024
Rs.
Total
263,070
220,748
288 69 40 304
1,765,699
1,566,451
2,595 392 229 1,720
Depreciation Balance as on for the year 31.3.2020 (WDV) Rs. Rs.
BUILDERS ASSOCIATION OF INDIA Schedule to Balance Sheet as at 31st March, 2020 SCHEDULE 'B' :- Investments Previous Year Rs. 43,602,179 114,052 242,550,000
Particulars
Current Year Rs.
Fixed deposit with State Bank of India
Rs.
63,783,905
Current A/c with State Bank of India
217,547
8% Saving (Taxable) Bond 2003 of Reserve Bank of India
242,550,000
306,551,452
286,266,231 Interest Accrued But Not Received 1,167,784
S.B.I. (F.D.)
3,371,486
3,170,924
Reserve Bank of India (Bond)
3,170,924
6,542,410
4,338,708 290,604,939
Total
313,093,862
SCHEDULE 'B-1' :- Investments Investment from Legal, Head Quarter & Earmarked Fund : 54,682,121
Fixed Deposit with State Bank of India
52,460,775
26,000,000
Reserve Bank of India (Bond)
26,000,000
2,000,000
Devlopment Council of India (2,00,000 Shares)
2,000,000
750,231
Interest Accrued but not received on fixed deposit
1,249,459
421,961
Interest Accrued but not received on RBI Bonds
83,854,313
Total
BUILDERS' ASSOCIATION OF INDIA
421,961 82,132,195
176
79h Annual Report and Accounts – 2019-2020
BUILDERS ASSOCIATION OF INDIA Schedule to Balance Sheet as at 31st March, 2020 SCHEDULE 'C' :- Current Assets, Loans, Advances & Deposits Previous Year Rs. 87,687 5,054,930
Particulars
Current Year Rs.
Prepaid Expenses
Rs.
75,763
Income Tax Paid under Protest
5,054,930
166,909
Advance Recoverable in Cash or Kind
166,909
259,000
Loan to Staff
176,000
5,473,602
5,568,526 Deposit with : 34,510
B.E.S.T.
34,510
6,000
Telephone Deposit
6,000
3,000
Telephone Deposit (Delhi)
3,000
10,000
Commerce Centre Co-op Soc Ltd.
10,000
10,000
Postage & Telegram (Deposit)
10,000
63,510
63,510 T.D.S. Receivable 1,523,725
A.Y. 2013-2014
1,523,725
1,051,695
A.Y. 2014-2015
1,051,695
405,203
A.Y. 2016-2017
405,203
1,926,144
A.Y. 2017-2018
1,166,758
2,411,597
A.Y. 2018-2019
2,411,597
2,732,269
A.Y. 2019-2020
2,732,269
–
A.Y. 2020-2021
2,865,881
12,157,128
10,050,633 Sundry Debtors : 1,473,376 17,156,045
Indian Construction Journal Advertisement Bills Total
BUILDERS' ASSOCIATION OF INDIA
4,466,734 22,160,974
177
79h Annual Report and Accounts – 2019-2020
BUILDERS ASSOCIATION OF INDIA Schedule to Balance Sheet as at 31st March, 2020 SCHEDULE 'D' :- Cash & Bank Balances Previous Year Rs. 8,740
Particulars
Current Year Rs.
In Saving Bank Account with Syndicate Bank, Tardeo Road Branch
9,036
1,623,489
In Current Account with State Bank of India
2,733,565
104,160
In Current Account with State Bank of India
42,220
In Current Account with State Bank of India (Indian Construction A/c.)
91,601
In Current Account with State Bank of India, Delhi
55,404
62,894 103,924 412
Cash on Hand, Mumbai Main Office
2,529
113
Cash on Hand, Delhi Branch
1,324
1,903,732
Total
2,935,679
SCHEDULE 'E' :- Legal Fund Account Previous Year Rs. 5,363,456 651,289
Particulars
Current Year Rs.
Opening Balance
5,371,353
Add : Additions during the year
169,492
6,014,745 643,392 5,371,353
5,540,845 Less : Expenses during the year
345,035
Total
5,195,810
SCHEDULE 'F' :- Current Liabilities & Provisions Previous Year Rs. 1,205,487
Particulars
Current Year Rs.
Outstanding Expenses & Liabilities
2,618,737
994,794
Amount payable to Charity Commissioner
652,246
Subscription & Membership received in advance
7,525,543 90,000 7,142,616 17,610,686
994,794
Income liability tax recovered from Centers
7,525,543
Rent Deposit Received
90,000
Amount payable for Kerala Relief Fund
986,618
Total
BUILDERS' ASSOCIATION OF INDIA
67,514
12,283,206
178
79h Annual Report and Accounts – 2019-2020
BUILDERS ASSOCIATION OF INDIA Schedule to Balance Sheet as at 31st March, 2020 SCHEDULE 'G' :- Interest & Dividend Previous Year Rs. 4,532,481 21,484,000 299 34,490
Particulars
Current Year Rs.
Fixed Deposits
6,163,821
Reserve Bank of India (Bond)
21,484,000
Interest on Saving Bank Account
296
Dividend received from Mutual Fund
–
27,648,117
26,051,270 16,855,605
Less : Share of Patron Membership Fees
17,881,125
16,855,605 9,195,665
Total
BUILDERS' ASSOCIATION OF INDIA
9,766,992
179
79h Annual Report and Accounts – 2019-2020
BUILDERS ASSOCIATION OF INDIA Schedule to Balance Sheet as at 31st March, 2020 SCHEDULE 'H' :- Indian Construction Journal Account Previous Year Rs.
Particulars
Current Year Rs.
