BOCW cess funds remain out of bounds for Telangana

Post-bifurcation, State’s share of the amount meant for workers’ relief remains locked in banks

April 22, 2020 10:13 pm | Updated 10:13 pm IST - HYDERABAD

The State government is faced with a piquant situation as far as the funds accumulated through the Building and Other Construction Workers (BOCW) Cess is concerned.

The BOCW welfare board has transferred an amount of ₹335 crore a couple of days ago as its share towards relief measures extended to workers by the government like supply of 12 kg rice and ₹1,500 cash each for the registered workers holding white ration cards. The board has adequate funds at its disposal for taking up relief measures for workers registered with it, but is unable to do so.

According to senior officials, almost six years after bifurcation of the State, fixed deposits amounting to more than ₹400 crore earmarked as the State’s share after bifurcation of the board, are lying in the banks and these cannot be withdrawn. Falling under Schedule VII of the AP Reorganisation Act 2014, the division of assets and liabilities of the Board had been amicably completed few years ago, but funds deposited during the united State are yet to be transferred to the Telangana account.

The funds of the Welfare Board in the united State had been apportioned between the two States in population ratio and ₹119.11 crore in the PD accounts had been transferred to the State’s account after constitution of the Telangana BOCW welfare board. The State’s share of fixed deposits was pegged at ₹407.11 crore and that of AP fixed at ₹569.65 crore out of the total ₹976.77 crore in the FD account.

The State’s share is in addition to ₹20.20 crore received through online remittances of the cess between June 2, 2014 and September 27, 2014 when the funds were credited to the joint account before the constitution of the Telangana welfare board. This apart, the State’s share of cess of another ₹16.7 crore received in the form of DDs and cheques too was not transferred so far.

The neighbouring State [Andhra Pradesh ] has also not transferred Telangana’s share of bank balance to the tune of ₹11.73 crore into the State’s account in spite of requests made at the joint meetings of the senior officials. “These amounts are locked. Neither Telangana nor Andhra Pradesh can withdraw these fixed deposits on their own,” a senior official told The Hindu . Several representations were made to the neighbouring State to ensure transfer of State’s share of funds from the joint account to Telangana, but in vain.

“We planned to have meetings to ensure release of these funds so that they can be utilised for workers welfare, especially during the time of crisis like the present. But given the lockdown enforced across the country, there is no scope for meeting of the two States at least in the near future,” the official said.

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