Builders' Association of India - BAI Report 2015-16.pdf · 2016-06-15 · BUILDERS' ASSOCIATION OF INDIA 75th Annual Report and Accounts – 2015-20162 The Seventy fifth (75) Annual

Builders' Association of India(All India Association of Engineering Construction Contractors & Builders)

Registered & Head Office:

G-1/G-20, Commerce Centre, J. DadajeeRoad, Tardeo, Mumbai - 400 034

Tel : (022) 23514134, 23514802, 23520507Fax : 022-23521328

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Delhi Office:

D1/203, Aashirwad ComplexGreen Park Main, New Delhi - 110 016

Tel : (011) 32573257Telefax: (011) 26568763

Email: [email protected]

75thAnnual Report and Accounts

2015-2016www.baionline.in

BUILDERS' ASSOCIATION OF INDIA 75th Annual Report and Accounts – 2015-20162

The Seventy fifth (75) Annual General Meeting of the Members of Builders' Association ofIndia, will be held on Saturday, 2nd July 2016 at 4.00 P.M. at Hotel Express Inn, Mumbai-Agra Road, Pathardi Phata, Nashik, to transact the following business :-

1. To confirm the Minutes of the Seventy fourth Annual General Meeting held on Saturday,12th September 2015 at 4.00 P.m. at the Lalit Plaza, Hotel The Lalit, Sahar Airport Road,Andheri (East), Mumbai - 4000 059 (Minutes have already been circulated to Membersand also printed in 'Indian Construction ' Journal, November 2015 issue - Page No.35).

2. To take note of the result of BAI Organisational Election for the year 2016-17 (Enclosed).

3. To take note of the result of BAI Trustees Election for the year 2016-19 (Enclosed).

4. To consider, and if thought fit, adopt the Annual Report of the Association for the yearending 31st March 2016.

5. To consider, and if thought fit, adopt the Audited Balance Sheet and Income & ExpenditureAccount of the Association for the year ending 31st March 2016.

6. To appoint Auditors to audit the accounts of the Association for the year 2016-17 and fixtheir remuneration.

7. To consider, any other item, with the permission of the chair.

C.G. DEOCHAKEHon. Gen. Secretary

Builders' Association of India

N O T I C E

Place : Mumbai

Dated: June 13, 2016

Note: (i) Queries on Accounts and Reports may kindly be communicated to BAI Headquarter on or before 28thJune 2016. Centres Chairmen are requested to kindly circulate this information amongst their members.Please note no floor queries on accounts will be entertained.

(ii) Please bring this copy of Annual Report.

Delhi Office: D1/203, Aashirwad Complex, Green Park Main, New Delhi 110 016 & 26568763 E-mail: [email protected]


BUILDERS' ASSOCIATION OF INDIAMANAGING COMMITTEE 2015-2016

PresidentMr. Lal Chand Sharma

Vice PresidentsMr. Anilbhai R. Zinzuwadia Mr. Ashok Agarwal Mr. G. C. Gupta Mr. V. M. Fazal Ali

Hon. Gen. Secretary Hon. Gen. TreasurerMr. Mahesh M. Mudda Mr. C. G. Deochake

Imm. Past PresidentMr. Sushanta Kumar Basu

TrusteesDr. D.C. Awasthi Shri D.L. Desai Shri J.R. Sethuramalingam Shri Jagdish Parekh

Shri P.K. Ramachandran Shri R. Ramaraj Shri S.K. Pradhan

State Chairmen / Co-ordinatorAndhra Pradesh Assam Bihar Chattisgarh

Shri Ch. Ramakotaiah Shri Kulesh Goswami Shri Manikant Shri N.R. PrasharDelhi Gujarat Jharkhand Karnataka

Shri Arun Sahai Shri Amit R. Patel Shri Chandrakant Raipat Shri A.R. Ravindra BhatKerala Madhya Pradesh Maharashtra Rajasthan

Shri R. Rajesh Shri Suresh Vaswani Shri Sunil Balkrishna Mundada Shri Ravi Kumar KheriaTamil Nadu Telangana Uttar Pradesh West Bengal

Shri N. Raghunathan Shri N. Nagesh Reddy Shri Sanjay Tyagi Shri S.K. Nag

MembersDr. Anand J. Gupta Dr. D. Thukkaram Dr. Dharmesh C. AwasthiDr. S.K. Manjarekar Shri A. Puhazhendi Shri Abhay GardeShri A.N. Balaji Shri Alex P. Cyriac Shri Ashok Kumar SharmaShri Avinash M. Patil Shri Baburao L. Shakkarwar Shri Basavaraj S. TotadShri Bhopinder R. Lal Shri C. Devarajan Shri Girish I. PatelShri G.M. Ravindra Shri Harshad N. Bhayani Shri H.N. Vijaya Raghava ReddyShri K. Padmanabhan Shri K. Subramani Shri K. VenkatesanShri K.J. George Shri K.S. Someshwar Reddy Shri L. MoorthyShri L. Venkatesan Shri M. Dhandavakrishnan Shri M.M. MohandasShri Mohan D. Bhate Shri Mu Mohanan Shri Mohanlal S. KatariaShri N. Raghunathan Shri Narendra Kumar Shri N. Sachitanand ReddyShri N.K. Gunasekaran Shri N.M. Patel Shri Naresh AgarwalShri Neelkanth S. Joshi Shri P. Subramani Shri P.P. JohnShri Prabir Kumar Mukherjee Shri Pradeep Kumar Jain Shri Pratap B. SalunkheShri R. Ethirajan Shri R. Sivakumar Shri R. SubburamanShri Ram M. Bhatia Shri Rajendra S. Athawale Shri Ravindra PradhanShri S. Ayyanathan Shri S.D. Kannan Shri S. GanapathyShri S.I. Chunkhare Shri Ved Khurana

Co-opted MembersShri Mukesh Verma Shri N. S. Muralidhara Dr. Tarro T. Manghnani Shri Vinod C. Gamdiwala

Special InviteesShri A. K. Srivastava Shri Agrawal Ashishkumar Subhash Shri Ahire Deepak DaulatraoShri Ashok Goyal Shri Bata G. Gopalakrishnan Shri Birendrasingh K. BhadoriaShri C. K. S. Panicker Shri C. Satish Kumar Shri Dhanwant Lal GuptaShri Dineshchandra R. Agrawal Shri D.P. Balaji Shri Harkant G. VachharajaniShri Jaideep P. Raje Shri K. Rajavel Shri K. Rama RaoShri K. Sudarshan Reddy Shri K.J. Saminath Shri K.K. PatelShri Kirtibhai Thakkar Shri Kunal Arvind Domadiya Shri Lal Chand RalhanShri Mafatbhai Patel Shri Mukesh V. Patel Shri N. Raja ReddyShri N.C. Sundaramurthy Shri N.M. Krishnamurthy Shri Navinbhai B. Vasoya PatelShri P. M. Harshe Shri R. Karna Boopathy Shri Rajendra M. UpadhyeShri Ramesh P. Marda Shri R. Saravanan Dr. S. KanagasundaramShri S. Prabhu Shri S. Shiva Prakash Shri Sanjay S. DesaleShri Shitalkumar Nawle Shri Shiv Kumar Kasana Shri Shrenik Manikant ShahShri Surinder Sharma Shri U.M. Gurushanthappa Shri Uday N. GokhaleShri V. Sivarajan Shri V. Venkatesan Shri V.S.K. Moorthy

Shri Vikram Kumar


President : Shri Avinash M. Patil[Nashik Centre]

Vice Presidents : 1. Shri Ravindra Pradhan 2. Shri R.N. Gupta [Jharkhand (Ranchi) Centre] [Delhi Centre]

3. Shri Mu. Moahan 4. Shri Rajiv B. Krishnani[Southern (Chennai) Centre] [Pune Centre]

Hon. Gen. Secretary : Shri C.G. Deochake

Hon. Gen. Treasurer : Shri Neerav Parmar

State Chairman (Andhra Pradesh) : Shri CH Ramakotaiah (Visakhapatnam Centre)

St. Co-ordinator (Assam) : Shri Kulesh Goswami (Guwahati Centre)

State Chairman (Chhattisgarh) : Shri Alok Shivhare (Durg-Bhilai Centre)

State Chairman (Gujarat) : Shri Nitin M. Shah (Baroda Centre)

State Chairman (Jharkhand) : Shri Devendra Tiwary (Jharkhand (Ranchi) Centre)

State Chairman (Karnataka) : Shri K.S.Someshwara Reddy (Karnataka (Bangalore Centre)

State Chairman (Kerala) : Shri John Paul K. (Kottayam Centre)

St. Co-ordinator (Madhya Pradesh) : Shri Suresh Vaswani (Bhopal Centre)

State Chairman (Maharashtra) : Shri Suresh B. Patil (Sangli Centre)

St. Co-ordinator (Rajasthan) : Shri Ravi Kumar Kheria (Rajasthan (Jaipur) Centre)

State Chairman (Tamil Nadu) : Shri M. Thirusangu (Tiruchirappalli Centre)

State Chairman (Telangana) : Shri B. Sugunakar Rao (Karimnagar Centre)

State Chairman (Uttar Pradesh) : Shri Sanjay Tyagi (Muzaffarnagar Centre)

St. Co-ordinator (West Bengal) : Shri Sudip Kumar Dutta (Eastern (Kolkata) Centre

Members of the Managing Committee representing Centres:

1. Shri Amar Bawa 2. Shri Ashok Agarwal

3. Shri Bhopinder Lal 4. Shri D. Kempanna

5. Shri G. Thilagar 6. Shri Harshad N. Bhayani

7. Shri Jaiprakash Bhatia 8. Shri Jawahar Mutha

9. Shri K. Annamalai 10. Shri K. Mathiyalagan

Ref.: 607/M/2015-16 dated March 30, 2016

TO:THE TRUSTEESTHE VICE-PRESIDENTSTHE STATE CHAIRMEN / CENTRE CHAIRMENTHE MANAGING COMMITTEE AND THE GENERAL COUNCIL MEMBERS

Dear Sirs,

The election process for 2016-17 of Builders' Association of India has been completed on 30th March 2016. Followingare the election results:


11. Shri L. Shantakumar 12. Shri M. Dhandavakrishnan

13. Shri Mahesh R. Mirani 14. Shri Mathew Alex Vellapally

15. Shri Mohan S. Kataria 16. Shri Mohinder Rijhwani

17. Shri Narendra P. Patel 18. Shri Naresh Kumar Agarwal

19. Shri Neelkanth S. Joshi 20. Shri P. Parameswaran

21. Shri Prabir Kumar Mukherjee 22. Shri Prince Joseph

23. Shri R. Ethirajan 24. Shri R. Krishnaswamy

25. Shri S. Prakash 26. Shri S. Ramaprabhu

27. Shri Sanjay Laxman Patil 28. Shri T.V. Chandrasekaran

Members of the Managing Committee representing Patron Members:

1. Dr. D. Thukkaram 2. Dr. Dharmesh C. Awasthi

3. Dr. Tarro T. Manghnani 4. Shri A. Chamaraja Reddy

5. Shri A. Puhazhendi 6. Shri Abhay M. Garde

7. Shri Baburao L. Shakkarwar 8. Shri Basavaraj S. Totad

9. Shri H.N. Vijaya Raghava Reddy 10. Shri Jagdish M. Parekh

11. Shri K. Ramanujam 12. Shri K. Subramani

13. Shri K.J. George 14. Shri L. Venkatesan

15. Shri M.G. Sundar 16. Shri Mohan D. Bhate

17. Shri N. Ramalingam 18. Shri Narendra Kumar

19. Shri O.K. Selvaraj 20. Shri P.P. John

21. Shri Pratap B. Salunkhe 22. Shri S. Ayyanathan

23. Shri S. Ganapathi 24. Shri Srinivasa Reddy

25. Shri Y. Ishwar Rao

Members of the Managing Committee representing Affiliated Associations:

1. Shri Atul Vijaykant Moog 2. Shri E. Manohar

3. Shri N. Velayutham 4. Shri R.R. Shridhar

The new office bearers will assume charge of their respective offices with effect from 1st April 2016 for a period of 1year as per the BAI Constitution.

Thanking you,

Yours faithfully,

RAJU JOHNRETURNING OFFICER

BAI ORGANISATIONAL ELECTIONS 2016-17

Copy to: 1. Shri V.M. Fazal Ali2. Shri J.R. Sethuramalingam Board of Scrutineers,3. Shri A.B. Chitale BAI Organisational Elections 2016-17}


Ref.: 608/M/2015-16 dated March 30, 2016

TO:THE TRUSTEESTHE VICE-PRESIDENTSTHE STATE CHAIRMEN / CENTRE CHAIRMENTHE MANAGING COMMITTEE AND THE GENERAL COUNCIL MEMBERS

Dear Sirs,

The election process for Trustees of Builders' Association of India for three year term i.e. 2016-2019 has been completedon 30th March 2016. Following are the election results: -

Trustee (East) : Shri Ashok K. Choudhary : (Jamshedpur Centre)

Trustee (North) : Shri Lal Chand Sharma : (Gautam Budh Nagar Centre)

Trustee (South) : 1. Shri M. Karthikeyan : (Southern (Chennai) Centre)

2. Shri N. Sachitanand Reddy : (Hyderabad Centre)

3. Shri R. Subburaman : (Madurai Centre)

Trustee (West) : 1. Shri D.L. Desai (Shankarbhai) : (Mumbai Centre)

2. Shri Vijay Jagannath Devi : (Satara Centre)

}

The new Trustees will assume charge with effect from 1st April 2016 for a period of 3 years as per the BAI Constitution.

Thanking you,

Yours faithfully,

RAJU JOHNRETURNING OFFICER

BAI TRUSTEES ELECTIONS 2016-19

Copy to: 1. Shri V.M. Fazal Ali2. Shri J.R. Sethuramalingam Board of Scrutineers,3. Shri A.B. Chitale BAI Organisational Elections 2016-17


Report of the President and Managing Committee ofBuilders' Association of India for the year 2015-16

Friends,

The President and the Managing Committee have greatpleasure in presenting the 75th Annual Report of theAssociation along with the Statement of Accounts and theAuditors' Report for the year 2015-16.

CONSTRUCTION INDUSTRY - OPPORTUNITIES

The construction is a high volume low profit business. Itcontributes about 8% to the gross domestic product (GDP).Its fixed capital investment in form of security deposit isless but working capital requirement is high. Apart fromits contribution to GDP, it is also one of the largestcontributors to employment of skilled and unskilledpeople outside of agriculture, employing a total of about41 million people.

The thrust on infrastructure development in the last fewyears has been a key driver for the construction industry,opening up opportunities for both the contracting industrythrough direct construction contracts as well as forancillary industries, including equipment and materialmarkets. In fact, nearly 60% of annual infrastructureinvestment covers construction sector.

Over the past three years i.e. 2012-2015, there has been asignificant slowdown in investment from 38% of GDP in2008-09 to 28% of G.D.P. in 2013-2014. This has impactedcapacity addition in various infrastructure sectors. Suchslowdown affected construction industry negatively. WithPublic - Private Partnership model (PPP) of infradevelopment Construction Industry graduated from cashand carry contracts to that of an entrepreneur in recentyears. Many infrastructure developers have successfullycompleted project in time. PPP in turn brought aboutgreater mechanisation and employment of skilledpersonnel for earlier completion of work.

Project are often awarded with only partial acquisition ofland, which can stalled project indefinitely if even 10-20%of the required land is not handed over to the developerin time. Furthermore, extensive environmental approvalsare required at the start of the project itself. Regulatoryauthorities at the central and the state levels lackcoordination, which leads to standoffs on criticalapprovals. This is compounded by other issues such ainadequate support in the shifting of utilities forconstruction.

Infrastructure sector requires long term investment atlower interest rate having a long gestation period. Inabsence of such finance infra players have to depend onBank finance which are for working capital and a shortterm duration and at higher interest rate. There is urgent

need for investment by Pension Fund & Insurance fundin infra sector.

Lack of adequate financing has also emerged as asignificant reason for delays in construction works. Thepast 24 months have been marked by an economicslowdown, and investors are becoming increasingly riskaverse. Consequently, equity players are shying awayfrom parking their funds in the infrastructure sector. Bankstoo have made lending norms more stringent and severalinfrastructure projects have been unable to achievefinancial closure within the prescribed timelines.

The government has set a massive investment target ofRs. 56 trillion in the infrastructure sector in the TwelfthFive Year Plan. For this to be realized during remainingyears of plan i.e. 2015-2017 period, it is imperative thatthe construction industry need to pick up pace and growat an annual average rate of 20%, which is unlikely to beachieved in the balance two years of plan period. This isnearly four times its current growth rate. New governmentneed to tackle this problem on war footing.

Sea Port Sector

Construction opportunities in the port sector mainly arisefrom the construction and reconstruction of berths, jettiesand terminals as well as in rail/road connectivity fromhighways to seaport. Total investment of Rs. 723 is billionenvisaged at major ports by the planning commission forthe Twelfth Plan period. Of the 264 projects planned atmajor ports during the Twelfth plan period, almost 25%of the projects relate to construction and reconstructionof berths and jetties, while rail/road connectivity projectsto seaport accounts for 21% of the total projects. On sevenmajor ports PP Projects worth Rs. 101.78 billion is readyfor bidding between 2015-2017 periods. Besides thisgovernment plans to develop new seaport at DurgarajPattanam in A.P. and at sagar is land in West Bengal atcost of Rs. 174 billion. All the above are besides seaportsbeing developed by State Government of GujaratMaharashtra, Karnataka, Tamil Nadu Orissa and AndhraPradesh on PPP basis.

Water supply & Sanitation

The pace of contract awards in the water and sanitationsector declined in the last two fiscal years. While contractsfor construction and related works for 15 projects worthRs. 121.02 billion were awarded in 2011-12, only eightprojects worth Rs. 24.91 billion were awarded in 2012-13.According to India Infrastructure Research, there are 44projects worth Rs. 305.60 billion would offer opportunityto construction Industry of these 28 projects areannounced, 11 have been awarded, remaining 5 are under


1. National Highway constitutes about 2% of total roadlength of about 484000 K.M. and stage highwayconstitute 3%, whereas remaining 95% constitutemajor district roads and rural roads. Indian roadscarry 85% of passenger traffic and 63% of freighttraffic. National Highway Authority was establishedto execute N.H.D.P. project of 5846 K.M. coveringPhase I connecting all four metros called GoldenQuadrilateral and 7142 K.M. Phase II called North-South and East-West corridors sometime in Year1999. Later on additional 37242 K.M. was addedunder Phase III to VIII, including 380 km. of SeaportConnectivity. As on 31st July 2015, GoldenQuadrilateral and 380 K.M. of Seaport Connectivityis completed. In respect of NS/EW Corridor 90% oflength is completed, whereas 279 K.M. length oftender remains to be awarded. Phases III and V is

National Highway Development Project

47% and 25% completed respectively. SinceGovernment was facing resource crunch to completeN.H.D.P project by 2007. In year 2006 MoRT & Hcame out with concept of Build Operate and Transfer(BOT) project under which Government was toacquire land required for Widening of Highways andGrant Environment clearances; whereasContractors/ Entrepreneurs were to invest it's ownfunds in construction of additional 2 lanes / 4 lanesto existing highway. In return these contractors weregranted toll collection rights for contracted numberof years along with maintenance of such road. Inrespect of those stretches of highways where therewas not sufficient traffic for BOT method,Government came with concept of "Annuity" underwhich contractor has to complete roads andGovernment would give annual payments for

planning.

Airport Sector

With respect to the pace of new project awards in theAirport sector, the progress has been slow. In the last twoyears (2011-12 and 2012-13), only two projects wereawarded. One was the Chandigarh (Mohali) InternationalAirport Modernisation Project Phase I, which wasawarded to Larsen & Toubro in August 2012; and the otherwas the Vadodara (Harni) Airport Integrated TerminalBuilding Project, which was awarded to B.L. Kashyap &Sons Limited in May 2011. Construction opportunities inthe airport sector are expected to increase in line with thegrowing demand for air transport. Massive projects havebeen lined up, ranging from large public-privatepartnership opportunities in greenfield airports todevelopment of cargo terminals. Besides, as stated earlier,the Airports Authority of India (AAI) has elaborate planswith respect to both air-side works at non-metro airports.On an average, about 66% of the total project cost of anairport pertains to construction. According to IndiaInfrastructure there are 74 airport projects worth Rs. 450billion that would offer significant construction

opportunities. Out of these 74 projects, 54 projects havebeen announced seven are stalled, five are planned, twoalready awarded and one is under bid. Most of thesefacilities are located in State of Maharashtra, Karnatakaand Kerala. To enable regional air connectivity, thedevelopment of low cost airports in Tier II and Tier IIIcities on priority basis is taken up. In long run 200 of suchno frill facilities will be developed. In the first phase 51such cities are under consideration. Each of these facilitieswill require investment of about Rs. 0.5 billion to Rs. 2.00billion depending upon requirement. These are in Stateof Andhra Pradesh, Jharkhand, Punjab, Bihar, UttarPradesh, Arunachal Pradesh, Madhya Pradesh, Orissa,Rajasthan.

Power Sector Opportunity

Time and cost overruns have become synonymous withproject execution in India. While some of the key risksimpeding construction activity appear to be externalfactors, they can be mitigates to a great extent throughthe timely identification of prerequisites. This isparticularly true of land acquisition and regulatoryapprovals.

Construction opportunity in the conventional power segment

Capacity (MW) Total project cost Construction component(Rs. billion) (Rs. billion)

Thermal* 21,940 1,028.00 411.20

Hydro 28,334 1,381.13 897.73-966.79

Nuclear** 42,700 4,270.00 854.00

*The Surguja power plant in Chhattisgarh has been excluded given the reports of the power Ministry shelving theproject

**Total project cost has been calculated by assuming the per unit cost at Rs.0.10 billion per MW

Source: India Infrastructure Research


NHDP update (as of February 29, 2016) (km)

Phase Total length Total four/ Under Balance length Totalin km six-laned implementation for award in expenditure

completed in in km km in billionkm

GQ 5,846 5,846 NIL NIL 321.97

NSEW 7,142 6,427 458 257 652.70

III 11,809 6,825 3,227 1747 850.62

IV 13,203 2,054 4,654 6,495 103.40

V 6,500 2,339 781 3,380 306.80

VI 1,000 NIL 165 835 0.93

VII 700 22 19 659 10.44

Port connectivity 435 379 56 NIL -

Other NHs 1844 1,614 230 NIL NIL

Total 48,479 25,516 9,590 13,373 2246.86

GQ: Golden Quadrilateral; NSEW: North-South-East-West

Source: National Highways Authority Of India

contracted number of years. Third mode ofdevelopment was mix of BOT and Annuity. Givenbelow in Table 'A' comparative statement ofcompleted portion of various phases of N.H.D.P,

work in progress and balance length for whichtenders are yet to be invited. Another Table 'B' givesupdate on BOT, Annuity and Toll plus annuityprojects.

Table B

Status of BOT toll and BOT annuity projects ( as of February 29, 2016)

Format No. of projects Length (km) Cost (Rs. Billion )

Toll

Awarded 202 20017.39 1791.18

Completed 74 4887 -

Terminated 35 4447 -

Balance 10683 -

Annuity

Awarded 51 3,500.53 302.87

Completed 27 1,933.00 -

Terminated 3 155 -

Balance 1412 -

Toll + Annuity

Awarded 253 23517.92 2094.50

Completed 101 6820 -

Terminated 38 4602 -

Balance 12791 -

Source: National Highways Authority of India

2. Ministry's Proactive Steps

Ministry's focus is to save the lenders, so that thecapital does not fly away from the road sector. Effortis to bring the investor confidence back.

Since many developers could not pay premiumsN.H.A.I. allowed them to defer premium paymentsin respect of 11 developers covering 1000 K.M. oflength as per Table 'D' below:-


Table D

S.N Name of Developer Name of Project State Length in K.M.

1 BSCPL Godhra-Gujarat-M.P. Border Gujarat 87

2 L G T Belar-Pali-Pindwara Rajasthan 244

3 L G T Samkhiali-Gandhidham Gujarat 56

4 Sadbhav Engineering Rohtak – Panipat Haryana 81

5 Sadbhav Engineering Hyderabad-Yadgiri A.P 36

6 IRB Infrastructure Ltd. Ahmedabad-Vadodara Gujarat 102

7 IRB Infrastructure Ltd. Tumkar-Chitradurga Karnataka 114

8 Gayatri-DLF J.V. Indore-Devas M. P 45

9 Reliance Infrastructure Hosur-Krishnagiri Karnataka 60

10 Essel Infra Project Ltd. Walajapet-Poonammalle T.N 93

11 Ashoka Buildcon Ltd. Belgaon-Dharwad Karnataka 82

Total 1000

The public-private partnership model, which has notreally lived up to expectation, has been changed.Government will fund 40% of project cost and balance60% to be funded by developer through equity and debt.The developer/concessioners will get biannual annuityover a period of concession (10 to 20 years). Thegovernment is offering 17 new projects covering 2,100 kmfrom 1st October 2015 in which the Government / NHAIis to take up to 40% of cost as Viability Gap Funding (VGF).The new model is mix of EPC and BOT models where theroad authority provides VGF, whereas the developers hasto chip in with the balance 60% and complete the project.In order to attract investments, N.H.A.I. did not receiveany response for Solan - Kaithalighat section in H.P.costing to Rs.522 crores on 1.11.2015. The government hasnow offered road developers the chance to choose theirown routes where they expect high volume traffic.Currently NHAI decides entire route before seeking bid.Under the new system it will only decide the two endpoints say Nagpur and Pune while letting any interestedprivate company to pick-up the route it deems mostprofitable in terms of toll earnings. This new system iscalled "Swiss challenge system", under which a privateoperator proposes a project and makes a bid, which thegovernment publicises while inviting third parties tomatch or exceed it. If a competitor betters the original bid,the first proposers get a chance to match it and begcontract. The original proposer has a right of first refusalmeaning thereby that a competitor can be awarded thecontract only if the first proposer refuses to match thesuperior bid. Industry experts say that under this system,private entity is required to make a lot of initial investmentover planning and evaluation, which he may not be ableto recover it he does not get contract.

Government on 15th May 2015 decided to allow BOT roaddevelopers to exit project completely two years afterconstruction is completed, so that equity is unlocked andcan be utilized in other projects. Prior to 2009, developers

could exit only after seven years. New policy decision ismade applicable to 80 such BOT projects. This wouldrelease Rs.45 billion equity. The Cabinet Committee onEconomic Affair on 26th August 2015 decided to extendfacility of existing project two years after construction evento projects completed prior to 2009. This is expected topave the way for more domestic fund and foreign fund tocome into this sector.

Ministry of Environment and Forest on 5th June 2014launched on-line clearance for infra projects, whereas on-line forest clearance was launched on 15th July 2014. Thisstep would help in speedy clearance with necessarytransparency and accountability in grant of regulatoryclearances. Government has permitted banks to raise longterm funds for lending to infra sectors. Reserve Bank ofIndia in pursuance thereof issued guidelines on 16th July2014 to commercial Banks to issue long term bonds withminimum period of maturity at seven years. The amountraised will be exempt from minimum regulatory pre-emption like Cash Reserve Ratio (CRR), StatutoryLiquidity Ratio (SLR) and priority sector lending.

Government is in the process of finalising the modalitiesfor completed highway project on EPC basis to be givenfor toll collection and maintenance for 20 year period. Thisbids would help government to raise funds for giving newcontracts. This would create a new business vertical forthose who are interested in operation and maintenance ofthe roach. Ministry of Road Transport G Highways hasfixed target of completing 8000 km at cost of Rs. 20000crores i.e. 22 km per day for 2015-2016.

Construction Opportunity in Monorail Project

The construction component in a monorail project alsostands at about 50% of the total project cost. Based on this,India Infrastructure Research has estimated a constructionopportunity of nearly Rs. 81.58 billion over the next twoto three years. Also, several projects are currently in the


planning and proposal stages and will be executed in thenext five to seven years, thus providing significantconstruction opportunity in the long run.

Construction Opportunity in Railways

In the railway sector, of the total project cost, 78% pertainsto construction works. Based on recent progress in eachof the pipeline projects, India Infrastructure ResearchApril 2015 issue list investment of Rs. 961.82 billion for 77projects covering 9400 km. of doubling, tripling and

quadrupling rail net work. In addition to theseopportunities, the ambitious high speed rail corridorsbetween Mumbai - Ahmedabad and Delhi - Varanasi -Patna also offer massive construction opportunities in thecoming years. Indian Railway in August 2014 came outwith a policy decision to allow 100% F.D.I. for executionof infrastructure projects in railway sector. Policy of rail-seaport connectivity having been finalised. For thispurpose Railway have formed a special purpose vehiclewith Seaport Authority called Rail Vikas Nigam Ltd. Ithas completed four projects as per Table A below:

Table A

Sr. Project Name Type of Work Distance Cost in Rs. StatusNo. in km billion

1. Panvel - Jawaharlal Neharu Doubling of Line 28.5 1.02 Completed and linesPort in Maharashtra are functional.

2. Mundra Port - Palanpur in To convert into 301.00 4.51 Completed and linesGujarat broad Gauge are functional.

3. Bharuch - Samni - Dahej To convert into 62.00 2.00 Completed and linesPort - Gujarat broad Gauge are functional.

4. Krishna Pattanam Port - Doubling of line 16.5 0.86 Completed.Venkatachalam with electrification

Total 408.00 8.39

In addition to above completed rail-seaport connectivity,Railways have given in principle approval to eight projects

in December 2014 entailing an investment of Rs. 52.87billion. Details are given in Table B below:

Sr. Name of Project State Length Cost in ModeNo. in k.m. Rs. Billion

1. Astarnga Port - Bhubaneswar - Orissa 75 13.10 Private Line ModeNew Line

2. Dighi Port - Indapur - Maharashtra 42 7.70 Joint Venture with RailNew Line Vikas Nigam Ltd.

3. Dighi - Jaigarh Port Maharashtra 35 7.71 Joint Venture with RailVikas Nigam Ltd.

4. Bhadrak - Dhamra Port - Orissa 64 7.60 Private Line ModeNew Line

5. Hazira Port - New Line Gujarat 47 7.34 Private Line

6. Gandhidham - Tuna Port - Gujarat 17 1.42 Private LineNew Line

7. Hamrapur - Kewas Port - Maharashtra 26 3.49 Joint Venture with RailNew Line Vikas Nigam Ltd.

8. Chhara Port - Kodinar - Gujarat 20 3.51 Private LineNew Line

Total 326 52.87

Table B

Dedicated western & Eastern Freight Rail CorridorCovering 3342 km envisages total investment of Rs. 80000crores out of which fourty% i.e. Rs. 32000 crores involvesconstruction out of 3342 km, tender for 1536 km is yet tobe awarded estimated to cost Rs. 16000 crores.

It can thus be seen that Indian Infra sector will generateconstruction opportunity of Rs. 20 trillion in next 3 yearsthat offer significant construction opportunity.Construction Industry now need to scale up it's capacitymodel for PPP projects.


HOUSING FOR ALL BY 2022 - REAL ESTATE - ANUPDATE

Report of the Technical group on Urban Housing shortage(2012-2017) and working group on Rural Housing (2012-2017) submitted the same in 2011 to their respectiveministries. Report estimated that almost a quarter ofIndian households lack adequate housing facility. Countryis on the verge of large scale urbanisation over the nextfew decades. As per 2011 census, country's population was121 crores and expected to reach 150 crores by 2050.

Present urbanisation rate of 28% in 2011 is to accelerate to52% by 2050. Urban population is expected to reach to 81crores by 2050 as per "KPMG India Analysis July 2014".Housing is a basic need for humans. Central Governmentacknowledges the importance of housing and aims toprovide housing to all it's citizen by 2022. In order to fulfillthis vision, 4.63 crores urban houses and 6.50 crores ruralhouses are required to be constructed by Government,private sector and on public private partnership. Detailsof statewise urban and rural housing requirement is givenin Table 'A' below:-

Table 'A'Details of Statewise Urban and Rural Housing Requirement

(Figures are in lakhs)

Sr. Name of State No. of Urban No. of Rural Total HousingNo. Housing Units Housing Units Units required

required in 2022 required in 2022 by 2022

1. Uttar Pradesh 54 146 200

2. Madhya Pradesh 22 51 74

3. Rajasthan 21 45 66

4. Delhi 30 3 33

5. Haryana 11 14 25

6. Punjab 10 13 23

Northern Region 148 272 421

7. Maharashtra 50 55 105

8. Gujarat 29 21 50

9. Goa 2 1 3

Western Region 81 77 158

10. A.P. including Telangana 37 40 77

11. Tamil Nadu 39 18 57

12. Karnataka 28 21 49

13. Kerala 27 9 36

Southern Region 131 88 219

14. Bihar 19 69 88

15. West Bengal 34 42 76

16. Orissa 9 26 35

17. Jharkhand 11 18 29

18. Chhattisgarh 8 14 22

Eastern Region 81 169 250

19. Hilly Region 22 44 65

All India 4.63 crores 6.50 crores 11.33 crores

20. Demand between 2014 and 2022 2.73 crores 2.70 crores 5.43 crores

21. Urban Housing shortage of E.W.S.in 2012 1.055 crores

22. Shortage of LIG in 2012 0.741 crores

23. Shortage of M.I.G. in 2012 0.082 crores

1.878 crores

24. Investment required upto 2022 1.80 Trillion Dollar 0.20 Trillion Dollar 2.00 Trillion Dollar


The total housing requirement of 11.33 crores by 2022includes housing shortage of 5.90 crores as on 2014. Thebreak-up of current housing shortage, requirement

between 2014 and 2022 is given in Table 'B' below :-

Sr. Particulars Urban Housing Rural Housing Total HousingNo. Units in crores Units in crores Units in crores

1. Shortage of Housing Units in 2014. 1.90 4.00 5.90

2. Demand between 2014 and 2022. 2.73 2.70 5.43

Total 4.63 6.70 11.33

As per K.P.M.G's estimates, development of such largequantity of houses may require investments of over USD2trillion i.e. Rs. 120 lakh crores (dollar at Rs. 60). This translatesto about USD250 to 260 billion annually i.e. Rs. 15 lakh croresto Rs. 15.60 lakh crores, more than double the annualinvestments witnessed in FY14. About 85 to 90% of the totalinvestments would be required for developing urbanhousing, where development costs are high due to factorssuch as land prices, construction cost, fees, and taxes. Withinurban housing, it is the affordable housing (houses for EWS/LIG households) which require attention on priority basis,as it alone would require about half of the total investmentsand 70% of urban housing needs envisaged. Theseinvestments need to be complemented with additionalinvestments of about USD1.5 trillion in urban infrastructureand commercial real estate. Thus, a total investment of overUSD3.5 trillion may be required for urban housing andsupporting infrastructure. Though, housing deficit is muchwider in rural areas compared to urban areas, it requiresonly a small portion of total investments envisaged till 2022,which can be meted out without much difficulty. In our view,the central government with participation from stategovernments, drafting a plan of delivering three crorehouses in rural areas with an investment of INR3.45 lakhcrore (USD58 billion) by 2022 is a good start.

With the current set of housing development policies in placeand assuming an annual growth in investments by aboutfive to six% in the housing sector (as witnessed since FY08),the required investments may fall short by about USD500

to 600 billion. This gap in funding would likely be restricteddue to several structural issues in the sector such as highgestation period of housing projects, limited and expensiveliquidity, spiralling land and construction cost, high fees andtaxes, unfavourable development norms, and affordabilityvis-à-vis housing prices for EWS/LIG households.

Mobilisation of such huge resources (funding, constructioncapacity, labour, technology, etc.) for mass scale affordablehousing development by the central and state governmentsmay be difficult, without participation from the privatesector. The private sector, which is often better in term ofmanaging construction risks and project delivery, shouldbe encouraged by central and state governments, byaddressing several structural issues

Since the beginning of the twenty first century, a slew ofregulatory reforms such as allowing foreign directinvestments, improving access to credit by households,providing tax incentives on housing loans, developingspecial economic zones and thrust on infrastructuredevelopment, coupled with high economic growth, havepropelled private sector participation in urban housingdevelopment. However, it has largely resulted in thedevelopment of Middle Income Group (MIG) and HighIncome Group (HIG) houses, leading to significant shortageof EWS/LIG or affordable houses. As per the report of theTechnical Group on Urban Housing Shortage, EWS/LIGhouses constitute more than 95% of the housing shortage in2012 as per detail given in Table 'C' below:

Table 'B'

Sr. Classification of Housing Units Number of Shortage inNo. Units in Million percentage term

1. Economically Weaker Section (EWS) 10.55 56.18

2. Low Income Group 7.41 39.44

3. Middle Income Group & above 0.82 4.38

Total 18.78 100.00

Table 'C'Urban Housing Shortage 2012

Source:- Report of the Technical Urban Group (TG-12) on Urban Housing Shortage 2012-2017. Ministry of Housing &Urban Poverty Alleviation September 2012.

Government has changed yearly income bend for E.W.S./LIG/MIG in July 2015, which is as per Table C-1 below :


Table C-1

Sr. Category of Housing Yearly income Bend Housing shortage as Revised yearlyNo. earlier in Rs. per Technical group income bend as on

on urban Housing 8.7.2015 in Rs.shortage 2012

1. EWS 60000 10.55 million Upto 3.00 lakh

2. LIG 60000 to 1.20 lakh 7.41 million Bet. 3.00 to 6 lakh

3. MIG Above 1.20 lakh 0.82 million Above 6 lakh

18.78 million

Despite such huge demand for all type of housing andmore particularly for EWS and LIG, development of urbanaffordable houses has been limited due to severalstructural issues making it unfeasible business propositionfor the private sector. Major structural issues restrictingprivate sector participation in urban affordable housingare depicted below:-

1) Real Estate is a low volume, high margin businessrequires very high long term capital requirement forpurchase of urban land at high price. Its workingcapital requirement is low. Any given project hasgestation period of 6/8 years. Most of real estateplayers are in unorganized sector. There are hardly50/60 listed companies on Mumbai Stock Exchange.

2) Town planners all these years prescribed horizontaldevelopment of cities with low or restrictive FSI/FAR in order to reduce migration into cities.Horizontal expansion of cities resulted in resourcestarved local urban bodies unable to provide civicinfrastructure in terms of roads, water mains,sewerage, and health/educational infrastructure.India's per capita urban infrastructure spending evenotherwise is about 17 dollar against requirement of100 dollars.

3) Currently 30/40 N.O.C. are required from variousdepartments / authorities / organisation whichtakes more than 18 months before approval ofbuilding plan. This delay add to the cost of projectby way of interest burden.

4) Migrant could not find flats at affordable price informal housing sector ultimately purchased ininformal housing sector. This resulted inproliferation of slums in all big towns. AffordableRental Housing should be encouraged.

5) Real estate being high capital intensity business withlong gestation period, has to depend on high interestrate, short term loans, either from Banks or fromprivate source in absence of institutions of such aspension funds, PF funds offering long terms loansat low interest rate. This add to overall project costbesides slowing down or delayed completion ofhousing projects.

6) Several indirect taxes such as VAT, stamp duty,service tax together add to about 35% of propertycost. Details of various taxes to be paid are as perTable 'D' below :-

Table 'D'

List of direct and indirect taxes imposed on real estate development.

Sr. No. Tax Percentage of property cost

1. Development agreement stamp duty 5

2. Stamp duty on purchase of property 5

3. Registration charges 1

4. Value added tax on purchase of construction material 1

5. Service tax to contractor on service component 2.6

6. VAT to contractor on goods component 4

7. Other levies such as service tax 2.6

8. Excise and custom duty 15

Total -35


Table 'E'

This analysis is based on a FAR/FSI of 1.5 times the land area. The actual requirement of land may decrease. If theunoccupied houses of about 94 lakh, as mentioned earlier, are occupied.