INCOME 1,745,548
From Advertisements in ICJ
1,172,062
640,000
ICJ Subscription from Annual Members
635,600
1,793,000
ICJ Subscription from Patron Members
2,000,400
148,600
ICJ Subscription from Non-Members
89,140
3,897,202
4,327,148 EXPENSES 5,396,996
Printing & Stationery and Positive Making
416,292
Postage
165,729
Agency Commission
133,763
Bad Debts W/off
1,534
5,014,032 515,685 97,572 -
Bank Charges
1,093
5,628,382
6,114,314 (1,787,166)
Excess / (Deficit) of Indian Construction Journal
BUILDERS' ASSOCIATION OF INDIA
180
(1,731,180)
79h Annual Report and Accounts – 2019-2020
Builders' Association of India (Apex Body of Construction Industry)
Reports from BAI Centres 2019-2020 www.baionline.in
BUILDERS' ASSOCIATION OF INDIA
181
79h Annual Report and Accounts – 2019-2020
BAI Centres’ Report 2019-20 Ahmednagar Centre During the visit of Mr Balasaheb Bhausaheb Thorat, Minister of Revenue,Govt of Maharashtra to Ahmednagar on 28th January, 2019, senior functionaries of Ahmednagar Centre met him and presented him a memorandum highlighting the vaxed 'Royalty' problem being faced by the construction industry in the Maharashtra. The delegation was led by Mr Machindra Pagire, ChairmanAhmednagar Centre. Alleppey Centre Mr Thomas Pooniyil was installed as the Chairman of Alleppely Centre by Mr Prince Joseph, State ChairmanKerala on 25th May 2019. Mr Mathew Allex Vellapally, Vice President was the Chief Guest. Mr Tomy Pulikkatil, the outgoind Chairman formally handed over charge to Mr Pooniyil. Members and their families from Alleppey and nearby Centres were present. Amravati Centre Mr Prakash Panjwani, State Chairman-Maharashtra visited Amravati Centre on 15th July 2019, accompanied by senior functionaries of Nagpur & Butibori (Nagpur) Centre. A general meeting of BAI members was organised by Amarvati Centre on the occasion. Mr Prakash Panjwani briefed the members about the various efforts of BAI-HQ and Maharashtra State viz-a-vis mitigating hardships of building and construction industry. He also exhorted the members to increase the membership strength. Mr Rajivkumar M Bhele, Chairman & Mr V V Chandak, GC Member from Amravati Centre co-ordinated organising the meeting with other office-bearers & senior functionaries. Andhra Pradesh State Nine Centres in Andhra Pradesh namely Amaravathi, Guntur, Nellore, Rajahmundry, Ravulapalem, Tanuku, Visakhapatnam and Vizag Steel City, jointly celebrated "Builders' Day 2018-19 in Vijayavada. Mr A Puhazhendi was the Chief Guest and he was felicitated on the occasion. Mr CH Ramakotaiah, Vice President and Mr V Venkateswara Rao, State Chaor,am, AP were present on the occasion. Chairmen from all the nine centres jointly celebrating the Builders' Day alongwith members attended the celebrations. Angamaly Centre
Baramati Centre As a part of image building activity and also serviing the society, Baramati Centre arranged for water tankers and filled the 'artificial waterholed' for animals to drink water in drought hit areas on 28th May 2019. Chairman Mr Dattatray Sampatyrao Ranavare with his team of office bearers of Baramati Centre co-ordinated the origanising of the activity Cochin Centre Mr C K S Panicker was installed as the Chairman of Cochin Centre for 2019-20 by Mr Cherian Varkey, Past President on 5th April 2019. Mr Zachriah Abraham, Imm Past Chairman formally handed over charge to Mr Panicker. Mr Mathew Alex Vellapally, Vice President was also present on the occasion. Other office bearers were also installed. Members and their families from Cochin Centre graced the occasion. Executive Committee Meetings : 10 Executive Committee meetings were conducted during the year 2019-20 . All EC meetings had a good participation. Many issues and problems concerning the construction Industry/ Contractors/ Developers were reported and soughted out. Family meeting was held on 29.06.2019 in Hotel Olive Downtown, Kadavanthara , Cochin in the presence of BAI President Shri.Sachin Chandra as Chief Guest. Cochin Centre celebrated Builders' Day 2019 on 2nd Novemb er, 2019. Er R Murugan, Past Vice President was the Chief Guest and delivered the keynote address on the theme 'Construction Technology - Way to US$ 5 Trillion Economy'. On the occasion all the Past Chairmen of the Centre were honoured. Mr Mathew Alex Vellappaly, Vice President, Mr Cherian Varkey, Past President and Mr C K S Panicker, Chairman-Kochi Centre addressed the gathering. General Body meeting
BAI Angamaly Centre organised a 'Reception-cumMeeting' for Mr Sachin Chandra, President on 27th June 2019. Mr Mathew Allex Vellapally, Vice President, Mr Prince Joseph, State Chairman-Kerala; Mr Gibu P Mathew, Secretary-Kerala State and other were present on the occasion. Mrs Madhu Chandra, better half of President
BUILDERS' ASSOCIATION OF INDIA
also graced the meeting. Mr Charles J Thayil, Chairman and other senior members of Centre co-ordinated in organising the event. Members from Angamaly Centre were present and actively participated in the discussions in the meeting.
Three General Body meetings was organised by BAI Cochin Center. First General Body Meeting on 06.04.2019 at Monsoon Empress , Vytilla along with Installation Ceremony.
182
79h Annual Report and Accounts – 2019-2020
Youth Forum Meetings Youth Forum meetings for year 2019-20 commenced on July 2019 under the guidance of Shri. Joseph George (Joint Secretary, BAI Cochin Center) M and Edward George ( EC member BAI Cochin Center) conducted 5 meetings till December 2019 Meetings held on 1st week every month. All meetings were conducted with technical enrichment sessions. Second General Body Meeting at Olive Downtown, Kadavanthara in the presence of BAI President Shri.Sachin Chandra. Ladies forum Meetings Ladies Forum meetings for year 2019- 20 commenced on October 2019 under the guidance of Shri. Anil Varma ( EC member, BAI Cochin Center) conducted 2 meetings on 1st week every month. Builders day Celebrated on 02.11.2019 at Mansoon Empress. Annual General Body meeting in BAI Chamber , Kadavanthara on 16.01.2020 along with election of new office bearers for 2020-21. More than 10 emergency meetings was held in BAI Chamber , Kadavanthara for Palarivattom Flyover issue and Maradu Flat Demolision Issue . BAI Cochin Center actively contributed and coordinated with other centers in delivery of Household Utilities for flood affected Areas. Delhi Centre BAI Delhi and Gurgaon centre organized a small training session Secrets of Business Automation on Thursday the 11th July 2019 at 3.00 PM onwards at BAI Conference Room, 115, Ashirwad Complex, Green Park, New Delhi. The training session was the brainchild of Mr Rajiv Goel, Past State Chairman-Haryana. The Training Session was moderated by Mr Kewal Kishan who is now on a mission to revolutionize the SME sector of India by enabling Business owners to grow 10X using G-suite. Mr Kewal Kishan has at his credit of training 4,500 professionals and 1000+ Business Owners from Pan-India and Singapore on Excel and Google Sheets, famously known as ExcelwithKewal.com, He is Award-winning Data-Analyst and India's Leading Business Automation Coach, having spent six successful years in helping MNCs like Honda Cars, ThyssenKrupp, Smiths Detection etc. in Business Automation and Analytics. The training session was attended by members from Delhi & Haryana and they appreciated the efforts of the Gurgaon Centre and Delhi Office in organizing such and informative session. BAI - Delhi Centre organized celebration of Builders' Day and get-together of Delhi, Ghaziabad, Haryana,
BUILDERS' ASSOCIATION OF INDIA
