BOCW Act: Ongoing Statutory Welfare Benefits Cannot Be Suspended Due to Model Code of Conduct, Court Rules - 2025-05-08

Court Overturns Suspension of Construction Worker Benefits, Rules Model Code of Conduct Not a Bar to Ongoing Welfare Schemes

Mumbai, Maharashtra – In a significant ruling, the Court has quashed a circular issued by the Maharashtra Building and Other Construction Workers’ Welfare Board (“Board”) that suspended crucial welfare activities for construction workers under the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996 (“BOCW Act”). The suspension was enacted citing the Model Code of Conduct (MCC) for the forthcoming Maharashtra Legislative Assembly Elections. The Court declared that ongoing statutory welfare measures under pre-existing schemes cannot be halted due to the MCC.

The judgment came in response to a writ petition filed by trade unions and organizations representing building and construction workers in Maharashtra, challenging the Board's Impugned Circular dated October 17, 2023.

Background of the Dispute

The Impugned Circular directed the suspension of several key activities, including: * Fresh registration of workers * Renewal of existing registrations * Distribution of benefits such as protective gear, essential kits, and household utility sets * Grant of fresh approvals under the housing scheme * Publicity work of the Board

The Board’s rationale for this suspension was the implementation of the MCC, and it had sought clarification from the Election Commission, which was still awaited. The Board's official website displayed a message: “Submission of new Registration is Stopped due to CODE OF CONDUCT.”

Arguments Presented

Ms. SudhaBharadwaj , counsel for the Petitioners, argued that the suspended activities are statutory imperatives mandated by the BOCW Act and its existing schemes. She contended that these activities were not new policy decisions or electoral largesse designed to influence voters. Ms. Bharadwaj highlighted the severe and debilitating impact of the suspension on workers, who would be denied access to vital statutory benefits, including health and maternity cover, educational allowances, and housing assistance.

Mr. Akshay Shinde, representing the Board (Respondent No.2), acknowledged that registration is a fundamental statutory activity. He stated that the Board suspended the activities due to doubts about potential conflicts with the MCC, particularly concerning direct monetary transfers to registered workers, and was awaiting guidance from the Election Commission.

Court's Analysis and Reasoning: BOCW Act vs. Model Code of Conduct

The Court meticulously examined the provisions of the BOCW Act, the Model Code of Conduct, and the Impugned Circular.

Scope and Intent of the BOCW Act: The Court emphasized that the BOCW Act is a vital piece of welfare legislation designed to protect unorganized labour in the construction sector by regulating their employment and ensuring their health, safety, and welfare. Key aspects highlighted include: * Mandatory registration of employer establishments and building workers as beneficiaries. * Registration being a "central and imperative feature" for the Act's administration. * Eligibility for registration (18-60 years, 90 days of work in preceding 12 months). * Cessation of beneficiary status (e.g., upon reaching 60 or not working for 90 days in a year, with provisions for continued benefits if a beneficiary for three consecutive years before 60). * Welfare measures available to registered beneficiaries, including insurance (Pradhan Mantri Jeevan Jyoti Bima Yojana, Pradhan Mantri Suraksha Bima Yojana), health and maternity cover, education and housing allowances, skill development, and potential pension plans, based on a Model Scheme formulated pursuant to Supreme Court directions (Writ Petition (Civil) No. 318 of 2006).

Scope of the Electoral Model Code of Conduct: The Court clarified the purpose and limitations of the MCC: * It aims to prevent the abuse of governmental power by political parties to influence election outcomes. * The Court found "nothing in the Model Code of Conduct that would interfere with conduct of ongoing statutory activity administering the provisions of the Act and the schemes made thereunder." * Statutory rights, such as the right to register for benefits under the BOCW Act, "cannot be suspended in the name of elections." * The MCC primarily targets discretionary payments, announcement of new projects, new programmes, new concessions, or new promises made to influence voters after elections are announced. * Crucially, the Court cited Paragraph II(2) of the MCC, which explicitly states that national, regional, and state utility schemes already near completion "should not be stopped or delayed." Such schemes should be commissioned by civil authorities without political involvement or fanfare.

The Court agreed with the petitioners, stating, "we are of the view that the Impugned Circular, inasmuch as it seeks to suspend registration of workers as beneficiaries and renewal of such registration, and the provision of benefits to such beneficiaries under pre-existing terms of pre-existing schemes, consistent with past practice, deserves to be quashed and set aside."

Further, the Court noted, "By no stretch, in our opinion, would the Model Code of Conduct require suspension of administration of pre-existing schemes formulated under the Act." It also emphasized that registration and renewal processes are necessarily continuous and ongoing exercises to fulfill Parliament's mandate.

Final Decision and Directions

The Court allowed the Writ Petition, issuing the following key directions:

Circular Quashed: The Impugned Circular dated October 17, 2023, was quashed and set aside insofar as it suspends registration, renewal, and provision of benefits under existing schemes during any MCC period in Maharashtra (including State Legislative Assembly, Urban Local Bodies, and Gram Panchayat elections).

Immediate Resumption of Activities: The Board was directed to ensure, no later than one day from the judgment, that its online portal is fully and freely available for registration (by employers and workers) and implementation of schemes.

Continued Administration: Administration of the BOCW Act and implementation of existing schemes must continue without suspension during MCC periods, consistent with past practice.

Limited Publicity: Any publicity and advocacy activities must be kept to the bare minimum necessary for scheme implementation, without ceremony, fanfare, or association with political functionaries.

No New Schemes/Benefits: The judgment does not permit the State Government to frame new schemes or provide new benefits not already operational when the MCC came into effect.

Implications of the Judgment

This ruling provides significant relief to construction workers in Maharashtra, ensuring that their access to statutory welfare benefits remains uninterrupted during election periods. It also offers crucial clarification on the interplay between welfare legislation and the Model Code of Conduct, affirming that ongoing, pre-existing statutory obligations are not to be hindered by the MCC, provided they are carried out without political exploitation. The decision underscores the judiciary's role in safeguarding statutory rights, particularly for vulnerable sections of the workforce.