Urban housing land requirements

EWS LIG MIG HIG Total

Housing need Crore 1.7-1.9 1.3-1.5 0.8-1.0 0.4-0.5 4.4-4.8till 2022

Super-built Sq.ft 300 650 1,000 1,500up area

Land required Crore sq.ft 510-570 850-980 800-1,000 600-700 2,700-3,200

Land required Hectare 47,000- 78,000- 74,000- 55,000- 250,000-53,000 90,000 93,000 64,000 300,000

FAR/FSI# X 1.5 1.5 1.5 1.5

Land required Hectare 31,000- 52,000- 50,000- 37,000- 170,000-35,000 60,000 62,000 43,000 200,000

In view of revised income bend for EWS/LIG/MIG as stated in Table C-1, revised requirement of area / land is as perTable E-1 below:-

Table E-1Requirement of area under various categories

Sr. Category of Area for each Housing Total area Under new Total area requiredNo. Housing household as shortage requirement income bend as per new

per 2012 in million total housing definitionrequirement sq.mt. shortage in

million

1. EWS 30 sq.mt. 10.55 316.50 17.96 17.96x30=538.80million million sq.mt.

2. LIG 60 sq.mt. 7.41 444.60million

3. MIG

761.10

In view of above mentioned scenario, question that arisesis whether Real Estate and construction Industry is capableof delivering of about 70 lakh housing units every yearfrom 2015 to 2022, more so in the background of fact that

present deliverable capacity may be maximum upto 8/10lakh units yearly. Comparative statement of progressunder various Social Housing Scheme is as per Table Fbelow :

Table 'F'Comparative statement of progress under various social schemes

Sr. Name of scheme No. of housing Completed Under Shortfall inNo. to be constructed houses construction in number

as approved in number number

1. Rajiv Awas Yojna 120000 in 16 cities 1154 18281 100565

2. Affordable 20472 4528 2200 13744Housing

3. Jawaharlal Nehru 1440000 831000 36100 248000under RenewalMission


Real Estate (Regulation and Development) Bill, 2013- BAI submits its comments

BAI responded to the request of the 'Select Committee (Rajya Sabha) on Real Estate (Regulation and Development)Bill, 2013' of the Rajya Sabha Secretariat, Parliament of India, by sending its views and suggestions, which is printedbelow.

Subsequently, BAI was invited to interact with the 'Select Committee (Rajya Sabha) on Real Estate (Regulation andDevelopment) Bill, 2013', when the members of the Committee visited Mumbai on 30th June, 2015. BAI was representedby Mr. D. L. Desai (Shankarbhai), Trustee; Mr. Neerav Parmar, Chairman, BAI Mumbai Centre; Dr. Anand J. Gupta,Imm. Past Hon. Gen. Secretary and Mr. Raju John, Executive Secretary.

Though the task is stupendous, but can be achieved if notby 2022 but by 2030 subject to all the stake holders i.e.Government both Central, States and Local self, real estatedevelopers, professionals such as engineers, architects andconstruction contractors come together and initiatingfollowing steps to achieve result.

A) Town planning departments need to change conceptfrom low rise horizontal development of cities intohigh rise vertical development with higher densityi.e. high FAR/FSI. This would bring down cost ofproviding civic infrastructure, since urbanizationarea would be reduced.

B) The present building approval plans byMunicipalities is not only time consuming butcumbersome. Real estate developers have to obtainminimum 30 N.O.C's from different department /Organisation, resulting in cost escalation. Many ofN.O.C's are irrelevant and are duplication. It issuggested that a single window clearance systemconnecting regulatory authorities at Central, Stateand Urban Local Body level, supported by atechnology plat form would help reducecomplexities and delay.

C) There is dire need to reduce indirect taxesaggregating to 35% as shown in Table 'D' by allauthorities to incentivise affordable housingdevelopment to improve housing affordability.

D) The Land Acquisition Rehabilitation & ResettlementAct 2013, is expected to have a majot impact on largescale township and affordable housing projects.Needless to state that few provision of LARR Act2013 are deleted or be suitably amended to achievehousing target.

E) Ministry of Skill Development & Entrepreneurshipsrealesed a report in April 2015 stating therein thatbuilding construction and real estate sectoremployed 45.40 million people in 2013 which isexpected to reach to 76.60 million by 2022. Most ofconstruction workers are not skilled. It is thereforenecessary for Construction Skill DevelopmentCouncil of India (CSDCI) to undertake onsite training

of construction workers. State governments shouldrealese 20% of building & other ConstructionWorkers Welfare Cess collected at rate of 1% onconstruction contract amounting to Rs. 13000 croresas on March 2015. This would enhance productivityof worker and saving in wastage of constructionmaterial.

F) Present cast-in-situ construction system need to bechanged to errection of readymade various buildingcomponent such as beam, column, slabsmanufactured in factory. It is necessary tostandardise design parameters. Alternatively mainconstruction contractors need to promote specialisedfoundation, superstructure and finishing contractorsfor timely and faster completion project.

G) Increased environment concern has reducedavailability of natural sand and coarse aggregate,delaying housing projects. Ministry of Housing ofstates and centre jointly with trade bodies such asBAI, CREDAI, CFI, NHBF fund research on use ofalternative such as construction waste, flyash, slagfrom steel plant in place and steal of natural sand.

H) Housing Regulatory Authorities to be formed in eachstate to regulate real estate sector and bring abouttransparency. There has to be "carpet area" norm/standards for building approval plan by Urban LocalBodies, sale on carpet area basis by real estatedevelopers to avoid possible litigation on chargedarea for flat. It should also be made mandatory forregistration and grading of real estate developers forprofessionalisation of real estate business.

I) Provident Fund corpus & Insurance Funds beinvested in housing projects either throughinstrumentality of REITS or other specially createdbonds by RBI. This will provide long term fundingrequirement to housing sector at lower interest ratethan that of Banks. Housing Finance Companies needto increase home loan tenure from 20 years to 30years, so as to reduce equated monthly installments.(EMI) to be paid by flat purchasers. Necessary taxincentives to be given to all the schemes.


Builders' Association of India (BAI) is an apex all Indiabody of Engineering Construction Contractors andBuilders, founded in 1941, has more than 15,000 businessentities as members through its 152 plus Centres (Branches)throughout the country. The fundamental aim of theAssociation is to bring about all round improvements inthe construction and development sector, while strivingtowards resolution of operational as well as policy levelproblems faced by the construction industry. This involvesmaking efforts to obtain from policy makers andauthorities, the level of attention that the constructionindustry deserves in view of its tremendous contributionand importance to the economy.

BAI believes itself, as one of the chief vehicles of deliveringthe national objective of housing for all by 2022. In orderto fulfill objective, construction of 50-60 million urban unitsper year is required. This could be achieved withinvolvement of real estate developers. Given the highincome and employment multiplier of housing, real estatedevelopment needs to be actively promoted. Housingdevelopment also reduces income inequalities. For all thesereasons, real estat development needs a supporting policyenvironment. Our view on RERA set out below emanatefrom this sense of responsibility.

The precise objective for RERA needs to be well thoughtout. Regulation for the sake of regulation would only addone more layer of approvals, increase transaction cost, andmake housing even more expensive for the ultimateconsumer. As it is, real estate is regulated by a multiplicityof laws. Consumer rights are adequately safeguardedthrough the Consumer Protection Act, 1986. The Bill isweak on the issues to be addressed an lumps all projectstogether.

The Bill proposes to cover "Commercial/industrial andother related projects", alongwith Residential projects.Commercial sector and other related segments haveresources and expertise to evaluate and conduct requireddue diligences and are safeguarded by the provision invarious other laws. Hence, if there be an issue that requiresregulation, it may at best relate only to the residentialprojects and not commercial or industrial projects.Accordingly, the Bill should focus on the Residentialprojects and leave all other projects out of its coverage.

The Bill proposes to cover all 'existing projects', where thecompletion certificate has not been received. It is not clear,how the projects which are already on-going can be covered

retroactively. This, if covered would invariably lead todelay due to registration and other requirements, costoverrun, and addition such delay would cost flatpurchasers extra money by way of interest on loans fromhousing finance companies / Banks. It may also raise anissue in respect of flat sold prior to RERA Act coveredunder relevant State Acts, such as Maharashtra OwnershipFlat Act. Further, the requirement to bring projects whichare ongoing within the coverage of the Bill is also arbitrary.Thirdly, including the existing as well as underdevelopment projects within The Bill would create a hugebacklog. Hence, it is only the "Green Field" projects (i.e.projects launched and registered after notification of theRER&D Act), that may be appropriately covered underthe proposed Bill.

Under the provision of the Bill, registration is online anddeemed in 15 days but the regulator will subsequentlyALLOT a user log in ID until then the sales cannot be made.We are concerned, as to how would deemed registrationin 15 days help if developers still have to wait for the login ID. On the other hand, the regulator will subsequentlyscrutinize all documents and can cancel registration if hethinks they are not in order. The question which arises isthat if there is deemed registration, how subsequentscrutiny can may be effected only if there is a subsequentinfraction or misdemeanor.

According to Section 7(a), the Real Estate RegulatoryAuthority may revoke the registration upon being satisfiedthat the promoter has made willful default in doinganything required of him by or under the Act or the rulesand regulations made thereunder. However, willful defaultis not defined in the Act. This implies possibility ofcompletely arbitrary principles in determining what thewillful default is. Hence, it is requested first of all that whatconstituted willful default may need to be clearly defined.Secondly, for the process of revocation to be equitable, itshould be made clear that the process of revocation wouldfollow the principal of natural justice and provide for thepromoter being given adequate opportunity of beingheard. Revocation of registration cannot and should notbe arbitrary.

Section 5 in its current form restricts the validity ofregistration to be conterminous with the likely period oftime within which the completion of the project isenvisaged by the promoter under provision of 4(2)(i)(c). itdoes not take into account other stakeholders like the plansanctioning authority, 'competent authority' or functional

Ref: 144/J/2015-16 dated June 16, 2015

The Joint Director (Com III)Rajya Sabha Secretariat,Room No. 212A, Parliament House Annexe,New Delhi 110001

Respected Sir,

Sub: BAI's Suggestion on the Real Estate (Regulation and Development) Bill, 2013


Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement (SecondAmendment) Bill, 2015

- BAI submits its comments

BAI responded to the request of the 'Joint Committee on the Right to Fair Compensation and Transparency in Land Acquisition,Rehabilitation and Resettlement (Second Amendment) Bill, 2015' of the Lok Sabha Secretariat, Parliament of India, by sendingits views and suggestions, which is printed below.

Ref: 143/J/2015-16 dated June 10, 2015To,

The Joint Secretary (RS),Lok Sabha Secretariat,Room No.328, 3rd Floor,Parliament House Annexe,New Delhi 110001

Sub: Suggestions in respect of "Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitationand Resettlement (Second Amendment Bill, 2015).

Respected Sir,

Builders' Association of India (BAI) is an apex all Indiabody of Engineering Construction Contractors andBuilders, founded in 1941, has more than 15,000 businessentities as members through its 152 plus Centres (Branches)throughout the country. The fundamental aim of theAssociation is to bring about all round improvements inthe construction and development sector, while strivingtowards resolution of operational as well as policy levelproblems faced by the construction industry. This involvesmaking efforts to obtain from policy makers and

authorities, the level of attention that the constructionindustry deserves in view of its tremendous contributionand importance to the economy.

BAI welcomes the Land Acquisition, Resettlement andRehabilitation Act 2013 and relevant Amendment to thoseprovisions in Amendment Bill 2015. It is a step in the rightdirection. However after going through the same, thefollowing are the suggestions from BAI to be added to theBill for better implementation and use of the act in theinterest of development.

agencies or financial agencies who are not answerable tothe Regulatory Authority which results in the delays onthe project. At many places, plan sanctioning authoritiesgrants phasewise commencement certificate, as such, itneed to be covered. On the other hand, the 'promoter' ismade solely responsible and liable to be penalized fordelays and non-compliance. Hence, it is necessary to bringall entities associated with grant of approval for the projectssuch as Urban Local Bodies into the ambit of RERA, andin particular Section 5 to enable the Real Estate RegulatoryAuthority to issue appropriate direction to them for thesake of timely completion of projects. The grant ofoccupancy certificate/completion certificate/plinthcertificate should be provided for on a time bound andautomatic basis. Further, it should be explicitly providedthat the project promoters are not liable for delays onaccount of want of approvals from statutory authorities.

It is also feared that including "Tenants", within the ambitof the Bill, would drift the focus away from the core of theBill to streamline and cover the "Developer-Buyers"relationships. "Tenants" enter into a property only afterthe Developer has acquired the "Occupancy Certificate' andthen the "Apartment" is handed over the "Buyer". Byinvolving "Tenants", who are temporary occupants on rent(for a limited time period), the Bill's "Developer-Buyer"

mandate would get diluted. Flat buyer when gives his flaton rental, then motive is to earn "profit". Bill can not includesuch transaction in the bill. Hence, it is urged that the Billrestricts its scope only to "Developer-Buyer" and anyactivity beyond the handover of the real estate project tothe 'Buyer' should stay outside the ambit of the bill.

Some of these suggestions are further elaborated in theattachment and some technical aspect are also commentedupon.

It is requested that the above suggestions may please begiven serious consideration for bringing the bill inalignment with its objectives as well as the goal of housingfor all by 2022.

Best Regards

Yours sincerely,

LAL CHAND SHARMAPRESIDENT

BUILDERS' ASSOCIATION OF INDIA


i) The timeframe of successful implementation of theprovisions of the land acquisition act has been thebiggest challenge in the implementation of anydevelopment endeavour of the government or anyprivate party. There are several cases for delays inland acquisition and payments of compensation tothe affected parties (for example the land acquisitionby MIDC in Raigad district of Maharashtra has beengoing for almost 10 years and the same is stillnowhere near completion). Although the act specifiestimeline, the adherence of the provisions of the actwithin the timelines mentioned is of utmostimportance to benefit all affected and interestedparties. Hence a stronger framework forimplementation , accountability of the implementingagency(state or central government) , timelycompletion of all the stages to be completed , financialpreparation for the compensation to be paid to theaffected parties are areas of utmost importance.

ii) The Land Acquisition, rehabilitation and resettlementact should be made applicable for project underprivate bodies as well. Due to political reasons thegovernment has refrained from using the act forprivate players. Over the last one year, the newGovernment of India has launched programs likedevelopment of 100 smart cities, severalinfrastructure works, etc. For the success of theseschemes by the government, involvement of theprivate sector is imperative.

The Government in the past has successfully createdcities like Navi Mumbai by land acquisition throughCIDCO and subsequently auction of the land toprivate players for development. It is impossible forthe government to achieve the desired rate ofdevelopment without the involvement of the privatesector. The revenue generated through these can beuse for the development of the village, towns, andcities. This lacuna in the act is to be rectified and theact should be applicable for large scale projectsinvolving acquisition of land for the private sector aswell.

Also there are several areas of the countries whereinfrastructure development schemes of thegovernment have still not reached mainly becausethe government is not able to raise funds throughthe use of BOT schemes and other forms of fundingschemes for the development of infrastructureschemes. The land acquisition act can be used for thedevelopment of such areas by allowing use of landalong the infrastructure lines for private use andauction instead of only relying on BOT schemes forthe development of infrastructure in these areas.

iii) As per the provision of this act if private companypurchased land equal or more than such limits inrural or urban areas as may be prescribed byappropriate government through private

negotiations with the owner of land than he shall fallwithin the purview of this act. The BAI takes strongobjections on this compulsory inclusion of a privatenegotiation within the purview of this act and thesame should be excluded or the applicability shouldbe at the discretion of the private party if they requireany government intervention for the acquisitionprocess. Only if government intervention is asked foronly then the provisions of this act should be followedby the private company.

iv) Although the section 30(2) of the act defines thecompensation for land owners in the first schedule,the promise made by the government of four timecompensation in rural areas and two timescompensation in urban areas needs to be more clearlyspelled out without any ambiguity on the same.

v) There have been several instances in the past wherehuge chunks of land have been converted to 'NoDevelopment Zone', 'Eco Sensitive Zone', ' GreenZone' , ' Lands affected due to construction of Dams'etc due to change in zoning by the government. Thishas locked all the present and future potentialdevelopment of such plots with no future to thelandowners/affected parties on such lands. Suchform of acquisition by the government in the form ofchange in zoning should be included under the actand adequate compensation to the farmer/landowner/affected party should be paid.

vi) There are several instances when the acquisitionpolicies of the state government are not adequatelycompensating the affected parties. For example as perthe current policy in cities of Maharashtra in the eventof acquisition by government for lands falling underreservations or road widening, the affected party isgranted TDR instead of monetary compensation inlieu of surrendering of land. However, in this casethe TDR granted does not take into account, the valueof land from which TDR is generated. The value ofthe TDR granted should be commensurate to themarket price of the land being acquired from the landowner and accordingly adequate TDR should beissued to compensate the affected party from whomthe acquisition is done.

Therefore kindly take the abovementionedsuggestion into consideration. I therefore request youto kindly grant me opportunity of being heard beforethe committee.

Thanking you,Yours sincerely,




Goods & Service Tax

An Interactive Session on 'Goods & Service Tax' (GST) wasorganizes by Builders' Association of India (BAI) onThursday, 1st October 2015 at MC Ghia Hall of IndianTextile Accessories & Machinery Manufacturers'Association, Mumbai.

The main speakers were : Mr. Rajkamal Shah, HonoraryService Tax Consultant, BAI; Mr. P. Purushotham,Honorary Tax Consultant, BAI and Mr. Sandesh Mundra.Co-Chairman, Goods & Service Tax Committee, BAI.

Apart from all senior functionaries of BAI from acrossIndia, Taxation managers of corporate constructioncompanies and major construction companies wereinvited to the interactive session.

Mr. Neerav Parmar, Chairman, BAI Mumbai Centrewelcomed the gathering and was also the moderator forthe interactive session.

Mr. P. Purushottam spoke on, Constitution Bill - Outcome;Bearing on Construction Industry and RecommendaryIssues - GST Regime, vis-à-vis Apex Coujrt / SupremeCourt Decisions.

Mr. Rajkamal Shah spoke on, Transition Issues - AConcern; ITC/Cenvat Credit - Under GST and Accounts& Documents - Highlights.

Mr. Sandesh Mundra spoke on, Review of negative list /Mega exemption; Probable GST Rate - A hint and TaxableEvent - Concern or Useful.

It being an interactive session, the talks by the speakerswere interspersed with queries, suggestions, clarifications,etc. by the gathering.

Mr. D. L. Desai (Shankarbhai), Trustee, BAI gave theconcluding remarks.

Mr. C. G. Deochake, Hon. Gen. Treasurer, BAI; Mr. SunilMundada, State Chairman, BAI Maharashtra and Mr. K.Viswanathan, Taxation Committee Chairman, BAI alsograced the dais during the interactive session. Theorganising of the interactive session was co-ordinated byMr. Raju John, Executive Secretary, BAI.

Based on the outcome of the discussions in the interactivesession, points were finalized for drafting a representationto be made to the Union Finance Ministry by BAI. We aregiving below the said points.

GST Model in India and Precaution Points for theConstruction Sector.

The Goods and Services Tax (GST) is a value added tax(VAT) on the supply of goods or services. It is levied andcollected on value addition at each stage on such suppliesbased on input tax credit method for both intra state aswell as inter-state purchases.

When we say "Supply" we are moving from the age old

tradition of taxing the events of manufacturing or sale orof rendition of service. Hence this is the most paradigmshift in the taxing event which may tax even the freesupplies and branch transfers, something which theconstruction community is not at all used to.

The initial aspiration of the government was to have asingle GST which would have been the most simplifiedform of indirect taxation. However, the government overthe years of efforts and negotiation with States had tocontend itself with a dual GST model to bring all thestakeholders on a common platform. However despite thedilutions in the initial model, the government and itsofficials continue to emphatically focus on following tobe achieved in this new taxation system:-

A) Clarity and Simplicity in definitions

B) Certainty in Assessment

C) Ease of doing business

Lets now look at some of the major features of the biggesttax reform not only at our country level, but possibly atthe global level also looking to India's democratic andfederal structure and the efforts already spent on the task:--

1. DUAL GOODS AND SERVICE TAX - GST in Indiaas per the current constitutional draft shall have twocomponents: one levied by the Centre (hereinafterreferred to as Central GST), and the other levied bythe States (hereinafter referred to as State GST). Thusone CGST Law would be passed by the centre andone SGST Law would be passed by each of the statesbased on a model SGST Law recommended by thecentre. Besides the tax charged on interstate supplyshall be a combination of SGST and CGST and shallbe known as IGST (Integrated Goods and ServiceTax) which shall continue to be administered moreor less in a manner similar to CST.

2. REVENUE NEUTRAL RATES - Centre has set up adetailed machinery to work out the revenue neutralrates which would ensure that there is no loss ofrevenue to centre or state, post implementation ofGST in India. The expected Revenue neutral ratesmay possibly be in the range of 18-27%. Besides thereare also talks that these rates may be different forgoods and different for services. In addition to GST,the 1% additional tax also now looks a certainty,hopefully only for the first two years, leviable onthe supply of goods from one state to another. Thisadditional revenue shall be kept by the state of origin.Now from a construction sector's perspective onemay have apprehensions, that the tax outgo shallincrease significantly. However lets look at a typicalbuilding construction project and see the currentimpact of the multiple taxes on the project :-


Existing Taxes under a BuildingContract

Particulars Amt in Rs. Excise VAT Service Tax Total Tax Tax in Rs

Cement 15 12% 15% 27.00% 4.05

Steel 25 12% 5% 17.00% 4.25

Other Materials 15 12% 10% 22.00% 3.3

Sand / Aggregate 10 0% 5% 5.00% 0.5

Labour 20 14% 14.00% 2.8

Admin & o/h 3 14% 14.00% 0.42

Depreciation 2 15% 14% 29.00% 0.58

Profit 10 14% 14.00% 1.4

Composition VAT 2% 2

Total 100 19.4

Note - The above figures are based on a typical building construction project assuming the total project value to be Rs. 100.However the actual proportion may vary.

Thus based on above, its clear, that even today atypical construction project ends up bearing indirecttaxes to the tune of 20%. Based on the type of theproject and availability of typical exemptions the%shall vary from 15 - 25%.

3. DESTINATION BASED TAXATION - The mostcritical change which GST shall bring in our taxationsystem is that it shall shift the tax collection rightfrom the state of origin to the state of destination.That is if the goods move from Gujarat to Orissa, itsthe state of Orissa which shall have the right to collecttax on such transaction. The concept, which is pickedup from the prevalent global practise has somegenuine reasons, key being:-

a. Promoting economic efficiency - Since its thejurisdiction of consumption, which woulddefine the rates of taxation, the source ofprocurement and the tax rates prevailing atsuch source location would stop playing anyrole when it comes to identifying the most costeffective vendor. Hence the buyer wouldalways choose the most economically efficientvendor subject of course to the considerationsof logistics.

b. Equitable distribution of revenue - Globally ithas been felt that the a destination basedrevenue model leads to a more equitabledistribution of tax revenue amongst all the taxjurisdictions. This would reduce the currentdisparities and would lead to a uniforminfrastructural development across all thestates of the country. The idea is to empowerthe backward states with more tax revenues.This shall lead to an overall development andgrowth of the country and in turn highercollections to all states in the long run.

4. CENVAT CHAIN - Unlike the current scenariowhich leads to cascading of taxes, under GST,complete cross credit of taxes would be available.That is credit of CGST would be available againstCGST liability, credit of SGST would be availableagainst the SGST liability, credit of both CGST andSGST would be available against IGST liability andvice versa. The only hitch in the chain would be non-availment of credit of the 1% additional tax paid onthe inter-state supply of goods which shall distortthe prices to some extent.

5. REGISTRATION - All suppliers already registeredeither under VAT, Excise and Service Tax may notbe required to register again, except to the extent ofsubmission of any additional information which maybe required to be given to justify a uniforminformation database. There shall continue to beseparate PAN based registration for CGST as wellseparately for each state SGST.

6. IMPORTS AND EXPORTS - Going by the theory ofa destination based consumption, we can safely saythat the exports shall be Zero rated and imports shallbe treated at par with the inter-state transactions withIGST leviable on them. Imports shall also besubjected to Basic Customs Duty which is proposedto be continued even under the GST regime.

7. ADMINISTRATION OF GST - As per therecommendations of the Task force report on GST,the Central Board of Excise and Customs (CBEC)shall be responsible for implementation of CGST andstate tax administrations will be separatelyresponsible for implementation for SGST. Thedifferent assessing authorities may again create someproblems as one may accept a valuation and anotherauthority may reject the same value. Hence it is bettersuited to have just one assessing authority.


8. GOODS AND SERVICE TAX COUNCIL - As perthe Constitution Amendment Bill, 2014 ('Bill'), therewill be a Goods and Service Tax Council which shallmake recommendations to the Union and the Statesabout the basic structure of the law and the futuremodifications. The Bill provides that theadministration of GST would be the responsibilityof the GST Council which would then become the

Steps needed for GST Implementation Time (in Months)

• Both the houses of the Parliament pass the bill independently with 2/3rd majority 1

• 50% of the states ratify in their assemblies + Receipt of Presidential Assent 4

• Formation of GST Council 1

• Model GST law should come out for public suggestion at both central and state level 3

• Elaborate Discussion on the Negative List 1

• Central GST Law is passed by the centre + Presidential Assent 1

• State GST Law is passed by the states (after battling with Municipalities and Local Bodies)+ Governor's Assent 3

• Educating the end users 3

• GSTN - IT Network is established 1

• New Registration numbers are allotted 1

Minimum Time 19

Now let's look at certain issues which may be criticalfrom a construction sector's perspective when it comesto implementation of GST in India :-

i. Proposed Negative List / Exemptions under GST(under both SGST and CGST) - Under the currentregime the negative list / exemptions of goods andservices have been separately defined for Excise,Service Tax and VAT. Ideally for the ease ofbusiness, there should be a single andcomprehensive negative/exemption list for allforms of GST i.e. CGST, SGST and IGST. It can bevery well seen that the government has over aperiod of last 3-4 years constantly made a seriouseffort to tone down the exemptions. The intentionis to continue the exemptions only for the activitiesinvolving immense public interest. Hence theconstruction sector should give a properrepresentation to the government identifyingprojects critical to country's development andwhere development is taking place solely on thebasis of public interest. Government may be biasedtowards exempting those projects where thegovernment itself is directly / indirectlyreimbursing the tax component making it a taxneutral transaction for them.

ii. Negative List for Input Credit - A problem whichthe construction sector faced in the current scenariois that it has found itself in the exclusions list forthe purpose of availment of Input Credit by therecipient of the construction services both underVAT and Service Tax. If such a provision is

continued, then it may go against the basic themebehind GST i.e. removal of cascading impact oftaxes. Besides the building is a very critical elementwithout which it may not be possible to producegoods or render services.

iii. Treatment of works contracts - Looking to currentdraft of the constitutional amendment bill, whichhas retained the Article 366 (29A) (article whichpermitted states to levy sales tax on works contracton deeming basis) when it should have been eitherremoved or amended with a clear sunset clause.The retention of this article has added to thegrowing confusion about the taxability of worksContracts under the proposed GST regime whichpromises to treat both goods and services at par.The moot question now is whether the constructionactivity shall be treated as Goods or services or anyseparate criteria shall be set for composite contractsto levy GST on them. Globally the trend seems tobe to treat the construction activity as a serviceirrespective of the element of material which getsincorporated in works contract.

iv. Identifying the Destination - One of the mostinteresting and complex rules which will beintroduced under GST are the place of supply rules.These rules determine the place of consumptionof goods and services which will determine thejurisdiction having the sovereign right to collectthe revenue. Thus there is every possibility that twojurisdictions claim their area to be the place ofconsumption in order to maximise their revenues.

apex indirect tax policy making body of the country.This GST Council would be formed by the Centraland State level ministers in charge of the financeportfolio.Now, although I am not the finance minister, butstill I made an attempt to draw some practical timelines with which the government could implementthe GST in a satisfactory manner :-


The construction sector thus needs to identify allsuch areas where the possibility of disputes couldbe high and accordingly propose proper solutionto the government well in advance. For e.g. If theservices of an architect are consumed by the Headoffice in Maharashtra for a project being executedin Karnataka, now in which jurisdiction will thearchitect be legally required to discharge his taxliability under GST ? Whether at Maharashtrawhere he raises the invoice or Karnataka, wherethe services are ultimately consumed. Further whatif some of such services are covered under thereverse charge and the service recipient decides toallocate the service over different projects runningin different states based on the proportionate use.All such issues need to be resolved properlymaking the law more administratively convenientrather that theoretically satisfying to thegovernment.

v. Impact of the Landmark judgements of the ApexCourt - Works contract is one area, where thetaxability and valuation till date have beengoverned more by the court judgements ratherthan the prescription of act and rules. Some of thejudgements relate to identifying whether aparticular contract is a works contract or not, somedetermine the value of goods involved in acontract, some on taxability of inter-state workscontract etc. Now, these judgements may remainrelevant even under GST. So a detailed exerciseneeds to be carried out in this regard to assess thefuture relevance. The government may also berequested to cover such issues within the proposededucation guide that they may be planning torelease after introducing the GST law to facilitateits implementation.

vi. Threshold Limit - The basic exemption limit hasbeen defined separately for goods and servicesunder the current system. A uniform thresholdneeds to be defined under GST considering the factthat threshold under Service Tax is Rs. 10 Lacs,under Excise is Rs. 150 Lacs and under most of thestate vat laws is Rs. 5 Lacs. There is no claritywhether the government shall bring out a uniformthreshold or shall prescribe separate threshold forSGST and CGST.

vii. Contractor - Sub-contractor relationship - When welook at the different state VAT laws, we would seea common pattern while defining the taxability oftransactions between contractor and sub-contractor. This is so due to the landmarkjudgement of Supreme Court in the case of Stateof AP vs. L&T (2008-TIOL-158-SC-VAT). As a resultthe state laws have been drafted in a way to taxeither the contractor or the sub-contractor. Oneneeds to assess the relevance of this critical

judgment to determine the position that is to betaken once GST is implemented. Although thegovernment may claim that when complete Inputcredit is available to everyone in the chain, noresort should be had to this past practise. However,practically if one party pays and the other partycan avoid paying, then it can result in reduction inefforts towards compliances. Further this shall alsolead to ease of business more particularly when thecontractor undertakes exempted project.

viii. Transitional provisions :-

a. The outstanding Input credit under eitherVAT / Service Tax / Excise may be deemedto be the opening credit under GST insteadof setting up a refund mechanism for thesame. Suitable procedures need to be laiddown for set off of taxes lying under theClosing Stock / Closing Work in progress ifthe service provider may have opted forcomposition schemes and may not be filingthe return with details of tax credit.

b) Interest and Penalties - Taking a lenient viewthe provisions of interest and penalty in thefirst two years should be kept very moderate.The expected rate under GST could be as highas 27% which may lead to increase in workingcapital requirements as the point of taxationis most likely to be on accrual basis.

c) Ongoing Contracts - All the ongoing projectsmay have certain existing taxability pattern:-

1. Exempt under VAT and Service Tax

2. Taxable under VAT but exempt underService Tax

3. Taxable under Service Tax but exemptunder VAT

4. Taxable under both VAT and ServiceTax

The exemptions as above may either be general innature available to all or may only be available forprojects in a particular geography or to a particularindustry or may be time specific available forprojects initiated in a particular duration.

Now the biggest challenge would be to manage thebalance portion of these ongoing projects takingcare of the new tax regime under GST. Thetransitional provisions should be drafted in such away that they do not negatively impact either theclient (where the tax clause is in the favour of thecontractor) or the contractor (where the tax clauseis all inclusive and even the future variations arein the scope of the contractor).


ix. Composition Scheme Under GST - Constructionsector over the years has got used to payment oftaxes under simplified composition schemes on thetotal project value without any Input Tax Credit.Due to unorganised nature of this sector, there shallalways be a class of contractors who may not beable to maintain records as per the prescribednorms. Hence the government should come outwith a simplified composition scheme whichrequires them just to maintain their turnoverrecords and pay taxes at a comparatively lower ratewithout availing any Input Tax Credit.

x. Real Estate Transactions - Real Estate sector hasbeen marred with a lot of controversies in last fewyears both under VAT and Service Tax. Some ofthe issues which need to be addressed are:-

a) Valuation of Land - There should be a clearmechanism to arrive at a market value of landin case of composite contracts and where thevalue has been mentioned in the agreement,the same should be readily accepted.

b) Relevance of Building Completion certificate- The principles as existing in the current lawshould be continued even under GST keepingboth CGST and SGST at par.

c) Barter Transactions - Proper valuationmechanism should be drafted to take care ofbarter transactions. For e.g. when the land isexchanged for the constructed property.

xi. GSTN - The information technology network hasbeen much talked about under GST. It is also foundin some of the discussion papers released by thegovernment that there would be an online returnfiling platform where everyone will report theirtransactions. That is both the buyer and the sellerwill report transactions with each other. Now thetax credit lying in the purchases made by the buyershall only be available for availment, provided thepurchases reported by him are cross confirmed bythe sale transactions reported by the seller. Thecredit would be available only if there is exactmatch of the value reported by both the buyer andthe seller. Now it is often seen in the constructionsector that on several occasions there would be adifference between the value as reported by thecontractor which may be the bill put up by himand the value as certified and reported by the clienti.e the buyer of construction services. If all suchtransactions are rejected by the GSTN network foravailment of tax credit, it would unnecessarily havea negative impact on the overall fund flow. Hencecertain exceptions need to be drafted in theprovisions of tax credit under GST for such cases.

xii. Supply other than for a consideration - This is a

regular feature in the construction sector. Somesuch transactions are as below :-

a. Supply of Free Issue Material by the client tothe contractor - Presently such transactionsare non-valuated transactions and no invoiceor tax is required to be paid by the client eitherunder VAT or service tax when such materialsare issued to the contractor as there is no sale.Now with GST targeting supply, all suchtransactions may be covered within the taxnet and may create a lot of administrativehassles as there could be multiple suchtransactions in the stock register at aparticular site. If invoices have to be raisedfor all such transactions only to pass on thetax effect, the same may lead to a lot ofadministrative inconvenience andimpracticality and ultimately non-compliances.

b) Transfer of Capital Goods / Consumablesfrom one site to another - These transactionsfrom one construction site to another mayagain come within the purview of GST in itscurrent form targeting all supplies. Hence theindustry would need some reprieve to avoidpaying GST on such transactions.

xiii. Current Exemptions as available under CST -Supply in transit in the course of Inter-statemovement and supply in the course of Importshould continue to be exempt as per the currentpractise specially in view of continuation of the 1%additional tax to be paid in the state of origin. Theproposed amendment of Article 286 of theconstitution seems to be step in the right direction.

xiv. Point of Taxation - Construction sector deals withsome typical issues like typical Bill Certificationprocess, mobilisation advances for the projects,system of security deposits, retention money, baddebts and levy of liquidated damages. All suchtransactions needs to be specially dealt with a viewto avoid excess discharge of GST directly orindirectly.

xv. Partial Reverse Charge - It is practicallyexperienced that a provision like partial reversecharge mechanism goes against the principals ofEase of doing business and hence needs to beavoided. The partial reverse charge for manpowersupply (till 1-4-2015) and for works contractservices has badly affected the construction sector.

xvi. Tax Deduction at Source - Construction Sector isprobably the only sector which is subjected to TDSeven under the Indirect Taxes like VAT. Sinceunder GST, all the supplies whether towards goodsor services is supposed to be treated similarly,


hence the provisions of TDS discriminatory to theconstruction sector should be discontinued.

SKILL DEVELOPMENT IN CONSTRUCTIONSECTOR

Government of India established National SkillDevelopment Corporation (NSDC) on 31st July 2008 asnot for profit company licensed under Section 25 of theCompanies Act, 1955. NSDC has targeted to train 150million people by 2022, out of incremental demand of240 million.

As mandated under NSDC's programme ConstructionIndustry need to form a Construction Skill Development

Council to establish occupation standards, operationsand delivery mechanism, certification and accreditationand Labour Market Information System (LMIS).Ultimately in a meeting held on 23rd August 2012 inthe office of Shri Ramadorai, the then Adviser to PrimeMinister on Skill Development and present Chairmanof National Skill Development Corporation,Construction Sector Skill Development aCouncil of Indiawas formed jointly by four Associations namelyBuilders' Association of India (BAI), ConstructionFederation of India (CFI), Confederation of Real EstateDevelopers Association of India (CREDAI), andNational Highway Builders' Federation (NHBF).Members of the Governing Council are as follows:-

Name of Member Name of Organisation

Shri Ajit Gulabchand Chairman from C.F.I.

Shri S.N. Subramanian C.F.I.

Shri B. Seenaiah President of BAI

Shri Sushanta Kumar Basu BAI

Shri Lalit Kumar Jain Chairman, CREDAI

Shri C. Shekar Reddy President, CREDAI

Shri V.C. Verma President of NHBF

Col. Surinder Kuda of

M/s. Ashoka Buildcon NHBF

Shri Niranjan Hiranandani Additional Industry Nominee

Shri Phillie Karkaria Additional Industry Nominee

Shri Devendra Choudhary,

Additional Secretary,

Ministry of Power Planning Commission Nominee

Shri J. Ganguly Additional Industry Nominee

Technical Adviser to be decided by Governing Council later.

Technical Adviser to be decided by Governing Council later.

Employment Scenario - 2022

Union Ministry of Skill Development andEntrepreneurships released a report about likelyemployment scenario by year 2022 in April 2015. Report

shows that 461 million people were employed in 24 majorsectors in 2013 and projected to grow to 591.70 millionpeople by 2022 i.e. increase of 30% in a years as detail isgiven in Table below :-

Sr. Name of sector No. of Percentage No. of people Percentage of Increase inNo. people of employed likely to be employed to employment

employed in to total in employed in total by 2022 percentagemillion in 2013 million by over 2013

2013 2022

1. Agriculture 240.40 52.30 215.60 37.30 -

2. Building Construction andReal Estate 45.40 9.90 76.60 13.20 55

3. Retail 38.60 8.40 55.70 9.60 50


LABOUR LAW MATTERS

(i) ESIC MATTER.

Employees State Insurance Corporation (ESIC) Scheme was applicable to employees engaged in the offices of the constructionagencies w.e.f. 14th January, 1999. The construction site workers were excluded from ESIC Scheme. However it was decided byESIC to extend the benefit of the ESIC Scheme to construction site workers in the implementable areas, w.e.f. 1st August, 2015

Employees' State Insurance Corporation (ESIC), Government of India, has made applicable with 1st August, 2015 the provisionsof the Employees' State Insurance Act, 1948 to the construction industry. We are giving below the ESIC Circular, salientfeatures of the ESIC and a comparison between ESIC Act and BOCW Act, for the benefit of our members/readers.

