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Top court issues notice over govt plea seeking diversion of workers' funds

The Court asked the state to respond via affidavit whether the law allows such diversion or investment of funds. The state informed the court today that it needs the funds for migrant workers.

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Published : Jan 25, 2021, 4:16 PM IST

Supreme Court
Supreme Court

New Delhi: A Supreme Court bench led by Chief Justice of India SA Bobde, has sought the response of the Construction Workers' Welfare Board, Madhya Pradesh over the state government's plea seeking diversion of workers' funds to other welfare schemes.

The Court asked the state to respond via affidavit whether the law allows such diversion or investment of funds.

The state informed the court today that it needs the funds for migrant workers.

Expressing its apprehension, the central government told the court that it has reservations on the proposal because the migrants might be registered as construction workers in other states and be eligible for schemes in those states. The funds collected in the are for vulnerable construction workers, it said.

The court said that there was no legal way of diverting funds and asked if the fund can be invested in government securities or bonds so that diversion does not take place.

Read: MP: STF arrests another one for smuggling fake notes

Senior Advocate Colin Gonsalves, appearing for the workers, told the court that funds have to be spent on education, maternity, and other similar benefits and not invested. The money has been lying unused for the past 10 years, informed Gonsalves.

Court orders in the past six years have been to spend the money and Rs 1800 crore was supposed to be distributed by way of cash transfer through some scheme, said Gonsalves.

The apex court issued notice in the matter and said it would hear the matter again after the parties file their response.

Read: SC seeks Centre's reply on PIL seeking setting up of media tribunal

New Delhi: A Supreme Court bench led by Chief Justice of India SA Bobde, has sought the response of the Construction Workers' Welfare Board, Madhya Pradesh over the state government's plea seeking diversion of workers' funds to other welfare schemes.

The Court asked the state to respond via affidavit whether the law allows such diversion or investment of funds.

The state informed the court today that it needs the funds for migrant workers.

Expressing its apprehension, the central government told the court that it has reservations on the proposal because the migrants might be registered as construction workers in other states and be eligible for schemes in those states. The funds collected in the are for vulnerable construction workers, it said.

The court said that there was no legal way of diverting funds and asked if the fund can be invested in government securities or bonds so that diversion does not take place.

Read: MP: STF arrests another one for smuggling fake notes

Senior Advocate Colin Gonsalves, appearing for the workers, told the court that funds have to be spent on education, maternity, and other similar benefits and not invested. The money has been lying unused for the past 10 years, informed Gonsalves.

Court orders in the past six years have been to spend the money and Rs 1800 crore was supposed to be distributed by way of cash transfer through some scheme, said Gonsalves.

The apex court issued notice in the matter and said it would hear the matter again after the parties file their response.

Read: SC seeks Centre's reply on PIL seeking setting up of media tribunal

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