Chandigarh and Jaipur Centres on Monday, the 14th October 2019 at National Sports Club of India, Mathura Road, New Delhi. The Builders' Day celebrations and gettogether were attended by members from Delhi, Ghazhiabad, Haryana, Chandigarh and Jaipur in large numbers. The members & officials attended the function were Shri O P Sharma, Vice President, Shri Lal Chand Sharma, Trustee & Past President, Shri H S Pasricha, State Chairman-Delhi, Shri Umesh Acharya, State ChairmanHaryana, Shri R N Gupta, Past Vice President, Shri Ram Avtar, Past State Chairman-Delhi, Shri Rajiv Goel, Past State Chairman-Haryana, Shri Ved Khurana, ChairmanDelhi Centre, Shri Abhay Goel, Chairman-Delhi West Centre, Shri Mohd Aslam, Chairman-Delhi East Centre, Shri Sanjay Daga, Chairman-Gurgaon Centre, Shri Siddartha Khosla, Chairman-Faridabad Centre Shri Sandeep Gupta, Chairman-Chandigarh Centre, Shri Ravi Kheria, Chairman-Rajasthan (Jaipur) Centre, Shri Arun Sahai, Past State Co-ordinator-Delhi, Shri Lal Chand Ralhan, Shri Mahender Sethi, Shri Vijay Kumar, Shri J P Aggarwal and other prominent members from Delhi, Ghaziabad, Haryana and Jaipur. Some senior officials from CPWD also graced the occasion. Shri Ram Avtar ji welcomed members for attending the event, particularly members from Ghaziabad, Chandigarh & Jaipur for sparing their valuable time and making it possible to the attend the meeting. Shri Ram Avtar also welcomed the members who have recently joined the BAI and explained the BAI's aims, objectives & achievements for their benefit. He particularly thanked Shri Lal Chand Sharma and Shri O P Sharma ji to grace the occasion. Issues relating to construction industry, CPWD, member companies were discussed. CPWD officials and new members joined the BAI appreciated the efforts of senior members of Delhi Centre in organizing the event which was not only entertaining and useful but also give them an opportunity to understand BAI. A word of appreciation was also spoken in honour of the 5 Hindi Poets who read out their collections and entertained the audience as well as for Shri Pawan Garg from M/s. Alstone Industries Pvt. Ltd. who was also present on the occasion and sponsored the event. M/s. Alstone Industries Pvt. Ltd. have joined BAI as Patron Member from Delhi West Centre. The celebrations of the event were followed by Cocktail Dinner. Builders' Association of India - Delhi Centre organized Farewell Party for outgoing DG-CPWD Shri Prabhakar Singh, retired on 31st January 2020 and Welcome Party for the incoming DG-CPWD Shri S K Garg & P K Vats, joined as DG-CPWD on 1st February 2020, on Saturday, the 8th February 2020 at National Sports Club of India, Mathura Road, New Delhi. Besides both the DGs (with spouse), the party was attended by other senior serving officers (Addl Direcotr General, Chief Engineer and above) and retired officers, with spouse, from CPWD. The BAI was represented by Shri R N Gupta, Past Vice President, Shri H S Pasricha, State Chairman-Delhi, Shri Ram Avtar,
183
79h Annual Report and Accounts – 2019-2020
Past State Chairman-Delhi, Shri Lal Chand Sharma, Truestt & Past President, Shri Rajiv Goel, Past State Chairman-Haryana, Shri Ved Khurana, Chairman-Delhi Centre, Shri Abhay Goel, Chairman-West Delhi Centre and Shri Vijay Kumar, Past Chairman -Karnal Centre (Haryana), senior members and Office Bearers/Executive Committee Members from Rajasthan, UP and senior members from Delhi & Haryana and new patron members who have joined the other recently opened centres. Shri Ram Avtar ji welcomed all guests from CPWD and members from BAI for the Party and flower bouquet were presented to the guests by Shri Lal Chand Sharma, Shri R N Gupta, Shri H S Pasricha, Shri Ved Khurana, Shri Ram Avtar & Shri Arun Sahai. Shri Prabhakar Singh thanked all the BAI members for their support and co-operation during his service with CPWD, particularly as DG in particular. The incoming DGs in their address assured his support and co-operation to the BAI members. All other officers appreciated the BAI members and thanked for making this event where they also get the opportunity to meet old stalwards of the Department. BAI will certainly get milage from the event organized by the active participation of senior members from Delhi Centre.
Centre conducted a Technical Presentation on 'Pipes & Fittings' on 30th August 2019. Miss Priyalakshmi S, Business Development (South)-M/s TRUFLO delivered the keynote address wherein she sponke on importance of proper plumbing in judicious use of water. Mr Venkatesh, Manager-TN, M/s TRUFLO also spoke and highlighted the quality standard of TRUFLO products. Nearly 110 members from centre attended. Er U Meenakshisundaram, Chairman welcomed the members and Er S Boobesh Guru, Hon Secretary presented a report on the recent activities of the centre. Dindigul Centre celebrated Entineers Day on 17th September 2019. Mr Balachandran, Chief Entineer, Dindigul Municipal Corporation was the Chief Guest. In his address he spoke about the role of entineers towards improvement of Dindigul city. Er U Meenakshisundaram, Chairman and other office bearers of the centre coordinated organising of the event. Dindigul Centre celebrated Builders' day 2019 on 15th October, 2019. PDG Lion Er T Pandiyarajan, Propritor M/ s Vedha Homes Pvt. Ltd., Madurai was the Chief Guest. In his brief address, he spoke about the role of builders from the start of work to the final handover of the project and also spoke about the latest rules introduced by Govt for the benefit of the construction industry. Senior office bearers of the centre co-ordinated organising of the event.
Dhule Centre BAI Dhule Centre celebrated Builders' Day on 30th June 2019. Mr Nimesh Patel, Vice President, Mr Prakash Panjwani, State Chairman-Maharashtra, Mr Mohan Katariya, Trustee, Mr Avinash Patel, Past President and many other graced the celebrations. Mr Shitalkumar Mohan Nawle, Chairman, Dhule Centre, his team of office bearers, GC Members and other senior functionaries from the Centre co-ordinated organising the celebrations.
Durgapur Centre The fourth meetings of the Managing Committee and General Council of BAI for 2018-19 were held on Saturday 23rd February, 2019 at Auditorium of Central Mechanical Engineering Institute (CMERI) - a constituent of the Council of Scientific and Industrial Research (CSIR), M G Road, Durgapur Steel Township, Durgapur. Prof (Dr.) Harish Hirani, Director of CSIR-CMERI formally in agurated the meetings by lighting the traditional lamp and also addressed the members.
Dindigul Centre Er U Meenakshisundaram was installed as the Chairman of Dindigul Centre for 2019-20 by Mr R Muthukumar, State Chairman-TN, Pondicherry & Andaman Nicobar on 12th April 2019. Mr Mathew Alex Vellapally, Vice President was the Chief Guest. Er A Arivvazhagan, PDC, Lions Club International-District 324B3 was the Guest of Honour. Other office bearers were also installed. Dindigul Centre conducted a Technical Session on 'Tamil Nadu Combined Development and Building Rules 2019' on 31st May 2019. Er B Palanivelu, DCE, MBA, BL & Chairman, DTCP Committee, BAI-TN, Pondicherry & Andaman Nicobar was the Chief Guest and delivered the keynote address and spoke on the latest rules introduced by Govt of TN. Er U Meenakshisundaram, Chairman & other members co-ordinated organising the session along with other office bearers of the centre. Dindigul Centre conducted a Technical Presentation on 'TMT Bars' on 19th July, 2019. Mr Raghu, Sr Manager, M/s MACHO TMT delivered the keynote address, wherein he highlighted the higher purity and higher form
BUILDERS' ASSOCIATION OF INDIA
strength of their products. A meeting of BAI TN Dairy 2020 Committee was also held. Er U Meenakshisundaram, Chairman along with other office bearers of centre coordinated organising the session.
Mr A Puhazhendi, President chaired the meetings of the MC & GC for 2018-19. Others who graced the dais were Vice Presidents Mr Ch. Ramakotiah, Mr M Thirusangu, Mr O P Sharma, Mr Pratap B Salunkhe & Mr Rajendra Singh Kamboh, Mr NeeravParmar, Hon Gen Secretary, Mr H N Vijaya Raghava Reddy, Imm Past President, Mr Surojit Samanta, State Co-ordinator, WB, Mr Ajit Singh, Chairman-Durgapur Centre, Mr Ashok Chandak, Chairman-Organising Committee and Mr Raju John, Executive Secretary. Mr Rajendra Singh Kamhoh formally welcomed the members for attending the meeting from the length and breadth of India. In his welcome address, he also briefed members about some burning issues by contractors in Durgapur.