Sr. Name of sector No. of Percentage No. of people Percentage of Increase inNo. people of employed likely to be employed to employment

employed in to total in employed in total by 2022 percentagemillion in 2013 million by over 2013

2013 2022

4. Transportation andLogistics 16.70 3.60 28.40 4.90 57

5. Textile & Clothing 15.20 3.30 21.50 3.70 27

6. Education / SkillDevelopment 13.00 2.80 17.30 3.00 26

7. Handloom & Handicraft 11.70 2.50 17.80 3.10 50

8. Auto & Auto Component 11.00 2.40 14.90 2.60 26

9. Construction Material 8.30 1.80 11.00 1.90 24

10. Security 7.00 1.50 11.80 2.00 51

11. Food Processing 7.00 1.50 11.40 2.00 51

12. Tourisam, Hospitality &Travel 7.00 1.50 13.40 2.30 54

13. Domestic Help 6.00 1.30 10.90 1.90 75

14. Gems & Jewellary 4.60 1.00 8.20 1.40 70

15. Electronics & IT Hardware 4.30 0.90 8.90 1.50 100

16. Beauty & Wellness 4.20 0.90 14.30 2.50 300

17. Furniture & Furnishing 4.10 0.90 11.30 2.00 75

18. Healthcare 3.60 0.80 7.40 1.30 100

19. Leather & Leather Goods 3.10 0.70 6.80 1.20 100

20. IT & ITES 2.80 0.60 5.10 0.90 100

21. Banking & Finance 2.60 0.60 4.30 0.70 70

22. Telecommunication 2.10 0.50 4.20 0.70 100

23. Chemicals &Pharmaceuticals 1.90 0.40 3.60 0.60 100

24. Media & Entertainment 0.40 0.10 1.30 0.20 300

Total 461.00 100.00 591.70 100.00

From the figures it is to be noted that increasedproductivity in farm sector would render 24.80 millionfarm labour surplus, which will be absorb in construction- real estate, transportation, and domestic help sectors.Further construction sector will employ 76.60 million moreworkman by 2022 i.e. 56% more compare to 45.40 millionin 2013. Construction Industry therefore need to

concentrate more on skill training to improve productivityto bring down labour cost and wastages in material. Morethan 200% increase of employment in Tourism, Beautyand wellness, furniture & furnishing and entertainment,suggest that households by 2022 shall have higherdisposable income to spend on this sector.


EMPLOYEES STATE INSURANCE CORPORATIONPANCH DEEP BHAWAN', C.I.G ROAD,

NEW DELHI - 110 002Website - esic.nic.in Tel. (011) 23234092

ESICChinta S Mukti

No. P-12/11/11/60/2010-Rev.II dated 31/07/2015

To,

All Regional Director/Director I/c,/Joint Director l/c,ESI Corporation,Regional Office/Sub Regional Office

Sub: Extension of the ESI Scheme to Construction Site Workers-reg.

Sir,

In partial modification of Hqrs. Instruction No. 4/99 videa circular No. P-12(1l)- 1l/27/99-Ins.IV dated 14.06.1999,it is informed that it has been decided to extend the ESIScheme to the construction site workers deployed in theimplemented areas w.e.f 01.08.2015.

The Regional Directors/Director/Joint Director I/c areadvised to undertake measures as under:-

I) All the construction agencies which have alreadybeen covered u/s 1(5), their site workers also becovered and other construction agencies which maynow come under coverage by adding constructionsite workers.

II) The list of construction agencies/units coveredunder EPF may be obtained for survey.

III) List of construction units paying cess towardsConstruction Workers' Welfare Board and theconstruction workers registered for benefit underBuilding and other Construction Workers WelfareAct, 1996 be obtained and surveyed and the benefitsextended to such workers by board also asked for.

IV) The Office of the State Labour Authorities may beapproached for any supplementary information forsurvey and other benefits extended to such workers.

V) Due publicity by release of Press Note/Public Noticefor bringing awareness among the employers andemployees of their legal obligation for coverage ofconstruction site workers may be given apart fromholding interaction with the representative body ofthe employers/employees.

VI) During surveys, the details of workers with theirAadhar Card Number, RSBY Cards and BOCW ActRegistration Number may also be captured to theextent available.

VII) Pehchan Camps for capturing biometric and issueof Pehchan Cards/Aadhar Cards seeding may bearranged.

As it is to be ensured that all the construction workers areextended coverage by 31.12.2015, you are advised toundertake the above task by launching special drive andsubmit progress on fortnightly basis in the enclosedproforma to [email protected]

This issues with the approval of the Director General.

Encl: As above

Yours faithfully,

Sd(ARUN KUMAR)

ADDL. COMMISSIONER (Rev.)

Copy to:

1. PS to DG/FC/CVO/MC/AC (ICT) Hqrs. Office for kind information.

2. Director Finance / MSU.

3. Website Contents Management, Hqrs. Office, with the request to upload this instruction.

4. Hindi Cell for translation.


Addl. Commissioner (Rev.)

Immediately on receipt of the Circular, BAI represented the matter as under :-

Ref: 249/A/2015-16 dated August 26, 2015

Shri Guar HaridasRegional DirectorEmployees' State Insurance CorporationPanchdeep Bhawan,108 N.M. Joshi Marg,Lower Parel (West),MUMBAI - 400 013.

Respected Sir,

Sub: Newly introduced ESIC Act 1948, provision applicable to Construction Industry.

Builders’ Association of India (BAI) sincerely appreciateyou for calling BAI delegation to discuss about newlyimplemented ESIC provision to the Construction Industry.

For your kind information, Builders’ Association of India(BAI) is an apex all India body of EngineeringConstruction Contractors and Real Estate Companiesfounded in 1941, with more than 15,000 business entitiesas members through its 152 plus Centres (Branches)throughout the country. Regional Associations Affiliatedto BAI form indirect membership of more than 1,00,000.The fundamental aim of the Association is to bring aboutall round improvements in the construction sector, whilestriving towards resolution of operational as well as policylevel problems faced by the construction industry. Thisinvolves making efforts to obtain from policy makers andauthorities, the level of attention that the constructionindustry deserves in view of its tremendous contributionand importance to the economy.

We welcome the intention of the Government of India toextend social security benefits to the construction workersthrough BOCW Act, EPF & MP Act and now the ESI Act.But there are various issues affecting implementation ofthe act and whether the workers will be able to avail thebenefits available under the Act and whether there isduplicity of the benefits under ESI Act and the BOCWAct and other schemes of the Government:

1. ESI Act was extended to the construction industryin the year 1999 but workers at construction site werenot covered due to implementation problems in viewof the casual nature of their work and many of thesites are also in the non-implemented areas. Most ofthe workers do not work regularly and after workingat a site for few days they move on to other site inthe same area or different area or sometime even indifferent States at the mercy of the labour contractor.With this nature of job it would be difficult to extendthe provisions of the Act as they would not be ableto avail the benefits of ESI i.e. medical benefits tothem. Normally, construction workers come alone

from different areas and many of them from theremote areas where ESI facilities are not availablehence neither their family members nor they will beable to avail benefits even during correspondingperiod.

2. Review of a few provisions to claim benefits underthe ESI Act –

a) As per Section 1(5), one month notice isrequired to be given before extending theprovision of the Act to any establishment orclass of establishments.

b) As per regulation 11, an employee on joiningan establishment has to furnish the informationin Form I where he has to submit IdentificationCard, permanent and present address. It ismentioned that most of such employees do nothave Identification Cards with present address,or Adhaar card etc. It is difficult to registerthem. Their family stays in village hence evenmedical benefits are /cannot be availed bythem.

c) Regulation 14 requires that an employer haveto send the Declaration Form within 10 daysfrom the date particulars were furnished. Onreceipt of such declaration form the ESIC issueInsurance Number and return to the employer.Whole this process may take around 20 days,it is mentioned that many of employees do notwork for so many days hence will not able totake any advantage of these facilities.

d) Regulation 17 mentions that Identity Cards willbe given if an employee works for three monthsotherwise it is to be returned to the ESI Office.As stated above many of employees do notwork for three month continuously and eitherthey return to their native village or shift toother employers.


e) As per Rules 55, a person is entitled to claimsickness benefits during any benefit period ifcontribution for him is paid for not less than75 days during corresponding contributionperiod. Thus many of the employees inconstruction industry shall not be entitled toclaim sickness benefits;

f) Similarly, Rules 56 provides that womanemployee has to contribute for 70 days to claimmaternity benefits.

g) Regulation 4 provides for contribution andbenefit periods. It states that contributionperiod is 1st April to 30 September thencorresponding benefit period will start from 1st

January of the year following to 30th June andif contribution period is from 1st October to 31st

March then corresponding benefit period willstart from 1st July to 31st December. It meansmany benefits will start after six months’contribution and also continuous employmentto continue to avail benefits.

h) Section 87 to 91-A contains provisions forexemption of factories and establishments,exemption of persons or class of persons,exemption from one or more provisions of theAct. The purpose of addition of these Sectionsin the Act means that where the establishmentsare paying better benefits in comparison shouldbe exempted, or where the employees are notable to get benefits in view of their migratoryservices and families are not able to get benefitsdue to reasons should be exempted from theprovisions of the Act. Class of employees whoare not stable at one place can be exempted.

As explained above, job of construction siteworkers is temporary in nature and theycontinue to change their jobs from oneemployer to another and from one station toother and from one state to other hence wouldfall in the above category which needs to beexempted.

Duplicity With BOCW Act

Construction worker are also getting benefits under theBOCW Act which are similar to those provided under theESI Scheme. Some of the benefits provided byConstruction Welfare Board of Different States are givenhereunder :

Maternity Benefit: The women beneficiaries aregiven Rs.30,000 in lump-sum which is paid onmonthly basis @ of Rs. 5000 over a period of sixmonths i.e. three months prior to delivery and threemonths post delivery upto two children. In addition,an amount of Rs.1000 per month is also given for

nutritional supplement during the maternity periodof six months. This benefit is available upto twochildren.

Pension: On completion of 60 years of age of theworker, the monthly pension becomes payable @Rs.1000.

Advance for purchase of construction of house: TheBoard sanctions upto Rs.1,50,000 as advance for thispurpose.

Disability Pension: An amount of Rs.300 P.M. ispayable to a beneficiary who is permanently disableddue to paralysis, leprosy, cancer, TB, accident etc. inaddition to ex-gratia payment between Rs.1,00,000to Rs. 2,00,000 depending upon the percentage ofdisability.

Purchase of tools: An amount of Rs.5,000 is payableto the member for purchase of tools as financialassistance.

Payment of Funeral Assistance: An amount ofRs.15,000 is payable to the dependent/nominee ofthe deceased member for this purpose.

Financial assistance under Mukhya MantriShramik Samajik Suraksha Yojana on account ofdeath: An amount of Rs.1,00,000 is payable to thenominee/dependant in case of natural death andRs.5,00,000 in case of death during the course ofemployment at work place.

Medical Assistance: The Board may sanctionfinancial assistance to the beneficiaries who arehospitalized beyond four days, but upto a maximumperiod of one month in Government Hospitals, dueto accident or any disease, at the rate of two hundredand fifteen rupees per day in case of skilled workerand two hundred rupees per day in case of unskilledworker.

Financial Assistance for education: Children of themembers are to be given financial assistance forstudy purposes on the pattern of Labour WelfareBoard Scheme namely “Scholarship to the Childrenof Industrial Workers”. This scheme providesfinancial assistance between Rs.3000 to Rs.15,000annually starting from 1st class to Degree/Diploma.

Financial Assistance for marriage: An amount ofRs.11,000 each (Male member) is payable to themember who has completed 3 years of membershipof the Board for the marriage of 2 children.

Family Pension: In the event of death of a pensioner,50% of the pension is payable to the survivingspouse.

Health Insurance Scheme: Under this scheme,


BENEFITS TO BE PROVIDED BYWELFARE BOARD AS PER SECTION 22

a. Provide immediate assistance to a beneficiary in caseof accident;

b. make payment of pension to the beneficiaries whohave completed the age of sixty years;

c. sanction loans and advances to a beneficiary forconstruction of a house not exceeding such amountand on such terms & conditions as may beprescribed;

d. pay such amount in connection with premia forGroup Insurance Scheme of the beneficiaries as itmay deem fit;

e. give such financial assistance for the education ofchildren of the beneficiaries as may be prescribed;

f. meet such medical expenses for treatment of majorailment of a beneficiary or; such dependant, as maybe prescribed;

g. make payment of maternity benefit to the femalebeneficiaries; and

h. make provision and improvement of such otherwelfare measures and facilities as may be prescribed;

i. The Board may grant loan or subsidy to a localauthority or an employer in aid of any schemeapproved by the State Government for the purposeconnected with the welfare of building workers inany establishment.

Thanking you,

Yours faithfully,

MAHESH M. MUDDAHon. Gen. Secretary


annual insurance coverage of sum of Rs.30,000 onthe pattern of RSBY is available to the beneficiaryand his family with 5 members as a unit and thehealth coverage would include indoor expenses ofreputed public/private hospitals recognized by theHaryana Government. This scheme is being executedby the Director, ESI Health Care Department,Haryana. Under this scheme, the expenditureincurred is paid to the Director, ESI Health CareDepartment by the Board from its funds.

� Coverage of chronic diseases: A further HealthScheme for coverage of chronic diseases like cancer,AIDS, T.B. and heart diseases etc. has also beenintroduced and under this scheme beneficiary mayget self treatment or treatment for his/herdependents as indoor patients from public sectorhospitals and get medical bill reimbursed againstactual expenses but not exceeding Rs. 1,00,000 in ayear.

� Financial assistance under “Kanayadaan Scheme”:A new scheme namely “Kanyadan” has also beenintroduced under which Rs.51,000 as assistance formarriage of each daughter of the constructionworkers, would be given. This benefit is admissibleupto two daughters.

� Financial Assistance to the unregistered worker:An amount of Rs.1,00,000 is given to the unregisteredworker on account of his/her death on theconstruction sites only.

Note:-

(i) All financial benefits under different schemes willonly be admissible to the workers and their familymembers, if he/she has got registered after payingregistration fee of Rs. 25 once in life and furthercontribution of Rs. 5 P.M. by him/her at the time ofregistration. The worker may deposit Rs. 60 in lumpsum in a year at the time of registration.

(ii) All financial benefits under these rules other thandeath benefit and medical assistance for accidentshall become payable only after one year of a personbecoming member of the Fund.

It is to bring to the notice that benefits under theBOC Act are easy to avail with just payment of Rs.5per month by the worker and employers contributea huge amount equivalent to 1% of total contractvalue. This amount works out to more than the ESIcontribution payable by employers and employees.

The workers as well as employers should not beburdened with additional liabilities for similarfacilities. Even if ESI is to be extended to constructionworker the contribution should be paid thru the BOCcess. Whole Scheme of benefits should be mergedinto one Scheme specially framed for constructionworkers instead of extending ESI Scheme where itis difficult to avail benefits.


Comparative benefits of Employees State Insurance Act, andBuilding and Other Construction Workers'

(Regulation and Employment and Condition of Service) Act, 1996.

Employees State Insurance Act, 1948

ESIC -A Complete Social Security Organization

It may be noted that the Employees' State InsuranceCorporation is a complete and pioneer Social SecurityOrganization. The additional covered workers as wellas already covered workers of ESIC get the followingbenefits being provided by the ESI Scheme:-

1. The Sickness Benefit is paid to the insuredperson at the rate of 70% of the average dailywages up to 91 days in two consecutive Benefitperiods.

2. The extended sickness benefit is admissible atthe rate of 80% the average daily wages for 124days during a period of two years, extendable upto two years on medical advice.

3. Under the disablement benefit, the insuredperson who becomes disabled due to employmentinjury is paid 90% of the average daily wages aslong as temporary disablement lasts . Forpermanent or total disablement, 90% of theaverage daily wages is paid for whole life andfor permanent partial disablement; the InsuredPerson is paid proportionate to the loss of earningcapacity as determined by the medical board.

4. Dependents' benefit is paid at the rate of 90% ofthe average daily wages sharable in f ixedproportion among all dependents if the insuredperson dies of death due to employment injury.This is payable to the widow for life or until herre-marriage and also to the dependent childrentill the age of 25 years and also to the dependentparents, subject to conditions. In an endeavourto reach out to the beneficiaries and make thesystem more customer friendly, long-termbenefits such as Permanent Disablement andDependents Benefits are being credited to thebank account of the beneficiaries through ECSSystem.

5. The Maternity benefit is paid at the rate of 100%of the average daily wages up to 12 weeks in caseof confinement, up to 6 weeks in case ofmiscarriage. This can be extended by one monthon medical advice in case of sickness arising outof pregnancy, confinement and miscarriage.

6. Medical Benefit which provides 'Reasonablemedical Care' (from primary OPD services,

Building and Other Construction Workers' (Regulationand Employment and Condition of Service) Act, 1996.

a) Provide immediate assistance to a beneficiary in caseof accident;

b) Make payment of pension to the beneficiaries whohave completed the age of sixty years;

c) Sanction loans and advances to a beneficiary forconstruction of a house not exceeding such amountand on such terms and conditions as may beprescribed;

d) Pay such amount in connection with premia forGroup Insurance Scheme of the beneficiaries as itmay deem fit;

e) Give such financial assistance for the education ofchildren of the beneficiaries as may be prescribed;

f) Meet such medical expenses for treatment of majorailments of a beneficiary or, such dependent, as maybe prescribed;

g) Make payment of maternity benefit to the femalebeneficiaries; and

h) Make provision and improvement of such otherwelfare measures and facilities as may be prescribed.


In-patient secondary services to Super SpecialtyServices) for self and family from day one ofentering insurable employment which continuestill the insured person remains in insurableemployment. Treatment is provided throughAllopathy and AYUSH system of medicines. ESICDispensaries and Hospitals are providing thenecessary medical treatment.

7. Medical Benefit is also extended to the widow/spouse of the deceased/ retired/ superannuatedInsured Persons as well as to the widow/spouses of Insured Persons who ceases to be inan insurable employment on account ofpermanent disablement, and also to the widowsof Insured Persons who are in receipt ofDependent's Benefit.

8. Other Benefits include confinement expenses foran Insured Woman or an IP in respect of his wifein case confinement occurs at a place wherenecessary medical facilities under ESI Schemesare not available, for which Rs. 5000/ is paid upto two confidents only.

9. Rs. 10,000 is paid as Funeral expenses in case ofdeath of an insured person.

10. Vocational training in case of physicaldisablement due to employment injury for whichthe actual fee charged or Rs. 123 per day,whichever is higher is paid as long as thevocational training lasts.

11. Un-employment Allowance under RGSKY ispayable in case of involuntary loss ofemployment due to closure of factory,retrenchment or permanent invalidity due to non-employment injury and contribution for threeyears prior to the loss of employment, 50% theaverage daily wages is payable for a maximumperiod of twelve months during life time. UnderRGSKY, in case of involuntary loss ofemployment, skil l upgradation training isprovided for duration of maximum 6 months, sothat the IP can enhance his skill and opt for otherjobs.

12. In order to encourage employment of disabledpersons, the employers' share of contribution inrespect of such disabled employees is paid by theCentral Government for initial three years.Permanently disabled persons working infactories and establishments covered under ESIAct and drawing wages up to Rs. 25,000 permonth have been brought under the schemew.e.f.1.4.2008.


BAI in its Managing Committee Meeting held at Mumbai on 12th September 2015 authorised Madurai Centre to file WritPetition against ESIC. As directed by BAI Heqd Qurter BAI Madurai Centre filed a Writ Petition in Madurai Bench of MadrasHigh Court and obtained 'ad interim' stay. Affidavit filed by Chairman, BAI Madurai Centre and Hon'ble High Court's orderdated 21st September, 2015 is reproduced herein below.

BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT(SPECIAL ORIGINAL JURISDICTION)

Monday, the Twenty First day of September Two Thousand FifteenPresent

The Hon'ble Mr. Justice T.RajaWP (MD) No. 16996 of 2015An MP. (MD). No. 2 of 2015

M. SELVAKUMARCHAIRMAN -MADURAI CENTRE, BUILDERSASSOCIATION OF INDIA, NEW NO. 7/C53,THE RUNAVUKKARASAR STREET, ALAGAPPAN NAGAR,MADUAI - 625003. ....PETITIONER/PETITIONER

Vs.1. EMPLOYEEES STATS INSURANCE

CORPORATION, REP - BY ADDITIONAL COMMISSIONER (REV)PANCHDEEP BHAWAN, CIG ROAD, NEW DELHI - 110002.

2. THE REGIONAL DIRECTOR,ESI CORPATION, MADURAI, REGION, MADURAI .……RESPONDENTS/RESPONDENTS

Petition praying that in the circumstances stated thereinand in the affidavit filed therewith the High Court will bepleased to issue a WRIT OF CERTIORARI to call for therecords relating to the impugned notification No. P-12/11/11/60/2010-Rev. II dated 31.07.2015 passed by the 1strespondent and quash the same and pass such orders asthis Hon'ble Court in W.P (MD). No. 16996 of 2015 and

ii) to stay the operation of the impugned order notificationNo.P-12/11/11/60/2010-Rev. II dated: 31.07.2015 passedby the 1st respondent (MP-MD) No. 2 of 2015) pendingdisposal of the above WP. (MD). NO. 16996 of 2015respectively,

ORDER : These petitions coming on for orders uponperusing the petition and the affidavits filed in supportthereof and upon hearing the arguments of M/S.T

ANTONY ARULRAJ, Advocate for the petitioner in boththe petitions and of Mr. K.C. Ramalingam, Advocate takesnotice for respondents in both, the petitions, the courtmade the following order :-

Mr. K.C. Ramalingam, takes notice for respondents. Athis request post after four weeks.

In the meantime, status quo to be maintained.

Sd21/09/2015

/ TRUE COPY /

Sub - Assistant Registrar (C.S.)Madurai Bench of Madras High Court,Madurai - 625023.

TO

1 Employees States Insurance Corporation, Rep. By Additional Commissioner (Rev) Panchdeep Bhawan, CIGRoad, New Delhi - 110002

2 THE REGIONAL DIRECTOR, ESI CORPORATION, MADURAI REGION, MADURAI.

+1. C.C. to M/S. T. ANTONY ARULRAL Advocate SR. No. 55547

sm : NGM : 22.09.2015:2P/4C


ORDERSINWP (MD) NO. 16996 OF 2015Date: 21/09/2015

BAI delegation meets Secretary, Union Ministry of Labour & Employment

A BAI delegation led by Mr. Lal Chand Sharma, President,BAI called upon Mr. Shankar Aggarwal, Secretary,Ministry of Labour & Employment, Government of Indiain his Office at Shram Shakti Bhawan, Rafi Marg, NewDelhi on Friday, 9th October 2015, to apprise him aboutthe difficulties of implementing Employees StateInsurance Scheme (ESIC) Scheme to construction siteworkers. Other members of the delegation were : Mr. Ch.Ramakotaiah, State Chairman, BAI Andhra Pradesh; Mr.Arun Sahai, State Co-ordinator, BAI Delhi; Dr. Anand JGupta, Official Spokesperson, BAI; Mr. Naresh Aggarwal,Past State Chairman, BAI Uttar Pradesh; Mr. PrashantAmbalgekar, Vice-President-Human Resources, M/s B.G. Shirke Construction Technology Private Limited(BGSCTPL); Mr. Jayananda Das, M/s AfconsInfrastructure Ltd.; Mr. Raju John, Executive Secretary,BAI and Mr. Satnam Singh Arora, Executive Officer, BAIDelhi Office.

Mr. Ch. Ramakotaiah explained about the practicaldifficulty faced by the contractors, in complying with thenotification of ESIC issued on 31st July covering theconstruction workers in the scheme with effect from 1stAugust 2015. Mr. Ramkotaiah appreciated the intentionof the Government to cover all sectors of workers in thesocial security scheme and assured the support of BAI.He then formally submitted a representation (printedherein below) to Mr. Shankar Agarwal detailing aboutthe impracticability of implementing the provisions of thescheme to construction workers, who are generallymigratory agricultural workers, searching for temporaryemployment during offseason and their small durationof stay at a construction site. It was highlighted thatconstruction site workers were exempted from the ESICcoverage as per Notification issued in 1999 and that thereis no change in the ground reality que increase in ESICHospitals / Dispensaries / Health Centre, warranting theESIC Department to cover construction site workers byissuing Circular on 31st July 2015.

Mr. Shankar Aggarwal while appreciating the concernsof the construction contractors in implementation part ofthe ESI Scheme informed that his ministry is mooting theidea of using the UAN allotted to the construction workersfor depositing the EPF amount for taking the benefitavailable under the BOCW Cess Scheme and ESIC Schemeas well. Once the employees are enrolled under the EPFScheme, he / she will not be required to register underthe other schemes. As regarding the list of non-implemented areas under the ESIC scheme, he informedthat after 31.03.2016 the ESIC Scheme will be covered in

all the areas of the country.

Mr. Prasant Ambulgakar, while endorsing the viewsexpressed by Mr. Ramkotaih also explained in detail aboutthe working of the construction site, where the numberof workers constantly fluctuate or varies as per therequirement of the nature of work. This will createuncomfortable situation with the ESI Inspectors, who havealready started visiting the construction sites seekingvarious records with threat of penal actions. He reiteratedthe practical difficulty of covering the constructionworkers due to the absence of them having no residentialproof at the work place. He also stated that, workersthemselves are not keen to join the scheme as there is asmall contribution to be made from their side and theyare not sure about the benefits reaching to them.

Mr. Naresh Aggarwal informed that contractors are beingharassed by the EPFO and BOCW Board for registrationof the construction workers and by announcement of ESICAct for the construction site workers from 01.08.2015, onemore department has been added to that list. He informedthe Secretary that it is well known fact that theconstruction worker is not interested in the EPFO orBOCW or ESIC because they are not ready for anydeductions from their wages on any account, whatsoever,and they want their wages in full. In the absence ofconstruction workers not coming forward for thededuction from his / her share from their wages, it willnot be possible for the contractor to get them coveredunder the scheme of EPF and ESIC. He further suggestedto the Secretary that Government of India should comeout with a comprehensive scheme where all thedeductions on account of contractor's share under EPF &ESIC scheme be deducted at the time of releasing thepayment of running bills as is being done in the BOCWAct under which 1% is deducted at source from the bills.While appreciating the idea, Mr. Shankar Agarwalsuggested the delegation to put up the proposal for theirconsideration. Mr. Shankar Aggarwal also made it veryclear that the Government of India is committed toimplement this ESIC Scheme to the construction workers.

Dr. Anand J. Gupta, while concluding BAI's presentationappreciated Mr. Shankar Agarwal for his accommodativeapproach and assured him that, BAI will submit acomprehensive proposal of combining all social welfareschemes for construction workers into one Act, which willbe beneficial for all stakeholders and also devising amechanism of deduction of amount payable by acontractor from source.


Ref: 314/O/2015-16 dated October 7, 2015Mr. Shankar Aggarwal, Secretary (L&E)Ministry of Labour and Employment,Government of IndiaRoom No. 104, Shram Shakti BhawanRafi Marg, New Delhi-110001Dear Sir,

Sub.: Representation for implementation of Employees' State Insurance (ESI) Act into construction site.

Builders' Association of India (BAI) is an apex all Indiabody of Engineering Construction Contractors and RealEstate Companies founded in 1941, with more than 15,000business entities as members through its 152 plus Centres(Branches) throughout the country. Regional AssociationsAffiliated to BAI form indirect membership of more than1,00,000. The fundamental aim of the Association is tobring about all round improvements in the constructionsector, while striving towards resolution of operationalas well as policy level problems faced by the constructionindustry. This involves making efforts to obtain frompolicy makers and authorities, the level of attention thatthe construction industry deserves in view of itstremendous contribution and importance to the economy.

CONTEXT:

E.S.I. Act was earlier not applicable to "construction siteworkers", but are covered from 31st July 2015. UnderSection 1(5) of the Act, treating construction entities as"Commercial Establishment". Accordingly, acommunication by way of "NOTICE TO EMPLOYERS"was issued on 31st July 2015, vide No.P-12/11/11/60/2010-Rev.II (copy enclosed).

ISSUES :

i) We attract your kind attention to the guideline issuescirculated vide your letter No.p-12(11)-11/27/99-Ins.TV dated 14th June, 1999 wherein employees ofconstruction industries were not covered forimplementation of ESI Act for the reasons mentionedis as under :

Quote

…….It has been the policy of the ESI corporation not to coverthe workers engaged by the construction agency who belong tothe unorganized sector due to the peculiar characteristics of theconstruction industry and the peculiar nature of employmentof workers engaged in it. In construction industry the work iscarried out through the construction workers at the constructionsites where the projects are situated. The workers engaged in itare mobile and migratory in nature. The criteria and durationof employment also vary from work to work. Due to the natureof employment and the nature of work place involving theconstruction workers enforcement of ESI Act in respect of suchworkers and organizing Medical and other facilities for themwhich are normally available under the ESI Schemes will bedifficult.

ii) The construction agencies are deployed at differentsites as Contractors & the major criteria is thecoverage of Principal Employer. As per sec 40 of ESIAct (quote) "Principal Employer to pay Contributionin the first instance", therefore the main intention ofthis provision is the Coverage of the principalemployer & if he is not covered then how come thecontractor i.e Immediate employer can be coveredunder the provisions of the Act. Conversely if theprincipal employer is exempted then definitely theimmediate Employer employed in the premises shallbe exempted. In the case of new Factory constructionthe Principal Employer shall be covered only on thestart of Manufacturing Process (if it is not anexpansion of existing factory) & therefore in case ofdefault by the immediate Employer duringConstruction who shall be held responsible?

iii) The ESIC is covering the Construction agencies officeunder the category of "SHOP" whereas the agenciesConstruction site offices do not come under thedefinition of "SHOP" as they do not fall under the"SHOP & COMMERCIAL ESTABLISHMENT ACT".Therefore the agency Office & construction Site aredifferent set of establishment which cannot beclubbed together but are distinct from one another.Thus for covering them by circular & treating as Oneis neither justified nor legal. Further the "ESTABLISHMENT" is not defined under ESI Act &as per Sec 2(24) ESI Act " all other words &expressions used but not defined in the Act &defined in the Industrial disputes Act,1947 shall havethe meanings respectively assigned to them in theAct".

iv) It will kindly be appreciated that Construction siteswere covered under BOCW Act & this being asubsequent legislation for the health, safety &welfare benefits pertaining to Building /Construction workers the provisions of the said Actwill override the provisions of Other Acts whereverthere arises a conflict & interpretation. It is a clearprinciple of Legal Jurisprudence that where thestatute provisions are very clear & there are nochances of interpretation then in that eventuality theprovisions of that Act shall prevail irrespective ofany beneficial interpretation which may be put to itas the court cannot exercise their own interpretationin such matters. In other words when the Objects &


Ref: 445/D/2015-16 dated December 17, 2015Shri Shankar AggarwalSecretary (L&E)Ministry of Labour and EmploymentGovernment of IndiaRoom No.104, Shram Shakti Bhawan,Rafi Marg,NEW DELHI - 110 001

Respected Sir,

Sub: BAI delegation's meeting with you at your office on 15th December 2015 and BAI's proposal on combining ESIC and BOCW Act.

reasons of the BOCW Act clearly lays down at pointno (viii) (quote) "Application of WorkmenCompensation Act, 1923 to building & otherconstruction Workers". Thus there cannot be twointerpretations of as the Legislature thought it fit tocover building & other construction Workers underworkmen Compensation Act & not otherwise.

v) Double jeopardy

a) The BOCW Act, as per section 58, clearly laysdown that the Building workers shall becovered under Employees compensation Act.Therefore when the mandate of the Act is veryclear how come they be covered under E.S.I.Act without issuance of any Notification in theGazette or an amendment in the E.S.I. Act.

Under schedule II of Employee CompensationAct list of persons who subject to the provisionsof [Sec 2(1) DD)] are included in the definitionof [Employee] who (viii) employed in theconstruction, maintenance, repair ordemolition of---(c) any road, bridge, tunnel orcanal or --

b) The BOCW Welfare Cess Act lays down thepayment of Cess for corpus to be maintainedfor welfare Board. Thus when the Buildingworkers are to be covered under ESI Act thenfor what purpose the Cess remains & for whatpurpose, the welfare Board would be requiredto collect the money because the workers wouldbe entitled for benefits under ESI Act Furtherthe question arises that the statute passed byan Act Of Parliament would be subrogated byissuance of an Circular.

Whether the practise of Registering the Building workerswould be continued or there shall be no more Registrationunder welfare Board. If that be the case then what purposewould be served by welfare board & how come thebenefits would be passed on by the Welfare Board to theBuilding Workers in view of bar under Section 61 of ESIAct.

By implementing the ESI Act to the Construction siteworkers whether it would not amount to taxing theEmployer twice in the same Contract on one sideEmployer has to bear the levy of cess on him which shouldbe not more than 2% of the Cost of production (which isenormous) & on the Other would have to bear additionalcost @ 4.75% towards Employer share of ESI.

We would also like to bring to your kind notice that someof our sites are stretched in long in area of 60 to 70 kms.and some portion of it is under implemented and some isunder non-implemented area or covering different Statesas in case of Highways. therefore implementation of ESIAct covering complete site will not be possible and therewould be double standard of wages to the workers whichwill not be appreciated by workers.

PRAYER :

There is no change in construction practice from 14.6.1999till 31.7.2015 in as much as each of construction activitiescontinues to be outsourced by main contractor. There isno change in E.S.I. facilities to workers from 1999 till date.E.S.I. Hospitals continue to be few and at selected places.There are only 140 E.S.I. dispensaries and 1017 virtuallynon functional panel clinics in 588 districts covering entirecountry except State of Jammu & Kashmir. In view ofabove, simply adding word "construction site" does notserve purpose or intention of the Act. In view of above, itis humbly prayed that the implementation of ESI Act tothe construction site workers should be thought throughonce again and the judicious advice may please be givenin the matter.

Thanking you,

Yours faithfully,




At the outset, we express our sincere thanks to yourinitiative of covering more construction workers in theSocial Welfare Scheme of the Government.

In this regard, we also acknowledge your agreeing toexplore the possibility of merging the Labour Cessdeduction and ESI contribution as a consolidated andcombined deduction towards the social security for theconstruction workers and their families. In this regard,we have personally handed over the enclosedrepresentation to you for kind consideration.

We sincerely hope your initiative not only cover more

construction workers in the Social Welfare Scheme butalso will be a big relief to the Construction Industry.

Thanking you,

Yours faithfully,

RAJU JOHNExecutive Secretary


Copy to:Shri Heeralal Samariya, IASAdditional Secretary,Ministry of Labour & EmploymentGovernment of IndiaRoom No.110, Shram Shakti Bhawan, Rafi Marg, New Delhi - 110 001

Ref: 407/D/2015-16 dated December 5, 2015Shri Shankar Aggarwal, Secretary (L&E)Ministry of Labour and Employment,Government of India,Room No. 104, Shram Shakti BhawanRafi Marg, New Delhi-110001

Respected Sir,

Subject: BAI's proposal on combining ESIC and BOCW Act.

Ref: Our meeting with you on at your office at Delhi on 9th October 2015with representation - 314/2015-16 dated October 7, 2015)

Builders' Association of India (BAI) is an apex all Indiabody of Engineering Construction Contractors and RealEstate Companies founded in 1941, with more than 16,000business entities as members through its 152 plus Centres(Branches) throughout the country. Regional AssociationsAffiliated to BAI form indirect membership of more than1,00,000. The fundamental aim of the Association is tobring about all round improvements in the constructionsector, while striving towards resolution of operationalas well as policy level problems faced by the constructionindustry. This involves making efforts to obtain frompolicy makers and authorities, the level of attention thatthe construction industry deserves in view of itstremendous contribution and importance to the economy.BAI is completing a journey of 75 years, and celebratingas 'Platinum Jubilee' year during 2015-16.

At the outset, we sincerely appreciate your patient hearingon the impracticality of implanting the new provision ofESIC introduced in construction industry and as discussedwe hereby submit our humble representation for kindconsideration.

A notice dated 31st July 2015, of ESIC Corporationadvising all the Construction Industry to coverconstruction worker under the purview of ESI Act within24 hrs. wef. 1st August 2015 resulted in confusion and theentire construction industry got clueless due to sucharbitrary decision of the ESI Corporation.

As you know that the Construction industry does notobject the well being of construction workers and doesnot oppose for providing the Social security to them.However the Industry looks forward to bring simplicityin the implementation of the Act resulting in coveringmaximum construction workers without any hassles anddifficulties to all the concerned and in this context entireconstruction industry fraternity through BAI (BuildersAssociation of India) had a series of meetings internallysubsequent out meeting with on 9th October 2015 at yourChamber in New Delhi.

During the said meeting with your good self, it wasexplained that Construction industry being prudentemployer does not have any objection in enrolling


The Working :

A B C D E F G

Contract Labour Eligible 85% of Wages for Employer's Employee'sValue Cost strength for Labour Cost computation ESIC ESIC

PF/ ESIC i.e. on B 15% of ESI contribution contributionOver heads &

Profit

15% 75% (25% 12.75% 100% 4.75% of D 1.75% of Demployees are AllHigh-skilled componentscategory and of salaries.

out of purviewof PF/ESIC

1. Employer's ESIC contribution :

12.75% x C x F = 0.45%

Total A - Employer's Contr. = 0.45%

2. Employee's ESIC contribution :

12.75% x C x G = 0.17%

Total A - Employee's Contr. = 0.17%

Total Contribution = A + B = .62%

ESI & BOCW ACT

The employers are making provisions for labour cess asper the provisions of the Act

(1% of the contract value deducted at Source) and co-operating / supporting Govt. in their endeavour ofproviding social security to these Construction workers.

The existing labour welfare schemes, BOCW Act and ESICAct are overlapping and the benefits, facilities under theBOCW Act are similar to those provided under the ESIScheme for Construction workers. Therefore, we suggestthat either one of these two Acts to be implemented andthe simplicity to be brought in implementation.

The statistics, facts and figures shows that the actualnumber of beneficiaries under BOCW Act are extremelylow hence dis appointing .In short and the cess beingcollected is un utilized .The cess amount therefore is lyingidle and un-utilized .

In view of above we propose to merge Labour Cessdeduction and ESI and provide .60% ( Negotiable ) as aconsolidated and combined deduction towards theSocial security for the Construction workers and theirfamily

By adopting this system there will be following benefitsparticularly to ESIC

construction workers under ESIC Act, however theworkers being unorganized and mobile in nature do notpay any heed to efforts or instructions of the employerresulting in poor response to our efforts and the activitiesof Employer go waste and are futile.

Therefore , with a view to find a better way it wasdiscussed and agreed that BAI to submit a proposal toCentral Government which will club / merge thededuction under all the Social securities Act viz. PF, ESIand BOCW (Labour cess).

In view of the discussion during the meeting in your officeit was proposed to send a combined proposal for the PF ,ESI and BOCW ( Labour Cess ) to bring simplicity ,however while working out the proposal of combining/ clubbing these PF , ESI BOCW Acts at this juncture weencountered many Operational and Administrative

difficulties in clubbing PF in particular

Therefore to initiate the activities we propose to clubthe ESI & BOCW and once the ESI / BOCW system isstreamlined the PF can be clubbed.

The following is our proposal.

The proposal:

1. All the Construction Workers to be covered underESI Act.

2. ESI and BOCW to be clubbed together as theobjectives and benefits of both the Acts are thesimilar and overlapping Initially

3. The deduction @0.60% (Negotiable) to be done atsource based on Contract value


1. Assured revenue for the ESIC.

2. Ease of collection of ESI amount, deduction being atsource.

3. No deduction from the workers (who always resistthe deduction)

4. The Staff of the ESI Corporation can concentratemore on the utilisation of Funds collected rather than

on the collection & recovery as collection will besimplified and automatic.

5. ESIC can put full efforts in ensuring that there aremaximum beneficiaries and proper health care isprovided to as many construction workers aspossible.

The Proposed the Role and Responsibilities

ESI/ BOCW :

Activity Employer Government Worker

Registration Opt for the Code Approve or issue the Code -

Contribution Provide Contract value duly Deduct 0.60% of Contract -certified by the Competent value.Authority

Worker Provide details of worker Provide number to Worker or Provide basic details toRegistration currently working with them issue Identity Card (Pehchan Employer.

for Pehchan Card. Card) within 8 days.

The Employer will maintainall such records and registersas are required under thescheme

Right to appeal to Employees'Insurance Court in case of anydisputes

Benefits Certify the status (Currently Provide all the benefits to the Submit details forworking ) of worker availing ESIC member. availing the benefits.the benefits under ESIC.

