Construction Sector

Construction Sector

A Report onLaws related toCONSTRUCTION SECTORIn India

Submitted by:Pankaj Gaur(13DM124)Pulkit Garg(13DM141)Sankul Suri(13DM162)Saurabh Arora(13DM164)Shankar Shekhar(13DM170)

ACKNOWLEDGEMENT

It is not possible to prepare a project report without the assistance & encouragement of other people. This one is certainly no exception.

On the very outset of this report, we would like to extend our sincere & heartfelt obligation towards all the personages who have helped us in this endeavour. Without their active guidance, help, cooperation & encouragement, we would not have made headway in the project.We are extremely thankful and pay our gratitude to our faculty Dr. Jagdish Shettigar for his valuable guidance and support on completion of this project. We extend our gratitude to Birla Institute of Management Technology for giving us this opportunity.We also acknowledge with a deep sense of reverence, our gratitude towards our parents and member of our family, who have always supported us morally as well as economically.Last but not the least, gratitude goes to all of our friends who directly or indirectly helped us in completion of this project report.

-Pankaj Gaur Pulkit Garg Sankul Suri Saurabh Arora Shankar Shekhar

CONTENTS

INDIAN CONSTRUCTION INDUSTRYIn India, construction is the second largest economic activity after agriculture. Construction accounts for nearly 65% of the total investment in infrastructure and is expected to be the biggest beneficiary of the rush in infrastructure-investment in the next five years. Investment in the sector accounts for almost 11% of India's GDP (Gross Domestic Product). As opportunities in the sector continue to come into the open, FDI (Foreign Direct Investment) has been rising. It is roughly estimated that 40-45% of steel; 85 per cent of paint; 65-70% of glass and significant portions of the output from automotive, mining and excavation equipment industries are used in the construction industry. The level of a countrys development is reflected by its infrastructure and the desperate need for infrastructure development has increased the demand of the construction industry in India.

Segmentation of Construction Industry in India Residential, industrial, commercial, and other buildings. Sewers, roads, highways, bridges, tunnels, and other projects. Specialized activities such as carpentry, painting, plumbing, and electrical work.

Overview of Construction Industry in India India is the second fastest growing economy in the world. Construction is the second largest economic activity after agriculture. Construction accounts for nearly 65 per cent of the total investment in infrastructure. Investment in construction accounts for nearly 11 per cent of Indias GDP. 239.68 billion or Rs. 16,747.67 billion is likely to be invested in the infrastructure sector over the next 5 to 10 years.

Indian Real Estate Sector Real Estate is a 8 billion or Rs. 558.94 billion (by revenue) Industry in India. It is the second largest employing sector in India. Real Estate is linked to about 250 ancillary industries like cement, brick and steel through backward and forward linkages. There will be a demand for over 24.3 million new dwellings for self-living in urban India alone by 2015. 16 billion or Rs. 1,118.06 billion investment will be required over the next five years in urban housing.

12th Year Plan(2012-2017): Forecasts for the market-size of construction industry for the Twelfth Plan period indicate that the aggregate output of the industry during the period 2012-13 to 2016-2017 is likely to be 52.31 lakh crore, increasing from 7.67 lakh crore in 2012-13 to 13.59 lakh crore in 2016-17. The construction industry will pick up momentum as the 12th Five-Year Plan is put into action, which will spend $1 trillion on building infrastructure. It will take care of following things:

Human-Resource Strategy- Construction industry faces acute shortage of skilled workers especially in mechanized trades. CIDC (Construction Industry Development Council) an industry association formed with the initiative of the Planning Commission is actively involved in imparting training and skill up-gradation of the workers in the industry;

Safety of Construction Workers- Workers are vulnerable to inherent risks to their life and limbs. Temporary relationships between employer and employee, uncertain working hours, lack of basic amenities and inadequacy of welfare facilities are some of the difficulties faced by the employees. Plan aims at accelerating the process of implementation of the provisions of The Building and other Construction Workers (Regulation of Employment and Conditions of Service) Act 1996;

Regulatory Framework- Construction has been declared as an industry but has presently no regulatory framework on an all-India basis. It has been suggested that a Common Construction Law must be formed, which would harmonize the existing statutes related to construction sector. It has also been suggested that a nodal regulatory authority in the shape of Central Construction Authority at the national level and State Authorities at the state levels should be formed to administer and monitor the Construction Law. The proposed authority could act as a nodal agency of the Government on all issues related to the construction sector;

Contracting Systems and Dispute-Resolution- The present contracting procedures are costly and cumbersome for both the project owners as well as the contractors. Lack of standardization of contract procedures and evaluation criteria is another difficulty associated with contracting process. It has been suggested that the criteria of awarding works to the lowest cost bidder adopted by the procuring agencies in the public sector hinders in the process of adoption of better technology, best practices and quality. It might result in cost cutting practices by contractors and preventing passing on the benefits to the workers.

Arbitration and Dispute-Resolution- The enactment of Arbitration and Conciliation Act 1996 provided for an effective framework for resolution of disputes without depending on the overburdened judicial system of the country. Despite these improvements, the arbitration process continues to be predominantly ad-hoc. A solution to the this problem is to use the Institutional-Arbitration system according to which appointment of arbitrators is done from international, national or regional panels. Other features of this system are: having a code of ethics which binds the arbitrators and a pre-determined level of fees.

Various Association in the Construction Industry-

Builders' Association of India (BAI)Builders Association of India (BAI) provides business opportunity in the emerging Indian Infrastructure and Real Estate Sector by exposing Construction companies, Contractors, Construction machinery, Construction products, Building materials in India.

Construction Federation of India (CFI)Construction Federation of India (CFI) was set up by the leading heavy civil engineering construction firms of India as a forum that would strive for bringing about all-round improvements in the construction sector.