184
79h Annual Report and Accounts – 2019-2020
The customary pre-meeting briefing of office bears was held in the late afternoon of Friday 22nd Feb 2019. Mr A Puhazhendi, President chaired the meeting. After lunch a Press Conference was held, wherein the representative of the print and electronic media were present. The Press Conference was addressed by Mr A Puhazhendi, President, Mr Rajendra Singh Kamhoh, Vice President, Mr Neerav Parmar, Hon Gen Secretrary, Mr Ashok Kumar Chandak, Chairman-Organising Committee and Mr A K Mishra, Past Chairman-Durgapur Centre. Mr Anup Mazumdar was installed as the Chairman of Durgapur Centre for 2019-20 in a glittering function on 28th April 2019. Mr Sachin Chandra, President was the Chief Guest and Mr S K Basu, Past President was the Guest of Honour. Mr Ashok Kumar Chandak, State Coordinator-WB & Mr Rajindera Singh Kamboh, Imm Past Vice President also graced the occasion. Mr Ajit Singh Alagthe outgoing Chairman formally handed over charge to Mr Anup MUMSe. More office bearear were inducted and installed on the occasion. BAI members, their family members and members of likeminded associations and government officials with construction industry present in the function. Durgapupr Centgre celebrated Builders' Day 2019 on 31st August 2019. Mr Surojit Samanta, Vice President was the Chief Guest. Mr S K Basu, Past President was the Guest of Honour. Mr A K Chandak, State Chairman-WB also graced the occasion. Mr M K Kanodia, EE-CPWD, Durgapur delivered the keynote address on the theme 'CONSTRUCTION TECHNOLOGY - WAY TO US $ 5 TRILLION ECONOMY'. Mr Anup Mazumder, ChairmanDurgapur and other officer bearers and senior functionaries in organizing the event. Eastern Region The 'First Meeting of BAI Eastern Region 2019-20' was held in Ranchi on 31st August 2019, hosted by Ranchi Centre. Mr Surojit Samanta, Vice President chaired the meeting. Mr Sachin Chandra, President was the Chief Guest. Mr B N Dixit, Past President, Mr Chandrakant Raipat, Imm Past State Chairman-Jharkhand, Mr S K Pradhan, Past Trustee and other office bearers and seniorfunctionaries from Eastern region participated. Issues confronting the building & construction industry, particularly in the region and the whole nation in general were discussed. Mr Rohit Agarwal, Chairman, Ranchi Centre co-ordinated organizing meeting with other officer-bearers and senior functionaries. The 'Second BAI Eastern Region Meeting 2019-20' was held in Durgapur on 31st August 2019. Mr Surojit Samanta, Vice President chairing the meeting. Mr S K Basu, Past President and Mr Ashok Kumar Chandak, State Chairman-WB also graced the dais during the meeting. Issues concerning Civil Engineering construction and real estate construction industry were discussed along with BAI organisational matters. An important matter BUILDERS' ASSOCIATION OF INDIA
discussed was non-release of dues and deduction of LD for no fault of sub-contractors b y L&T, Sapoorji & Pallonji, SAIL (Works at Durgapur Steel P)lant, Bokaro Steel plant, Rourkela Steel Plant, IISCO and any other Steel plant under SAIL). BAI members facing problem and their contractor acquaintances irrespective of they being BAI members, were requested to send details of such problems to Mr Surojit Samanta for further action. Mr Anup Mazumdar, Chairman-Durgapur co-ordinated organizing the meeting along with his other office-bearers and senior functionaries. Ettumanoor Centre Mr Abi M Ponnattu was installed as Chairman of Ettumanoor Centre for 2019-20 by Sachin Chandra, President on 28th June 2019. Mr P J Joseph, former Miunister for Public Works, Govt of Kerala was the Chief Guest. Mr Monce Joseph, MLA, Kaduthuruthy legislative Assembly also graced the occasion. Mr Joby Kurian, the outgoing Chairman formally handed over charge to Mr Abi. Other office bearers of the Centre were also installed. Mr Paul T Mathew, Imme Past State Chairman-Kerala inducted new members into BAI fold. On the occasion Mr Sachin Chandra handed over the key of a house constcted in Kumarakam by Ettumanoor Centre to a floor victim. Goa Centre Mr Deepak Talaulikar was installed as Chairman of Goa centre for 2019-20 by Chief Guest Mr Nimesh Patel, Vikce President on 26th June 2019. Mr Kigambar Kamat, former Chief Minister of Goa & Hon'ble MLA Margao was the Guest of Honour. Mr Digambar Kamat is also a Past Chairman of Goa Centre. Other office bearers were also installed. Mr Gajanan Sawant, GC Member and Dinesh Kumar Patel, Chairman-Gujrat (Ahemdabad) Centra also graced the occasion. Members, their families and members of likeminded association present during the function. Before function EC Meeting of the centres was held which was also participated by Mr Nimesh Patel; Mr Dinesh Patel & Mr S Madhusudan, HeadCommunications-BAI. The media also covered the function. A delegation of Goa Centre called up0on Dr Pramod Sawant, Hon'ble Chief Minister of Goa on 31st Oct 2019, let by Mr Deepak T S Talaulikar, Chairman and other office bearers of Goa Centre. Mr A Daulat A Hawaldar, IAS, Finance Secretary, Govt of Goa and Mr Rajesh Naik Chief Town Planner, Goa were also present during the meeting. The delegation present a memorandum highlighting grievances faced by real estate builders and civil engineering contractors in Goa relating to Infrastructure Tax, Power of Attorney, Licensing of River Sand etc. to the Chief Minister. A BAI Goa Centre delegation met M r Digambar Kamat, MLA, Leader of Oppossion, Goa on 23rd January 2020.