Coverage of Provide basic data to Govt. Visit Sites to cover all the Provide all basicworkers workers under ESIC. details.

We are sure the Government will accept the proposal in the wider interest of all the concerns .

With a view to bring simplicity in the implementation the Act, and make the ESI applicability more meaningful andeffective entire construction industry fraternity through BAI (Builders Association of India is always open for anysuggestions and changes in our proposal.

Looking forward for your favourable reply from your end.

Thanking you,

Yours faithfully,




ESIC wasted Rs 10,000 cr by starting 22 medical colleges: CAG

The colossal waste of public funds is also because the ESICdiverted from its core mandate of providing medicalservices through its network of ESI hospitals, dispensariesand diagnostic centres, and instead focused on setting upmedical colleges, the CAG has pointed out.

The labour and employment ministry-controlledEmployees’ State Insurance Corporation (ESIC) fritteredaway about Rs 10,000 crore in setting up 22 medicalcolleges, the Comptroller and Auditor General (CAG) hasobserved in a report on the government agency.

The Special Audit of Medical Education Projects of ESICreport is in its final stages and is expected to be tabled inthe next Parliament session. A top government source saidthe exit conference procedure, where the ESIC wasprovided an opportunity to discuss the audit findings andto clarify any likely doubt, is also complete.

The colossal waste of public funds is also because the ESICdiverted from its core mandate of providing medicalservices through its network of ESI hospitals, dispensariesand diagnostic centres, and instead focused on setting upmedical colleges, the CAG has pointed out. The report saidthe wrong selection of sites for the colleges resulted in thefacilities and expensive equipment lying unutilised amidmounting maintenance costs.

Medical colleges were set up in Gulbarga (Karnataka) andMandi (Himachal Pradesh), which did not even qualifyfor 500-bed hospitals. “A 500-bed hospital requiresminimum four lakh insured persons as per ESIC norms.Mandi and Gulbarga had 41,000 and two lakhrespectively,” the source added.

Amid the ESIC’s deteriorating health facilities, lack ofhospitals, scarce beds and shortage of doctors andspecialists, the organisation was flush with funds.

“In 2009-10 and 2012-13, ESIC transferred Rs8,000 crorefrom ‘Surplus’ to ‘Capital Construction Reserve Fund’...Spending less on providing core services (medical benefitsand cash benefits) and using accumulated surplus formedical education (construction of medical colleges) is anissue of concern,” the CAG said.

Nor could ESIC utilise the services of its PG medicalstudents despite taking a service bond of five years.

ESIC has admitted that the reason for the low occupancyof its hospitals was shortage of manpower and health careservices being rendered.

For 2008-09 to 2012-13, while the number of insured peopleincreased by 56 lakh, the number of beds actually wentdown by 488. Also, for the same period, while the capitalexpenditure on construction of hospitals, dispensaries,medical/paramedical/nursing college, etc., increased from

Rs 214 crore to Rs 1,671 crore, the shortage of beds increasedfrom 55% in 2008-09 to about 70% in 2012-13.

CAG’s suo motu action to audit ESIC’s medical educationactivity was started after an audit submitted in Parliamentin December 2014 reported glaring irregularities.

On being contacted by HT, secretary of the ministry oflabour and employment refused to comment.

The ESIC is an apex corporate body that operates theEmployees’ State Insurance Scheme (ESIS), which is anintegrated social security scheme providing protection toworkers and their dependents in the organised sector incontingencies such as sickness, maternity and death ordisablement due to occupational disease. Currently, about186 lakh workers, or 67% of the country’s organised sector,is covered by it.

(ii) PROVIDENT FUND.

Brief Report of the Orders passed by the Delhi HighCourt in the LPA – 728/2014 filed before the Bench in theEPF Matter, against Order dated 28th August 2014delivered in CWP No.3588/2002 (Order dated 16.10.2015)

Builders’ Association of India – Delhi Centre filed an LPA728/2014 before the Double Bench of High Court of Delhiagainst the Orders of dated 28th August 2014 in the matterof C.W.(P) 3588/2002 on the applicability of EPF on casual/ temporary construction workers.

The C.W.(P) - 3588/2002 was in continuation of the W.P.(C)No.792/1991 : Pyare Lal Hari Singh v/s. Union of India &Ors. Vires of para 26(2) of the Scheme was challenged andamongst others, one ground of challenge was that thescheme as amended by para 26(2) was unworkable. Theunworkability of the scheme was predicated on the groundthat in the construction activity many workers work forone or two months with an employer and then move on toanother. The query was posed how would portability ofthe workman be accounted for when the benefit of theamount deposited by the employer in the fund would berequired to be paid to the workman? An ancillary issueconcerning Scheme 2(f) of the employees Provident Fundand (Miscellaneous) Provisions Act, 1952 was also raised.

The main apprehension which was raised in the CWP-792/1991 about the facility to be made available to the workmanfor withdrawing/checking balances etc. On the directionsof the Court to amend the scheme, various options withregard to the applicability of the scheme i.e. issue of passbook/affixing of stamps/ grant of 10 digit permanentaccount no. etc. were discussed during the pendency ofmatter in the court. During the proceedings, on 2nd May1995court ordered

“We however, direct that on respondents 1 & 2 complying


with the modified scheme the petitioner shall deduct theprovident fund and deposit the same with the respondents1 & 2 in respect of casual workers also.”

The main prayer of the CWP-3588/2002 was to pass on thedirections on the Respondents to evolve the scheme ,directed by the Court so that the petitioners startsdeducting the EPF of construction workers and depositthe same.

LPA – 728/2014 filed before the Double Bench of Delhi HighCourt with the following prayer :-

a) Set-aside the impugned Judgement of 28.08.2014passed by the Ld. Single Judge in CWP No. 3588 of2002.

b) Allow the writ petition bearing WPC No.3588 of2002 and grant prayer (e) thereof in favour of theAppellants;

Justice Shri Pradeep Nanarajog & Justice Ms. MuktaGupta delivered the orders on Friday, 16th October 2015 inthe LPA . Summary of the orders given hereunder :-

By a notification dated September 17, 1964 establishmentsof Engineers, Engineering Contractor which were notexclusively engaged in building and construction activitywere brought within the purview of the EmployeesProvident Fund and (Miscellaneous) Provisions Act, 1952.By a subsequent notification dated September 23, 1980, thebuilding and construction establishments were alsobrought within the purview of the Act with effect fromOctober 31, 1980. By a notification dated November 01,1990, Para 26(2) of the Provident Fund (Miscellaneous)Provisions Scheme, 1952 was amended. The amendmentreads as under:-

“After this paragraph come into force, in a factory or otherestablishment, every employee employed in or in connection withthe work of that factory or establishment other than excludedemployee who has not become a member already shall be entitledand required to become a member of the fund from the date ofjoining the factory or establishment.”

A writ petition was filed in this Court which was registeredas W.P.(C) No.792/1991 : Pyare Lal Hari Singh vs. Union ofIndia & Ors.Vires of para 26(2) of the Scheme waschallenged and amongst others, one ground of challengewas that the scheme as amended by para 26(2) wasunworkable.

The Division Bench of this Court before which the writpetition was listed took note of the fact that the scheme asamended would not entail any benefit to the workman whowould work for a few days at one place under oneemployer and then move on to another and thereafteranother followed by another and so on, because there wasno mechanism to track the workman and additionally theworkman would have no logistics to withdraw the money

lying in the fund in his name. On November 27, 1991 anorder was passed which brings out an attempt made toresolve the issue with reference to the suggestion by theEmployees Provident Fund Commissioner that a pass-bookcould be issued in the name of the employee in which theamount credit in his name in the fund by the employercould be entered by the employer and withdrawal couldbe permitted from any place.

Additional affidavit has been filed but in our opinion the problemis not tesolved. Merely having a pass-book will not serve anyuseful purpose because in the very nature of things a migrantlabourer goes from the place to the other and there is no solutionas to how and from where the migrant labourer would be able towithdraw the money due to him. These and other related problemsshould be considered and a more detailed and an effective proposalfor a scheme should be presented to the Court on the next date ofhearing.Adjourned to 20th January, 1992. Interim orders tocontinue. A copy of the order be given dasti to counsel for therespondents.”

Another affidavit was filed thereafter by the ProvidentFund Commissioner setting forth the proposals by theauthorities to put in place a working mechanism for theemployee to avail the benefit of the amount credited in hisname in the fund by different employers under whom theworkman worked from time to time. Reflecting thereon,on May 19, 1992, the Division Bench passed another orderwhich reads as under:-

Mr.Mukherjee states that an affidavit has been filed givingproposed revised accounting procedure in respect of workersengaged in building and construction industry. The saidadditional affidavit is, however, not on nor record but duringthe course of hearing a copy of the same was made available tous. We have perused the proposed scheme and we have ourapprehensions about the same only with regard to one aspectviz., whether it will be easy or convenient for the workers to beable to realize the amounts due to them. The proposal, asenvisaged, contemplates about 64 Centres in all the whole ofIndia come using the Headquarters, the Regional Offices andthe Sub-Regional offices which are supposed to cater to lakhs ofvillages in which the labour force may be residing. Consideringthe size of India, the workmen in order to claim a refund, or theirlegal heirs in order to realize the money on the death of a workman,may have to travel hundreds of miles only for the purpose ofputting in an application and then waiting for getting the moneydue to them. The scheme should be so formulated so as to make iteasy and convenient for the persons entitled to receive the moneyto do so without much difficulty. …

“Our attention has been drawn to a decision of the SupremeCourt in J.P.Tobacco vs. Union of India & Others inSLP(C)No.21752/94 & 5475/95 dated 17.4.95. Mr.Mukherjeesays that this judgment will fully cover the issues involved inthe present petitions as well. It is however, controverted byMr.Jaitley who says that the Supreme Court considered only 4points in theSLPs which were against the judgment of theMadhya Pradesh High Court and he says that there is a 5th


ground which is yet to be considered. He formulated this groundas:-

“If a casual worker for a very brief period works in anestablishments will he be covered under the definition of the word„employee under the Employees Provident Fund andMiscellaneous Provisions Act, 1952?”Mr.Jaitley further saysthat three High Courts namely – Rajasthan, Orissa andKarnataka, have upheld the provisions of the Act but read downthe provision holding that casual labourer is not an employeeunder the Act. Mr.Mukherjee however, submits that 5th pointwill in fact be squarely covered under point No.3 of the aforesaidjudgment of the Supreme Court. Mr.Jaitley submits that as faras casual workers are concerned he need not deposit the amountof provident fund, if any, deducted from their wages, but as faras regular employees are concerned the amount deducted fromtheir wage is being paid. In view of the decision of the SupremeCourt however, we will vacate the interim order granted earlier.We however, direct that on respondents 1 & 2 complying withmodified scheme the petitioner shall deduct the provident fundand deposit the same with the respondents 1 & 2 in respect ofcasual worker also.”

From a perusal of the order dated May 02, 1995 it isapparent that the writ petitioner of WP(C) No.792/1991persisted with the argument that the scheme wasunworkable on the ground which was formulated in theorder in the following words : If a casual worker for a verybrief period works in an establishment will he be covered underthe definition of the word “employee” under the EmployeesProvident Fund and Miscellaneous Provisions Act, 1952?

The writ petition was disposed of by the Division Benchon September 09, 1996. The order reads as under:-

“In this batch of writ petitions, the issues which survive fordetermination have been incorporated in the order dated 2May1995 in CWP No.792/91. That order refers to decision ofthe Supreme Court in J.P.Tobacco vs. Union of India & Ors. InSLP(C) No.21752/94 and 5475/95, dated 17th April, 1995. Italso records the submissions of Mr.Mukherjee that the SupremeCourt judgment will fully cover the issues involved in the presentpetitions as well. The submission of learned Counsel for thepetitioners have also been recorded to the effect that the pointwhich is yet to be considered by this Court is as under:

“If a casual worker for a very brief period works in anestablishment will he be covered under the definition of the word“employee” under the Employees Provident Fund andMiscellaneous Provisions Act, 1952?”

After we had heard learned Counsel for the parties for some time.Mr.Mukherjee submitted that amended Scheme which is inquestion in these petitions would be applicable to an employeewithin the meaning of Section 2(f) of the aforesaid Act. LearnedCounsel for the parties also drew our attention to the decisionfthe Supreme Court in The Regional Provident FundCommisioner Vs. T.S.Hari Haran 1971 (2) SCC 68. The questionwhether a person is or is not an employee within the meaning ofSection 2(f) would depend upon facts andcircumstances of each

case. In this view, the point noticed hereinbefore also does notrequire any determination in these proceedings. If a person isnot an employee within the meaning of the Act, the Schemeimpugned in the writ petitions would not be applicable to him.We may notice the contention of Mr.Mukherjee that the Actand, therefore, the scheme would not apply to those employeeswho are casual employees within the meaning of interpretationof the expression employee as per

Hari Haran s case (Supra) so long as the ratio of the said decisionholds the field and also the submission that whether a person isa casual employee or not would depend upon facts andcircumstances of each case.

Mr. Nayar appearing for the Petitioners brought to our noticeadditional affidavit filed on behalf of respondent by Shri R.C.Jain,Regional Provident Fund Commissioner, New Delhi, dated 26November, 1991, inter alia, stating that a pass-book system hasbeen introduced w.e.f. 1 November 1991. The order dated 2 May1995 directs that on respondents 1 and 2 in respect of casualworkers also. It is admitted that reference tothe modifiedprocedure as mentioned in the aforesaid affidavit dated 26November, 1991. On objection being raised by Mr.Nayar thatmodified procedure as stated in the affidavit dated 26 November,1991 has not been introduced, Mr.Mukherjee explained that thesame was introduced w.e.f. November 1991 as stated in theaffidavit. We only record this submission as it is not necessaryto say anything more on this aspect in view of what has beenstated by Mr.Mukherjee. Accordingly, this and the connectedwrit petitions are disposed of in the above terms no costs.”

Five writ petitions were thereafter filed, two in the year2002, one each in the year 2005, 2006 and 2009. All of themhave been dismissed by a singular order dated August 28,2014 which has been impugned by the four appellants ofthe above captioned appeals, and for record we may notethat concerns WP(C) No.12-13/2006 and LPA No.730/2014concerns WP(C)

No.8956-57/2005. The fifth writ petitioner who had filedWP(C) No.9500/2009 has not challenged the decision. Thusas against the five writ petitions decided by the learnedSingle Judge we are dealing with only four appeals.

Of the various prayers made in the writ petition, asconceded to by the learned counsel for the appellant onlytwo prayers were pressed, and since learned counsel forthe parties agreed during hearing of the appeals that forpurposes of adjudication of the four appeals the twoprayers which were pressed in WP(C) 3588/2002 may betaken note of because the two prayers

best bring out the nature of relief sought for by theappellants, we note the two prayers, being (e) and (f). Theyread as under:-

“(e) Issue a writ in the nature of mandamus, directing theRespondent to evolve modified Scheme & create mechanism forits implementation, as directed by this Hon ble Court, in PyareLal Hari Singh and till such modification and consequent


implementation, not to force the Petitioners to cover casual/labour/site worker under the provisions of Provident Fund Actor Provident Fund Scheme and not to levy and/or realize and/orrequire payment of Provident Fund Contribution from thePetitioners for such Site workers engaged by the sub contractors of the Petitioner.

(f) Quash the order dated 23rd December, 1994 passed by theRespondent No.5 whereby the order passed by the RespondentNo.4 dated 8th February, 1994 was set aside by the RespondentNo.5.”

An interim order passed on November 29, 2003 wouldthrow light on the prima-facie opinion formed by thelearned Single Judge in the writ petitions concerning whichwe are dealing in appeals concerning the workability ofthe scheme and facility to the workmen to avail the benefitthereof. The order reads as under:-

“It has been argued before me by the counsel for the petitionerthat necessary infrastructure for disbursement of provident fundunder the scheme has not yet been created by the number hasbeen assigned. On the other hand, counsel for respondent Nos.2and 3 stays that the pass book and assignment of ten digit numberwill not be possible on physical verification or the petitionerproviding the requisite information as to how manycasual/temporary workers are engaged in the construction industry.Mr.Chawla says that as that part has not been done by thepetitioner, no blanket stay can be created in favour of thepetitioner. I find force in the argument of counsel for therespondent Nos. 2 & 3. Let petitioner supply all the relevantinformation with regard to casual/temporary workers to therespondents within three weeks. Thereafter, respondents willverify the same. It has also been contended by Mr.Chawla thatpetitioners are not participating the proceedings before theRegional Provident Fund Commissioner. Mr.Sanghi counsel forthe petitioner says that the petitioner undertake to participate inthe proceedings before the Regional Provident FundCommissioner. Nocoercive steps be taken till such time theverification is done by respondents.”

The judgement have been concluded with the followingparagraphs :-

There being no mandamus issued by the Division Benchthe question of the decision of the Division Bench operatingas res-judicata does not arise. The surviving issue whichthe Division Bench was considering with reference to itsorder dated May 02, 1995 was not decided by the DivisionBench when the writ petition was disposed of on September09, 1996. The Division Bench deemed it proper to disposeof the petition after simply recording the two rival stands.The Division Bench did not return any finding that theexisting mechanism was defective and till the defect wasrectified the modified scheme could not be enforced.

With reference to the second limb of the argument that inview of the decisions of the Supreme Court in H.P.ForestState’s and FCI’s case and the observations made in theorder dated August 21, 2015 by the Supreme Court in

National Campaign Committee C.L.Labour’s case (supra),there cannot be any cavil with the proposition that unlessa beneficiary is identified the employer cannot be fastenedwith any liability. But that hardly takes the case of theappellants any further because the identification of thebeneficiary would require the appellants to produce theirrecords with the Commissioner Provident Fund fordetermining as to which employee connected with thework of construction activity would be liable to be made amember of the fund by the employer. If it is the case of theemployer that in view of the decision pronounced by theSupreme Court in T.S.Hari Haran’s case which was notedby the Division Bench of this Court in its order datedSeptember 09, 1996 disposing of the writ petition filed byPyare Lal Hari Singh, a casual worker could not be anemployee in respect of whom it has to deposit the necessaryprovident fund with the Regional Provident FundCommissioner, the record would have to be produced andscrutinized by the Regional Provident Fund Commissioner;and if the employer is aggrieved by the view taken theorder passed can be challenged before the AppellateAuthority, and should the grievance subsist by way of awrit petition.

Before concluding we would note that the learned SingleJudge has rightly observed that the liability of the employerto make a deduction from the wage payable to an employeeand with a matching contribution deposit the amount withthe Provident Fund Commissioner is unconnected withhow the employee can receive the benefit of the fund. Theissue of portability of workmen and how could a workmanwithdraw money lying to his credit in the fund did troublethe Division Bench of this Court because of the logisticsproblem which a workman could face. But that was dehorsthe liability of the employer to do the needful by complyingwith the employer’s obligation as per the amended scheme.The scheme has been upheld by the Supreme Court. Theanguish expressed by the Supreme Court regardingconstruction workers’ cess not being properly utilized andits observations in the order dated August 21, 2015 inWP(C) No.318/2006 are not by way of declaration of anylaw. Thus, the argument by learned Senior counsel for theappellants that unless the respondents could show that theyhad a mechanism as per which the workmen whose jobwas portable could avail the benefit of the money lying totheir credit all over India, no liability could be fastenedupon the appellants or its members has no legs to stand onwith reference to the observations of the Supreme Courtin the order dated August 21, 2015.

The appeals are accordingly dismissed but without anyorder as to costs.

Permission was given by the Managing Committeee tofile SLP in Supreme Court in the Managing CommitteeMeeting held at Hyderabad on 8th January 2016.

Main Points of SLP filled before the Hon'ble SupremeCourt against the judgment on order dated 16.10.2015 of


the Delhi High Court in LPA No. 727 of 2014.

1. This SLP seeks enforcement of a mandatory directiongiven by a Division Bench of the Delhi High Court ina Writ Petition on 2.5.1995 in terms of which theliability to deduct employees' contribution to theProvident Fund would commence only after theRespondents complied with the Scheme as modifiedhaving regard to the suggestions made by the Courtduring the pendency of the Writ Petition filed bysome members of the Petitioner Association. TheRespondents complied with the Scheme only in theyear 2014 after the lapse of about 19 years. Now theyare initiating proceedings for recovery of the wagesnot deductable in terms of the High Court order forthe period prior to 2014. The liability sought to beimposed is without the authority of law.

2. In 1991, twenty four members of the PetitionerAssociation approached the High Court of Delhi byfiling CWP No. 792 of 1991 challenging the vires ofthe Notification dated 19.10.1990 issued by theGovernment of India in exercise of its powersconferred by Sec. 5 read with Sec. 7(1) of theEmployees' Provident Fund and MiscellaneousProvisions Act, 1952 containing a Provident FundScheme for the benefit of employees in factories orother establishments in terms of which a certainpercentage of wages payable to each employee wasrequired to be deducted by the employer anddeposited with the Provident Fund Authoritiesirrespective of nature and duration of employment.As the Scheme was prima facie defective, on 13.3.1991a Division Bench of the Delhi High Court was pleasedto issue Rule and grant interim stay of theNotification. On 23.10.1991, the Division Benchrecorded the statement of the Respondents, namelythe Union of India, the Chief Provident FundCommissioner and Regional Provident FundCommissioner that they were willing to modify theScheme so as to make it less cumbersome for thebeneficiaries to obtain the amount of Provident Fundand make the Scheme workable.

3. Subsequently the Respondents filed an Affidavitproposing to issue passbook to every employee whichwas not accepted by the Division Bench, because inthe very nature of things a migrant labourer wouldnot be able to withdraw the money due to him.

4. On 27.11. 1991, the Division Bench directed theRespondents to consider the problem and to file aneffective proposal for modifying the abovementionedscheme. In their Affidavit dated 22.5.1992, theRespondents stated that they had formulated arevised accounting procedure with respect to theperipatetic employees of the Construction Industryand annexed the minutes of meeting of the CentralBoard of Trustees with whom the funds are vested.

Under the revised formulation, the employee wouldbe given a permanent number of ten digits which willhelp him to receive the benefit under the Schemeeventually wherever he may be.

5. By an order dated 2.5.1995, a Division Bench of theHigh Court while vacating the order of interim stay,issued the following direction:

"We however, direct that on Respondents 1 and 2complying with modified Scheme the Petitioner shalldeduct the Provident Fund and deposit the same withRespondent No. 1 and 2 in respect of casual workers also."

This direction was not subsequently modified. Thecompliance took place only in the year 2014 whenthe Respondents allotted permanent numbers to eachconstruction company or building contractor fordistribution to their employees from 2014 in terms ofthe order dated 2.5.1995, the members of the abovePetitioner Association have been deducting thecontribution of employees and depositing the amountwith the Respondents.

6. In violation of the direction given by the DivisionBench on 2.5.1995, the Respondents have startedinitiating action under Section 7 (a) of the Act forrecovery of the employees' contribution for the periodprior to 2014 when there was no liability on the partof the employer including members of the PetitionerAssociation to deduct and deposit the amount withthe Respondent towards Provident Fund. ThePetitioners therefore filed CWP No. 3588 of 2002 inthe Delhi High Court praying inter alia for a writ ofmandamus directing the Respondents to evolve amodified Scheme and implement it and create amechanism for this purpose.

By an order dated 29.8.2014, a learned Single Judgedismissed the Writ Petition. On 16.10.2015, a DivisionBench of the High Court was pleased to dismiss theLPA No. 727 of 2014 preferred by the Petitionersherein. Hence this SLP.

7. It may be stated that because of the faulty Scheme,amounts deducted and deposited with theRespondents by some other builders haveaccumulated to the tune of Rupees Twenty sixthousand crores as per the balance sheet of theconcerned Provident Fund Authority, as beneficiariesof the Scheme were not able to receive their ProvidentFund due.

8. The Scheme which was intended to provide socialsecurity for employees has turned out to be for thebenefit of the Respondents.

9. This Special Leave Petition merits consideration ingeneral public interest.


Ref: 524/F/2015-16 dated February 5, 2016

Shri Bandaru DattatreyaHon'ble Minister of State for Labour & Employment (Independent Charge)Government of IndiaRoom No.120, Shram Shakti Bhawan,Rafi Marg,NEW DELHI - 110 001.

Respected Sir,

Builders' Association of India (BAI) is an apex all Indiabody of Engineering Construction Contractors and RealEstate Companies founded in 1941, with more than16,000 business entities as members through its 153 plusCentres (Branches) throughout the country. RegionalAssociations Affiliated to BAI form indirectmembership of more than 1,00,000. The fundamentalaim of the Association is to bring about all roundimprovements in the construction sector, while strivingtowards resolution of operational as well as policy levelproblems faced by the construction industry. Thisinvolves making efforts to obtain from policy makersand authorities, the level of attention that theconstruction industry deserves in view of itstremendous contribution and importance to theeconomy.

BAI wholeheartedly appreciate the initiative of theGovernment of India on its National Skill DevelopmentMission. In this regard, we would like to inform youthat, Builders' Association of India (BAI) along withConfederation of Real Estate Developers Association ofIndia (CREDAI), National Highway Builders'Federation (NHBF) and Construction Federation ofIndia (CFI) have formed an organisation U/s.25 ofCompanies Act for skilling the Construction Workersin India. This organisation is known as ConstructionSkill Development Council of India (CSDCI) having itsoffice at 204, Aashirwad Complex, Green Park Main,New Delhi - 110 016.

Sir, though the Industry have formed Construction SkillDevelopment Council, training of construction workershave not yet picked pace for many reasons.

The first and foremost reasons is lack of availability offunds for skilling construction workers as they are morethan 4.26 Crore in number and spread over in eachDistrict and Taluka of the country. In this regard, wehereby enclose a statement, which shows LabourWelfare Cess collected by various States as on 31stMarch 2015. For kind information, this amount iscollected from each contractors @1% of the contractvalue for various social welfare of construction workers.

It was decided in the Advisory Committee of LabourWelfare Cess Board, Ministry of Labour, Governmentof India to start with 20% amount collected by labourwelfare Board will be spent for skilling constructionlabour. But unfortunately uptill now this suggestion hasnot been implemented in a right spirit. We request yourhonour to kindly direct/advice all the State Board tospent this money for labour training programmes andestablish a training centre in each district of the countrywith the help of this money. If require the percentageof 20% may increased to 50% to spent this industrymoney for the genuine cause of skilling constructionlabour.

We are sure if this request are accepted and PrimeMinister's National Programme launched on 12thJanuary during Swami Vivekanand Jayanti willdefinitely get spread throughout the country for all theconstruction labour with immediate effect. Our allcenters are ready and willing to open at least onetraining centre in each District/Taluka, if abovementioned money is raised for skilling the labour.

Through this letter, we request your goodself to issuenecessary guidelines for availing this funds for skillingthe construction workers.

We hope you will do the needful in the matter.

Thanking you,

Yours faithfully,

LAL CHAND SHARMAPresident



Note :-1) Andhra Pradesh and Kerala has the same figures in year ending 31.3.2014 and 31.3.2015.2) States have spent 18% of cess collected till 31.3.2015. Whereas Haryana spent 4%, Gujarat not spent anything

Rs. 9.15 crores seems to be establishment expenses, Karnataka and Maharashtra have spent 6%.3) It spears that No state has spent any amount on Skill Training to construction workers, though they were

supposed to spend Rs. 381.86 crores.

Government sitting on heaps of Money; Construction Workers are left in lurch.Those employed for building and other construction activities are unorganized labourers who are forced to work under

conditions of unsafe environment, unstable employment, work without defined time limit making their conditions weak andmiserable. In order to streamline measures aimed at their welfare Building and Other Construction Workers (Employment and

Condition of Service) Act was created in 1996.

It is strange that the governments, which come to powerin the name of being a Welfare State, pay scant regard fortheir own responsibilities. For instance, the Governmentof Delhi has collected Rs. 18 hundred crore as levy for thelabour welfare from the construction companies has spenta very meagre amount of Rs 39 crore to improve the life ofworkers in Delhi. This information is not based upon anyguess or speculation but it has come from the DelhiGovernment itself, which the social justice bench of theSupreme Court of India consisting of Justices Madan BLokur and U.U Lalit that till June 30 an amount of Rs1796.63 crore has been collected as Cess fund.

The government also informed that a drive has been carriedout by it to register construction workers with Delhi

Construction Board so that workers could avail the benefitof welfare measures undertaken from the money realisedfrom the Cess fund. What is, however, is intriguing thatthe AAP Government, which boasts of being committedto the cause of poor and downtrodden people, has beenvery niggardly in spending the money to help them.

The Supreme Court was aghast to know that the money,which should have been spent on the welfare of thelabourers, was being spent on administration andadvertisements, while the workers are condemned to livemiserable life. The bench noted that it was extremelydisturbed to find that the poorer people were not gettingany benefits from the welfare measure. The bench was soperturbed with this callousness of the Government that it

Comparative statement of B.O.C.W. Cess collected, workers registered and amount spent bymajor states upto year ending 31.3.2015.

Sr. Name of States Total No. of Total amount Total amount AmountNo. workers collected in spent in unspent in

registered Rs. cr. Rs. cr. Rs. cr.

1. Andhra Pradesh 1797104 901.05 102.85 798.20

2. Bihar 596889 581.01 63.15 517.86

3. Chhattisgarh 818082 494.81 284.17 210.64

4. Gujarat 71807 909.22 9.15 900.07

5. Haryana 388666 1370.50 51.43 1319.07

6. Jharkhand 389049 222.13 72.70 149.43

7. Karnataka 680059 2602.82 159.98 2442.84

8. Kerala 1687113 954.50 888.10 66.40

9. Madhya Pradesh 2491213 1380.94 424.87 956.07

10. Maharashtra 379866 3208.58 186.97 3021.61

11. Punjab 302664 630.93 153.56 477.37

12. Tamil Nadu 2480517 1164.07 412.78 751.29

13. Rajasthan 246316 588.36 59.95 528.41

14. Uttar Pradesh 2097197 1906.76 274.97 1631.79

15. West Bengal 313180 149.91 136.78 13.13

16. Delhi 286449 1796.63 154.12 1642.51

17. Telengana N.A. 231.02 39.30 191.72

Total 15026171 19093.24 3474.83 15618.41


remarked that the collection of Cess should be stopped ifthe Government was not able to spend on welfare of theworkers. The Supreme Court asked all the StateGovernments to file affidavits stating the names oflabourers, who benefited from the fund with their Adhaarnumbers, which will be verified by the Court. It may bementioned here that most of the State governments acrossthe country are sitting tight over Rs 27,000 crore collectedfor the welfare of workers but the Labourers have beendeprived of the benefits.

The cess for the welfare of building and constructionworkers are levied under the building and otherconstruction workers regulation of employment andconditions of service act 1996 in short (BOCW). The verypurpose of the act is to charge levy from the builders forthe welfare of the construction workers. It may not be outof place to state here that construction workers like masons,plumbers, carpenters etc mainly constitute of the migrantworkers. They do not work at one place for a very longperiod. The estimated number of construction workersacross the country is in millions. They are the mostvulnerable segments of organised labour in India theirwork is characterized by inherent risk to the life and limb.It is also characterized by its casual nature, temporaryrelationship between employer and employee, uncertainworking hours, lack of basic amenities and inadequacy ofwelfare facilities. In the absence of adequate statutoryprovisions, the requisite information regarding the numberand nature of accident is also not forthcoming. In theabsence of such information, it is difficult to fixresponsibility or to take any corrective action. Although itis a central act, yet there is a need for its regulation withregard to safety, health, welfare and other conditions forthe service of labourers.

Building workers have been defined under the act a personwho is employed to do any skilled, semi-skilled orunskilled, manual, supervisory, technical or clerical workfor higher or reward. Having said it all there aresignificantly large number of construction workers whoare not covered under the BOCW Act. Therefore, it isnecessary that all workers should be brought in the ambitof the act so that they are entitled to get the benefit. Earlierit was very difficult to locate the workers because they havebeen mostly mobile going from place to place for search ofjobs. There has been a common feature of bouts ofunemployment among construction workers even if theyhave stayed at one place. Therefore linking of theregistration of construction workers with Aadhar card will

prove to be a boon for them. Now it will not be difficultfor them to locate them because the Aadhar card willremain same across the country.

The constructions workers are one of the most vulnerablesegments of the unorganized labour in India. Their workis of temporary nature, the relationship between employerand the employee is temporary, working hours areuncertain. Basic amenities and welfare facilities providedto these workers are inadequate. Risk to life and limb isalso inherent. In the absence of adequate statutoryprovisions to get the requisite information regarding thenumber and nature of accidents was quite difficult anddue to this to fix responsibility or to take correctivemeasures was not an easy. The Building and OtherConstruction Workers (Regulation of Employment andConditions of Service) Bill, 1996 is consideredsimultaneously. With a view to provide for the levy andcollection of a cess on the cost of construction incurred bythe employers for augmenting the resources of the Buildingand Other Construction Workers’ Welfare Boardsconstituted by the State Governments under the Buildingand Other Construction Workers (Regulation ofEmployment and Conditions of Service) Act, 1996.

In the past, every state government encountered thisproblem and this has been one of the main reasons that ahuge amount of fund has remained largely unutilized.

There is no doubt this Act is a beneficial piece of legislationand it has withstood the judicial scrutiny in many cases. Alandmark judgment handed down by the Supreme Courtof India in Diwan Chand Builders and Contractors vs. Unionof India and others (2012 LLR 1) wherein the Hon’bleSupreme Court upheld the decision of Delhi High Courtand the validity of the act. The Supreme Court had onearlier occasions has said that the fee is charged for specialservices rendered to individuals but the levy has elementof Quid Pro Quo but the traditional view of Quid Pro Quohas undergone a sea change.

Hopefully, this intervention of Supreme Court will wakeup the State Governments and they will take swift,necessary and effective steps to utilize the huge amount ofmoney for the vulnerable class of construction workers.There is a need to open up temporary schools, health andhygiene centers for maintaining the good health of theworkers their family members and education of theirchildren. Some recreational facility must also provided tothem to rejuvenate themselves after hard and bonebreaking work.

Cement Cartel Petition With Competition Commission Of India

Brief Report of the Proceedings in the Competition Commission of India at New Delhi on 19th, 20th , 21st & 22nd January 2016

in Case No 29/2010 dated 20.06.2012 & RTPE/2006 dated 30.07.2012Under Section 53B of the Competition Act, 2002

Builders Association of India (BAI) filed a complaint withthe Monopoly & Restrictive Trade Practice Commission

(MRTPC Commission) in February 2006 with regard toinvolvement of cement manufacturers in unfair trade


practices / cartelization and requested the Commissionto investigate the matter. Later on Commission soughtsome more information in support of complaint whichwere made available to them in November 2006. MRTPCregistered the complaint vide case RTPE-52/2006.Consequent upon coming into existence CompetitionCommission of India (CCI) in the year 2009, the case wastransferred to CCI.

In July 2010, BAI filed another complaint with the CCIalleging unfair trade practices being adopted by theCement manufacturing companies in jacking upartificially the price of cement. CCI registered thecomplaint as Case No.29/2010 and investigated the matter.The Director General (Investigation) investigated thematter and submitted his report to CCI. CCI forwardedthe investigation report to the respective companies anddirected them to file their replies / objections with thefindings 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 withCement Manufacturers Association indulging into unfairtrade practices and ordered to deposit Rs.6307.32 Crore,as penalty within 90 days from the date of the order anddirected companies to “Cease and Desist” from indulgingin such activities in future

CCI by its order dated 30th July 2012, in the case of RPTE-52/2006, found 12 cement companies to be indulging intounfair trade practice.Since penalties were alreadyimposed on 11 companies including CMA other thanShree Cement Ltd. in Complaint No.29/2010, a penaltyof Rs.397.51 Crore was levied on Shree Cement Ltd. with“Cease & Desist” order for not indulging in such practice,in future.

All the cement companies, aggrieved with the orders ofCCI, approached to Competition Appellate Tribunal toseek a stay on deposit of the penalty amount and for settingaside the orders of “Cease & Desist” in June / July 2012.

On 17th May 2013, the Competition Appellate Tribunalpassed the interim order of depositing 10% of the penaltyamount imposed by the Commission (relevant portion ofthe order is given below)

“In that view, we find that there is a prima-facie case for grantingof stay at least in respect of the penalties, which are of verysubstantial nature. The total penalties would come in the rangeof Rs.6000 crores. While inflicting the penalties, the CCI hasalso taken into consideration, not only the 10% turnover, gross-turnover and other factors, it has also taken into considerationthe net profits earned by these appellants, which are to say theleast fabulous. The Commission has chosen to impose the penaltyat 0.5 times of the net profit for 2009-10 that too from 20th ofMay, 2009. It is pointed out by the Commission that the amountof 3 times of net profit calculated, is higher than 10% of theaverage turnover. In that view, the Commission has inflictedthe penalties of 0.5 times of the net profit for one year that isfrom 2009 to 2010 that too taking from 20th May, 2009 and2010-11. Under such circumstances, we would chose to grant

stay to the penalties, however with a condition that theappellants deposit 10% of the penalties inflicted. We make itclear that the deposit of the penalty should be within one monthfrom today. We also make it clear that if the penalties are not sodeposited, the appeal shall be treated as dismissed withoutfurther reference to the Court.

Thereafter, all the cement companies approached theSupreme Court of India for seeking stay on the orders ofthe Tribunal dated 17th May 2013 to deposit 10% of penaltyamount imposed by the Commission, The matter washeard in detail on 12th June 2013 but the Hon’ble Courtrefused to intervene in to the interim orders but extendedthe last date of deposit of the penalty amount from 16th

June 2013 to 24th June 2013 with the directions that theamount of penalty may be kept in the form of FixedDeposits in the separate accounts of the each company

The matter was argued in detail on the technicalities, inthe Tribunal in October / November 2015 and the Tribunalin its order dated 11th December 2015, allowed the appealsand remanded the orders of the Commission for passingfresh orders. The relevant portion of the orders arereproduced below :-

98. In the result, the appeals are allowed. The impugned orderis set aside and the matter is remitted to the Commission forfresh adjudication of the issues relating to alleged violation ofSections 3(3)(a) and 3(3)(b) read with Section 3(1) of the Actby the appellants. The appellant shall be entitled to withdrawthe amount deposited by them in compliance of the interim orderpassed by the Tribunal.

99. The Commission shall hear the advocates/representatives ofthe appellants and BAI and pass fresh order in accordance withlaw. We hope and trust that the Commission shall pass freshorder as early as possible but within a period of three monthsfrom the date, which may be notified after receipt of this order.

100. The parties shall be free to advance all legally permissiblearguments. They may rely upon the documents, which formedpart of the record of the Jt. DG or which may have been filed bythem before the commencement of hearing on 21.02.2012. Theparties shall also be free to press the applications already filedbefore the Commission. However, no application, which may befiled hereinafter for cross-examination of the persons, whosestatements were recorded by the Jt. DG or for any other purposeshall be entertained by the Commission.

The CCI its meeting held on 17th December 2015, discussedthe orders passed by the Tribunal on 11.12.2015 and inaccordance with the directions as contained at Para No.99,listed the matter for final hearings from 19th Jan to 21stJan 2016\, as conveyed vide CCI Letter No.1(29)/2010Sectt& 1/RTPENo.52)/2006/Sectt dated 11.01.2016. Since thearguments could not be completed in three days asscheduled, CCI allowed the arguments to continue on 22nd

January 2016 which was kept reserved for continuing thearguments in case the arguments are not completed in 3days. Counsels for the Cement companies appeared forargument of the matter as per details given below :-


Name of Company Date Matter argued by

1. Lafarge India Limited 19.01.2016 Shri Chander Shekher

2. Ultra Tech Cement Limited 19.01.2016 Shri Sameer Parekh

3. Ambuja Cement Limited 20.01.2016 Shri R Srinivasan

4. Associated Cement Companies Ltd. 20.01.2016 Shri R Srinivasan

5. The Ramco Cements Ltd. 20.01.2016 Shri T Srinivasan Murthy

6. J K Cement Limited 21.01.2016 Shri Krishnan

7. Century Textiles & Industry Ltd. 21.01.2016 Shri Pramod B Aggarwal

8. Shree Cement Limited 21.01.2016 Shri Amit Sibal

9. Cement Manufacturers Association 21.01.2016 Shri Krishnan

10. Jaiprakash Associates Limited 22.01.2016 Shri Amit Sibal

11. Binani Cement Limited 22.01.2016 Ms Meenakashi Arora

12. The India Cements Ltd. 22.01.2016 Shri M Vaidyanathan

13. Builders Association of India 22.01.2016 Shri V Rajasekran

All the counsels, except the BAI, refuted the findings ofthe Director General Investigation, for one reason or theother. Broadly, their arguments were based on thefollowing points :-

1) The comparison of their rate of cement with that ofrates indicated in the investigation report.Accordingly to them, there was some error and therates taken by the DG are not that of which has beenindicated in the report and there rate of cement onthe ground. DG has not taken into consideration therates of institutional sales, which accounts for 30 to35% of their total sales and price of that sale is entirelydifferent from that of the market rates.

2) The second argument with regard to the price waswith which price he is comparing the price of theother manufacturers. What is the basis of his fixing aparticular price and movement of up-ward or down-ward price with regard to that price. It is the marketforces which determine the price. They fail tounderstand the analogy applied by the DG in pricecomparison.

3) They also discussed the concept of price parallelismof cement. According to them, cement being thehomogenous product and the cement produced bythe all the cement manufacturers is same / identicaland its prices are also likely to be same and moveup-ward or down-ward in the identical mannerbarring the product of some who claim being superiorbecause of the brand name they carry and it hasnothing to do with the quality / nomenclature ofcement they produce.

4) The price of cement taken by the DG from the datacollected by CMA from 34 centers for sending thesame to DIPP are also refuted by the cementcompanies. According to them, the rates indicated inthat list do not match with their price of cement inthe market. They also question the Tariff Commission

report and its basis of arriving the cement price.

5) It is wrong on the part of the DG to conclude that thecement market is an oligopoly market. The periodunder report has seen various new companies whichentered in the market and there is no restrictions forthe new players to enter the market. If the marketwas oligopoly, then the companies have not investedheavily in the capacity addition.

6) There is a complete miss-match between the plantutilization data with regard to the ground realitiesand that of the data used by the report. Firstly, theDG has taken the additional capacity added duringthe year. He has taken the utilization of the plant forthe full year irrespective of whether the addedcapacity worked for a fraction of the year.

7) The DG in his report cited the report (Oswal Report/Studies) which stated that the when the new capacityis added, its ramp-up period (gestation period of theplant coming into full operation) is 3 - 5 years. Hehas also stated in his concluding report that it takes 3to 5 years to become capacity added fully operational.The DG has not applied his mind in the rightperspective while calculating the capacity utilizationfor the additional capacity added during the periodunder report and presumed that plant to produce100% of its capacity, completely ignoring the ramp-up period as stated in the report as well as inconcluding report thus putting the cementmanufacturers in defaulters category. If the DG hasapplied that analogy, then their capacity utilizationbecomes much more with that of indicated in thereport.

8) The dispatch of cement data taken by the DG alsodoes not match the actual data of the each plant /company. Cement, which is having a shelf life of 15 -20 days, no cement company would like to retain thesame in the store for a longer period. Firstly it is not


in favour of the company to keep its stock for a longerperiod and secondly it requires enormous space tostore. Institutional sales stocks does reflected in thedispatch data as some it is sent directly from the plantand not from the stock-yard / depot stock which istaken into consideration as far as the dispatch data isconcerned.

9) Each company defended its self being involved inthe cartel. According to them, their slate is clean andtheir data shows that the company has not been apart of the cartel under report. It may be othercompanies who are forming part of cartel and notthe particularly company they represent. It is wrongon the part of DG to presume that cement companiesform cartel to control the price. It is a baselessallegation. Cement company rather compete witheach other in selling their product. Cartel theorycannot work in competitive market. Had there beena cartel, then there is no need of spending onadvertisement and capacity addition. Had there beingcartel, companies should have enjoyed theprofitability and need not have spent crores of rupeesin advertisement and enhancing their productioncapacity.

10) As regards the replies to the queries raised by theDG, they replied that there was set of questions whichtheir representatives were asked to reply and therewas no company specific question asked. Theyfurther argued that cement being homogenousproduct and its prices are bound to move in thenarrow difference up-ward or downward, as the casemay be. On specific question from the DF-I, aboutthe criteria of moving prices upward or downward,they replied that the market forces determine themovement of the prices.

11) Counsel for ACC & Ambuja Cement Ltd. stated thathow they can be part of CMA's High PowerCommittee when they have resigned the membershipof CMA. Other companies also argued that they arenot the member of committee who seems to have beentaking such decision of price hike etc.

12) Counsels also argued about the selective / biasedapproach of the complainant i.e. BAI in naming onlythe 10 companies and the CMA, which is notmanufacturing the cement, in indulging thecartelization when the number of cement companiesare much more than that which has been named inthe complaint. Secondly, the DG is also in selectingthe data which put the companies in list of culpritand the data which shows the other picture that ofpainted by the DG, he choose to ignore or not takingto consideration. The DG have also miserably failedin naming the market leader in a particular region /market who's rates are being followed by other infixing their prices. They also argued that the DG-Idid not allow the witness's cross examination whichis against the Law of Natural Justice.

13) As regards the arguments of the CMA are concerned,they strongly refuted the charges of providingplatform for cartelization. What they were doing bycollecting the rates from 34 centres to assist the DIPP,Min of Commerce & Industry, Government of Indiain publishing the price indices of cement on the basisof sample of cement rates collected from 34 centres.Secondly, DG have been selective in taking intoconsiderations the price of cement moving upwardafter a particular meeting of the CMA which is onlyon two occasions and have completely ignored therates when they have gone downward (on nineoccasions) which clearly shows that it has nothing todo with the meetings and CMA has no role in that.

As regards the Shree Cements Ltd., it was argued that theinvestigations should have been done on the basis ofcomplaint filed in the year 2006 and the enquiry orderedby the CCI in its direction to the DG-I. The DG-Investigation have gone beyond the preview of the scope/ period of inquiry as has been ordered by the CCI.Secondly, it was argued that as per the Completion Act,the transferred should have been investigated as per act invogue under which it was filed and not as per the new act.Thirdly there has been no new material / facts brought onrecord which prompt the DG to broaden the scope ofenquiry. Accordingly the enquiry conducted by the DGare wrong and bound to be set aside. As such the penaltylevied by the CCI is wrong and unlawful.

Counsel for Jayprakash Associates Ltd. argued that whilecalculating the quantum of penalty, the CCI have takeninto considerations the turnover / profitability of the groupas a whole where it should been for the cement businessonly which is accounts for around 35% of turnover /profatibility of the group. The CCI was requested tocalculate the quantum of penalty, taking into account thecement business, figures for which will be make availableto the CCI by the counsel in the written statement, if foundguilty of indulging into cartelization.

As regards the arguments of the BAI are concerned, heargued that on the basis of the complaint filed by BAI, DG-Investigation investigated the matter and BAI fully supportthe findings and the penalty imposed by CCI. He furtherargued that the character of the cement industry is suchthat they have been found regular offender / indulging inthe cartel behavior world-wide and have been penalizedfor that. He cited 2 / 3 cases in India where they have beenfound guilty of indulging in cartelization and the CMAmaking their platform available for such activities.

The arguments have been completed and it is turn of theCCI to take call on the various issues raised by the counselsand also on the issue of cross examination of the witnessas has been raised during the arguments. CCI made it clearthat they are bound by the deadline given by theCompetition Appellate Tribunal in its order dated 11thDecember 2015 to complete the arguments and issue theorders afresh.


Presentation to the Ministry of Finance, Department of Revenue - Pre Budgetsuggestions Union Budget 2015-2016 - Construction Industry

DIRECT TAXES

Income Tax

1. HOUSING & INFRASTRUCTURE :

Housing and Infrastructure are the Core Sector andto achieve the Economic Progress, developmentshould be given priority to this Sector.

Residential sector still has enormous potential forgrowth. "With housing requirements growing acrosscities, housing be encouraged especially low &medium level by giving tax benefits.

2. INCREASE IN CASH LIMIT :

For Construction work labour payment, Cash limitcan be increased from Rs.30,000 to Rs. 1 lakh .

Likewise Transport charges for transportingConstruction materials the present Cash limit of35000 can be increased to Rs. 1 lakh.

3. TDS should not be deducted on the Contractors andSub-Contractors in case if they declare and produceproof for payment of Advance tax on the basis oflast year return.

4. TDS deduction can be made uniform ( 1%) to allwhether for Companies, Individuals, Firms, HUF,Trust etc.

5. ISSUE : INCOME TAX DEDUCTION ON RENT:

The present limit for tax deduction from Rentalincome from properties is Rs. 1,80,000. This Limithas to be increased to a minimum of Rs. 3,60,000 sincethere is a standard deduction available at 30%. and

the tax exemption limit for the Individuals itself isRs. 2,50,000.

7. TAXATION OF LANDS GIVEN ON JOINTDEVELOPTMENT:

The land owners are put to hardship by assessingfor capital gains tax on the basis of handing overpossession, without any money inflow to them.

The Income Tax Act regarding the taxation of capitalgains on lands given on joint development has to beamended with CLARITY on the subject.

8. TAX DEDUCTION AT SOURCE ON PAYMENTSINVOLVING SERVICE TAX:

In spite of the notifications, many assessees deductincome tax on services including the service taxelement, which is not correct. The service provideris subjected for more TDS on service tax portion,which he has to pay to the government.

The various sections for TDS on Rent, ProfessionalCharges, etc., has to be amended suitably.

9. SECTION 194 C:

Section 194 C (6) reads as under:

No deduction shall be made from any sum creditedor paid or likely to be credited or paid during theprevious year to the account of a contactor duringthe course of business of plying, hiring or leasinggoods carriages, on furnishing of his permanentaccount number , to the person paying or creditingsuch sum. Clarification needed.

INDIRECT TAXES

Service Tax

1. ISSUE : SERVICE TAX ON IRRIGATION PROJECTS- EXEMPTIONS DURING THER PERIOD FROM1.6.2007- - 30.06.2012

Exemption as contained in Notification No.25/2012-S.T. dated 20.06.2012 needs to be extended for theintervening period by amending the sameretrospectively in the interest of Public.

2. ISSUE - EXEMPTION FROM SERVICE TAX ONINFRASTRUCTURE PROJECTS

Service Tax on specified works contract such as in

relation to Airports, Ports, Railways, etc. has beenexempted vide notification no. 12/2012-ST but suchexemption has not been extended to other crucialinfrastructure sectors such as Power Sector and PublicTransport Sector. It is suggested that exemption fromservice tax should be extended to other vitalinfrastructure sectors such as Power Sector, PublicTransport Sector, Water Supply, Sewerage, and otherprojects

3. ISSUE - SERVICE TAX ON MAINTENANCE OFRAIL PROJECTS (INCLUDING METRO PROJECTS)

Presently there is Service Tax exemption for repairsand maintenance of roads only - earlier this


exemption was available to all core infra sectorsincluding Railways, Ports etc. Operation andMaintenance contracts in Metro Rail Projects wouldattract Service Tax for which the service providercannot take input tax credit and this is a significantportion of the cost of the project.

It is recommended that exemption may be grantedto all infra projects including Railways and Metroprojects

4. HOUSING PROJECTS FOR ECONOMICALLYWEAKER SECTION :

Housing Projects for the Economically WeakerSection (less than 1000 Sqft and not constructed on aAgricultural land) can be exempted from levy ofService Tax.

5. ISSUE: CONSTRUCTION OF PRIVATEHOSPITALS, EDUCATIONAL INSTITUTIONS -REQUEST FOR EXEMPTION FROM SERVICE TAX

Hospitals/ Health care Institutions/ NursingHomes/Educational institutions whetherGovernment or Private should be exempted fromlevy of Service tax unconditionally.

6. ISSUE: SUB-CONTRACTOR SHOULD BEEXEMPTED FROM LEVY OF SERVICE TAX ANDMAIN CONTRACTOR BE ALLOWED TODISCHARGE THE SERVICE TAX FOR THE TOTALVALUE OF THE PROJECT

7. ISSUE - SERVICE TAX EXEMPTION FORCONSTRUCTION SERVICES IN RELATION TORESIDENTIAL UNITS.

Service tax exemption on construction of residentialbuildings having single residential unit only has beenprovided. Removal of exemption on residentialbuildings would have a significant detrimentalimpact not only on the sector but also on millions ofpeople, who aspire for affordable Real Estate as thiswill result in escalation of Real Estate prices onaccount of levy of Service tax.

8. ISSUE : PAYMENT OF SERVICE TAX IN CASE OFNON RECEIPT OF PAYMENT FOR SERVICEPROVIDED

R. 6(3) of Service Tax Rule may be amended to covera situation whereby a person not receivingconsideration of his service should either not berequired to pay service tax or having paid so, he maybe eligible for refund or adjustment of service taxagainst future payment of service tax.

9. ISSUE: TSUNAMI RELIEF AND REHABILITATIONWORKS IN TAMILNADU COASTAL AREA, VIZKANYAKUMARI AND OTHER DISTRICTS -

REQUEST FOR EXEMPTION FROM LEVY OFSERVICE TAX ON RELIEF & RECONSTRUCTIONWORK AND ISSUE OF NOTIFICATION TO THATEFFECT

Rehabilitation and re-construction work undertakenof houses for Tsunami victims from NGOs. The landwas allotted and still lies with the State Government,funded by donors and given free of cost to thebeneficiaries.

In this connection we would to draw your attentionthat for the rehabilitation and re-constructions work,Exemptions from TNVAT and Central Excise weregiven. However no specific exemption has been givenfor Service Tax.

Hence, we request to consider this appeal and issuenecessary instructions to the Service Tax departmentto exempt the services rendered by our members forTsunami rehabilitation and re-construction works.

10. ISSUE - REVERSAL OF CENVAT CREDITTOWARDS BAD DEBTS / WRITE OFFS

In several construction projects it is found thatCompanies have to write off recoverable in depositand retention accounts, on which they may havealready discharged the service tax liability on accrualbasis.

Now at the time of taking the reversal the rules havebeen very strict and May not allow the reversal ofservice tax liability on account of such Pending claims.Suitable changes need to be made.

11. ISSUE - SERVICE TAX UNDER REVERSE CHARGEMECHANISM

In the regime of Negative List of Service the scope ofservice tax under the reverse charge mechanism hasbeen increased substantially.

The scheme of "reverse charge" mechanism onalternate method basis is very unpractical andcumbersome, which deserves to be scraped in thelarger of industry & commerce

12. ISSUE : TIME LIMIT OF ADJUDICATION

Issue:

The delay of adjudication proceeding results into lackof definite finding on an issue and repetitive showcause notices. This amounts to wastage of time andenergy and national resources apart fromindecisiveness.

Suggestion:

The time limit prescribed u/s. 73(4B) should be mademandatory and not arbitrary.


13. APPEAL : Delay in appellate proceeding in firstappeal (Comm. Appeals):

Administrative actions must be taken at the earliestto dispense quick justice at first appeal level ofCommissioner appeals.

UNION BUDGET 2015-16 - HIGH LIGHTS

The latest CPI inflation is 5.1% and whole sale priceinflation is negative.Current Account Deficit For FY15 To Be Below 1.3%Of GDP.Economy set to grow in double-digits in coming days.GDP growth will accelerate to 7.4%.We will achieve the target of 6 crore toilets in India.Will Need To Build Additional 1 Lk km Of Roads.To make India a manufacturing hub and supportstart-ups. Youth need to be from job seekers to jobcreators.To See 6 Cr Units Of Rural & Urban Housing By 2020.GDP SEEN AT 8-8.5% IN FY16.TO ACHIEVE 3.6% FISCAL DEFICIT IN FY17.TO ACHIEVE 3% FISCAL DEFICIT IN 3 YEARS.TO MEET FISCAL DEFICIT OF 4.1% IN FY15.To Allocate Rs 5,300 Cr For Micro-irrigation.To Allocate Rs.20,000 Cr For Mudra Bank For SMEs.To Allocate Rs 25,000 Cr For Rural Infrastructure.To create senior citizens welfare fund via unclaimedPPFs.Proposes to give Rs. 2 lakh accidental insurance tothe poor for a monthly premium of Re.1.Atal Pension plan launched; aimed at Indians above60.Tax free infrastructure bonds for projects in Railwaysand roads: Finance Minister.To Allocate Rs 1,000 Cr For Support To Start-ups.Investment in Infrastructure to go up by 70,000 croresin 2015-16 over 2014-15.

5 Ultra mega power projects announced.Public sector ports will be converted to companies,once PPP model is tweaked.To allocate 1000 cr to enable IT start ups.2nd unit of Kudankulam nuclear power station to becommissioned in 2015/16.We plan to introduce direct tax regime that isinternationally competitive on rates withoutexemptions.Employees can opt for EPF or new pension fund; foremployees below certain threshold EPF should beoptional from his side.PROPOSE TO ALLOW FOREIGN INVESTMENT INALTERNATIVE INVESTMENT FUNDS.To Introduce Regulatory Reform Law ForInfrastructure.Renewable energy target revised to 1,75,000 MW.IIMs to be setup in J&K and Andhra Pradesh .IIT in Karnataka.AIIMS to be set-up in J&K, Punjab, Tamil Nadu,Himachal Pradesh and Assam.National Skill Mission to be launched, to developemployability of youth, especially below 25 years ofage.ALLOCATE Rs 2.46 LK CR FOR DEFENCE IN FY16.Reduce rate of corporate tax from 30% to 25% overnext four years.TO DEFER GAAR BY 2 YEARS.Tax pass through to be allowed in alternativeinvestment funds to boost small firms, start-ups.Propose To Rationalise Capital Gains Regime ForREITs/InvITs.TO INCREASE EXCISE DUTY TO 12.5%. TO HAVE 100% TAX DEDUCTION FOR SWACHHBHARAT & CLEAN GANGA.Service tax will be increased to 14%.Service Tax Exemption Extended To Pre-cold StorageWarehousing.

Ref.: 579 /M/2015-16 dated March 9, 2016Shri Hasmukh AdhiaRevenue Secretary, Ministry of FinanceGovernment of India128-A, North Block,NEW DELHI

Respected Sir,Sub.: Post Budget Memorandum

Builders' Association of India (BAI) is an apex all Indiabody of Engineering Construction Contractors and RealEstate Companies founded in 1941, with more than 16,000business entities as members through its 153 plus Centres(Branches) throughout the country. Regional Associations

Affiliated to BAI form indirect membership of more than1,00,000. The fundamental aim of the Association is tobring about all round improvements in the constructionsector, while striving towards resolution of operationalas well as policy level problems faced by the construction


POST BUDGET MEMORANDUM 2016

Concerning Budget

EXCISE DUTY

1. Ready Mix Concrete (RMC) manufactured at site

Vide Notification No. 12/2016 effective 1.3.2016 RMC manufactured at site has been exempted prospectively byway of substitution of below entry.

(1) (2) (3) (4) (5)

"144 38 Concrete Mix or Ready-mix Concrete (RMC). manufactured at the site ofconstruction for use in construction work at such site. Nil -

Explanation – For the purpose of the entry, the expression 'site' means anypremises made available for the manufacture of goods by way of a specificmention in the contract or agreement for such construction work, providedthat the goods manufactured at such premises are solely used in the saidconstruction work only.

Suggestion -

Excise duty exemption, which was earlier limited toConcrete Mix (CM) only, now being extended to ReadyMix Concrete (RMC) manufactured at construction sitefor construction work.

This is among the one of the rare scenarios in whichGovernment has nullified the effect of Supreme Courtjudgement which was decided in favour of revenue earlier.In the case of Larsen and Tubro Ltd Vs. CCE, Hyderabaddated 06 October 2015, the Apex court adopted strict

interpretation for dealing with the Exemption Notificationno. 4/1997-C.E. (as amended by 12/2012-C.E.) and deniedthe excise duty exemption on Ready Mix Concrete (RMC).The Apex Court held that Concrete Mix and Ready MixConcrete are separate products, thus exemption availableto Concrete Mix cannot be extended to Ready MixConcrete.

Notification 12/2012-C.E. dated 17-03-2012 has beensuitably amended vide Notification no. 12/2016-C.E.effective from 01-03-2016 so as to include Ready MixConcrete for providing exemption from Excise duty alongwith Concrete Mix.

industry. This involves making efforts to obtain frompolicy makers and authorities, the level of attention thatthe construction industry deserves in view of itstremendous contribution and importance to the economy.

As the outset we would like to convey our special regardsand gratitude to the Ministry of Finance for positivelyconsidering several suggestions made by us during thepre-budget meeting held at North Block on 27.11.2015 withyour goodself.

This action of the government has had a very positiveimpact on the industry and given it a lot of confidence forthe future both in terms of future interactions withgovernment as well as in terms of continuing to businessin such a gloomy environment. It is after a long time thatthe country has seen such a receptive government at thecentre.

And now continuing our interactions which started withthe pre-budget memorandum, we would now like tosubmit our post budget memorandum containing fewmore steps to be considered to achieve the last mileobjective of the budgetary provisions.

Please grant us suitable time to personally represent theissues as per the attached post budget memorandum. ThisPost Budget Memorandum highlights the suggestions andconcerns of the members as well as industry. It is requestedto consider these suggestions so that the same may betaken care of while passing the Budget in the Parliament.

If any suggestions or clarifications are desired, then weshall be pleased to furnish the same. We once again thankyou for the opportunity given to us for submitting ourviews and suggestions.

With warm regards,

Yours truly,

LAL CHAND SHARMAPresident



SERVICE TAX

1. Section 67A of Finance Act, 1994 [Clause 148 ofFinance Bill, 2016 and Sl. No. 2(1) of notificationNo. 10/2016-ST]

• The present section 67A states that The rate ofservice tax, value of a taxable service and rateof exchange, if any, shall be the rate of servicetax or value of a taxable service or rate ofexchange, as the case may be, in force or asapplicable at the time when the taxable servicehas been provided or agreed to be provided.Now the said sectionis proposed to be amendedto obtain specific rule making powers in respectof Point of Taxation Rules, 2011. Point ofTaxation Rules, 2011 has also been amendedaccordingly.

Issue:

• However, when the section 67A gets amended, twoExplanations have been added to Rule 5 of Point ofTaxation Rules, 2011, wherein it is clarified that thesaid rule applies also in cases of new levy. The secondexplanation provides that unless the transactionsatisfies the conditions provided in Rule 5, the sameshall be taxable. The conditions provided in Rule 5as reproduced below:

Where a service is taxed for the first time, then, -

o no tax shall be payable to the extent the invoice hasbeen issued and the payment received against suchinvoice before such service became taxable;

o no tax shall be payable if the payment has beenreceived before the service becomes taxable andinvoice has been issued within fourteen days of thedate when the service is taxed for the first time.

Explanation 1.- This rule shall apply mutatis mutandis in caseof new levy on services. Explanation 2.- New levy or tax shallbe payable on all the cases other than specified above.

• The above explanations have been inserted in Rule5 vide Notification No. 10/2016 –ST Dated 1-3-2016,w.e.f. 1st day of March, 2016.

• The above explanation raises a fundamental questionas to whether a service which has already beenprovided prior to introduction of levy could be taxedon raising of invoice or receiving paymentsubsequently. One needs to distinguish between the

taxable event (event deciding taxability) vis-à-vis apayment event (event deciding timing of payment).Further, in the case of Collector of C.Ex HyderabadVsVazir Sultan Tobacco Co Ltd 1996 (83) E.L.T. 3(SC), it has been held that manufacturing is a taxableevent whereas payment of excise duty is at the timeof the removal of goods, therefore in a case wheregoods have been manufactured at the time whenthey were not excisable, there cannot be a dutyliability at the time of removal of such goods.

• Thus, the date of rendition of service is totally getsignored because of above amendment creating aconflict between Section 67A(1) and 67A(2).

Suggestion

It is suggested that section 67A of the Finance Act shouldnot be amended or any other legislative change may bebrought in whereby the supremacy of the time of renditionof service for the purpose of taxation remains be made.

2. Clarification regarding the meaning of ‘failed topay amount collected as service tax’ in theNotification No 13/2016-ST dated 01.03.2016

• Section 75 of the Finance Act, 1994 prescribesrate of interest that is to be paid in case of delayin payment of service tax. The rate of interestwas 18% p.aupto six months, 24% p.a. monthswhere the period of delay is upto six monthsbut upto one year and 30% p.a. where periodof delay exceeds more than one year. VideNotification No 13/2016-ST, the rate of interesthas been amended so as to state that where aperson has collection of any amount as servicetax but failing to pay the amount so collectedto the credit of the Central Government on orbefore the date on which such paymentbecomes due, the rate of interest is 24% and inother cases, it is 15%

Issue

In the notification, the meaning of the term ‘collection ofany amount as service tax’ has not been clarified. As areason, one may take a view that where invoice has beenissued and service tax is shown separately, then servicetax is said to have been collected. Further, where in theconsideration charged, the service tax is not chargedseparately and amount is received, then also it will be

However our plea is that the same should be exemptedretrospectively. We fervently request Government toconsider for issuance of clarification on the availability ofcentral excise exemption for RMC manufactured at site ofconstruction and used in the construction work of such

site as presently understood for 'Concrete Mix' in line ofNotification No. 4/97 CE with effect from 01.03.2011 andunder 12/2012 CE with effect from 17.03.2012. If this isnot done it will have serious financial repercussions to allthe construction companies in India.


treated as ‘collection of any amount as service tax’. Forexample, where an invoice has been made for INR1,00,000.00 and tax rate is 14.5% (including SBC), in suchcase, total value of invoice is INR 1,14,500.00. The invoicehas been made in December 2016. The due date is 6th

January, 2016. The amount is collected in 15th August, 2017and tax has been deposited to the Government on 30th

September, 2017. In this case, whether the interest will be15% from 6th January,2016 to 15th August, 2017 and 24%from 16th August, 2017 to 30th September, 2017 or will itbe 24% from 6th January,2016 to 30th September, 2017.Further, what will be the situation where only a part ofthe amount is collected and remaining amount is notcollected? Say a client pays only Rs100000specificallystating that the amount towards service tax has beenwithheld in such case, whether the interest rate will be15% or 24%.

Suggestion

• It is suggested that a suitable clarification be issuedfor clarifying as to when it will be treated as ‘amountcollected as service tax’ and the rate of 24% shouldapply from the date of actual collection and not fromthe date when the tax is due.

3. Service Tax exemption to canal, dam or otherirrigation works with retrospective effect. [Clauses156 of the Finance Bill, 2016 / New section 101 in theFinance Act, 1994]

• Definition of Governmental authority wasamended with effect from 30.01.2014 so as toexempt services provided by way ofconstruction , erection, maintenance, oralteration etc. of various works as listed underEntry 12 and 25 of the Mega ExemptionNotification. However, services provided priorto 30.01.2014 to such bodies remained taxable.The benefit of exemption is proposed to beextended to the said services provided duringthe period from the 1st July, 2012 to 29.01.2014.

Issue:

Because of the above amendment, only the services ofcanal, dam or other irrigation works provided to theGovernment, a local authority or a governmental authorityis covered. Thus, other services as listed under entry 12and 25 as on 1.7.2012 provided to the Government, a localauthority or a governmental authority should also betreated at par for the purpose of granting this retrospectiveexemption.

Suggestion

• It is suggested that the said benefit be extended toall the items covered under Sr No 12 and 25 ofNotification No 25/2012-ST dated 20.06.2012.

4. Restoration of certain exemptions withdrawn lastyear for projects, contracts in respect of which wereentered into before withdrawal of the exemption[Clauses 156 of the Bill/ New section 102 in the FinanceAct, 1994]

• Exemption from Service Tax on servicesprovided to the Government, a local authorityor a governmental authority by way ofconstruction, erection, etc. of -

(i) a civil structure or any other originalworks meant predominantly for use otherthan for commerce, industry, or any otherbusiness or profession;

(ii) a structure meant predominantly for useas (i) an educational, (ii) a clinical, or (iii)an art or cultural establishment;

(iii) a residential complex predominantlymeant for self-use or the use of theiremployees or other persons specified inthe Explanation 1 to clause 44 of section65B of the said Act;

was withdrawn with effect from 1.4.2015.The same is being restored for the servicesprovided under a contract which hadbeen entered into prior to 01.03.2015 andon which appropriate stamp duty, whereapplicable, had been paid prior to thatdate. The exemption is being restored till31.03.2020.

Issue

• The exemption is there only when the services hasbeen to the Government, a local authority or agovernmental authority.

• One of the condition is that if the appropriate stampduty has been paid prior to 01.04.2015. However, asper Article 285(1) of the Constitution of India, ‘Theproperty of the Union shall, save in so far asParliament may by law otherwise provide, beexempt from all taxes imposed by a State or by anyauthority within a State’.

• Thus, there would not be a case wherein stamp dutyhas been paid in a contract with the Government.

• Similar will be the case for exemption that has beenprovided to services provided by way ofconstruction, erection, etc. of original workspertaining to an airport, port.

Suggestion

• It is suggested that the word ‘and on whichappropriate stamp duty, where applicable, had been


paid before that date’ may be deleted from proposedsection 102(1) and section 103(1) in the Finance Act,1994 as the party issuing the contract is governmentitself.

5. Service Tax Exemptions to low cost houses (newentry at S. No. 14 (ca) of notification No. 25/2012-ST refers)

• Services by way of construction, erection, etc., oforiginal works pertaining to low cost houses up to acarpet area of 60 sq.m per house in a housing projectapproved by the competent authority under the“Affordable housing in partnership” component ofPMAY or any housing scheme of a State Governmentare being exempted from service tax.

Issue

• These days, many areas are being developed, be itslums or otherwise, by Government as well asprivate parties. However, the exemption is availableonly when a housing project approved by thecompetent authority under the “Affordable housingin partnership” component of PMAY or any housingscheme of a State Government

Suggestion:

a) It is suggested that exemption may be granted in thisregard to all categories, whether public or private.Also a lot of confusion prevails whenever thegovernment uses the words competent authoritywithout properly defining it. The above is one suchcase, where the project is awarded but practicallyno one is aware of who the competent authority is.It is thus suggested either to drop the word or explainit by way of a definition. Such exemption was thereunder Notification 25/2012 (clause 14C) but was forthose housing project approved by competentauthority empowered under the ‘scheme ofAffordable Housing in partnership framed by theMinistry of Housing and Urban Poverty Alleviation,Government of India’

6. Exemption to 13 (ba) a civil structure or any otheroriginal works pertaining to the „In-siturehabilitation of existing slum dwellers using landas a resource through private participation underthe Housing for All (Urban) Mission/PradhanMantriAwasYojana, only for existing slumdwellers. (new entry at S. No. 13 (ba) of notificationNo. 25/2012-ST refers)

Issue

• A lot of rehabilitation activity is taking place for slumdwellers where the land is allotted by thegovernment at a location distant from the existingslums. Will the above exemption because it carries

the words “In-situ” restrict the exemption to onlythose constructions which take place exactly at thesame location of residence of the slum dwellers.Further the condition of ‘In-situ rehabilitation” andonly for “existing dwellers” are not very clear :-

a) The purpose of such project is rehabilitation ofslum dwellers, whether the development isdone on the same land or at other land.

b) In the event if few of slum dwellers do not agreeto accept houses build for their rehabilitation,the Tax exemption for entire project should notbe disallowed.

c) What is the meaning of ‘Beneficiary ledindividual housing construction’ ?

Suggestion

• In such a scenario we propose to remove the word“in-situ” for ensuring that the exemption is actuallyuseful.

7. Abatement in case of ‘construction services’[Amendment in entry at S. No. 12 of notification No. 26/2012-ST]

• At present, the abatement available under S.No 12 of notification 26/2012-ST dated June20, 2012 for construction of a complex,building, civil structures etc. is 70% forconstruction other than residential propertiesas well as residential properties having a carpetarea of more than 2000 sqft or where theamount charged is exceeds Rs 1 crore and 75%in other cases.

• Now, A uniform abatement at the rate of 70%is now being prescribed for services ofconstruction of complex, building, civilstructure, or a part thereof under Sr No 12 ofNotification NO 26/2012-ST.

Issue:

• The prices of commercial property will be highercompared to residential property, as a reason,marginally service would be higher in such case.

• Moreover, in case of high valued house i.e., househaving a carpet area of more than 2000 sqft or wherethe amount charged is exceeds Rs 1 crore, in suchcase, the value of service gets marginally increased.

• Considering this reason, the two rates of abatementwould have been made, one for residential as wellas other for commercial and high valued residentialhouse.

• However, now treating all the constructions as same


Amendments to the Arbitration and Conciliation Bill, 2015– Salient Features

The Union Cabinet chaired by the Prime Minister, ShriNarendra Modi, today gave its approval for amendmentsto the Arbitration and Conciliation Bill, 2015 taking intoconsideration the Law Commission's recommendations,and suggestions received from stake holders. TheGovernment of India has decided to amend the Arbitrationand Conciliation Act, 1996 by introducing the Arbitrationand Conciliation (Amendment) Bill, 2015 in the Parliament.

The salient features of the amendments are as under:-

(i) In order to ensure neutrality of arbitrators, it isproposed to amend Section 12 to the effect that whena person is approached in connection with possibleappointment of arbitrator, he shall disclose in writingabout existence of any relationship or interest of anykind, which is likely to give rise to justifiable doubts.Further, if a person is having specified relationship,he shall be ineligible to be appointed as an arbitrator.

(ii) Insertion of a new provision that the Arbitral Tribunalshall make its award within a period of 12 months.Parties may extend such period up to six months.Thereafter, it can only be extended by the Court, onsufficient cause. The Court while extending the periodmay also order reduction of fees of arbitrator(s) notexceeding five% for each month of delay, if the courtfinds that the proceedings have been delayed for

reasons attributable to the arbitral tribunal. If theaward is made within a period of six months,arbitrator may get additional fees if the parties mayagree.

(iii) It is proposed to insert a provision for fast trackprocedure for conducting arbitration. Parties to thedispute may agree that their dispute be resolvedthrough fast track procedure. Award in such casesshall be given in six months period.

(iv) Amendment of Section 34 relating to grounds forchallenge of an arbitral award, to restrict the term'Public Policy of India" (as a ground for challengingthe award) by explaining that only where making ofaward was induced or affected by fraud orcorruption, or it is in contravention with thefundamental policy of Indian Law or is in conflictwith the most basic notions of morality or justice, theaward shall be treated as against the Public Policy ofIndia.

(v) A new provision to provide that application tochallenge the award is to be disposed of by the Courtwithin one year.

(vi) Amendment to Section 36 to the effect that mere filingof an application for challenging the award wouldnot automatically stay execution of the award. Award

would increase the cost for residential houses andwill hit the low and middle income groups.

Suggestions:

• It is suggested that the existing abatement rates of70% for construction other than residentialproperties as well as residential properties having acarpet area of more than 2000 sqft or where theamount charged is exceeds Rs 1 crore and 75% inother cases be retained.

8. ‘Services provided by Government’

• Section 66D of Finance Act, 1994 provides thatservice by Government or a local authorityexcluding support services provided tobusiness entities is exempt from service tax.Finance Act, 2015 has sought to tax any servicesprovided to business entities. This means thebusiness entity receiving such service wouldbe person liable to pay service tax under reversecharge.

• Consequently, notification No. 30/2012-ST isbeing amended so as to delete the words “byway of support services appearing at Sl. No. 6 of

the Table in the said notification with effectfrom 1st April, 2016.

Issue:

• These amendment brings to prominence theimportance of the concept of “service” incontradistinction to the performance of a statutoryfunction. Any function which is a statutory functionrequired to be performed by the Government cannotbe considered as a rendition of service. In fact, it isthe necessary requirement of the Government toperform that function and the requirement of thecitizen to obtain that function.

• Thus, charges/ Fess/ amount charged by DGFT,MCA for various services provided to businessentities have been inadvertently proposed to bemade liable to Service Tax. This also leads to theconclusion that sovereign functions of theGovernment will also be liable to service tax whichcannot be the intention ofthe legislature.

Suggestion:

• It is suggested that an appropriate clarification inthis regard be provided.


can only be stayed where the Court passed anyspecific order on an application filed by the party.

(vii) A new sub-section in Section 11 to be added to theeffect that an application for appointment of anArbitrator shall be disposed of by the High Court orSupreme Court as expeditiously as possible and anendeavour should be made to dispose of the matterwithin 60 days.

(viii) A new Section 31A is to be added for providingcomprehensive provisions for costs regime. It isapplicable both to arbitrators as well as relatedlitigation in Court. It will avoid frivolous and meritless litigation/arbitration.

(ix) Section 17 is to be amended for empowering theArbitral tribunal to grant all kinds of interimmeasures which the Court is empowered to grant,under Section 9 and such order shall be 'enforceablein the same manner as if it is an order of Court.

Apart from above, amendments in Sections 2(1)(e) ,2(1)(f)(iii), 7(4)(b), 8(1) and (2), 9, 11, 14(1), 23, 24, 25, 28(3),31(7)(b), 34 (2A) 37, 48, 56 and in Section 57 are alsoproposed for making the arbitration process more effective.

BAI's Interaction with various Ministries andDepartment Heads.

BAI President alongwith Senior Members and ExceutiveSecretary of BAI have participated in the Meeting with ShriBandaru Dattatreya, Hon'ble Minister of State for Labour& Employment (Independent) Charge), Government ofIndia, at New Delhi on 7th April 2015, and apprised himabout the issue of covering casual and temporary siteworkers in the E.P.F. Scheme, as the benefits are notreaching to them.

A delegation lead by BAI president also visited at the officeof Director General, Central Public Works Department,New Delhi, on 7th April 2015, with Shri CH Ramakotaiah.

The President had a meeting with Shri Ravi Wig, Member- Central Board of Trustees, EPF, on 7th May 2015 at NewDelhi. In the meeting, he also requested Shri Ravi Wig toenlighten BAI members on the Provident Fund matter inour Managing Committee Meet.

The President has written letter to the Joint Secretary (RS),Lok Sabha Secretariat, New Delhi, with BAI's suggestionsin respect of "Right to Fair Compensation andTransparency in Land Acquisition Rehabilitation andResettlement (Second Amendment Bill, 2015), and seekinghis intervention in the matter.

The President has written letter to the Joint Director (ComIII), Rajya Sabha Secretariat, New Delhi, with BAI'ssuggestions on the Real Estate (Regulation andDevelopment) Bill, 2013 (RERA), and requested him to begiven serious consideration for bringing the bill inalignment with its objectives as well as the goal of housingfor all by 2022.

The President has written letter to the Director General,Central Public Works Department, Nirman Bhawan, NewDelhi, in the matter of reimbursement of Service Tax withProject-wise analysis. This has resulted Department issuingOffice Memorandum No.DG/SE/CM/CON/286 dated30th June 2015.

Housing for all by 2022.

The President was a Speaker in a meeting organised bythe Ministry of Housing and Urban Poverty Alleviation(Housing Section), Government of India, held on 27thOctober 2015, at India Habitat Centre, New Delhi, on thetopic 'Housing for all by 2022'. He also informed membersthat, during his address he expressed BAI's support to theGovernment for affordable housing, provided theGovernment consider reducing the high taxation structure,availing skilled workers and availing constructionmaterials like cement at affordable price.

Meeting with Labour Secretary, Ministry of Labour &Employment, Government of India.