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The dcelegation was let by Mr Deepak TalaulikarChairman and consisted of Mr Nitesh Naik, Hon Secretary and Mr Yatin Pai, EC Member-Goa Centre. The meeting was also attended by CREDAI Goa, sand suppliers, Officials of Goa Mining Department, Goa Police Deptt etc. The main issue discussed were sand issue and other important issues in Goa. Greater Jaipur Centre Mr Shubham Jain was installed as Chairman of Greater Jaipur Centrae for 2019-20 by Mr Ramcharan Bohra, MPJaipur City on 2nd June 2019 alongwith other office bearers. Members, their families, senior functionaries of likeminded organisations etc. were present on the occasion. Hassan Centre Mr D Rangaswamy was installed as Chairman of Hassan Centre for 2019-20 by Mr R Ambikapathy, State ChairmanKarnataka on 10th April 2019. Mr K Sriram, Vice President was the Chief Guest. Mr K S Someshwara Reddy, Imm Past State Chairman-Karnataka was Guest of Honour. Other office bearers also installed and Mr Ramesh Kumar Kothari was inducted as GC Member on the occasion. Mr K Sriram was felicitated on being elected as Vice President. BAI members, their families and members of likeminded associations & Government officials present during the function. Ichalkaranji Centre A primary school in the interior parts near Ichalkaranji lost its entire infrastructure in the floods during the recent rains. Ichalkaranji Centre donated tables, overhead water tank, computer & printers, carpets, notebooks & other stationary etc. to the school. The management of school profusely thanked Centre for their gesture. Mr Mohan Satupute, Chairman, other office bearers and senior members from the centre were present on the occasion. Kalpakkam Centre BAI Kalpakkam Centre was inaugurated on 1st September, 2019. Er K Madurai Muthu was installed as the first Chairman of Kalpakkam Centre by Mr R Radhakrishnan, Past President & Trustee. Chairman of Kalpakkam Centre. Mr R Mudhukumar, State ChairmanTN, Pondicherry & Andaman Nicobar; Mr Mu Mohan & Mr M Thirusangu, Past Vice Prisidents and other senior functionaries from TN were present on the occasion. Office bearers and Senior members from the state coordinated the organising of the function. Karnataka (Bangalore) Centre Mr S Shiva Prakash was installed as the Chairman of the Centrefor 2019-20 by the Installing Officer Mr K Sriram, Vice President on 10th May, 2019 along with other office bearers. Mr Sachin Chandra, President was the Chief Guest. Mr Ambika Pathy, State Chairman-Karnataka was BUILDERS' ASSOCIATION OF INDIA
the Guest of Honour. Mr R Radhakrishnan, Past President & Trustee, Mr H N Vijaya Raghava Reddy, Past President and Mr A Puhazhendi, Imm. Past President graced the occasion. Team 2018-19 of the Centre also graced the occasion. Members and families of BAI and other organization present there. Kerala State The 'First BAI Kerala State Meeting 2019-20' was held in the afternoon of 5th April 2019 in Chchin, hosted by Cochin Centre. Mr Prince Joseph, State Chairman-Kerala chaired the meeting. Before start of the meeting, Mr Paul T Mathew, State Chairman Kerala (2918-19) formally handed over charge to Mr Prince Joseph by adorning him with the 'BAI Kerala State Chairman' medallion. Mr Cherian Verkey, Past President and other senior functionaries of Kerala state participated in the meeting. Issues confronting the industry in Kerala were discussed. It was decided that each BAI Centre in Kerala will make arrangements to give practical training i.e. internship to civil engineering students from their respective areas. Mr Prince Joseph was installed as State Chairman-Kerala by Mr Mathew Alex Vellapally, Vice President in the evening. On the occasion Mr Gibu P Mathew and Mr George Mathew Palal were nominated as Secretary and Treasurer of BAI Kerala State respectively. Mr Manoj Mathew was nominated as Editor of BAI Kerala Bulletin. Mr Cherian Varkey and all past State Chairman of Kerala were also present on the occasion. The 'Second BAI Kerala State Meeting 2019-20' was held in Thripunithura on 7th June 2019, hosted nu Thrippunithura Centre. Mr Prince Joseph, State Chairman-Kerala chaired the meeting. Mr Mathew Alex Vellapally, Vice President graced the meeting. Mr Binu John Easo, Chairman of the Centre formally welcomed the members for attending the meeting from BAI Centres in Kerala. Isues concerning the building and construction industry in the state were discussed in general and national issues were also taken up. One of the main issues to be discussed was BAI Kerala's flagship project i.e. Providing practical exposure to Civil Engineering Students', which comes under the aegis of Kerala State Skill Development Committee headed by Mr Biji Stephen as co-ordinator. Mr Prince Joseph briefed the members about the action taken since the last state meeting. Reports by Chairmen of Centres in Kerala & various functional committee were taken note of. Mr Manoj Mathew, Editor, 'BAI Communiqué' - news bulletin of BAI Kerala State give details about the forthcoming July 2019 issue and also gave presentation of BAI Kerala Website. Mr George Mathew Palal , Treasurer, Kerala presented the accounts. Around 45 members attended the meeting. Kottayam Centre Mr Raji Mathew was installed of Kottayan Cemtre for 2019-20 on 30th April 2019 by Mr Prince Joseph, State
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Chairman-Kerala. Mr R Radhakrishnan, Past President & Past Trustee was the Chief Guest during the installation function. Mr K P Prabhakaran, Retd Chief Engineer-PWD and Mr Mathew Alex Vellapally, Vice President were the Guests of Honour. Mr Alex Vellapally was also felicitated on being elected as Vice President of BAI for 2019-20. Other office bearers of the Centre were also installed on the occasion. Mr John Paul K, Past State Chairman-Kerala, co-ordinated the function along with other senior functionaries and office bearers of Kottayam Cenatre. Madurai Centre Madurai Centre held a General Body Meeting on 11th July 2019. Mr Apuhazhendi, Imm. Past President and Mr R Mu7dhukumar, State Chairman-TN, Puducherry and Andaman Nicobar also graced the meeting. Apart from mandatory BAI Organisational matters, issues concerning the building and construction industry were also discussed. Mahindra Trucks who supported the meeting also gave presentation on various options they offer for the industry. Mr S Balan, Centre Chairman with his team of office bearers co-ordinated organising the meeting.
Malegaon and Shahada Centres
Maharashtra State The 'First BAI Maharashtra State Meeting for 2019-20' was held in the early afternoon on 25th May 2019 in Ulhasnagar, hosted by Ulhasnagar Centre. Mr Prakash Panjwani, State Chairman-Maharashtra chaired the meeting. Mrs Jyoti Kalani, MLA Ulhasnagar formarlly inaugurated the meeting as the Chief Guest. Mrs Pancham Kalani, MayorUlhasnagar and Mr Nimesh Patel, Vice President were the Gusts of Honour. Others who graced the dais were Mr Nederav Parmar, Hon Gen Secretary, Mr Pradeep Nagawekar, Hon Gen Treasurer, Mr Vilas Birari, Imm Past State Chairman-Maharashtra, Mr Avinash Patil, Past President and other senior functionaries of the state. Mrs Jyoti Kalani and Mrs Pancham Kalani addressed the members coming to Ulhasnagar from across Maharashtra and appreciated the 'national building work' being done by the builders and contractors. During the meeting, issues confronting the building and construction industry, particularly in Maharashtra were discussed at length. Some new contentions directions by Maharashtra PWD, MahaRERA, GST etc. were discussed and line of action for tackling them were discussed and decided. BAI Organisational matters were also discussed. In the evening, Mr Prakash Panjwani was formally installed as the State Chairman-Maharashtra for 2019-20 by Mr Nimesh Patel, Vice President. Mr Nimesh Patel also installed Mr Mahesh Sukhramani as Secretary and Mr Gopal Sukhwani as Treasurer of Maharashtra State for 2019-20. Mr Vilas Birari, Past State ChairmanMaharashtra formally handed over charge to Mr Prakash Panjwani. Other senior members from Maharashtra, members and their families from Ulhasnagar Centre were present during the installation function.
BUILDERS' ASSOCIATION OF INDIA
A delegation from Maharashtra met Mr Manoj Saunik, IAS, Principal Secretary-PWD Maharashtra in Mumbai on Thursday, 11th July 2019 and handed over a memorandum. The delegation led by Mr Prakash Panjwani, State Chairman-Maharashtra and accompanied by Mr Neerav Parmar, Hon Gen Secretary, Mr Rajiv B Krishnani, Past Vice-President, Mr Baburao Shakkarwar, Past State Chairman-Maharashtra, Mr Gyan Madhani, Chairman-Mumbai Centre, Mr Manoj More, Past Chairman-Nanded Centre and Mr S Madhusudan, Head Communications. Mr Manoj Saunik immediately accepted, in principal, BAI's two view points in the memorandum and assured necessary circulars shortly but refused to entertain any discussion on one point. He out rightly rejected the demand of BAI for restoring the concept of registering contractors in various classes. His contention was that registration process leads to rampant corruption and those who qualify will anyway be eligible for participating in tenders. He also encouraged the delegation to raise additional issues like Royalty, shortage of sand, price escalation vis-a-vis price index, etc.