The President has participated in the meeting with ShriShankar Aggarwal, Secretary, Ministry of Labour &Employment, Government of India, in his office, on 9thOctober 2015, with regard to the applicability of Employees'State Insurance (ESI) Scheme on construction workers witheffect from 1st August 2015. The President also informedmembers that, the representation forwarded to the Hon'bleLabour Secretary along with brief report of discussion heldwith Labour Secretary, have already been included in theagenda and more discussion can be made for the same.

Press Conference on the abnormal cement price increase.

The President has organised a Press conference on theabnormal Cement price increase on 23rd October 2015, atGhaziabad and both print and electronic media haveextensively covered it. He also informed that, members ofGhaziabad Centre have taken up the abnormal cementprice with local Authority.

Meeting with Mr. Arun Jaitely, Hon'ble Union MinisterFor Finance

The president has participated in the meeting with Mr.Arun Jaitely,Hon'ble Union Minister For On2nd February2016 at New Delhi in the matter of levy excise duty on sitemade RMC for captive consumption.

Pre-Budget Meeting with Shri Hasmukh Adhia, RevenueSecretary,

The President has participated in Pre-Budget Meeting withShri Hasmukh Adhia, Revenue Secretary, Ministry ofFinance, Government of India, on 27th November 2015 atNew Delhi.

Union Budget 2015-16

The President gratefully acknowledged the kind gestureof the Hon'ble Finance Minister in permitting BAI


delegation to present the concern of the Industry in Pre-Budget Meeting. BAI have presented many issues andsome of the issues have found favour with the Hon'bleFinance Minister.

Meeting with Labour Secretary, Ministry of Labour &Employment, Government of India.

The President informed members that, he has participatedin the meeting with Shri Shankar Aggarwal, Secretary,Ministry of Labour & Employment, Government of India,in his office, on 15th December 2015, with regard to theapplicability of Employees' State Insurance (ESI) Schemeon construction workers with effect from 1st August 2015.The President also informed members that, therepresentation forwarded to the Hon'ble Labour Secretaryalong with brief report of discussion held with LabourSecretary, have already been included in the agenda andmore discussion can be made for the same.

The President informed members that, he has participatedin the meeting with Shri Shankar Aggarwal, Secretary,Ministry of Labour & Employment, Government of India,in his office Wednesday, 16th March 2016 with regard toinvolvement of Builders Association of India in extendingthe benefits to the Construction Workers under the BOCWAct, to ensure maximum coverage of workers. forconstitution of Expert Committees, which have beenmandated under the Act, for extending the benefits to theconstruction workers which inter-alia ensure makingFacilitation Centre and Training of construction workersunder RPL at work sites., issuing strong directives forreimbursement of Training Expenses for trainingconstruction workers under RPL out of the huge amountcollected under the Cess Act from the Constructioncompanies.

BAI's association with Asian Development Bank

ADB has been engaged in India since 1980s and has fundedmany development projects especially in the backwardregions of India contributing to the growth anddevelopment of our country.

ADB has conducted an international Business OpportunitySeminar (BOS) on 9th December 2015 at Hyatt Regency,New Delhi WHICH WAS ATTENDED BY Shri. B.Seenaiah,Past president, BAI.

In this seminar, ADB disseminated information on businessopportunities available in ADB funded projects in Indiaand globally. This would be a single stop opportunity forbusiness community to know procurement opportunitiesunder ADB projects. Specifically, the seminar will focuson: (i) access to ADB's business opportunities through anonline demonstration of ADB website; (ii) providinginformation on national and international businessopportunities available under ADB funded projects; (iii)presentations by government agencies implementing ADB

funded projects on business opportunities available in theirrespective projects; and (iv) presentation of case studieson successful bidding. The seminar will also provide anopportunity for participants to make individual queries toADB's procurement specialists.

Builders Association of India has been partnering withADB in dissemination of information on civil workcontracts available under ADB projects. ADB sought ourhelp during procurement under Jharkhand andUttarakhand road projects and we readily helped them indisseminating information on these projects to ourmembers and contributed to successful bidding underthese projects. ADB also participated in our ManagementCommittee meeting at Allepey and our NationalConvention at Chennai where we provided a platform forADB and Government agencies to make presentations toour members on the business opportunities available underADB projects.

EXCON 2015

Confederation of Indian Industry (CII), India's ApexIndustry Association was organised EXCON 2015(www.excon.in) - the 8th edition of South Asia's LargestEvent for Construction Equipment and TechnologyTradefair between 25th - 29th November 2015 at Bengaluru.Indian Construction Equipment Manufacturers'Association (ICEMA)is the sector partner for the event andis supported by Builders Association of India (BAI)www.baionline.in. With 900+ exhibitors including 300 fromabroad spread over an area of 2,20,000 Sq.mts, 100+Product launches; 7 Country Pavilions - Germany, Japan,Italy, Sweden, Turkey, South Korea and China and 35000+Business Visitors,

BAI has organised a Construction Industry Conference onSaturday, 28th November, 2015, at 10 a.m. in theConference Hall of Bangalore International ExhibitionCentre.

The following topics of the Construction IndustryConference were :

1) Goods and Service Tax (GST) vis-a-vis constructionindustry: Speaker - Shri. Sandesh Mundra, (CA) andCo-Chairman, Goods & Service Tax Committee, BAI.

2) Applicability of 'Employees Provident Fund Act' and'Employees State Insurance Corporation' (ESIC)provisions to Construction Industry : Speaker - Shri.Ram K. Navratna, HR Resonance.

3) Issues of Real Estate Industry vis-à-vis Taxation,NOC's, etc. : Speaker - Shri H. N. Vijaya RaghvaReddy, Past Vice-President, BAI.

The meeting was presided over by Shri A. R.Ravindra Bhat, State Chairman, Karnataka, BAI.


PLATINUM JUBILEE CELEBRATION OF BAI

BAI is at threshold of history having been formed in 1941.It has in year 2016 completed seventy five years journey.Construction is a hard line with long working hours. Itneeds of initial fixed investment is low, whereas it'sworking capital requirement is high. All its activities areoutsourced to different people/agencies. In view of thispeculiarities, individual initially start with constructionbusiness but during course of next 20/30 years, changesbusiness. As a result mortality rate in industry is quitehigh. In a given scenario not only to survive but to growis a stupendous achievement, for a trade association likeBAI. It initially started with 13 members and as of nowspread over 150 plus centres with direct membership15,000 business houses and indirect membership of1,00,000 through its affiliated associations.

The Managing Committee Meeting held at Ahmedabadon 30th May 2015, have entrusted the Chairmanship of'Platinum Jubilee' celebration of BAI to Shri R.Radhakrishnan, Past President & Past Trustee of BAI. TheCo-Chairmen of the Committee are Shri B. Seenaiah, PastPresident; Shri Sushanta Kumar Basu, Imm. PastPresident; and Shri D.L. Desai (Shankarbhai), Trustee. PastPresidents are Members of the Committee and all OfficeBearers of the Headquarter will be Ex-officio Members.The Committee was also empowered to add moremembers, as we have decided to publish a Memoir of BAIwith all relevant information pertaining to BAI history.

The Organising Committee Members of Platinum Jubileecelebration have unanimously decided to direct BAICentres to celebrate the Platinum Jubilee. Centres should

organise programmes with the following templates:-

• Aim to touch all age groups with the celebration.

• Competitions for children.

• Essay debate competitions for High School andCollege Students.

• Special programmes for budding Civil Engineers.

• Aim to create one good permanent infrastructure forthe city like a circle, toilet block, hospital, school,training centre etc.

• To felicitate a senior most Builder (Member of BAI).

• To conduct health care camps for constructionworkers.

• To organise 'Well Built Structure Award'.

• Target one programme for home makers, they canbe your biggest ambassadors.

• A Sports Olympics for Construction Workers.

• One Seminar on the role of the Construction Industryin development, involve all the departments that weare connected with. Let them realise the importanceand glory of this industry and organisation.

• One grand programme involving the local MP, MLA,Mayor, Commissioner, etc.

XXVII ALL INDIA BUILDERS CONVENTION8TH TO 10TH JANUARY, 2016 AT HYDERABAD

XXVII All India Builders' Convention, was all the moreimportant since it was being organised during BAI's'Platinum Jubilee'. BAI Hyderabad Centre rose to theoccasion and accepted the challenge of hosting XXVIIAll India Builders' Convention.

The erstwhile BAI Andhra Pradesh (Hyderabad) Centrehad earlier hosted in Hyderabad the V All IndiaBuilders' Convention in October 1960 and XIII All IndiaBuilders Convention in January 1989.

The XXVII All India Builders' Convention (XXVII AIBC)was hosted by BAI Hyderabad Centre with activesupport not only from BAI Centres in the newly formedTelangana State but from BAI Centres from AndhraPradesh State also. XXVII AIBC was held between 8thand 10th January, 2016 in the imposing Ramoji FilmCity, Hyderabad.

XXVII AIBC was inaugurated in the second half ofFriday, 8th January, 2016, in an impressive setting in

the venue titled 'Lime Light' within Ramoji Film City.Mr. Kalvakuntla Chandrashekar Rao, Hon'ble ChiefMinister of Telangana State was the Chief Guest. Mr.M. Venkaiah Naidu, Hon'ble Minister for UrbanDevelopment & Urban Poverty Alleviation andParliamentary Affairs, Government of India was theGuest of Honour. Mr. Tummala Nageshwara Rao,Hon'ble Minister for Roads & Buildings, Women &Child Development, Government of Telangana, wasalso the Guest of Honour.

On behalf of BAI, Mr. R. Radhakrishnan gave anintroductory speech on BAI and XXVII AIBC andhighlighted some of the issues of the Indian buildingand construction industry.While concluding he onceagain requested the Hon'ble Urban DevelopmentMinister to use his good offices for arranging themeeting with the Hon'ble Prime Minister of India.

Speaking on the occasion Hon'ble Urban DevelopmentMinister, highlighted that the building and construction


industry and Government should work together foroverall national development. He reiterated his resolveto lead a BAI delegation to Hon'ble Prime Minister ofIndia and assured that he will apprise the Hon'ble PrimeMinister about the problems faced by the building andconstruction industry. He said that India's position inworld economy is very good and for world economy,India is island of hope, due to which all investors arelooking towards India. He enumerated efforts by theGovernment towards 'ease of doing business'. Hehighlighted the mantra of the Hon'ble Prime Minister -Skill, Speed and Scale. He said that infrastructure is thekey driver of the economy and highlighted the effortsof the Government for faster implementation of projectsby monthly reiew. He said that, in every Union Cabinetmeeting, there are two or three infrastructure issues androad issues. He remembered the contribution of Mr.Vajpayee, former Hon'ble Prime Minister who broughtin the road connectivity, air connectivity,telecommunication connectivity. He highlighted theimportance of road connectivity and the various stepstaken by the Government. He highlighted importanceof environmental care to be taken by builders andcontractors. He said that, Government is workingtowards easing the methodology of various permissionsto be taken from Union Ministry by seeing to it and itcan be taken at local level also. He assured that, manymore such proactive steps for the building andconstruction industry will be taken. He informed thatGovernment has taken the building and constructionsector as an important sector, which is required for Indiato grow. He said that, we are in the era of LPG -Liberalisation, Privatisation and Globalisation. Heexhorted the building and construction industry toabide by the rules and regulations to avoidunpleasantary situation. In conclusion, he expressedhope that, the deliberations in the Convention will comeup with concrete proposals.

Delivering the Chief Guest address, Hon'ble ChiefMinister of Telangana felt proud that, the XXVII AIBCin the Platinum Jubilee Year of BAI is being hosted inHyderabad. He wished the convention the very best andreiterated the Hon'ble Urban Development Minister'sstatement that, India is shining story in the worldeconomy. He gave China and its growth as an example.He said that China grew as a world manufacturing huband money came to China. Similarly, India should alsomake policies and develop. He said building andconstruction industry and the Government are partnersof national growth. He said that, for overall nationaldevelopment, only State Governments making policiesis not enough. The Central Government should createamicable policies. He also said that the word'contractors' should be replaced by 'executing agencies'and that it has been implemented in Telangana. Headded that building and construction industry needsto be encouraged because it is the second largestemployment generator in the country. Speaking on the

importance of Land Acquisition Bill, he said that fornational development, infrastructure has to beconstructed and for that, land is required. He spoke onthe importance of acquiring all the land before callingfor tender and gave an example of a project in TelanganaState, where total land has been acquired and thentender was called and the land has been handed overto the 'executing agency'. He informed about a schemeof Telangana Government, wherein 1.5% of the contractvalue is given to the 'executing agency', if it completesthe project in time. He exhorted the contractors toupgrade their working methodology. He lamented thepractice of under-quoting by contractors and said that,while Government blacklists such contractors, BAIshould also blacklist them.

The 'Technical Sesssions' continued on Sunday 10thJanuary, 2016, with Mr. C. N. Shridhar of M/s PrecaSolutions India Pvt. Ltd., giving a very interestingpresentation on 'Prestressed and Precast Technology'wherein he informed the delegates that the rapidgrowth and development of urban centers today callfor shorter timelines and reduced cost in theconstruction sector. Cost effective, proven technologiesensuring the highest standards and uniformity inquality are the need of the hour; a need that is noweffectively met by 'Prestressed and Precast Technology'.The next speaker Mr. Acharya Ajit Kumar spoke on thetopic 'India on the Move'. Mr. K. S. Reddy, Project Head,M/s Larsen & Toubro Ltd. spoke next on 'Importanceof Precast Technology' in infrastructure construction'.

Mr. R. Radhakrishnan, initiated the discussion by firstgiving a brief information on the behind the sceneactivities that went into the organising of XXVII AIBC.Mr. B. Seenaiah also addressed the gathering andattributed the successful organising of XXVII AIBC tothe team work and support of manufacturers ofconstruction machinery & materials and serviceproviders. He enumerated the various persons andorganisations that wholeheartedly supported theorganising of the event. He concluded that those BAImembers who did not or could attend the XXVII AIBCwill repent for having missed the Convention.

After some other members spoke and brief discussionwas held, Dr. Anand J. Gupta, Official Spokesperson ofBAI moved the resolutions, which were fourteen (14)in number. He gave brief background on each of theresolutions. The following resolutions wereunanimously passed by the delegates of XXVII AIBC.

XXVII All India Builders' Convention -RESOLUTIONS

1. It is RESOLVED that, the Government of Indiashould consider establishing a separate Ministryfor Building and Construction Industry due to theheavy investment opportunities expected to be in


Building and Construction Sector - that is,Infrastructure Development and Housing - in thenext two decades.

2. It is RESOLVED that, the Government of Indiashould recommend through Reserve Bank of India(RBI) that, lending norms to the contractors byBanks to the tune of Rs.5 Crore should be ruledby MSME provisions.

3. It is RESOLVED that, the Government of Indiashould recommend adopting Standard ContractDocument in all Works Authorities, incorporatingwith adequate dispute resolution measures likeArbitration and Conciliatory provisions.

4. It is RESOLVED that, the Government of Indiashould consider relaxing Coastal Regulation Zone(CRZ) Rules due to the large scale urbanisationand consequential requirement of more housingunits expected in the next two decades.

5. It is RESOLVED that, the Government of Indiashould consider promoting construction of steelcomposite structures as it is faster andeconomically beneficial.

6. It is RESOLVED that, the Government of Indiashould consider releasing the land bank to RealEstate Developers for constructing AffordableHouses to fulfil the dream of the Government toprovide 'Housing for All by 2022'.

7. It is RESOLVED that, the Government of Indiashould accept the recommendation of Shri VijayKelkar Panel on PPP and BOT projects, so thatPublic-Private-Partnership (PPP) projects in infrasector will have more takers.

8. It is RESOLVED that, the Government of Indiashould encourage research for using alternatematerial in place of sand, as sand dredging isbanned by the Supreme Court.

9. It is RESOLVED that, the Government of Indiashould encourage use of Precast material forquicker completion of construction projects, bothin housing and commercial complexes.

10. It is RESOLVED that, the Government of Indiashould consider rationalising the Labour Laws by

combining all the social security welfare measureswith a TDS form of collection. This will facilitatethe builder and contractor to concentrate on hisbusiness as Government will take care of the socialsecurity welfare of the workers.

11. It is RESOLVED that, the Government of Indiashould consider constituting a 'Cement RegulatoryAuthority' as Cement Manufacturers are knownfor indulging in cartelisation with profiteeringpurpose.

12. It is RESOLVED that, the Government of Indiashould consider establishing a single pointwindow for permission of major infra projects aswell as housing projects.

13. It is RESOLVED that more deserving people frombuilding and construction industry should beencouraged and given 'Padma Awards' as it isbeing given to other industries/professionals.

14. It is RESOLVED that Government of India shouldconsider rationalisation of taxation laws limitingthe discretionary powers of assessing officers.

Thereafter, the sponsors were felicitated by presentationof mementoes for their keepsake.

All the Past Presidents were also felicitated along withthe authors who had contributed articles in the'Souvenir-cum-Technical Volume'.

Mr. Lal Chand Sharma gave an emotional speech,wherein he appreciated the host Centre - HyderabadCentre for the mammoth efforts put in by them inorganising of XXVII AIBC. He said he considers himselfvery fortunate for being President of BAI during theXXVII AIBC and 'Platinum Jubilee' of BAI. Hehighlighted the importance of 'Conventions', whereinall members of BAI can participate and deliberate. Headded that such events, takes the BAI movementfurther.

The 'Technical Session' concluded with the holding of'Open House' and thereafter members dispersed forlunch.

The 'Valedictory Function' in the evening of Sunday,10th January, 2016 was held in the impressive 'MughalGarden'.

42nd IFAWPCA Convention, Tokyo, Japan

The 42nd Convention of the International Federation of Asianand Western Pacific Contractors Associations (IFAWPCA)was held in ‘The Prince Park Tower Tokyo’, Tokyo, Japan,between 16th and 19th November, 2015.

The ‘Overseas Construction Association of Japan, Inc.’

(OCAJI) was the host for the 42nd IFAWPCA Convention.

The theme for the 42nd IFAWPCA Convention was“Partnership and Sustainabili ty – New Frontier forConstruction Business”.

Mr. B. Seenaiah, Imm. Past President, BAI, was the ‘Chief


Delegate’ of BAI and led a delegation of members of BAIfrom across India to the 42nd IFAWPCA Convention.

Mr. Prince Joseph Vellukunnel and Mr. Lava Krishnan, werethe ‘Assembly Delegates’ for the 42nd IFAWPCA Convention.

Mr. Mahesh M. Mudda was nominated as ‘Executive BoardMember’ representing BAI on the IFAWPCA Board for theterm 2015-2017. He attended the ‘First Executive BoardMeeting’ on 16th November, 2015 in place of Mr S. N.Subramanyan, the earlier ‘Executive Board Member’representing BAI on the IFAWPCA Board. On 19th November,2015, he attended the ‘New Executive Board Meeting’ in hiscapacity of ‘Executive Board Member’ representing BAI onthe IFAWPCA Board for the term 2015-2017.

Mr. B. Seenaiah, as the ‘Chief Delegate’ of BAI, addressedthe First General Assembly on 17th November, 2015.

On 19th November, 2015, some members of the BAIdelegation gave an Indian cultural performance during the‘Farewell Dinner & Members Performances’.

BAI WEBSITE ‘www.baionline.in’

BAI launched its website ‘www.baionline.in’ at the ManagingCommittee Meeting at Nashik on 9th August 2008. With thelaunch of www.baionline.in, BAI too aims at giving itsmembers top-of-the-line service.

As of now www.baionline.in offers the following services:

� All circulars meant for BAI Centres and seniorfunctionaries will be hosted.

� Important Judgements, Circulars and Notifications byGovernment(s) and /or Departments will be hosted.

� Tender information.

� Latest Price Index Numbers.

� Construction industry related exhibition/trade fairinformation.

� Information on all publication of BAI and its Centres.

� Details of office-bearers of BAI.

� Links to important websites i.e. like minded national& international organisations , Governmentorganisations concerning having dealings withconstruction industry, service providers, constructioncompanies, etc.

BAI members / visitors can download :

� BAI Constitution (BAI Rules & Regulations)

� Membership Application Form

� Membership Data Updation Form

BAI members can get their membership number through

www.baionline.in.

Services to be introduced over a period, include :

� Website based email service to BAI members.

� ‘News & Discussion Board’ – news concerning theconstruction industry will be hosted and members/visitors can air their opinion on the same.

� ‘Meeting Room’ – akin to the concept of ‘chatting’,senior functionaries can hold meetings via videoconferencing.

� Archives of ‘Indian Construct ion’ and otherpublications by BAI Centres.

� Total detailed membership database of BAI.

‘Wheeling & Dealing’ – is a platform for BAI members andothers for offering machinery to be given on hire or requestmachinery on hire / offer specialised service or request forspecialised service, etc.

Finance of the Association

The Headquarter, due to its better financial discipline, wasgenerating surplus for the last 14 years, and the current yearalso we have a surplus of Rs. 24,91,638. This is a majorachievement, though there was a marked decline in interestincome. It is also a fact that, the Trustees are prompt andalert in keeping the Fixed Deposits with Banks which offersthe highest return.

Functions of BAI Headquarter Office

BAI Headquarter and BAI Delhi Office with a staff of 14members functioning exceptionally well under the controlof Executive Secretary, Shri Raju John.

Meetings

During the financial year under report, 5 (five) ManagingCommittee and 4 (four) General Council Meetings were heldat:

� Ahmedabad on 30th May 2015

� Kochi on 24th July 2015

� Mumbai on 12th September 2015

� Pune on 21st November 2015

� Hyderabad on 8th January 2016

Committees:

The Managing Committee authorised the President, Shri LalChand Sharma to re-constitute the Committees for the year2015-2016.

Accordingly, the following Committees were constituted withits Chairpersons as under:


Name of Committee Chairpersons

Central Govt. Dept. PSU. : Shri Ram Avtar

Cement & Bulk Material Purchase : Shri S. Narasimha Reddy

CIDC Co-ordination : Shri Sanjay Shah

Constitutional Amendment : Shri L. Moorthy

Contract Conditions : Shri Ved Khurana

Corporate Membership Development & : Shri K. SriramCommunications

Goods & Service Tax : Shri Gibu P. Mathew

Grievances : Shri A. Puhazhendi

Housing & Real Estate & Infrastructure : Shri Harjeet Singh SahaniDevelopment, ISO, Green Building &Recreation..

Indian Construction Bulletin : Shri D.L. Desai (Shankarbhai)

Labour Welfare, Provident Fund, ESIC & : Shri CH RamakotaiahLabour Cess.

Legal & Arbitration : Shri Neerav Parmar

Mechanisation : Shri V.G.Sakthikumar

Membership Development & New Centres. : Shri Ranjeet R. More

MES : Shri G.K. Gupta

MSME : Shri Saumil A. Patel

National Highways : Shri B. Seenaiah

Public Relations : Shri Mathew Alex Vellapally

Railways : Shri C. Devarajan

Skill Development : Shri A.N. Balaji

Taxation, Royalty, Entry Tax, Direct Tax & : Shri K. ViswanathanIndirect Tax.

BAI Spokesperson : Dr. Anand J. Gupta

BAI MEMBERSHIP/AFFILIATIONS

• Affiliated to International Federation of Asian &Western Pacific Contractors' Associations(IFAWPCA).

• Founder Member of Construction IndustryDevelopment Council (CIDC), New Delhi.

• Member of Indian Merchants' Chamber, Mumbai.

• Member of Indian Council of Arbitration, New Delhi.

• Member of Employers' Federation of India, Mumbai.

• Member of Indian Roads Congress.

• Member of Federation of Indian Chambers ofCommerce & Industry, New Delhi.

• Member and Promoter of Construction SkillDevelopment Council of India (CSDCI), New Delhi.

BAI'S REPRESENTATIVES ON VARIOUSCOMMITTEES

• Shri Lal Chand Sharma as Member, Board ofGovernors of National Institute of ConstructionManagement & Research.

• Shri Lal Chand Sharma as Member, Board ofGovernors of Construction Industry DevelopmentCouncil (CIDC).

• Shri Lal Chand Sharma, Member, Board ofGovernors of National Academy of Construction(NAC).

• Shri B. Seenaiah, Member, Review Committee forContract Management System formed by Ministryof Statistics & Programme Implementation (MOSPI).

• Shri Lal Chand Sharma, Member, National Councilof Construction Federation of India (CFI).

• Shri Lal Chand Sharma in the focus group formedfor WTO. `

• Shri Sushanta Kumar Basu represent BAI on theWorking Group of Construction constituted by


Shri Lal Chand Sharma, President, BAI Rs.1,00,000

Shri V.M. Fazal Ali, Vice President, BAI Rs.1,00,000

Shri Mahesh M. Mudda, Hon. Gen. Secretary, BAI Rs.1,00,000

Shri A. Puhazhendi, Past Vice President, BAI Rs. 25,000

BAI Muvattupuzha Centre Rs. 25,000

BAI Madurai Centre Rs. 25,000

BAI Rajasthan State on behalf of BAI Centres in Rajasthan Rs.5,00,000

BAI Gujarat(Ahmedabad) Centre Rs. 50,000

BAI Ranga Reddy Centre Rs. 75,000

Shri K.Vishwanathan, Past Vice President, BAI Rs. 50,000

Dr. Anand J.Gupta, Past Hon. Gen. Secretary, BAI Rs.1,00,000

BAI Eastern (Kolkata) Centre Rs. 25,000

BAI Bharuch and Baroda Centre Rs. 30,000

OFFICES OF BAI CENTRES

There has been a growing trend amongst BAI Centres togo in for their own office premises, with facilities forconducting 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 premisesare Andhra Pradesh (Hyderabad), Delhi, Eastern

Planning Commission for the 12th Five year Plan(2012-17).

• Shri Mahesh M. Mudda as Board Member on theExecutive Board of IFAWPCA.

• Shri Mahesh M. Mudda on the Expert Committeeand Shri Neerav Parmar on the State Level AdvisoryCommittee of Building & Other ConstructionWorkers (Regulation of Employment and Conditionsof Service) Act 1996 for Government of Maharashtra.

• Dr. Anand J. Gupta on Central Advisory Committeeconstituted by the Ministry of Labour, Governmentof India, under the Building and Other ConstructionWorkers (Regulation of Employment and Conditionsof Service) Act 1996.

• Shri H.S. Pasricha, Member, Central AdvisoryContract Labour Board, Ministry of Labour,Government of India.

BAI HEADQUARTER OFFICE RENOVATION

Considering the overall growth of BAI and its increasedactivities, it was being long felt that the BAI Secretariat inMumbai should be spruced up suitably. Accordingly theManaging Committee of BAI at its meeting held in Patnaon 20th December, 2013 sanctioned an amount of Rs. 50lacs for renovating the BAI secretariat in Mumbai. Seniorfunctionaries of BAI and many BAI Centres announcedtheir contribution towards the 'Renovation Fund'. M/sDesign Variable - offered their honorary services indesigning and supervising the executing of the renovationof the office. A 'Renovation Committee' consisting of Shri

Ram M. Bhatia, Past Vice-President, BAI and Shri NeeravParmar, Chairman, BAI Mumbai Centre (presently Hon.Gen. Treasurer, BAI) was formed in the ManagingCommittee and General Council Meeting held at Jaipuron 20th September 2014 to oversee the work.Subsequently, due to changes in layout and increased costthe sanctioned amount was increased to Rs. 60 lacs by theManaging Committee of BAI at its meeting held inAhmedabad on 30th May, 2015.

Finally on 31st March, 2016, a state-of-the-art secretariatwas inaugurated by Shri Lal Chand Sharma, President,BAI in the presence of a galaxy of past and present office-bearers of BAI and many senior functionaries of BAI fromacross India.

The newly renovated state-of-the-art secretariat of BAI inMumbai boasts of the latest in office gadgets. Hi-tech officecabins for the senior staff members, a more spacious mainconference room, a small conference room, videoconferencing facilities in some of the office cabins andconference rooms, hi-tech work area for the office staff,pleasant and welcoming reception area, fully operationalpantry, wash rooms with latest facilities, etc.

While the Managing Committee had sanctioned Rs. 60 lacsbut as the work progressed, there were changes in thelayout due to site conditions and specification of thematerials were upgraded due to which the cost is likelyto go upto nearly Rs. 1 Core. It will take the cost to nearlyRs.1 Crore, out of which Rs.80,00,000 towards Renovationhas been expenditure and further earmark Rs.10,00,000towards upgradation. The following have contributed tothe 'Renovation Fund'. BAI is calling upon its members tosend in their contribution also.


(Kolkata), Karnataka (Bangalore), Nanded, Nashik, Pune,Rajasthan (Jaipur), Sangli and Southern (Chennai).

'INDIAN CONSTRUCTION' Journal

Shri D.L. Desai (Shankarbhai) was the Chairman, IndianConstruction Journal Committee for 2015-2016. Theprinting of the magazine has been continued with amarked change and your journal is becoming more andmore popular.

The journal has admittedly established a numero-unoposition in construction related trade magazines as isevident from non-member subscribers, which includes,Engineering Institutes, Government Departments andUndertakings including many Works Authorities.

The Association is also sending around 1000complimentary copies to like-minded organisations in thecountry and abroad, Government Authorities,Engineering Colleges, Department Heads, WorksAuthorities etc. The rising paper, printing and postal costscoupled with low advertisement revenue forces BAIGeneral Fund to cross subsidise the publication as it isnot self sufficient.

ORGANISATIONAL ELECTION 2015-16

The Managing Committee, in its Meeting held at GreaterNoida on 17th December 2014, approved the ElectionProgramme for the year 2015-16 and appointed Shri RajuJohn, Executive Secretary as the Returning Officer. TheElection was conducted as per the Constitution and theresult of the same was declared on 30th March 2015 at4.00 P.M.

Following are the Office Bearers of BAI for the year 2015-16:-

President : Shri Lal Chand Sharma

Vice Presidents : Shri Ashok AgarwalShri V.M. Fazal AliShri Anilbhai R. ZinzuwadiaShri G.C. Gupta

Hon. General : Shri Mahesh M. MuddaSecretary

Hon. General : Shri C.G. DeochakeTreasurer

Imm. Past : Shri Sushanta Kumar BasuPresident

State Chairmen / State Co-ordinators:

Shri CH Ramakotaiah (Andhra Pradesh)

Shri Kulesh Goswami (Assam)

Shri Manikant (Bihar)

Shri N.R. Prashar (Chattisgarh)

Shri Arun Sahai (Delhi)

Shri Amit R. Patel (Gujarat)

Shri Chandrakant Raipat (Jharkhand)

Shri A.R. Ravindra Bhat (Karnataka)

Shri R. Rajesh (Kerala)

Shri Suresh Vaswani (Madhya Pradesh)

Shri Shri Sunil B. Mundada (Maharashtra)

Shri Ravi Kumar Kheria (Rajasthan)

Shri N. Raghunathan (Tamil Nadu)

Shri N. Nagesh Reddy (Telangana)

Shri Sanjay Tyagi (Uttar Pradesh)

Shri S.K. Nag (West Bengal)

BAI MEMBERSHIP SUBSCRIPTION.

The subscription for various categories of membershipwith the Association were as follows :-

Annual Membership

Annual Subscription Rs.2,400

Entrance Fee Rs. 100

'INDIAN CONSTRUCTION' Rs. 200

Service Tax Rs. 363

Total Rs.3,063

Patron Membership

One time subscription - Membershipfor 20 (Twenty) years. Rs.25,000


Service Tax Rs. 3,625

Total Rs.28,825

Affiliated Association Membership

Annual Subscription Rs. 4,400

Entrance Fee Rs. 500


Service Tax Rs. 711

Total Rs. 5,811

Affiliated Association - Patron Membership

Membership (One time subscription) Rs.30,000



Total Rs.34,550

Corporate Membership

Memberships (One time subscription) Rs.3,00,000

Annual Subscription Rs. 10,000


Total Rs.3,54,950

NEW CENTRES.

For the year 2015-16, BAI opened Centres in Gurgaon andKarnal in Haryana State, Tanuku in Andhra Pradesh State,


1. Overall Best BAI Centre (Below 200 Members) : Mysore Centre

2. Overall Best BAI Centre (Above 200 Members) : 1. Southern (Chennai) Centre2. Coimbatore Centre

3. Image Building Activities by a Centre : Madurai Centre

4. Organising Best Training Programme or Seminar : Pune Centre

5. Maximum Annual Membership Growth : 1. Durgapur Centre2. Dhule Centre3. Thanjavur Centre

6. Best Efforts by any Centre for Quality Construction : Karnataka (Bangalore) Centre

7. Best Builders' Day Celebrations. : 1. Tiruchirappalli Centre2. Mumbai Centre

8. Maximum Membership Retention : Muvattupuzha Centre

9. Best publication by a BAI Centre : 1. Southern (Chennai) Centre2. Mumbai Centre

10. Best performing Chairman of BAI's functional : Shri K. Viswanathan, Chairman,Committees. Taxation, Royalty, Entry Tax, Direct

Tax and Indirect Tax Committee.

11. Best performing State Chairman. : Shri D.R. Sekar, State Chairman,Tamil Nadu & Puducherry.

BUILDERS' DAY 2015.

The theme for the 'Builders' Day 2015" was ‘BulandBharat’. Builders' Day was celebrated by almost all Centresin a befitting manner.

OBITUARIES :

The Association lost the following members who left fortheir heavenly abode. BAI in their death has lost sincereand hardworking members.

• Shri S. Palani Mudaliar, Past Chairman of Southern(Chennai) Centre, expired on 27th April 2015.

• Shri Alim Chandani, Chairman & MD of M/s. StupConsultants Pvt. Ltd., Patron Member from MumbaiCentre, expired on 12th July, 2015.

• Shri Mohammed Riyas, Patron Member from AluvaCentre, expired on 9th September 2015.

• Shri B. Mani, Past Chairman of BAI Coimbatore

Centre, expired on 17th September 2015.

• Shri M. Gopalakrishnan, Past State Chairman, TamilNadu, expired on 18th October 2015.

• Shri K.P. Baney, Past Vice President, BAI, expired on7th November 2015.

• Shri Kehar Singh, Senior Member and Past GeneralCouncil Member, expired on 21st December 2015.

• Shri K. Basawaraja Gowda, Past State Chairman,Karnataka, expired on 5th January 2016.

• Shri Amar Mulchandani, Past Vice President, BAI,expired on 5th January 2016.

• Shri K. Sudarshan Reddy, Past State Chairman,Andhra Pradesh, expired on 28th February 2016.

• Shri Shitul Patel, Past Executive Committee Memberof BAI, Mumbai Centre, expired on 5th March 2016.

Kamareddy in Telangana State, Kodungallur in KeralaState.

The BAI Movement - BAI opens new Centres in Delhi EastShahadara, Delhi West, Gwalior in Madhya Pradesh;Mandgaon, Nandurbar, Ratnagiri, Shirwal andSindhudurg in Maharashtra.

2015-16 was an eventful year for BAI as far as growth ofthe BAI movement is concerned. BAI Centres were openedin Gurgaon and Karnal in Haryana State, Tanuku inAndhra Pradesh, Kamareddy in Telangana, andKodungallur in Kerala.

MEMBERSHIP STRENGTH

As on 31st March 2016, the membership was 16,237, whichincluded 11,398 Patron Members and 4,839 AnnualMembers

BAI AWARDS.

BAI Awards for 2014-15, for different categories wereannounced at the 74th Annual General Meeting held atMumbai, on 12th September 2015. Trophies andCertificates of Award were issued to the following winnerCentres / Members during the XXVII All India BuildersConvention held at Hyderabad on 10th January 2016.


ATTENDANCE SHEET FORMING PART OF ANNUAL REPORT FOR THE YEAR 2015-2016ATTENDANCE (out of five meetings)

Name Attendance Name AttendanceShri Lal Chand Sharma, President 5 Shri Agrawal A. Subhash 1Shri G.C. Gupta, Vice President 4 Shri Ahire Deepak Daulatrao 1Shri Ashok Agarwal, Vice President 5 Shri Ashok Goyal 0Shri V.M. Fazal Ali, Vice President 3 Shri Bata G. Gopalakrishnan 0Shri Anilbhai R. Zinzuwadia, 5 Shri Birendrasingh K. Bhadoria 2Vice PresidentShri Mahesh Mudda, Hon. Gen. Secretary 4 Shri C. Satish Kumar 2Shri C.G. Deochake, Hon. Gen. Treasurer 5 Shri C.K.S. Panicker 3Shri Sushanta Kumar Basu, 5 Shri D.P. Balaji 1Imm. Past President

Shri Dhanwant Lal Gupta 0State Chairmen / State Co-ordinators Shri Dineshchandra R. Agarwal 1Shri CH Ramakotaiah (Andhra Pradesh) 3 Shri Harkant G. Vachharajani 2Shri Manikant (Bihar) 1 Shri Jaideep P. Raje 1Shri N.R. Prashar (Chattisgarh) 1 Shri K. Rajavel 2Shri Arun Sahai (Delhi) 2 Shri K. Rama Rao 0Shri Amit R. Patel (Gujrat) 2 Shri K. Sudarshan Reddy 0Shri Chandrakant Raipat (Jharkhand) 0 Shri K.J. Saminath 2Shri A.R. Ravindra Bhat (Karnataka) 4 Shri K.K. Patel 1Shri R. Rajesh.(Kerala) 4 Shri Kirtibhai Thakkar 3Shri Suresh Vaswani (Madhya Pradesh) 3 Shri Kunal Arvind Domadiya 1Shri Sunil B. Mundada (Maharashtra) 5 Shri Lal Chand Ralhan 0Shri Ravi Kumar Kheria (Rajasthan) 5 Shri Mafatlalbhai Patel 1Shri N. Raghunathan (Tamil Nadu) 5 Shri Mukesh V. Patel 1Shri N. Nagesh Reddy (Telangana) 5 Shri N. Raja Reddy 0Shri Sanjay Tyagi (Uttar Pradesh) 3 Shri N.C. Sundaramurthy 1Shri S.K. Nag (West Bengal) 2 Shri N.M. Krishnamurthy 2

Shri Navin Vasoya Patel 2Members of the Managing Committee Shri P.M. Harshe 1Dr. Anand J. Gupta 4 Shri R. Karna Boopathy 1Dr. Dharmesh C. Awasthi 2 Shri R. Saravanan 2Dr. D. Thukkaram 4 Shri Rajendra M. Upadhye 2Dr. S.K. Manjrekar 3 Shri Ramesh P. Marde 3Shri A. Puhazhendi 5 Shri S. Prabhu 0Shri A.N. Balaji 3 Shri S. Shiva Prakash 1Shri Ashok Kumar Sharma 2 Shri Sanjay S. Desale 3Shri Avinash M. Patil 3 Shri Shitalkumar Nawle 0Shri Abhay Garde 1 Shri Shiv Kumar Kasana 0Shri Alex P. Cyriac 3 Shri Shrenik M. Shah 1Shri Baburao L. Shakkarwar 2 Shri Surinder Sharma 1Shri Basavaraj S. Thotad 2 Shri U.M. Gurushanthappa 2Shri Bhopinder R. Lal 3 Shri Uday N. Gokhale 3Shri C. Devrajan 1 Shri V. Sivarajan 2Shri G.M. Ravindra 2 Shri V. Venkatesan 3Shri Girish I. Patel 3 Shri V.S.K. Moorthy 2Shri Harshad N. Bhayani 3 Shri Vikram Kumar 0Shri H.N. Vijaya Raghava Reddy 3


Managing Committee Meetings held at:1. Ahmedabad on 30th May 2015.2. Cochin on 24th July 2015.

Name Attendance Name Attendance

Shri K. Venkatesan 3 Representatives of AffiliatedAssociation Members

Shri K.S. Someshwar Reddy 4 Shri E. Manohar 4Shri K. Padmanabhan 1 Shri V.V. Chandak 0Shri K. Subramani 4Shri K.J. George 2 Past PresidentsShri L. Venkatesan 3 Shri B.N. Dikshit 2Shri L. Moorthy 4 Shri H.S. Dugal 0Shri M. Dhandavakrishnan 2 Dr. Brahm Datt 0Shri M. M. Mohandas 2 Shri Shriprakash Goel 4Shri Mohanlal Katariya 0 Shri A.S. Chinnaswamy Raju 2Shri Mohan D. Bhate 2 Shri V. Ramachandran 4Shri Mu. Moahan 3 Shri R. Radhakrishnan 5Shri N. Ramalingam 0 Shri M. Karthikeyan 4Shri Narendra Kumar 2 Shri A.K. Yussouf 3Shri N. Sachitanand Reddy 3 Shri P.R. Mundle 3Shri N.K. Gunasekaran 3 Shri Ajit Gulabchand 0Shri N.M. Patel 4 Shri S.A. Vichare 2Shri Naresh Agarwal 1 Shri Lalit Sangtani 0Shri Neelkanth S. Joshi 2 Shri Bhagwan J. Deokar 4Shri P. Subramani 5 Shri Cherian Varkey 1Shri P.P. John 4 Shri B. Seenaiah 4Shri Pratap B. Salunkhe 4Shri Prabir Kumar Mukherjee 1Shri Pradeep Kumar Jain 2 Chairpersons of CommitteesShri R. Ethirajan 4 Shri C. Devarajan 1Shri R. Subburaman 1 Shri G.K. Gupta 0Shri Rajendra Athawale 1 Shri Gibu P. Mathew 1Shri R. Sivakumar 3 Shri Harjeet Singh Sahani 0Shri Ram M. Bhatia 3 Shri K. Sriram 3Shri Ravindra Pradhan 1 Shri K. Viswanathan 3Shri S. Ganapathy 5 Shri Mathew Alex Vellapally 2Shri S.I. Chunkhare 3 Shri Neerav Parmar 4Shri S. Ayyanathan 3 Shri Ram Avtar 4Shri S.D. Kannan 3 Shri Ranjeet R. More 4Shri Ved Khurana 0 Shri S. Narasimha Reddy 1

Shri Saumil A. Patel 4Shri V.G. Shakthikumar 0

Members co-opted to Managing CommitteeDr. Tarro T. Manghnani 5 TrusteesShri Mukesh Verma 3 Shri J.R. Sethuramalingam 3Shri N.S. Muralidhara 4 Shri P.K. Ramachandran 3Shri Vinod C. Gamdiwala 4 Shri R. Ramaraj 0

Shri D.L. Desai (Shankarbhai) 5Special Invitees to the Managing Committee Shri Jagdish Parekh 5Dr. S. Kanagasundaram 2 Dr. D.C. Awasthi 2Shri A.K. Srivastava 2 Shri S.K. Pradhan 0

3. Mumbai on 12th September 2015.4. Pune on 21st November 2015.5. Hyderabad on 8th January 2016.


BUILDERS' ASSOCIATION OF INDIAMANAGING COMMITTEE 2016-2017

PresidentShri Avinash M. Patil

Vice PresidentsShri Rajiv B. Krishnani Shri R.N. Gupta Ravindra Pradhan Shri Mu. Moahan

Hon. Gen. Secretary Hon. Gen. TreasurerShri C.G. Deochake Shri Neerav Parmar

Imm. Past PresidentShri Lal Chand Sharma

TrusteesShri Ashok K. Choudhary Shri D.L. Desai Shri Lal Chand Sharma Shri M. Karthiekeyan

Shri N. Sachitanand Reddy Shri R. Subburaman Shri Vijay Jagannath Devi

State Chairmen / Co-ordinatorANDHRA PRADESH ASSAM CHATTISGARH GUJARATShri Ch. Ramakotaiah Shri Kulesh Goswami Shri Alok Shivhare Shri Nitin M. Shah

JHARKHAND KARNATAKA KERALA MADHYA PRADESHShri Devendra Tiwary Shri K.S. Someshwar Reddy Shri John Paul K. Shri Suresh Vaswani

MAHARASHTRA RAJASTHAN TAMIL NADU TELANGANAShri Suresh B. Patil Shri Ravi Kumar Kheria Shri M. Thirusangu Shri B. Sugunakar Rao

UTTAR PRADESH WEST BENGALShri Sanjay Tyagi Shri Sudip Kumar Dutta

MembersDr. D. Thukkaram Dr. Dharmesh C. Awasthi Dr. Tarro T. ManghnaiShri A. Chamaraja Reddy Shri A. Puhazhendi Shri Abhay GardeShri Amar Bawa Shri Ashok Agarwal Shri Baburao L. ShakkarwarShri Basavaraj S. Totad Shri Bhopinder R. Lal Shri D. KempannaShri G. Thilagar Shri H.N. Vijaya Raghava Reddy Shri Harshad N. BhayaniShri Jagdish M. Parekh Shri Jaiprakash Bhatia Shri Jawahar MuthaShri K. Annamalai Shri K. Mathiyalagan Shri K. RamanujamShri K.Subramani Shri K.J. George Shri L. ShantakumarShri L. Venkatesan Shri M. Dhandavakrishnan Shri M.G. SundarShri Mahesh R. Mirani Shri Mathew Alex Vellapally Shri Mohan D. BhateShri Mohan S. Katariya Shri Mohinder Rijhwani Shri N. RamalingamShri Narendra Kumar Shri Narendra P. Patel Shri Naresh Kumar AgarwalShri Neelkanth S. Joshi Shri O.K. Selvaraj Shri P. ParameswaranShri P.P. John Shri Prabir Kumar Mukherjee Shri Pratap B. SalunkheShri Prince Joseph Shri R. Ethirajan Shri R. KrishnaswamyShri S. Ayyanathan Shri S. Ganapathy Shri S. PrakashShri S. Ramaprabhu Shri Sanjay Laxman Patil Shri Srinivasa ReddyShri T.V. Chandrasekaran Shri Y. Ishwar Rao

Co-opted MembersShri J.R. Sethuramalingam Shri N. M. Patel Shri V.M. Fazal Ali Shri Vinod C. Gamdiwala

Special InviteesShri A. K. Srivastava Shri A.N. Balaji Anthony RathnamShri Arvindbhai V. Patel Shri B. Adinarayana Reddy Shri B. Babu RaoShri C.S. Parhar Shri D.P. Balaji Shri G.M. RavindraShri H.V. Nagesh Shri Harkant G. Vachharajani Shri I. NepolianShri J. Dhanasekar Shri Jacob Mathew Vellapally Shri Jaideep P. RajeShri Joshy Joseph SHri K. Chinnaswamy Shri K. Rajakumaran NairShri K. Rajavel Shri L.D. Kotwani Shri M. RajendranShri Mahesh G. Mahajan Shri Manesh K. Shri Milind T. PatilShri MVG Jawagar Shri N.M. Krishnamurthy Shri N.P. VishwanathShri P. Shahin Shri P.K.P. Narayanan Shri Paresh VachhaniShri Prakash N. Dewalkar Shri Pratap S. Rananaware Shri R. ManoharShri R. Saravanan Shri R. Sivakumar Shri Rahul B. VakhariaShri Rajendra K. Mutha Shri Rajendra M. Upadhye Shri Ramdas R. JagtapShri Ramesh P. Marda Shri S. Pandien Shri S.M. SaitShri S.R. Swamy Shri Sanjay Shah Shri Sharad D. Kharade (Patil)Shri Stanley Scaria Shri Sunil Kokitkar Shri Suresh MoorjaniShri Tarak R. Mamlatdarna SHri Uday N. Gokhale Shri V. NarasimhanShri V. Sivarajan Shri V.L. Muniraja Shri Vinit Patel


REPORTS FROM BAI CENTRES

Ahmednagar Centre

Mr Sunil Mundada, State Chairman, BAI Maharashtravisited Ahmednagar Centre on 7th August 2015. He wasaccorded a warm welcome by senior functionaries ofcentre led by Mr.Dilip Jagtap, Chairman and other seniorfunctionaries. A ‘Press Conference’ was held on theoccasion.

Mr. Dalip Gandhi, MP, Ahmednagar organized a meetingon 9th February 2015 in Ahmednagar where Mr. KalrajMishra, Hon’ble Minister of Micro, Small & MediumEnterprises was the Chief Guest. Prominent persons spokeon the occasion. Mr. D. B. Jagtap, Chairman and Mr.Jawahar Mudha, Past Vice President also spoke on theoccasion and handed over a copy of the Post BudgetMemorandum, prepared by BAI-HQ and alreadysubmitted to the Finance Ministry. The Hon’ble Ministerassured the representatives to forward their suggestionsto the Union Finance Minister.

Allahabad Centre

Mr. H. C. Agarwal was installed as the Chairman ofAllahabad Centre for the 2015-16. Other office-bearers ofthe Centre were also installed along with the Chairman.

Alleppey Centre

Installation function of the Office Bearers of the Centrewas held on 21st June 2015. As part of their CSR activities,the Centre has constructed a house for a homeless lady.Members of the Centre actively attended in all nationalevents.

Aluva Centre

Office Bearers of the Centre were re-elected. The Centreconducted regular monthly meetings and family meetings.

Angamaly Centre

Office Bearers of the Centre were re-elected. The Centreconducted regular monthly meetings and ExecutiveCommittee meetings. New Members were added to theCentre and participated in various national events.

Baramati Centre

The Centre was associated with Vidya Pratisthan’s Collegeof Engineering (VPCOE), Baramati, which organized atechnical event ‘STAPATHYA 2016’ held in the Collegepremises. Mr. Sunil Mundada, State Chairman, BAIMaharashtra inaugurated the event. Dr. S.B. Deosarkar,Principal, VPCOE; Prof. G.N. Narule, Head of CivilDepartment; Mr. Adesh Shah, Chairman, BAI BaramatiCentre; Mr. Manoj Potekar, Past State Chairman, BAIMaharashtra and Shri Ashfaq Sayeed, Senior BAI member,BAI Baramati Centre, were present on the occasion.

Calicut Centre

Office Bearers of the Centre were re-elected. The Centreconducted regular monthly meetings. A Seminar wasconducted on GST and took legal proceedings to solvevarious issues related to Government contractors.Members of the Centre also actively participated in allnational events.

Changanassery Centre

Office Bearers of the Centre were re-elected. The Centreconducted regular monthly meetings. As part of their CSRactivities, they are carried out the renovation work of the“Anchuvilakku”, a heritage stone lamp post. The Centrepurchased land for office building and actively attendedall national events.

Cochin Centre

Mr. V. M. Fazal Ali was installed as the Vice President ofBAI for 2015-16 on 17th April 2015 in Cochin. Mr. P/K.Ramachandran, Trustee, BAI administered the “Oath ofOffice” to him. On the same occasion, Mr. Manoj Mathewwas installed as the Chairman of Cochin Centre for 2015-16. Mr. Fazal Ali administered the “Oath of Office” to him.Mr. Cherian Varkey, Past President, BAI and Mr. PrinceJoseph, the outgoing Chairman and Mr. Gibu P. Mathew,Hon. Secretary, Cochin Centre were also present on theoccasion. Dr. A. K. Balyan, CEO & MD M/s. Petronet wasthe Chief Guest . Mr. Cherian Verkey presented the book,“Legends of the Indian Construction Industry, publishedby BAI to Dr. A. K. Balyan. Around 250 membersincluding family members were present for the function.The function was well covered by the media.

The Centre hosted the second meeting of the ManagingCommittee Meeting of BAI for 2015-16 on 24th July 2016at Bolghaty Palace, Kochi.

Kochi Centre conducted a seminar on “Post BudgetImplications on VAT, Service Tax & Income Tax for theConstruction Industry” on 5th May 2015. Adv. Jose Jacob,Head – Indirect Taxes and Legal, M/s. JB ARSEN,Ernakulam and Mr. Balakrishnan Kariyot, CA, Head –Direct Tax & Accounting Services, JB ARSEN, Ernakulam,were the main speakers. The seminar was well attendedby members and their supporting staff, which was wellappreciated by the attendees

Coimbatore Centre

Coimbatore Centre celebrated “Builders’ Day 2015-16" on29.09.2015. Mr. V Gopalsamy (Vaiko), founder andGeneral Secretary of MDMK was the Chief Guest. Mr. T SRamani Shankar, Chief Architect, M/s. ShankarAssociates was the Guest of Honour. Mr. V.M. Fazal Ali,Vice-President, other senior functionaries & members


were present on the occasion. A souvenir was alsoreleased.

Delhi Centre

Mr. Lal Chand Sharma, President, BAI inaugurated “PilotStudy Project for Training & Assessment of ConstructionWorkers” on 17th April 2015 at the construction site CivilCourts at New Delhi by M/s. Swadeshi CivilInfrastructure Pvt. Ltd. The event was organized byKaushal Vridhi Kendra, New Delhi, an NGO associatedwith the Training and Assessment of ConstructionWorkers, as per “Recognition of Prior Learning” initiatedby Govt. of India through DGE&T, Ministry ofEmployment & Training. Other prominent personspresent on the occasion include Col. Ashwani KumarJoshi, CEO-CSDCI, Mr. Ram Avtar of M/s. Swadeshi CivilInfrastructure Pvt. Ltd. and also Past Chairman, BAI-DelhiCentre, Mr. S. Toor from Indian Buildings Congress , Mr.Amarjeet Singh from M/s. Ahluwalia Contracts (India)ltd, Mr. Raj Pal Arora, Hon. Secretary, BAI-Delhi Centre,Mr, Satnam Singh Arora, Executive Officer, BAI-DelhiOffice and other representative of construction industry.

Chairman & other senior members accompanied thedelegation from BAI-HQ who met Shri Shankar Aggarwal,Secretary, Ministry of Labour & Employment on 9th

October 2015 and 15th December 2015 in his office at ShramShakti Bhawan in connection with the problems beingfaced by the construction companies on implementationof ESIC Scheme on construction workers with effect from1st August 2015.

Kaushal Vridhi Kendra, New Delhi, an NGO associatedwith the Training and Assessment of ConstructionWorkers, in association with BAI – Delhi Centre organizeda function to facilitate the construction workers trainedand to distribute them the Award Money, Certificate andSkill Card to Trained Workers under the PMKVY Scheme,on Thursday, the 28th January 2016 at construction worksite of New Delhi District Court at Mata Sundri Marg,New Delhi-110002, being constructed by M/s. SwadeshiCivil Infrastructure Pvt. Ltd. (Patron Member of BAI –Delhi Centre) at 12.00 Noon. The Certificate AwardFunction was graced by Shri Lal Chand Sharma, President– BAI. Other prominent persons who were present on thefunction includes Col. Ashwani Kumar Joshi, CEO-CSDCI,Shri R N Gupta, Chairman, BAI – Delhi Centre, Shri RamAvtar from M/s. Swadesh Civil Infrastructure Pvt. Ltd.And Treasurer, BAI – Delhi Centre, Shri Raj Pal Arora,Hon. Secretary, BAI – Delhi Centre and Promoter/Headof Kaushal Vridhi Kendra, Shri Lal Chand Ralhan, ShriVed Khurana, Executive Committee Members – BAI –Delhi Centre, Shri Satnam Singh Arora, Executive Officer,BAI-Delhi Office, other Patron Members from Delhi aswell as new Patron Members joined BAI from Karnal(Haryana). Shri Lal Chand Sharma distributed thecertificates and pass book to the workers trained and alsospoke on the occasion. He appreciated the efforts of KVK

in training of the construction workers. Shri Ram Avtaralso arranged lunch for all attended the function.

A delegation consisting of Mr. R N Gupta, Chairman-DelhiCentre, Mr. Ram Avtar, Treasurer, Delhi Centre, Mr. R PArora, Hon. Secretary, Delhi Centre and Mr. Satnam SinghArora, Executive Officer, BAI-Delhi Office called on ShriShankar Aggarwal, Secretary, Ministry of Labour &Employment, New Delhi on 16th March, 2016 to apprisehim about the problems being faced by the constructioncompanies in registration of the construction workers withBOCW Board and extending of the facilities available tothem under the BOCW. Shri Aggarwal appreciated theconcern of the industry for its workers and directed theofficers to look into the matter to sort the issues raised.He also directed them to take the held from the membersof the delegation in this regard.

Dhule Centre

Dhule Centre hosted the first “BAI Maharashtra StateMeeting” for 2015-16 on 25th April, 2015. Mr. SunilMundada, State Chairman, BAI Maharashtra chaired themeeting. Mr. Bhagwan J. Deokar, Past President, BAI wasthe Guest of Honour. Mr. Bharat G. Wagh, Chairman andMr. Sanjay Desale, Hon. Secretary of Dhule Centre gracedthe dais. Issues confronting the building and constructionindustry in Maharashtra and also on national level werediscussed. Other office bearers were also present in themeeting.

First BAI Maharashtra State meeting held in Dhule on 25th

April 2015 in which a committee was formed to tackleissues of contractors working for various departments ofGovt. of Maharashtra. Subsequently, Mr. Sunil Mundada,State Chairman, BAI Maharashtra made a representationto PWD Maharashtra on 25th May, 2015. A meeting wasalso arranged with Addl. Chief Secretary (PWD), Govt.of Maharashtra on 9th June 2015 in Mantralya, Mumbai.Senior functionaries from the Mumbai Centres and fromstate were part of the BAI delegation who met Addl. ChiefSecretary, Secy (Roads) & Under Secy, PWD.

As a part of Dhule Centre’s Silver Jubilee celebrations andBAI’s Platinum Jubilee celebrations, Dhule Centreorganized a ‘Tree Plantation Programme’ on 25th August2015. Dr. Namdev Bhosale, Municipal Commissioner ofDhule was the Chief Guest. Other senior office bearersfrom the Maharashtra State were present on the occasion.Chairman along with office bearers and seniorfunctionaries co-ordinated in organization of the event.

A BAI Delegation led by Mr. Sunil Mundada, StateChairman, BAI Maharashtra called upon Mr. Girish Bapat,Hon’ble Minister of Food, Civil Supplies & ConsumerProtection, Food & Drugs Administration & ParliamentaryAffairs, Govt. of Maharashtra on 12th May 2015 in Mumbaiin connection with the action being taken by MetrologyController of Maharashtra against the real estatedevelopers, in absence of rules. Other senior office bearers


from Mumbai also joined the delegation.

The Centre celebrated ‘Silver Jubilee’ and “Builders’ Day2015-16" on 13th March, 2016. Mr. Avinash M. Patil, Imm.Past Vice President, BAI was the Chief Guest. Mr. SunilB. Mundada, State Chairman, BAI Maharashtra and Mr.Sanjay L. Patil, State Secretary, BAI Maharashtra were theGuests of Honour. On the occasion all the Past Chairmenof Dhule Centre were felicitated. Members of BAI alongwith their families, senior government officials, etc. werepresent on the occasion.

Dindigul Centre

Er. M. Veeramarban was installed as the Chairman ofDindigul Centre for 2015-16 by Mr. V.M. Fazal Ali, VicePresident, BAI on 26th April 2015. Mr. V. Marutharaj,Hon’ble Mayor of Dindigual, Er. G. Rajendran, ExecutiveEngineer, Directorate of Town Panchayat and Er. V.Ramachandran, Past President and Past Trustee were alsopresent on the occasion and addressed the gathering.Other Officer Bearers of the centre were also installed onthe occasion.

Dindigul Centre conducted a ‘Special Seminar onPersonality Development’ on 3.06.2015. Pro. .ElasaiSundaram, MA, Ph.D., former Director of All India Radio-Madurai was the keynote speaker. Centre also organizeda technical presentation ‘JSW NeoSteel Premium TMT Barson 17th July 2015. A programme on ‘ReinforcementDetailing of Earthquake Resistance Structure and caseStudies-CSR’ was conducted along with i-Steel on 24th July,2015. Dr. P. Mahendran, Ph.D. Professor-Structural Divn,Department of Civil Engineering-Gandhigram RuralUniversity, Dindigul was the keynote speaker. Officebearers and senior functionaries co-ordinated inorganizing the event.

A programme to enlighten members on ‘HomeAutomation’ was organized by Centre on 26th Nov. 2015.Mr. G. Satishkumar, Area Manager, M/s. Legrand (India)Ltd. gave a presentation on the topic. Chairman & Hon.Secretary. co-ordinated in organizing the event along withother office-bearers and senior functionaries of the Centre.

The Centre held their Annual General Meeting andcelebrated BAI’s Platinum Jubilee on 19th and 20th

December 2015 in Kodaikanal. Mr. V. Ramachandran, PastPresident & Past Trustee, BAI was the Chief Guest. Mr.Arivumathi, Social Activist & Lyricist was the Guest ofHonour.

A ‘Family Get-to-Gether’ was organized by DindigulCentre on 21st February 2016. Mr. A. Puhazhendi, Past VicePresident, BAI, was the Chief Guest. Games and culturalprogrammes for and by the children of BAI members wereheld.

Durgapur Centre

26th Installation Ceremony of BAI Durgapur Centre was

held on 10th May 2015, wherein Mr. Ashok KumarChandak was installed as Chairman 20156-16 along withhis team. Mr. G. C. Gupta, Vice-President, BAI and Mr.Sushanta Kumar Basu, Imm. Past President, BAI were theGuests of Honour. 5 New Patron Members were inductedinto BAI on the occasion. Members from Eastern (Kolkata)Centre, other prominent places and other like mindedorganizations attended the function in large numbers.

Centre celebrated “Builders’ Day 2015-16" on 08.11.2015.Mr. Ajay Kumar Nand, IPS, Commissioner of Police,Asansol-Durgapur was the Chief Guest and Mr. Mr. SunilKumar Nag, State Chairman, BAI West Bengal was theGuest of Honour. Dr. Amit Ganguly, Professor ofMetallurgy at National Institute of Technology, Durgapurwas the keynote speaker and spoke about ‘Housing forall’. He acknowledged the importance. 4 new membersinducted in BAI on the occasion. Members from Eastern(Kolkata) and Haldia Centre also graced the occasion.

Eastern (Kolkata) Centre

A delegation of BAI Eastern (Kolkata) Centre membersand their families visited Sri Lanka between 23rd and 30th

March 2016 on a business-cum-pleasure trip. Thedelegation was led by Mr. Sushanta Kumar Basu, Imm.Past President; Mr. G.C. Gupta, Vice President; Mr. S.K.Nag, State Chairman, BAI West Bengal; Mr. SurojitSamanta, Chairman; Mr. Sudip Kumar Dutta, Imm. PastChairman; Mr. Subrata Das, Vice Chairman; Mr. PradeepK. Chowdhury, Past State Chairman, BAI West Bengal;and other Senior Members of the Centre. On 29th March2016, on an invitation from National ConstructionAssociation of Sri Lanka (NCASL) , the delegation metthe Senior Members of NCASL at their beautiful SeminarHall. R. Deshamanya Sunil P. Liyanaarachhi, ChairmanNCASL welcomed the BAI delegation and requested Mr.Sushanta Kumar Basu to introduce themselves. Mr.Liyanarachi also introduced their members present. Afterthe initial introduction and exchange of pleasantries, Mr.Basu explained in length the general construction scenarioin India and the necessity of this type of meetings inbetween the two Countries for the cause of constructionfraternity and mutual benefit. Mr. S.K. Basu also discussedabout the various opportunities in India for overseascontractors. The overall interactive meeting was veryfruitful. On behalf of BAI, Mr. Basu invited all themembers of NCASL to come to India for exchange of viewsfor the good of construction industries of bothe thecountries. After concluding the formal meeting, Mr.Pubudu Kamal Perera, Hon. Secretary, NCASL took theBAI members around their office presmises whichincluded an Auditorium of around 200 capacity . BAIdelegation was very pleased by the hospitality shown bythe members of NCASL.

Ghaziabad Centre

Ghaziabad Centre felicitated Mr. Lal Chand Sharma on4th April 2015 on his being unanimously elected as


President of BAI for the year 2015-16. Mr. Lal ChandSharma is also former Chairman of Ghaziabad Centre. Apress conference was organized on the same day whichwas addressed by Mr. Lal Chand Sharma, Mr. SanjayTyati, State Chairman, BAI Uttar Pradesh, Mr. RavindraTyagi, Past State Chairman, BAI Uttar Pradesh and others.The event was covered by the local press and media.

The Centre organised a function to felicitate Mr. Lal ChandSharma, President of BAI on 21st March, 2016. Mr. VijayYadav, IAS, Vice Chairman, Ghaziabad DevelopmentAuthority (GDA) was the Chief Guest. Mr. T.R. Yadav,Finance Controller, GDA; Mr. S.C. Dwivedi, ChiefEngineer, GDA; Mr. A.K. Gulati, SuperintendingEngineer, GDA; Mr. R.S. Divakar, Executive Engineer,GDA and Mr. Sanjay Tyagi, State Chairman, BAI UttarPradesh were the Guests of Honour. Mr. Lal ChandSharma briefed the gathering about BAI and its variousactivities. BAI Members and their families, Office Bearersof like minded Organisations, and senior officials ofGovernment departments associated with building andconstruction industry attended the function. The eveningended with a gala dinner.

Gujarat (Ahemdabad) Centre

The Centre hosted the first meeting of the ManagingCommittee and General Council Meetings of BAI for 2015-16 on 30th May 2015 at Hotel Crowne Plaza, Ahmedabad.Shri Nitinbhai Patel, Honble Minister for Health, MedicalEducation, Family Welfare, Road and Building, CapitalProject, was present in the inaugural session of themeeting. He assured the support of the State Governmentto all contractors who take up projects in the Gujarat Stte.

A “Workshop on applicability of Service Tax to Building& Construction Industry” was organized by BAI Gujarat(Ahemdabad) Centre on 2nd June 2015. Mr. Nitesh Jain ofM/s. N.J.Jain & Associated – leading Service TaxConsultant in Gujrat delivered the keynote address. Mr.Anil Zinzuwadia, Vice President, Mr. Vinod Gamdiwala,Chairman-Gujarat Contractors Association, Mr. VinitPatel, Hon. Secretary, Gujarat (Ahemdabad) Centre andother senior members were present.

On the occasion of ‘World Day for Safety & Health atWork’, a ‘Workshop on Construction Workers Safety,Health & Welfare’ was jointly organized by BAI Gujarat(Ahemdabad) Centre, Gujarat Contractors Association(GCA), The Gujarat Institute of Civil Engineers &Architects (GICEA) and Bandhkam Mazoor Sanghathan(BMS) in Gandhi Labour Institute , Ahemdabad on 28th

June 2015. Dr. (Mrs) Jayanti Ravi (IAS), LabourCommissioner, Gujrat was the Chief Guest. Mr. R. K.Parmar, Secretary, Construction Workers Welfare Boardwas the Guest of Honour. Senior Office Bearers from BAI-Gujrat and other like minded associations were alsopresent on the occasion.

BAI Gujarat (Ahemdabad) Centre, Gujarat Contractors

Association, CREDAI and other associations jointlycelebrated ‘Independence Day’ on 15th August 2015 byorganizing joint Flag hoisting ceremony. Other prominentmembers, functionaries, office bearers of Centre werepresent on the occasion. A ‘Blood Donation Camp’ wasalso organized on the occasion and participants & theirfamily members donated blood.

The Centre filed Writ Petition in the Hon’ble High Courtof Gujarat against new provisions of ESIC matter and gotstay order.

The Centre was made a representation to the Hon’bleFinance Minister, Government of India in the matter oflevy on Ready Mix Concrete and the Minister in his budgetspeech announced about the same.

With the efforts of Vice President, Mr. AnilbhaiZInzuwadia, a new BAI Centre opened at Rajkot. Effortsare being made by the Centre Chairman to open new BAICentres at Himatnagar/Mehsana and Kuchh / Bhuj.

Guwahati Centre

Guwahati Centre celebrated ‘Platinum Jubilee’ of BAI on3rd October, 2015 by organizing a ‘Seminar on ConstructionIndustry – Labour Laws & Service Tax’. Mr. Lal ChandSharma, President-BAI was the Chief Guest and Mr.Anurag Singh, IFS, CEO of Guwahati MetropolitanDevelopment Authority was Guest of Honour. Mr.Sushanta Kumar Basu, Imm. Past President, BAI was theKeynote Speaker. Other senior functionaries of BAI, officebearers of centre also spoke on the occasion. Around 150delegates, members of Guwahati, Tezpur Centre andcentres in UP were present. Mr. Sanjib Goyal, Chairman,senior functionaries and other office-bearers of theGuwahati Centre co-ordinated in organizing of themeeting The event was widely covered by print andelectronic media.

Hyderabad Centre

A meeting of the ‘XXVII All India Builders’ Convention’(AIBC) Organizing Committee was held in Hyderabad on21st August, 2015. Mr. R. Radhakrishnan – Chairman,XXVII AIBC Convention Committee, Mr. B. Seenaiah –Chairman, XXVII AIBC Organizing Committee and otheroffice bearers of Convention Committee and HyderabadCentre graced the dais during the meeting. Various issuesregarding hosting of the Convention were discussed anddecisions taken.

A joint meeting of the “Convention Committee” and‘Organizing Committee’ of XXVII AIBC, was held inHyderabad on 22nd September 2015.

On 10th October 2015, the brochure of XXVII All IndiaBuilders’ Convention was formally released inHyderabad. Some of those present on the occasion were:Shri V.M. Fazal Ali, Vice President; Shri R. Radhakrishnan,Past President & Past Trustee; Shri B. Seenaiah, Past


President; Shri N. Nagesh Reddy, State Chairman, BAITelangana; Shri CH Ramakotaiah, State Chairman, BAIAndhra Prdesh; Shri P. Narasimha Rao, Chairman,Hyderabad Centre; Shri V. Ravinder Reddy, Chairman,Greater Hyderabad Centre; Shri K. Sudarshan Reddy, PastState Chairman, BAI Andhra Pradesh; Shri S. NarasimhaReddy; and Shri N. Sachitanand Reddy.

The Centre hosted the fifth Managing Committee Meetingand fourth Managing Committee Meeting of BAI for 2015-16 on 8th January 2016 at Ramoji Film City, Hyderabad.The Centre also hosted the “XXVII All India Builders’Convention” with the active support not only from BAICentres in the newly formed Telangana State but fromBAI Centres from Andhra Pradesh also. The Conventionwas held between 8th and 10th January 2016 in the imposingRamoji Film City, Hyderabad. The Hon’ble Chief Ministerof Telangana was the Chief Guest on the occasion.

Ichalkaranji Centre

Mr. Sudhir Latkar was installed as the Chairman of Centrefor 2015-16 on 5th September 2015 in the presence of MrSunil Mundada, State Chairman, BAI Maharashtra andMr. B. Seenaiah, Past President, BAI. Other office-bearersof the centre were also installed along with the Chairman.Other senior functionaries were present on the occasion.

On the same day, Centre bestowed ‘Lifetime AchievementAward’ on Mr. Kuntilalji Patgni and Mr. MirasahebGaiban in the presence of Mr. Sureshji Halwankar, MLA-Ichalkaranji & Mr. Prakash Awade, former Minister forTextiles, Govt. of Maharashtra. Mr Sunil Mundada, StateChairman, BAI Maharashtra also graced the occasion.

Kanpur South Centre

The Centre organised a function on 5th March 2016, tofelicitate Mr. Lal Chand Sharma, President, BAI in Kanpur.Dr. Dharmesh Awasthi, Trustee, BAI and Mr. Iqbal Wahid,Chairman, BAI Ghaziabad Centre were the Guests ofHonour. BAI Uttar Pradesh (Kanpur) Centre joinedKanpur Centre in felicitating Mr. Lal Chand Sharma andMr. Ramesh Ahuja, Chairman, BAI Uttar Pradesh(Kanpur) Centre graced the dais. Dr. Dharmesh Awasthispoke about BAI’s journey of 75 years and briefly narratedachievements of incumbent President Mr. Lal ChandSharma during the current year. Dr. Awasthi furtherstressed that Northern Region needs to open more BAICentres and launch movement to popularise BAI in theNorthern Region. Mr. Lal Chand Sharma addressedgathering and highlighted achievements by way of hismeeting with Mr. Arun Jetley, Union Finance Minister andexemption of Excise Duty on Ready Mix Concrete forcarrying out a specific contract.

Karnataka (Bangalore) Centre

Mr. V. M. Fazal Ali, Vice President, BAI installed Mr M.Ramesh as Chairman of Karnataka (Bangalore) Centre for

2015-16 in a glittering function in Bangalore on 19th April,2015. Mr. V. Gopala Gowda, Hon’ble Justice, SupremeCourt of India was the Chief Guest. Mr A. R. RavindraBhat, State Chairman, Karnataka and Mr. A. S.Chinnaswamy Raju, Past President & Past Trustee werethe Guest of Honours. Other Office-Bearers of the Centrewere also installed. The function was also attended by thesenior members, their families and members of other likeminded organizations.

Karnataka (Bangalore) Centre celebrated “Builders’ Day2015-16" on 2nd November, 2015 by honouring‘Construction Industry Artisans’ and on 4th Nov, 2015 byorganizing a grand felicitation programme. Nearly 100artisans were honoured at Builders’ NGV Club. Mr. H.N. Vijaya Raghava Reddy, Past Vice-President, BAI wasthe Chief Guest. During the grand felicitation programme,Mr. N. N. Manjuunath Reddy, Mayor of Bangalore wasthe Chief Guest. Mr. Lal Chand Sharma, President-BAIwas the Guest of Honour. Mr. A. S. Chinnaswamy Raju,Past President & Past Trustee, BAI graced the occasion.Chairman of the Centre presided over the function.Prominent personalities were conferred with the awards.Office-Bearers and senior functionaries of the Centre co-ordinated in organizing of the events.

Kerala (Trivandrum) Centre

Office Bearers of the Centre were re-elected. The Centreconducted regular monthly meetings. A technical Seminaron Mass Rapid Transport System was conducted by theDirector of NATPAC. The Centre has launched a newwebsite and also organized a three day Build Expo andformed a Committee to have an office space for the Centre.

Kodungallur Centre

Mr. Abdul Jabbar was installed as the Chairman of newlyopened Kodungallur Centre for 2015-16 by Mr. V. M. FazalAli, Vice-President, BAI. Mr. R. Radhakrishnan, PastPresident & Past Trustee was the Chief Guest. Mr. R.Rajesh, State Chairman, BAI Kerala was also present onthe occasion.

Kolhapur Centre

Mr Sunil Mundada, State Chairman, BAI Maharashtra andMr. B. Seenaiah, Past President paid a visit to KohlapurCentre on 5th September 2015. Mr. Pratap Kondekar,Chairman along with other office bearers and seniorfunctionaries welcomed them. They briefed the membersabout the latest happenings in construction industry andBAI.

Kollam Centre

Office Bearers of the Centre were re-elected. The Centreconducted regular monthly meetings. The Centre alsoconducted a Press Meet to create media awareness on theissues faced by Government contractors. Members of the


Centre attended all national events.

Kottayam Centre

Kottayam Centre hosted the “First BAI Kerala StateMeeting” for 2015-16 on 24th May, 2015. Mr. R. Rajesh,State Chairman, BAI Kerala chaired the meeting. Mr. V.M. Fazal Ali, Vice-President, BAI also graced the meeting.Issues confronting the construction industry in Kerala andalso at national level were discussed. Mr. Santy V Mathew,Chairman, Kottayam Centre who co-ordinated in theorganizing the meeting with other office-bearers andsenior functionaries. Office-bearers and seniorfunctionaries were also present in the meeting.

Mr. Santy V Mathew was installed as the Chairman ofKottayam Centre for 2015-16 on 24th May 2015. Mr. V. M.Fazal Ali, Vice-President, BAI and Mr. R. Rajesh, StateChairman, BAI Kerala graced the installation function.Chairman, office-bearers and senior functionaries fromBAI Centres in Kerala attended the meeting.

The Centre celebrated Builders’ Day 2015 on 10th

November 2015 at Backwater Ripples, Kottayam, in abefitting manner. Er. A.M. Shabeer, Executive Director,Cochin International Airport Limited (CIAL) was theChief Guest. As part of the Builders’ Day celebration, thebest outgoing student from Civil Department of RajivGandhi Institute of Technology, Kottayam, was awardedthe Sri V.M. Alexander Memorial Gold Medal. As part ofthe ‘Platinum Jubilee’ celebration, the Centre havehonoured two Senior Members, namely Mr. Mathew AlexVellapally and Mr. N.J. Mathew.

The Centre conducted a Seminar on Employees’ ProvidentFund and Employees’ State Insurance Scheme inassociation with Changanacherry and Thiruvalla Centresfor the benefit of members.

The Centre conducted Engineers’ Training programmeand certificates were issued to them by Mr. R. Rajesh, StateChairman, Kerala.

Members of the Centre attended in large numbers for theinaugural function of BAI Headquarter office on 31st

March 2016.

Madurai Centre

Er. M. Selvakumar was installed as Chairman of MaduraiCentre for 2015-16 on 19th May, 2015 by Mr. V. M. FazalAli, Vice-President, BAI. Also present on the occasion wereMr. N. Raghunathan, State Chairman, BAI Tamil Nadu,Puducherry, Er. V Ramachandran, Past President & PastTrustee, BAI. Out going Chairman and other office-bearers, BAI members and their family members werepresent on the occasion.

Office-bearers and senior functionaries of Mudurai Centrewere invited to the inauguration of ‘Kamrajar HolidayHome’ at CPWD Campus, Madurai which was

inaugurated by Mr. M. Venkaiah Naiddu, Union Ministerof Urban Development on 15th July 2015. A memorandum,highlighting the difficulties faced by constructioncompanies with regard to EPF & ESIC was handed overto the him by Mr. S Rangaraj, Hon. Secretary. The Hon’bleMinister assured the BAI delegation that he will conveyBAI’s feelings to the Union Government.

The Annual General Meeting of Madurai Centre was heldon 8th July 2015. Er. M. Selvakumar, Chairman, MaduraiCentre chaired the meeting. The audited accounts of thecentre for 2014-15 were passed. Other senior members andoffice-bearers also graced the dais during the meeting.

The ‘Tamil Nadu Global Investors Meet 2015’ was held inChennai on 9th - 10th Sept. 2015. Earlier, a road show of the‘Tamil Nadu Global Investors Meet 2015’ was held inMadurai on 12th August, 2015.by CII Madurai Chapter.Mr. P. Thangamani, Hon’ble Minister for Industries &Transport, Govt. of Tamil Nadu was Chief Guest. Otherofficials from the local Government as well as the senioroffice bearers of the centre attended the show.

The Centre along with Canara Bank Circle Office,Madurai, conducted a Seminar to enlighten BAI membersabout the various financial instruments available forindividuals and businessmen. Mr. K. Velusamy, GeneralManager, Canara Bank Circle Office, Madurai, was theChief Guest. Mr. G. Rajendran, Deputy General Manager,Canara Bank Circle Office, Madurai was the Guest ofHonour. Mr. V. Ramachandran, Past President and PastTrustee, BAI was also present on the occasion.

The Centre celebrated ‘Platinum Jubilee of BAI’ and“Builders’ Day 2015-16" on 19th February 2016. Mr. LalChand Sharma, President, BAI was the Chief Guest. Mr.N. Raghunathan, State Chairman, BAI Tamil Nadu &Puducherry; Mr. V. Ramachandran, Past President & PastTrustee, BAI; Mr. A. Puhazhendi, Past Vice President, BAI;Mr. Naresh Agarwal, Past Chairman, Ghaziabad Centre;Prof. Dr. K. Arunachalam, Head of Civil Department,Thiagarajar College of Engineering, Madurai; Mr. V.G.Sakthikumar, Managing Director, M/s. Schwing StetterSales & Services Pvt. Ltd., and Mr. Raju John, ExecutiveSecretary, BAI were also present on the occasion. As partof the celebrations, Madurai Centre had organized,Problem Solving, Elocution and Quiz Competitionsamongst the Civil Engineering students from in andaround Madurai. Trophies and Certificates werepresented to the winning students by the dignitaries. AllPast Chairmen of Madurai Centre were also felicitated onthe occasion.