On the sidelines of Builders' Day celebrations of Dhule Centre, an interaction session of office bearers and senior functionaries of Malegaon and Shahada Centres with Mr Nimesh Patel, Vice President, Mr Prakash Panjwani, State Chairman-Maharashtra, Mr Mohan Katariya, Truestt and Mr Avinash Patil, Past President was held. They all briefed the members about the members about the various efforots of BAI-HQ and Maharashtra vis-a-vis mitigating hardships of the building and construction industry. Mr Ravi Ahire, Chairman-Malegaon Centre and Mr Kishore Kashinath, Chairman-Shahada Centre with present alongwith their team of office bearers and GC members from the respective centres. Mumbai Centre World Infrastructure Congress & Awards 2019' was held on 15th October 2019 in Hotel Sahara Star in Mumbai duly supported by BAI, National Buildings Code of India, BIM Association, Smart City Council India, GRIHA India and Jakarta Smart City. Around 200+ esteemed attendees from the Industry, mainly CEOs, MDs, VPs, Developers, HSE Planners, Architects and HODs from the Private and Government Sector attended the event. Mr Gyan Madhani, Chairman-Mumbai Centre was one of the dignitaries to inaugurate the event and also delivered the key note address. Muvattupuzha Centre Mr Sabu Cherian was installed as Chairman of Centre for 2019-20 by Mr Cherian Varkey, Past President on 30th April 2019. Mr Paul T Mathew, Imm. Past State ChairmanKerala also the graced the occasion. Mr Rajesh Mathew, the outgoind Chairman formally handed over charge to
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Mr Sabu Cherian. Other office bearers of the centre were also installed. Members and their families were present on the occasion. Mysore Centre BAI Mysore Centre celebrated Builders' Day 2019 with the 'Construction Technologyt - Way to US $ 5 Trillion Economy' on 23rd October 2019. Mr Sachin Chandra, President-BAI was the Chief Guest. Mr K Sriram, Vice President and Mr R Ambikapathy, State ChairmanKarnataka & Mr Anil K Pillai, GM-Technical Services M/s The Ramco Cements Ltd., were the Guests of Honour. A Power point presentation on the latest developments in cement and related products was given by Mr Pillai. Mr K Dasharath, MD-D K Constructions, Mysore was awarded with the 'Builders of the Year Award', Mr S L Dinesh, MD-M/s Megha Concrete Blocks was awarded with 'Member Extraordinaire Award and nine new members were inducted in the BAI fold on the occasion. Mr B S Dinesha, Chairman with his team of senior functionaries co-ordinated organising of the event. Nagpur Centre and Butibori (Nagpur) Centre BAI Nagpur Centre and Butibori (Nagpur) Centre held a joint special meeting to welcome Mr Prakash Panjwani, State Chairman-Maharashtra on 15th July 2019. Present on the occasion were Rajendra S Athawale & Mr Abhay Garde, Past State Chairmen-Maharashtra, Mr K Rajakumar Nair, Imm Past Chairman-Butibori (Nagpur) Centre and other senior members from the centres. Mr Panjwani briefed the members about the members about the various efforots of BAI-HQ and Maharashtra vis-avis mitigating hardships of the building and construction industry. He also exhorted the members to increase the membership strength. Nalgonda Centre As an effort towards image building and also serving the society, Nalgonda Centre set up a 'free drinking water facility' which was inaugurated by Mr B Sugunakar Rao, Truestt in the presence of Mr D V D Reddy, State Chairman-Telangana, Mr P Narasimha Rao, TreasurerTelangana State, Mr S Satyanarayana, ChairmanNalgonda Centre and other. Namakkal Centre As part of Image Building Activity, Namakkal Centre decided to get involved in desilting 'Kondichettipatti Lake' - 14 acres. Mr K P P Bhaskar, MLA-Namakkal inaugurated the commencement of desilting work using the JCB. The total project was 70 lakhs. The remaining work of beautifying the surrounding lake is being done from contribution from MLA funds and contribution from local people. Mr K Venkatachalam, Chairman and other office bearers and functionaries from the centre were involved in the activity.
BUILDERS' ASSOCIATION OF INDIA
Nashik Centre Shri Rahul Suryawanshi was installed as the Chairman of Nashik Centre for 2019-20 on 10th May 2019 alongwith other Office bearers. Mr Arunbhai Gujrathi, former Speaker of Maharashtra Assembly was the Chief Guest and Mr Balasaheb Wagh. Chairman-K K Wagh Education Society, Nashik was the Guest of Honour. Also present on the occasion were Mr Avinash Patil, Past President and Mr Mohan Katariya, Truste. Members and families of the Centre graced the installation function. The print and electronic media covered the installation function. Patna Centre The first meetings of the Managing Committee and General Council of Builders' Association of India (BAI) were held on Saturday, 20th April 2019 in Adhiveshan Bhawan, Harding Road, Patna. Mr Sachin Chandra, President, BAI chaired both the meetings. Others who graced the dais during the meetings were - Mr K Sriram, Mr Mathew Alex Vellapally, Mr Nimesh D. Patel, Mr O P Sharma and Mr Surojit Samantha, all Vice Presidents, Mr Neerav Parmar, Hon Gen Secretary, Mr Pradeep G Nagawekar, Hon Gen Treasurer, Mr A Puhazhendi Imm Past President, Mr Arun Kumar Singh, Chairman-Patna Centre, Mr Narendra Kumar, Chairman-Organising Committee and Mr Raju John, Executive Secretary. The discussions on the Agenda Items, circulated, and on other important issues being confronted by the construction industry were discussed. The customary premeeting briefing of office-bearers was held in the early morning of Saturday 20th April, 2019 in Adhiveshan Bhawan, Harding Road, Patna and Mr Sachin Chandra, President chaired the meeting. Before Managing Committee and General Council Meetings, a Press Conference was organised. Mr Sachin Chandra briefed the electronic and print media about BAI and the building & construction and highlighted the difficulties the industry is facing. Phaltan Centre Mr Vikaram Mahadeorao Zanjurne was installed as the Chairman for 2019-20 by MR Shreemant Ramraje Naik Nimbalkar Ssbhpati, Vidhan Parishad, Maharashtra on 13th May 2019. Also present on the occasion were Mr Deepak Chavan, MLA, Phaltan, Mr Raghunath Raje Naim Nimbalkar; Mr Sanjivaraje Naik Nimbalkar, Mr Prakash Panjwani, State Chairman-Maharashtra; Mr Avinash Patil, Past President, Mr Mohan Katariya, Trustee, Mr Pratap Salunkhe, Imm Past Vice President and many other. Other office bearers were also installed. Mr Bhojraj Naik Nimbalkar was bestowed 'Lifetime Achievement Award' for his contribution to the construction industry and BAI.