Malegaon Centre

Mr. Mahendra Patil was installed as the Chairman ofMalegaon Centre for 2015-16 on 18th July, 2015. Dr. RahulAher, MLA was the Chief Guest. Mr Sunil Mundada, StateChairman, BAI Maharashtra was the Guest of Honour.Mr. Avinash M Patil, Past Vice President, BAI also graced


the occasion. Other office-bearers of the centre were alsoinstalled on the occasion.

Mumbai Centre

Mr. R. Radhakrishnan, Past President & Past Trustee, BAIinstalled Mr. Neerav Parmar as Chairman of BAI MumbaiCentre for 2015-16 on 30th March 2015. Other Office bearerswho were also installed were : Mr. Pradeep Nagawekaras Vice Chairman, Mr. Gyan Madhani as Hon. Secretary,Mr. Mohinder Rijhwas as Hon. Jt. Treasurer and Mr.Santosh Navle as Hon. Jt. Secretary. Mr. Sushanta KumarBasu, President, BAI, Mr. Avinash M. Patil, Vice President,BAI, Mr. Mahesh M. Mudda, Hon. Gen. Secretary-BAI andMr. C.G. Deochake, Hon. Gen. Treasurer were also presenton the occasion.

The last meeting of the Executive Committee of BAIMumbai Centre for 2014-15 was held on 30th March 2015.In the meeting Mr. R Radhakrishnan, in his capacity asMember on the high Powered ‘Expert AppraisalCommittee for Projects related to InfrastructureDevelopment, Coastal Regulation Zonal, Building/Construction and Miscellaneous Projects’ of UnionMinistry of Environment, Forests and Climate Change.He is the only member from the general public in thecommittee. He informed that how his personal experiencehave resulted in clearance of various projects.

The 4th Edition of “RESCOM Summit – India’ was held inBangalore on 9th-10th April, 2015. NAREDCO was thestrategic partner. Mr. Neerav Parmar, Chairman, BAI-Mumbai Centre was the Guest of Honour. The participantswere enthusiastic about meeting each other, doingbusiness with one another.

A high powered delegation of American Concrete Institute(ACI) visited BAI Mumbai Centre on 5th May, 2015. Theywere interested to gain better understanding of problems/ opportunities the concrete industry in India, how ACIcan collaborate with Indian industry with regard totraining, certification, professional education, seminars,conferences, resource materials, technical documents etc.Chairman and other senior functionaries welcomed thedelegation and matter related to the mutual interest werediscussed.

Some of very senior members of Mumbai Centerrendezvoused on 14th May, 2015 in Hotel Taj Lands End,Bandra which was attended by senior members andExecutive Committee members from centre and discussedthe issues concerning BAI & the construction industry.Mr. Ravi Harisinghani, EC Member, hosted the meeting.

Mr. CH. Ramakotaiah, State Chairman, AP and Mr.Neerav Parmar, Chairman called upon His Excellency Mr.Vidysagar Rao, Governor of Maharashtra on 1st June 2015in Raj Bhavan. They briefed him about the activities ofBAI and formal invitation was given to him for gracingthe “BAI’s Award Night” on 11th Sept. 2015 coinciding

with MC/GC Meetings scheduled to be held in Mumbaion 12th September 2015.

M/s. Consult Construction, Ahemdabad organized a‘Seminar on Service Tax in Construction Sector andProposed Implications of GST’ on 4th July 2015 in Mumbaiwhich was attended by several companies. The highlightof the event was that it focused on issues and challengesfaced by construction companies while dealing withService Tax. CA Sandesh Mundra, Trainer & Consultantwas the main speaker. Other members from MumbaiCentre also participated. Lot of brain storming took placeduring the course of day long session.

Mr. Neerav Parmar, Chairman, BAI-Mumbai Centre, Mr.Pradeep Nagawekar, Vice Chairman and Mr. HarshadBhayani, MC Member-BAI called upon Mr. Prakash MMehta, Hon’ble Minister of Housing, Labour & Mines,Govt .of Maharashtra on Saturday 22nd August 2015 at hisresidence to invite him to inaugurate the 3rd MC & 2nd GCMeeting of BAI being hosted by BAI Mumbai Centre onSaturday 12th Sept. 2015 in Mumbai.

Jain International Trade Organisation, Mumbai initiatedan real estate industry discussion forum with an aim toanalyze, examine & initiate a platform to discuss the keychallenges and probable suggestions faced by Mumbai’sReal Estate Industry. Ms. Snehal Ambekar, Mayor ofMumbai, Mr. Ashish Shelar, MLA & President MumbaiBJP and Ms. Shaina N.C. BJP Spokesperson, attended thesummit as Guests of Honour. Mumbai Real Estate Summit2015 witnessed participation from renowned industryleaders.

The publishers of ‘Construction Industry Review’ throughits events arm MMR events organized the 6th Annual one-day seminar ‘Metamorphosis in Building & ConstructionIndustry’ at Hotel Hilton Mumbai International Airporton 10th July 2015. The event highlighted the transformationtaking place in the country’s real estate and infrastructuredevelopment. The event was supported by BAI,Construction Chemical Manufacturers Association &CIDC. The seminar was attended by prominentpersonalities and some of them also address the gathering.

A delegation of BAI Maharashtra State Seniors called uponMr. Sudhir Mungantiwar, Hon’ble Minister for Finance& Planning and Forests, Govt. of Maharashtra on 27th

October 2015. The delegation submitted a memorandumregarding levy of Service Tax on State GovernmentContracts with effect from 1st April, 2015 with a requestthat Government to reimburse the same to the contractorsas is being done by CPWD. The Hon’ble Minister assuredthe delegation of appropriate action.

“The Big 5 Construct India 2015”, organized by FICCI,was inaugurated at Bombay Exhibition Centre, Mumbaion 10th September 2015. It was three day event for buildingconstruction professionals, manufacturers anddistributors around the world. BAI supported the event.


Mr. Neeravar Parmar, Chairman was one of the dignitariesto inaugurate along with other dignitaries from industry.A meeting of BAI’s senior functionaries with SichuanChamber of Commerce for Im-Export from China washeld during the Exhibition.

Subsequent to the announcing of results of BAI’sOrganisational Elections 2016-17, on 30th March 2016,Mumbai Centre organized a function to felicitate BAI’soffice bearers 2015-16 and 2016-17. Also felicitated wereall past office bearers of BAI who were present on theoccasion. Thereafter, Mr. Pradeep Nagawekar, Chairmanof BAI Mumbai Centre was felicitated by Mr. R.Radhakrishnan, Past President & Past Trustee, BAI.

Muvattupuzha Centre

Installation function of the Office Bearers of the Centrewas held on 21st May 2015. Mr. P.J. Joseph, Hon’bleMinister for Water Resources, was the Chief Guest. TheCentre conducted regular monthly meetings.

Mysore Centre

Mr. M.S. Ramprasad was installed as the Chairman of ofMysore Centre for 2015-16 on 3rd April 2016 by Mr. MaheshMudda, Hon. Gen. Secretary, BAI. Dr. Vamana Acharya,Chairman, Karnataka State Pollution Control Board wasthe Chief Guest.. Mr. M.C. Mallikarjun, outgoingChairman and Mr. K. Subramanya Roa, outgoing Hon.Secretary were also present on the occasion. Other officebearers who were also installed were: Mr. MahadevaSwamy S. as Vice Chairman, Mr. Naidhruva J.V.R. as Hon.Secretary, Mr. Nagraj V. (Bairy) as Hon. Treasurer andMr. Rathnaraj M. as Hon. Joint Secretary.

Nashik Centre

Mr. Rameshwar Malani was installed as the Chairman ofNashik Centre for 2015-16 on 16th May 2015. Mr.Vinayakadada Patil, former MLA was the Chief Guest.Mr. Sunil Mundada, State Chairman, BAI Maharashtrawas the Guest of Honour. The installation ceremony wasinaugurated by lighting of the traditional lamp in thepresence of other senior functionaries.

The Centre also hosted the third ‘BAI Maharashtra StateMeeting’ for 2015-16 on 12th December 2015 at Hotel TajGateway, Nashik. Mr. Sunil Mundada, State Chairman,BAI Maharashtra, chaired the meeting. Issues confrontingMaharashtra State and on the national level werediscussed. Unavailability of sand, pending payments tocontractors from Government / Semi GovernmentDepartments, floating of Tenders by Government / SemiGovernment Departments without sufficient funds,amendment to Arbitration & Conciliation Act, etc. weresome of the issues discussed.

The Centre celebrated “Builders’ Day 2015-16" on 12th

December 2015 in Hotel Taj Gateway, Nashik.Shri

Benninger Christopher, World Renowned Architect wasthe Chief Guest. Mr. Anil Zinzuwadia, Vice President, BAI,presided over the function and Mr. Sunil Mundada, StateChairman, BAI Maharashtra was the Guest of Honour.On the occasion the awards of the ‘Best Building of theYear (2013-15)’ were presented. Mr. Rajendra Muthabriefed the gathering about the institution of the awardsby Nashik Centre. About forty-seven (47) Builders /Contractors participated in the competition in variouscategories. Office Bearers, Managing CommitteeMembers, General Council Members and seniorfunctionaries from BAI Centres in Western Region,Members of BAI Nashik Centre and their families, invitees,architects and engineers from Nashik, senior governmentofficials from Nashik, etc. participated in the function.

North Malabar Centre

The Centre hosted the “State Convention of BAI Kerala”on 11th April 2015. Mr. K.C. Joseph, Hon’ble Minister forRural Development, Planning, Culture and Non-ResidentKeralites Affairs (NORKA), Govt. of Kerala was the ChiefGuest and inaugurated the State Convention. Mr. P. K.Sreemathi Teacher, MP:, Kannur was the Guest of Honour.Mr. A. P. Abdullakutty, MLA, Kannur, delivered the keynote address. Mr. P. Balakiran, IAS, Kannur DistrictCollector also graced the inauguration of the StateConvention. Prominent builders of North Malabar werehonoured during the State Convention. In a veryinnovative way, award for best Upcoming Centre (formedwithin two years) was presented to ChanganacherryCentre, Best Centre Chairman Award was presented toMr. Paul T. Mathew of Muvattupuzha Centre, Best CentreAward was presented to Kerala (Trivandrum) Centre; BestCSR Project Award was presented to ChanganacherryCentre and Award for attending most MC/GC meetingswas presented to Mr. V. Santosh Babu of Aluva Centre.All Kerala BAIU Directory and BAI Kerala Websitewww.bai.kerala.org were released during the StateConvention. 5th Kerala State Level meeting was also heldon the same day. Mr. P Shahin, Chairman, North MalabarCentre, co-ordinated the organizing of the “StateConvention of BAI Kerala” along with his other office-bearers and senior functionaries.

Er. R. Rajesh was installed as the State Chairman of Keralafor 2015-16 by Mr.M. Fazal Ali, Vice President, BAI on11th April, 2015 during the State Convention. Mr. B.Chandramohanan, the outgoing BAI Kerala StateChairman formerly handed over charge to Er. R. Rajesh.

Phaltan Centre

Mr. Dilip Shinde was installed as the Chairman of Centrefor 2015-16 on 15th May, 2015. Mr Sunil Mundada, StateChairman, BAI Maharashtra, Mr. Avinash M Patil, PastVice President and other senior functionaries were alsopresent on the occasion. Other office-bearers of the Centrewere also installed on the occasion.


The Second BAI Maharashtra State Meeting was held inHotel Jackson Inn, Phaltan on 8th August, 2015 which washosted by Phaltan Centre. Mr. Sunil Mundada, StateChairman, BAI Maharashtra chaired the meeting. Mr. AnilZinzuwadia, Vice-President was the Chief Guest for themeeting. Mr. Dilip Shinde, Chairman-Phaltan Centre, Mr.Nilkanth Joshi, Imm. Past State Chairman, Mr. SanjayPatil, State Secretary, Mr. Bhagat G. Wagh, State Treasurer,BAI-Maharashtra and Mr. Rahul Nalawda, Hon.Secretary, Phaltan Centre graced the dais. Discussionsregarding establishment of ‘Maharashtra State ChairmanOffice’ in Mumbai took place & budget was passed.Discussion on other matters confronting the industry,opening of the new centre took place in the meeting. Themeeting was attended in large numbers from BAI centresin state

Puducherry Centre

Installation function of the Office Bearers of the Centrefor 2015-16 was held on 24th May 2015 at Hotel Shenbaga,Puducherry. Hon’ble Thiru N. Rangasamy, Chief Ministerof Puducherry was the Chief Guest and Mr. P.Swaminathan, Chief Engineer, PWD, Puducherry wasGuest of Honour. Mr. N. Ragunathan, State Chairman,Tamil Nadu & Puducherry; Mr. L. Moorthy, Past VicePresident, BAI; Mr. S. Manohar, former Chief Engineer,PWD were Special Guests. Office Bearers of other BAICentres from Tamil Nadu State and members of otherCivil Engineering related Associations from Puducherryparticipated in the function.

During the year, the Centre conducted 6 ExecutiveCommittee Meetings and 6 General Body Meetings anddecided to take legal action against PWD, Puducherry forallotting improper nomination works.

The Centre arranged an industrial visit for the membersto a cement manufacturing unit, which helped them togain knowledge of cement production.

Pudukkottai Centre

Mr. M. Murugesan was installed as the Chairman ofPudukkottai Centre for 2015-16 by Mr. R. Radhakrishnan,Past President & Past Trustee, BAI on 1st May, 2015. Dr.C. Vijayabaskar, Hon’ble Minister for Health, Governmentof Tamil Nadu was the Chief Guest. Mr. N. Raghunathan,State Chairman, BAI, Tamil Nadu, Pondicherry &Anadaman Nicobar and Mr. L. Moorthy, Imm. Past Vice-President, BAI also graced the occasion. Other OfficeBearers of the Centre were also installed.

Pune Centre

Mr. Mahesh Mirani was installed as the Chairman of PuneCentre for 2015-16 by Mr. Lal Chand Sharma, President,BAI on 10th April 2015. Mr. P R Mundle, Past President,BAI was the Guest of Honour. Other office bearersinstalled were Mr. Sidharth Shah as Vice Chairman, Mr.

Jagannath Jadhav as Hon. Secretary and Mr. ChandrraRatalanik as Hon. Treasurer.,

On 11th April 2015 Mr Lal Chand Sharma, accompaniedby Mr. R. B. Suryavanshi, Imm. Past Chairman, PuneCentre, Mr. C. S. Parhar, Past Chairman, Pune Centre andMr. Naresh Agarwal, Past Chairman, Ghaziabad Centrevisited “Jackson Hut” and paid his respects to the birthplace of BAI. Mr. Lal Chand Sharma also met the seniorofficials of the Chief Engineer Office of MES and reiteratedBAI”s request for placing a “ BAI Plaque” at “Jackson Hut”as it has emotional, sentimental and monumental valuefor BAI Members.

Pune Centre organized a ‘Half day Seminar on LegalAspects of Safety during Construction’ on 12th June, 2015.More than 100 delegates participated in the seminar.Expert faculty was invited to give lectures on the subjectwhich was well received and appreciated by participatingdelegates. Senior member functionaries & executivecommittee members co-ordinated the organizing of theseminar.

The Centre celebrated ‘Independence Day 2015’ by flaghoisting in the Centre’s office premises. Shri MaheshMirani, Chairman, Pune Centre along with his officebearers and senior functionaries were present on theoccasion.

6th Edition of Students Internship Programme conductedbetween 1st June 2015 to 20th June 2015. About 139 studentsparticipated. A valedictory programme was held on 22nd

June 2016.Students were given Certificates of Internshipat the hands of Prof. M.N. Navale, Founder President ofSinhgad Technical Education Society, Pune.

To encourage and appreciate efforts of children ofmembers of Pune Centre, a Children’s FelicitationProgramme was held on 8th August 2015 at Pune. Morethan 100 children were felicitated and given gifts andcertificates at the hands of Chief Guest, Mr. CharuhasPandit, a renowned Cartoonist working with Sakaal Paper.

Mr. Manoj Deshmukh, Hon. Jt. Secretary of the Centreorganised a Seminar on Airconditioning and ElectricalServices at Sumant Moolgaonkar Hall, Pune, on 28th

August 2015. Mr. V.G. Jana was the Chief Guest of thefunction. More than 125 Engineers, Executives from CivilEngineering field attended the Seminar.

Well Built Structure Competition (WBSC) 2015 was heldbetween September 2015 to November 2015. This yearbeing Platinum Jubilee year, a grand function wasarranged at Residency Club, Pune for final Awardfunction. More than 600 guests from all over India wereinvited for the function. WBSC Competition this year wasclubbed with Platinum Jubilee celebration in order toaccommodate higher number of delegates and guest. BAIPresident Mr. Lal Chand Sharma and his team of OfficeBearers, Past Presidents of BAI, Trustees and other


dignitaries attended the grand function. Award indifferent category prescribed the competition werepresented to winners.

Along with Well Built Structure Competition Awards, theCentre also declared BAI PBGS Life Time AchievementAward ‘Nirman Ratna’. This year the prestigious awardwas conferred upon Mr. P.R. Mundle, Past President ofBAI for his exemplary services to BAI and ConstructionIndustry, Society and educational field. A citation alongwith memento and purse was presented.

The Centre hosted fourth Managing Committee and thirdGeneral Council Meeting of BAI on 21st November 2015at Hotel Aurora Towers, Pune. About 300 delegates fromall over India participated in the meeting. As a part of‘Platinum Jubilee celebration, a gala evening function washeld on the same day. Chairman of Pune Centre felicitatedall the Past Presidents with memento and bouquet. Mr.Girish Bapat, Hon’ble Cabinet Minister graced theoccasion as Chief Guest of the function. During thefunction, the Centre specially invited all Past Chairmenof Pune Centre and were felicitated at the hands of ChiefGuest. More than 600 guests attended the function.

As one of the most active Centres of BAI, the Centre hasobtained an Award from BAI Headquarter for“Organising Best Training Programmes or Seminars”for 2014-15.

The Centre under its social obligation every yearconstructs a set of Toilet Bloks / Fresh Rooms for ruralSchools which imparts education to mostly Girls studentswith the guidance of Mr. R.B. Suryavanshi, Past Chairman,Pune Centre..

The Centre plays a pivotal role along with Kushal –CREDAI Pune Metro in Skill Development Programme.This programme is being carried out since last 5 years andBAI along with Kushal have so far trained and upgradedmore than 25,000 labour under Skill DevelopmentProgramme. This activity is co-ordinate by Mr. NeelkanthS. Joshi and Mr. Jaideep Raje of Pune Centre withKUSHAL.

Rajasthan (Jaipur) Centre

Rajasthan (Jaipur) Centre organized a ‘Blood DonationCamp’ and a Medical and Dental Checkup Camp’ on 20th

March, 2015 in Yagyavalkya Institute of Technology (YIT),Jaipur. About 150 bottles of blood were collected andaround 250 persons took benefit of the camp. ‘Spoorthi” –the ladies wing of BAI also participated in organizing thecamp.

Rajasthan (Jaipur) Centre organized a ‘Tree PlantationDrive’on 21st March 2015 in the Sitapura Indusrial area,Jaipur and YIT ampus. Around 150 trees were planted bysenior functionaries of BAI and invited dignitaries. Seniorfunctionaries, present and past office bearers of the centre

attended the function and planted the tree.

Rajasthan (Jaipur) Centre organized a General BodyMeeting on 11th July, 2015. About 125 members attendedthe meeting. Issues like Service Tax, Labour Laws, EPF,ESI etc. being confronted by the industry were discussed.Senior functionaries of the centre participated in Meetingwhich was sponsored by ‘K-Wing’ PVC Solutions.

The ‘BAI Platinum Jubilee’ and ‘New Year 2016’celebrations were organized by Rajasthan (Jaipur) Centreon 2nd January 2016. It was a great function in which ladieswing of BAI – Spoorthi also participated and speciallymade Platinum Jubilee badges were distributed. NewOffice-bearers of Spoorthi were also elected on theoccasion.

Sangli Centre

Mr. Mallikarjun Badde was installed as the Chairman ofSangli Centre for 2015-16 by Mr. Sunil Mundada, StateChairman, BAI Maharashtra on 11th April, 2015. Mr.Sudhirji Gadgil, MLA-Sangli, was the Guest of Honour.Mr. Mohan Bhate, Past Trustee, BAI and Mr. SwapnilKaulgud, Hon. Secretary, Sangli Centre also graced theoccasion.

Satara Centre

Mr. Sachin Deshmukh was installed as the Chairman ofSatara Centre for 2015-16 by Mr. Sunil Mundada, StateChairman, BAI Maharashtra on 19th April, 2015. Mr.Mahendra Chavan, Renowned Architect was the ChiefGuest. Mr. Ramdas Jagtap, the outgoing Chairmanformally handed over charge to Mr. Sachin Deshmukh.

Silchar Centre

The newly opened Silcher Center have been holdingExecutive Committee Meetings every month. During thelast meeting held, Mr. Pinak Pani Nath, Chairman-SilcherCentre felicitated Mr. Benulal Barman – a very seniorRotarian and EC Member of the centre. Other seniorfunctionaries of the centre were present on the occasionwhich was covered by the local media.

Southern (Chennai) Centre

Annual General Body Meeting of Southern (Chennai)Centre was held on 18th April 2015 in Chennai. AnnualFinancial Report 2014-14 and Secretary Report wassubmitted and approved. Past Presidents, Past Trusteesand senior members appreciated the tenure 2014-15 of Mr.R. Sivakumar and his office bearers for their dedicatedservices and having organized mega events like HouseHunt Expo – 2014, BAICON – 2015, BAIMAT – 2015 andAll India MC/GC Meeting and conducting unanimouselections during their tenure.

Mr. O. K. Selvaraj was installed as the Chairman ofSouthern (Chennai) Centre for 2015-16 by Mr. R.


Radhakrishnan, Past President & Past Trustee on 18th

April, 2015 in Chennai. Hon’ble Justice Mr. S. Rajeswaran,Madras High Court (Retd) was the Chief Guest. Mr. V.M. Fazal Ali, Vice-President, BAI and Mr. N.Raghunathan, State Chairman, Tamil Nadu, Pondicherryand Andaman & Nicobar, were the Guest of Honour.Justice Mr. S. Rajeswaran addressed the gathering andrequested the builders not to violate the rules whileconstructing. He also requested the members to spreadthe awareness about the rules and also explained theproblems arising due to violation of rules. Otherluminaries also attended the function.

On 30th April 2015, a Seminar on International BusinessOpportunities with Asian Development Bank was held atHotel Hyatt Regency, Chennai. Mr. R. Radhakrishnan,Past President & Past Trustee, BAI; Mr. N. Raghunathan,State Chairman, Tamil Nadu & Puducherry; Mr. Mu.Moahan, Past State Chairman, Tamil Nadu & Puducherry;Mr. O.K. Selvaraj, Chairman, Southern (Chennai) Centre;and Senior Members of the Centre have attended theSeminar.

A condolence meeting was organized on 4th May 2015, topay tribute to Late Mr. S. Palani Mudaliar, Past CentreChairman. Mr. R. Radhakrishnan, Past President & PastTrustee, Mr. M. Karthikeyan, Past President; Dr. D.Thukkaram, Past Trustee; Mr. J.R. Sethuramalingam,Trustee; Mr. L. Moorthy, Imm. Past Vice President; Mr.N. Raghunathan, State Chairman, Tamil Nadu &Puducherry; Mr. Mu. Moahan, Past State Chairman, TamilNadu & Puducherry, Mr. O.K. Selvaraj, Chairman of theCentre and other Senior Members have shared theirexperiences, helping tendency to others, GeneralKnowledge, Adament of completing the work assignedto him, only due to his hard work and continuous efforts(Legal Battle) to restore the property of BAI at T. Nagar,Chennai.

On behalf of Southern (Chennai) Centre, a Health Campwas organized at RMK Construction & Housing Worksite,Maduravoyal, Chennai, on 17th May 2015. Team of Doctorsfrom Ophthalmic Hospital, Government of Tamil Nadu,Team of Doctors from Ramachandra Dental Hospital andfor General Ailments, Team of Doctors from Life LineHospital diagnosed the workers. More than 200 workerswere diagnosed. The team of Doctors supported the healthcamp were also honoured with mementos. Special lunchwas provided to the participants and also to BAI Members.

On 19th May 2015, the Centre collected a sum ofRs.1,25,001/- from members and sent to The PrimeMinister’s National Relief Fund – New Delhi, to help thepeople of Nepal affected due to Earthquake.

Second Health Camp was organized at the Worksite ofMr. K. Venkatesan, Hon. Secretary, backside of CentralRailway Station (MY Lady Garden). Team of Doctors fromOphthalmic Hospital, Government of Tamil Nadu, Teamof Doctors from Ramachandra Dental Hospital, Team of

Doctors from Life Line Hospital for General Ailments havediagnosed the workers. Office Bearers and SeniorMembers have attended the Health Camp. Special lunchwas provided to participants and also to BAI members.

A Training Programme by Directorate of Industrial Safety& Health on Building Construction Safety and Health wasorganized for Southern (Chennai) Centre on 9th June 2015in Chennai. Mr. C. Ganasekara Baburao, Director,Directorate Of Industrial Safety & Health was the ChiefGuest and delivered the key note address along with Mr.P. Bose, Senior Addl. Director (BOCW), Directorate OfIndustrial Safety & Health. Also present on the occasionfrom the Dte. Of Industrial Safety & Health were Mr. A.R. Baskaran, Jt. Director and Mrs. Gayatri & Mr.Kamalkannan (Kancheepuram), Deputy Directors. Mr. C.Ganasekara Baburao inaugurated the programme andexplained the role of Directorate in implementing thesafety and health in construction industry. Otherinformation was shared and case study were discussed.Power Point Presentation were given about the safety ofworkers. Mr. R. Radhakrishnan thanked the officials ofDirectorate for having organized the programme to createawareness amongst the site staff and workers. OfficeBearers of the Southern (Chennai) Centre co-ordinated theprogramme with other senior functionaries.

On behalf of the Executive Committee, GC/MC membersof the Centre, the 75th Birthday of Mr. R. Radhakrishnan,Past President & Past Trustee, BAI was celebrated on 2nd

July, 2015 in a very grand manner at Hotel Savera,Chennai. Senior functionaries of the Centre, PresidentCREDAI and other luminaries of the industry and officebearers of the centre attended the function. Some of themaddressed the gathering and shared their experience theyhad with Mr. Radhakrishnan. Family members of Mr.Radhakrishnan also attended the function.

Office-Bearers of Centre, led by Mr. O. K. Selvaraj,Chairman were on the forefront in organizing the 75th

Birthday celebration of Mr. R. Radhakrishnan. Mr. R.Radhkrishnan also thanked all who extended theirgreetings and good wishes on his 75th birthday andsubmitted millions of pranams for his well wishers.

A meeting to apprise the members on Tamil Nadu VATwas organized by the Centre on 28th July, 2015. Mr. A.Sarvar Allam, Additional Commissioner of CommercialTaxes, Mr. K. Viswanathan, Chairman-BAI’s TaxationCommittee, BAI State Chairman, Mr. Rajendra Kumar,CA, Mr. S. D. Kannan, Chairman-Taxation Committee ofthe Centre, other senior functionaries, Past Presidents/Trustees and members of the like minded associationsattended the meeting. Mr. O. K. Selvaraj, Chairman andMr. S. D. Kannan handed over a memorandum ofgrievances to Mr. A. Sarvar Allam.

Based on the recent notification by ESIC for covering theconstruction workers under the ESIC Scheme w.e.f.1.8.2015, & to know about the implementation of the


scheme, a workshop was conducted by CREDAI on6.08.2015 in Chennai. Experts from Law firms shared theirexpertise and provided clarity on various aspects aboutESI & EPF. Senior functionaries from the Southern(Chennai) Centre attended the event.

Southern (Chennai) Centre in association with NSIC – TheNational Small Industries Corporation Ltd., a Governmentof India Enterprise and M/s. Tulsyan NEC Ltd., as co-sponsor organized a ‘Marketing Workshop’ for BAIMembers in Chennai on 26th August, 2015. Zonal Manager-NSIC was keynote speaker and explained in detail the roleof NSIC for the growth of Micro Small and MediumEnterprises (MSMWs) by extending financial support forpurchase of Raw Material under Raw Material AssistanceScheme (RMA) and also replied to the queries along withother officials of NSIC. Other senior functionaries of theCentre attended the Workshop. Chairman along withother office-bearers of the centre co-ordinated theorganizing of the event.

Southern (Chennai) Centre organized a meeting on‘Service Tax’ on 29th Sept 2015. Mr. G. Ravindranath,Commissioner of Service Tax was the Chief Guest. Othersenior officials of the Department were also present. Ms.Nalina Sofia gave a talk on Service Tax related to variousconstruction works in details through a PPT. Service Taxofficials replied to the queries raised during the meeting.Senior members, functionaries & office bearers werepresent and co-ordinated the meeting.

‘House Hunt Expo-2015’ a Property Exhibition wasorganized between 16-18 October 2015 at Chennai TradeCentre. Mr. A. S. Chinnasamy Raju, Past President & PastTrustee inaugurated the exhibition in the presence othersenior member & functionaries of BAI. There were nearly70 stalls of various developers from in and aroundChennai. Nearly 3000 persons visited the exhibition.

As an organisation of ‘National Builders’, BAI Southern(Chennai) Centre, rose to the occasion and brought succorto innumerable families in Chennai, during the havoccaused by flooding due to heavy rains in December 2015.BAI Southern (Chennai) Centre and Southern BuildersCharitable Trust organized ‘Chennai Floor Relief Camps’in various heavily affected placed and also whereverconstruction workers were living in huge numbers. Seniorfunctionaries of the Centre and office-bearers participatedin the relief camps and distributed the relief materials.The efforts of Southern (Chennai) Centre and SouthernBuilders Charitable Trust were supported from BAIMembers across India and Rs.8.50 Lacs were contributedin cash and relief items worth Rs.2.00 Lacs made availablefor distribution to the affected persons.

Apart from the above, Mr. A. Kalaiarasan, General CouncilMember provided Rice and Provisions worth Rs.1,25,000/- and Mr. Amarnath Reddy of M/s. Amara Constructionprovided Bedsheets and Mats worth Rs.80,000/- fordistribution to the flood affected people.

During the year, the Centre was obtained two Awardsfrom BAI Headquarter, one for “Overall Best BAI Centre(Above 200 Members)” and another for “Best Publicationby a Centre”, during the XXVII All India Builders’Convention in January 2016.

The Centre celebrated “Builders’ Day 2015-16" on 25th

March 2016. Mr. V.M. Fazal Ali, Vice President, BAI, wasthe Chief Guest. Mr. R. Radhakrishnan, Past President &Past Trustee, BAI also graced the occasion. On theoccasion, Mr. M. Karthikeyan, Past President, BAI; Dr. D.Thukkaram, Past Trustee, BAI; Mr. K. Ramanujam, PastState Chairman, BAI Tamil Nadu; Mr. S. Ganapathy, PastVice Chairman, Southern (Chennai) Centre and Shri J.R.Sethuramalingam, Trustee, BAI, were felicitated forserving the construction industry and BAI for more thanthree decades. Health camps at various work sites,diagnosing the construction workers and advising forfurther treatment and providing free optical for the needyand many such other activities were done on the occasion.Various entertainment programme, high tea and specialdinner, was arranged for the families of BAI members.

Thanjavur Centre

Centre Chairman, Office-Bearers, Past Chairmen andmembers of Thanjavur participated in the ‘67th RepublicDay’ function organized by Thanjavur Centre. Thenational flag was hoisted in presence of all the dignitariesand members.

Thiruvalla Centre

Mr. Navas Attinkara was installed as the Chairman ofTiruvalla Centre for 2015-16 on 30th April 2015. Mr. V. M.Fazal Ali, Vice-President, BAI and Mr. R. Rajesh, StateChairman, BAI Kerala were present on the occasion. Otheroffice-bearers of the centre were also installed in thefunction.

Thripunithura Centre

Installation function of the Office Bearers of the Centrefor 2015-16 was held on 5th June 2015. The Centreconducted regular monthly meetings and also successfullycompleted home for homeless project. The Centre alsotaken up issues related to PWD and Railway contractors.

Thrissur Centre

The Centre restarted with a new team of office bearersunder the vibrant leadership of Dr. Ramdas Cheloor. TheCentre actively involved in various issues faced bymembers.

Tirupur Centre

Tirupur Centre celebrated ‘Platinum Jubilee’ of BAI and“Builders’ Day 2015-16" on 15th October 2015 by organizingmultiple events. ‘Tree Plantation’ drive was arranged inmemory of Late Dr. A.P.J. Abdul Kalam, former President


of India in the presence of Mr. M.S.M. Anandan, Hon’bleMinister for Environment & Forests, Govt. of Tamil Nadu,Mr. G. Govindaraj, IAS Tirupur District Collector; Mrs.A. Visalakshi, Mayor of Tirupur, Mrs. V. Sathyabama, MPfrom Tirupur and other dignitaries were present. Aseminar on ‘Construction Participation in Tirupur Growth’was also arranged, wherein Mr. K. Subbarayan, formerMP from Tirupur was the keynote speaker. Manymembers were inducted into the BAI fold.

Vadodara Centre

Mr. Kalpesh Joshi was installed as Chairman of VadodaraCentre for 2015-16 on 2nd March, 2015 in a glitteringfunction in Vadodara. More 750 persons were present atthe installation function. An entertainment programme‘Vhal thi whatsapp sudhi’ by Mr. Ankit Trivedi wasorganized on the occasion.

Visakhapatnam Centre

Visakhapatnam Centre organized a Technical Presentationon ‘Introduction to Drywalls, Ceilings and Plasters –Gyproc’ in Visakhapatnam. Brig. C. Bharti, SC, DG & CE,Director General Naval Projects (DGNP), Visakhapatnamwas the Chief Guest Representatives of M/s Saint Gobain,Mumbai briefed the members on the topic of the technicalpresentation. Other senior members, functionaries, office-bearers of the centre were present on the occasion.

A technical presentation on ‘Anchor FasteningTechnology’ was conducted by Centre on 13th October2015. Prof. D. S. R. Murthy, HoD, Deptt of CivilEngineering, Andhra University, Visakhapatnam was theChief Guest. Mr. CH. Ramakotaiah, State Chairman, BAIAndhra Pradesh also graced the occasion.

Centre organized a Technical presentation on‘Construction & Insulation Materials’ on 31st October 2015.Dr. B. Jayarami Reddy, Civil Engineer, VisakhapatnamUrban Dev. Authority was the Chief Guest. Mr. MohanDas, RM (South), M/s Supreme Industries Ltd. gave aninteresting technical presentation. Mr. CH. Ramakotaiah,State Chairman, BAI Andhra Pradesh and Dr. Dr. S. VijayaKumar, Past Chairman also graced the occasion.

The Centre conducted Executive Committee Meetingsevery month, to discuss on problems faced by thecontractors in respect of departments like MES, VPT,DGNP, Railways, Steel Plant and on Service Tax, LabourWelfare Cess etc.

Wai Centre

Mr. Sunil Mundada, State Chairman, BAI Maharashtravisited Wai Centre on 19th April 2015. He was felicitatedby Mr. Anil Sawant, Chairman, Wai Centre in the presenceof other office bearers and senior functionaries. Mr.Mundada addressed the members and informed aboutthe latest developments as regards BAI in tacklingbuilding & construction industry issues.

AFFILIATED ASSOCIATIONS• All Kerla Government Contractors Association• Amravati District Contractors' Association, Amravati• Association of Builders for Chennai Development• Chennai Flat Promoters' Association - North• Chennai Suburban Builders Association• Confedeartion of Real Estate Developers Association of India

(CREDAI), Karnataka• Contractors and Builders Association of Vidarbha• CPWD Civil Contractor Association• Earthmoving Contractors & Machinery Owners Association• Flat Promoters Association (Ambattur & Avadi)• Flat Promoters Association- Chennai South• Gujarat Contractors' Association, Ahmedabad• Jharkhand Local Thekedar Sangh, Ranchi• Kancheepuram Civil Engineers Association (KANCEA)

• Karnataka State Contractors' Association, Bangalore• Kerala CPWD Conatractors Association• Latur District Builders' Association, Latur• Mumbai Housing & Area Development Contractors' Association,

Mumbai• Nagpur Contactors Association• Pavers Finished Road Builders' Association, Chennai• Singara Chennai Builders Association• Southern Region Petrolum Corporation Contractors Welfare

Association• The Association of Engineering Constractors CMWSS Board• Tamilnadu Fly Ash Bricks & Blocks Manufacturers Association,

Chennai• Tamil Nadu Solid, Hollow & Paver Blocks Manufactures Association• The Southern Railway Engineering Contractors• The Tamil Nadu PWD Engineering Contractors Association

Builders' Association of India(All India Association of Engineering Construction Contractors & Builders)

FUNCTIONING CENTRES

ANDHRA PRADESH STATE KARNATAKA STATE Nandurbar* TELAGANA STATENellore Belgaum Phalatan AdilabadRajahmundry Karnataka (Bangalore) Pune Greater HyderabadRavulapalem Chitradurga Sangli HyderabadTanuku* Mysore Satara Kamareddy*Vijaywada Raichur Solapur KarimnagarVisakhapatnam Shimoga Ulhasnagar Khammam

Wai MahaboobnagarASSAM STATE KERALA STATE MedakGuwahati Alleppey RAJASTHAN STATE NalgondaSilchar Aluva Jaisalmer NizamabadTezpur Angamalli Jodhpur Ranga Reddy

Calicut Rajasthan (Jaipur) WarangalBIHAR STATE Changanacherry UdaipurPatna Kerala (Thiruvananthapuram) UTTAR PRADESH STATE

Kochi TAMIL NADU STATE AgraCHATTISGARH STATE Kodungugallur* Chengalpet Agra Cantt.Bilaspur Kollam Chettinadu AligarhDurg-Bhillai Kottayam Coimbatore AllahabadJagdalpur Muvattupuzha Dindigul BaghpatKanker North Malabar (Kannur) Erode BareillyRaipur Thripunithura Kanyakumari Gautam Budha Nagar

Thrissur Kodaikanal GhaziabadDELHI STATE Thiruvalla Kumbakonam Greater NoidaDelhi Madurai Hapur

MADHYA PRADESH STATE Madhuranthakam LoniGOA STATE Bhopal Mayiladuthurai LucknowGoa Indore Nagapattnam Meerut

Jabalpur Namakkal Meerut Cannt.GUJARAT STATE Nilgiri ModinagarBaroda MAHARASHTRA STATE Neyveli MoradabadBharuch Ahmednagar Pudukkottai Moradabad Northern RailwayGujarat (Ahmedabad) Amravati Salem MuzaffarnagrRajkot* Baramati Southern (Chennai) SitapurSurat Butibori Thanjavur Kanpur

Dhule Thenni Kanpur-SouthHARYANA STATE Ichalkaranji ThiruvannamalaiGurgaon* Jalgaon Tiruchirapalli UNION TERRITORIESKarnal* Kolhapur Tirunelveli Andaman & Nicobar*

Malegaon Tirupur KaraikalJHARKHAND STATE Mumbai Tiruvallur PondicherryHazaribagh Nagpur TuticorinJamshedpur Nanded Vellore WEST BENGAL STATEJharkhand (Ranchi) Nashik Durgapur

*Opened during Eastern Centre (Kolkata)theyear 2015-16. Haldia