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On the occasion 'Bhoomipujan for the construction of multipurpose building of Phaltan Centre wad done Mr Avinash Patil, Past President. The building, owned by the Centre, will have conference room, labour training centre, concarete testing laboratory, a mini hall for private function etc. On the occasion of 'World Labour Day' on 1st May 2019, Phaltan Centre & Phalton Doctors Association (PDA) organised a 'Medical Camp' for construction workers, on the suggestion given by Mr Prakash Panjwani, State Chairman-Maharashtra. Checking of BP, ECG, giving TT injection wherever necessary, pathological tests etc. were done on 155 labourers and senbrious ceses were referred to hospitals for further treatment. 20 doctors were there for the camp. Mr Hanumant Patil, Tahsildar, Phaltan was the Chief Guest. Principal Yeole delivered a lecture on maintenance of health to the labourers. Chairman-Phaltan Centre and Dr Ravindra Sonawane, President-PDA and other senior functionaries co-ordinated the organisation of the camp. BAI Satara Centre celebrated 'International Yoga Day' on 21st June 2019. Mr Amol Yeole, National Yoga Guru let the members in celebrating the day. Mr Vikaram Mahandeorao Zanjure, Chairman-Phaltan Centre with office bearers and team of 35 members from Phaltan Center participated in it. Pink City Jaipur Centre Mr Surendra Khandelwal was installed as the Chairman of Pink City Jaipur Centre for 2019-20 by Mr Ramcharan Bohra, MP-Jaipur City on 2nd June 2019 along with the other office bearers. Members, their families, senior functionaries of likeminded organisations etc. were present on the occasion. Poonamallee Centre Mr R S Munirathinam, Philanthropist & Chairman-RMK Group of Educational Institutions, inaugurated BAI's Poonamalee Centre in a glittering function on 28th March 2019. It is the 175th Centre of BAI in India and 39th BAI Centre in Tamil Nadu State. Mr A Puhazhendi, President formally installed Mr E Manohar as the First Chairman of Centre along with his office bearers. Mr L Moorthi, Past Vice President delivered the keynote address. Mr S Ayyaanathan, State Chairman-Tamil Nadu Pondicherry & Andaman Nicobar and other senior functionaries from the state were present on the occasion. The Centre was inaugurated with 50 Patron Members. Members and their families and members of other likeminded organisations participated in the function. The second meetings of the Managing Committee and General Council of BAI were held on Saturday 17th August, 2019 in Feathers-A-Radha Hotel, Poonamallee Road, Chennai. Mr Sachin Chandra, President chaired both the meetings. Other who graced the dais during
BUILDERS' ASSOCIATION OF INDIA
meetings were Mr K Sriram, Mr Mathew Alex Vellapally, Mr Nimesh D Patel, Mr Surojit Samanta - Vice Presidents,Mr Neerav Parmar, Hon Gen Secretary, Mr Pradeep G Nagawekar, Hon Gen Treasurer, Mr A Puhazhendi, Imm. Past President, Mr R Muthukumar, State Chairman-TN, Puducherry & Andaman Nicobar; Mr E Manohar, Chairman-Poonamallee Centre, Mr N Raghunathan, Chairman Organising Committee, Mr A Balaji, Hony Secretary-Poonamalee Centre & Mr Raju John Secretary-BAI. Mr E Manohar, Chairman-Poonamallee Centre formally welcomed the members attending the meeting from the length and breadth of India. During the meetings, Mr Sachin Chandra-President released 'BAI Communique Newsletter of BAI Kerala State, which was presented to hgim for releasing by Mr Prince Joseph, State ChairmanKerala and Mr Gibu P Mathew, State Secretary, BAI Kerala. A Press Conference was held on the occasion which was addressed by Mr Sachin Chandra, President, Mr A Puhazhendi, Imm Past President, ; Mr E Manohar, Chairman-Poonamallee Centre and Mr N Raghunathan, Chairman-Organising Committee. Pudukottai Centre Pudukottai Centre donated a 'Bus Shelter' to Govt Arts & Science College, Puddukottai. Mr R Muthukumar, State Chairman-TN, formally inaugurated it on 26th Sept, 2019. Centre also donated 'Wooden Desk / Bench' to Govt Blind School in Pudukottai on 21st Sept 2019. V Mr R Muthukumar, State Chairman-TN, esd [trdrmy fitomh yjr pvvsddopm/ Mr N TRamadoss, Chairman of the Centre and his team of office-bearers co-ordinated organising of the events Pune Centre Mr Manoj Deshmukh was installed as the Chairman of Pune Centre for 2019-20 by Mr Sachin Chandra, President on 12th April 2019 along with other office bearers. Mr Nimesh Patel, Vice President and Prakash Panjwani, State Chairman-Maharashtra were the Gusts of Honour. Mr Pradeep Garge, Imm Past Chairman formally handed over to Mr Deshmukh. Mr Sachin Chandra formally inaugurated the official website of Pune Centre www.;baipupne.org. A youth wing of BAI Pune was also inaugurated to guide college students and mould them seamlessly in the field. The print and electronic media covered the installation function. Rajasthan (Jaipur) Centre Mr Ravi Kumar Kheria was installed as Chairman of Rajasthan (Jaipur) Centre for 2019-20 by Ramchandran Bohra, MP-Jaipur City on 2nd June, 2019 alongwith other bearers of the Centre. Mr R D Khandelwal, State Chairman-Rajasthan, Mr. D P Goel, Past President, Mr Ashok Agarwal, Past Vice Presidient, Mr Pradeep Kumar
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Jain, Past State Chairman-Rajasthan, Mr Mahendra K Sethi, MC Member also present. On the the same occasion, the 2019-20 team of 'Spoorthi' - the ladies wing of BAIRajasthan Centre was inducted by Mr Bohra. Members and their families from the Centre, senior functionaries of like-minded organisations etc. were present on the occassion Satara Centre Mr Ashok Shinde was installed as Chairman for 2019-20 on 26th April 2019. Mr Nimesh Patel, Vice President was the Chief Guest and Mr Prakash Panjwani, State Chairman-Maharashtra was the Guest of Honour. Other office bearers of the Centre were also installed. Satara Centre launched 'Spoorthi' - the ladies wing of BAI. Mrs Asha Gharge was installed as the Chairman of 'Spoorthi Satara' with Mr Geeta Thoke as Secretary with other office bearers. BAI Members, their familys, members of likeminded associations, govt. Officials connected with construction industry were present during the function. Silchar Centre Mr Charanjit Ghosh was installed as the Chairman of Silchar Centre for 2019-20 on 5th May 2019. Mr Sachin Chandra, President, Mr Surojit Samanta, Vice President and Mr Pniak Pani Nath, State Co-ordinator-Assam were present on the occasion. Other office bearers of the centre were also installed. A special issue of 'Karmyogi'-BAI Silchar Centre's publication was released. Members and their families from the Centre were present on the occassion. The print media covered the function. Solapur Centre Solapupr Centre celebrated Builders' Day 2019 on 11th January 2020. Mr Deepak Taware, Commissioner, Solapur Municipal Corporation was the Chief Guest. Mr Prakash Panjawani, State Chairman-Maharashtra was Guest of Honour. On the occasion Mr Jalindar Lande, ChairmanAgriculture & Construction, Solapur Zilla Parishad was felicitated as 'Eminent Contractor' and Architect Ajit Harisangam was felicitated as 'Eminent Architect'. Mr Dattatray S Mule, Chairman and other office bearers and senior functionaries of Solapur Centre co-ordinated organizing the event. Southern (Chennai) Centre Mr Ramaprabhu was installed as Chairman of Southern (Chennai) Centre for 2019-20 by Mr R Radhakrishnan, Past President & Past Trustee on 29th April 2019. Mr S Krishnan, IAS, Principal Secretary, Housing & Urban Development, Govt of TN was the Chief Guest. Mr Sachin Chandra, President launched a 'Mobile App' of BAI Southern (Chennai) Centre on the occasion. Mr Mathew Alex Vellapally, Vice President and Mr R Muthukumar, State Chairman-TN, Pondicherry and Andaman Nicobar were the Guests of Honour. Other office bearers of the centre were also installed. Mr L Venkatgesan, the BUILDERS' ASSOCIATION OF INDIA
outgoing Chairman formally handed ovoer charge to Mr S Ramaprabhu. Nearly 1200 persons comprising of BAI Members, their families, senior functionaries of other likeminded organisations, govt officials connected with construction industry attended the function. Centre organised a 'Workshop on GST - Real Estate New Rates and Challenges' on 14th May 2019 in Chennai. Mr G Nataraja, Advocate and Sr Partner of M/s Swamy Associates was the keynote speaker. Mr R Sridhar, Hony Secretary & Mr S Ramaprabhu, Chairman also spoke on the occasion. Mr S D Kannan, Chairman-Taxation Committee, Southern (Chennai) Centre formally introduced Mr G Natarajan,. In his keynote address along with PPT presentation spoke about the notifications pertaining to construction industry and the new changes in rate with effect from 1st April 2019 and highlighted the pros and cons of rate change for the ongoing projects, gave other details and also answered the questions raised by participants. Mr R Radhakrishnan cautioned the members to be alert since GST provisions are being changed regularly. He also informed the members that the delegation from Centre have met Hon'ble Finance Minister and conveyed about the problems faced by construction industry and requested to show sympathy for the industry which is second largest employer. He added that Government have yet to addressed the grievances and BAI will continue to follow. Southern (Chennai) Centre organised its first medical camp for construction workers for 2019-20 on 18th May 2019 at the under-construction site of M/s Hari Narayanan Structural's Pvt. Ltd. Mr S Ramprabhu, Chairman alongwith his team of office bearers, EC Members, senior functionaries and Mr R Radhakrishnan were present during the camp. 200 construction labourers made use of this service for their health checkup. Free medicines were distributed to them. Mr S Sathyamoorthi, Chairman and Mr M Senthil Kumar & Mr ASathyanarayana, CoChairmen of Medical Camp Committee organised the camp with the help of doctors from Apollo Hospital, Saveetha Dental College & Govt Eye Hospital, Egmore. The 69th Annual General Body Meeting of Southern (Chennai) Centre was held on 21st May 2019 in Chennai. Mr Ramaprabhu, Chairman chaired the AGM. The Annual report for the year 2018-19 was presented to the members. In his address, he appreciated the good work done by his predecessor Mr L Venkatesan. Mr R R Sridhar, Hon Secretary conducted the proceedings. Other senior also graced the dais during the AGM. Southern (Chennai) Centre organised a meeting on 'Tamilnadu Rental Act and Rainwater Harvesting' on 12th August 2019. CA Gopal Krishna Raju gave a PPT and explained about the TN Regulation of Right and Responsibilities of Landlords and Tenants, 2017 & 2019. Dr Sekhar Raghavan, Director-Rain Centre gave a PPT on Rainwater Harvesting, its need, relevance and
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importance and emphasised that rain is the predominant source of all freshwater on earth and both Chennai & TN are not rain starved and if it is not harvested it turns off to the Sea. He added that if proper rainwater harvesting is made in TN will be self sufficient and explained various methods of rainwater harvesting. An awareness programme on TDS was organised by the Centre at Anna University, Guindy, Chennai on 5th Sept, 2019 attended by members in large number. Mr P K Jose, Asstt Commissioner of Income Tax was the key note speaker. Mr S K Ravi, Mr Rajaram, Mr Anantharaj & Mr Seethapathi, Income Tax Officers also spoke. Mr S Ramaprabhu, Chairman along with other office bearers and functionaries of the centre co-ordinated in organising the programme. Southern (Chennai) Centre conducted a string of events as part of their "Builders' Day 2019" celebrations. A 'Tree Plantation' programme was launched on 2nd Oct 2019, coinciding with 150th Birth Anniversary of 'Father of Nation, Mahatma Gandhi' in the surroundings of Chitlapakkam Lake, Chennai and were protected with tree guards. Mr S Ramaprabhu, Centre Chairman; Mr R Radhakrishnan, Past President & Trustee, Mr S Ayyanathan, Past State Chairman and other office bearers and senior functionaries were present on the occasion. On 10th Oct 2019, an 'Oratorical Competition' was held amongst students of engineering colleges in Chennai on the theme 'Construction Technology - way to US $ 5 Trillion Economy'. Dr T V Moorthy, Retd HOD - Anna University and Dr D Thukaram, Past Trustee were the 'Jury' for adjudging the winners. Mr S Ramaprabhu, Centre Chairman; Mr R Radhakrishnan, Past President & Trustee and other office bearers were present on the occasion. On 19th Oct, 2019, in the earlier part of the day a 'Health Check-up Camp' for construction workers was arranged and around 300 workers were screened by Doctors from Apollo Hospitals, Saveetha Dental University and Govt Eye Hospital. Routine general check-up and other tests were carried out and free medicines were distributed. On the sidelines entertainment programme was arranged for workers and their families. In the evening of 19th Oct, a glittering function was held with Justice Mr S Rajeswaran, Retd Hon'ble Judge, Madras High Court as the Chief Guest. Mr R Muthukumar, State Chairman-TN, Pondicherry and Andaman Nicobar was the Guest of Honour. Mr S Rajeswaran presented the awards to the winning students and colleges of the 'Oratorical Competition and also felicitated the Doctors and supporting staff of Apollo Hospital, Saveetha Dental University & Govt Eye Hospital for their efforts in conducting the 'Health Check-up Camp'. Mr S Ayyanathan, Imm Past State Chairman was felicitated for his meritorious service to BAI & construction industry. Mr S Ramaprabhu, Chairman, Mr R Radhakrishnan, Past President & Trustee and other office bearers / executive BUILDERS' ASSOCIATION OF INDIA
committee members of the centre were present during the function. Southern (Chennai) Centre organized "Training for Women in Painting Skills' in co-ordination with Workers Welfare Association. More than 60 women participated and successfully completed the training and improved their skills by doing art work in painting and Government approved certificates were issued to all the candidates. Mr S Ramaprabhu, Chairman, Mr R Radhakrishnan, Past President & Trusatt, Mr Mu Moahan, Past Vice President and other also present during the programme. Telangana State Mr D V D Reddy was installed as the State Chairman Telangana on 15th April 2019. Mr K Sriram, Vice President, was the Chief Guest. Present as guests for function were Mr V Venkateswar Rao, State ChairmanAP, Mr B Seenaiah, Past President, Mr B Sugunakar Rao, Trustee, Mr S Narsimhba Reddy, Past Vice President & IFAWPCA Board Member, Mr NSachitanand Reddy, Past Trustee, Mr V Satya Murthy, Past State Chairman-AP and other senior members of the state. Mr K Devender Reddy as Vice Chairman, Mr V Bhaskar Reddy as Secretary, Mr P Narasimha Rao as Treasurer and Mr U Surender as Joint Secretary were also announced as Office Bearers of Telangana. Chairman of Centres in Telangana installed were - Mr Anirudha Gupta - Hyderabad Centre, M