Construction Industry Development Council (CIDC)The Planning Commission, Government of India, jointly with the Indian construction industry has set up Construction Industry Development Council (CIDC) to take up activities for the development of the Indian construction industry.

Indian Building Congress (IBC)Indian Building Congress (IBC) was founded on 1st September 1992, when a Founder's Meet was organized in New Delhi. About 250 professionals attended this meet. IBC was registered as a Society under the Societies Registration Act 1860, in New Delhi, on 29th March 1993.

Indian Construction Equipment Manufacturers Association (i-CEMA)ICEMA is affiliated to the Confederation of Indian Industry (CII) and presently represents 42 leading companies who manufacture, trade and finance a variety of products such as hydraulic excavators, wheel loaders, backhoe loaders, motor graders, vibratory compactors, cranes, dumpers, tippers, forklifts trucks, dozers, pavers, batching plants, diesel engines, etc.

National Highway Builders Federation (NHBF)National Highways Builders Federation in an apex organization of all contractors/Builders of National Highways, State Highways and Bridges in the organized sector in all over the country.

Architects Act,1972

The Council of Architecture (COA) has been constituted by the Government of India under the provisions of the Architects Act, 1972, enacted by the Parliament of India, which came into force on 1st September, 1972. The Act provides for registration of Architects, standards of education, recognized qualifications and standards of practice to be complied with by the practicing architects. The Council of Architecture is charged with the responsibility to regulate the education and practice of profession throughout India besides maintaining the register of architects. For this purpose, the Government of India has framed Rules and Council of Architecture has framed Regulations as provided for in the Architects Act, with the approval of Government of India. Any person desirous of carrying on the profession of 'Architect' must have registered himself with Council of Architecture. For the purpose of registration, one must possess the requisite qualification as appended to the Architects Act, after having undergone the education in accordance with the Council of Architecture (Minimum Standards of Architectural Education) Regulations, 1983. The registration with Council of Architecture entitles a person to practice the profession of architecture, provided he holds a Certificate of Registration with up-to-date renewals. The registration also entitles a person to use the title and style of Architect. The title and style of architect can also be used by a firm of architects, of which all partners are registered with COA. Limited Companies, Private/Public Companies, societies and other juridical persons are not entitled to use the title and style of architect nor are they entitled to practice the profession of architecture. If any person falsely claims to be registered or misuses title and style of architect, such acts tantamount to committing of a criminal offence, which is punishable under section 36 or 37 (2) of the Architects Act, 1972. The practice of profession of an architect is governed by the Architects (Professional Conduct) Regulations, 1989 (as amended in 2003), which deals with professional ethics and etiquette, conditions of engagement and scale of charges, architectural competition guidelines etc. Pursuant to these Regulations, the Council of Architecture has framed guidelines governing the various aspects of practice. An architect is required to observe professional conduct as stipulated in the Regulations of 1989 and any violation thereof shall constitute a professional misconduct, which will attract disciplinary action as stipulated under section 30 of the Architects Act, 1972.

Architects Registration CouncilThe Act provides for the establishment of Council of Architecture, a body cooperate consists of members from Institutions, Councils, Central and State Government nominees. The members will select Vice president and President from among them. The term of Council is for a period of three years from the date of election of members, or nomination or until the successor, as the case may be has been duly elected or nominated whichever is later.Function and Powers of Councila) Appoint registrar and such other officers and employees as are necessary to carry out its functions.b) To maintain proper account of finance.c) To maintain a registrar of architects registered under the Act, on payment of prescribed fees by the architect and to renew the registration from time-to-time.d) Remove the name of the architect from the register either on his own application or when he is dead or on account of other moral turpitudes.e) To enquire into matters relating to misconduct.f) To furnish reports, copies of minutes and the other information to Central Govt.g) Issue of registration certificate and also duplicates if necessary.Powers a) To acquire, hold and dispose of the property both movable and immovable.b) To enter into a contract.c) To sue or be sued.d) Powers to appoint inspectors to inspect any college or institution where architectural education is given or to attend any examination conducted by such bodies for the purpose of recommending to the Central Government, recognition of architectural qualifications granted by such bodies.e) Powers of withdrawing of recognition under certain circumstances and prescribing minimum standard of architectural education.f) To prescribe standards of professional conduct and etiquette and a code of ethics for the architects.g) Powers to make regulations.

Electricity ActThe Electricity Act, 2003is legislation inIndiathat aims to transform the power sector in India.The act covers major issues involving generation, distribution, transmission and trading in power. While some of the sections have already been enacted and are yielding benefits, there are a few other sections that are yet to be fully enforced till date.Before Electricity act 2003 the electricity sector was guided by The Indian Electricity Act, 1910 The Electricity (Supply) Act, 1948 generation distribution and transmission were carried out mainly by State electricity board. Due to politico economic situation the cross subsidies reached at unsustainable level. For purpose of distancing state govt. form tariff determination The Electricity Regulatory Commissions Act, was enacted 1998. So as to reform electricity sector further by participation of private sector and to bring in competition Electricity act enacted in 2003.

The salient features of the Electricity Act are as follows: No licence is required for Generation and captive generation has been freely permitted. Hydro projects exceeding the capital cost notified by Central Government however, need concurrence of the Central Electricity Authority. No license required for generation and distribution in notified rural areas. Transmission Utility at the Central as well as State level, to be a Government company with responsibility for planned and coordinated development of transmission network. Provision for private licensees in transmission. Trading, a distinct activity recognised with the safeguard of the Regulatory Commissions being authorised to fix ceilings on trading margins, if necessary. Open access in distribution with provision for surcharge for taking care of current level of cross subsidy with the surcharge being gradually phased out. Distribution licensees would be free to undertake generation and trading. The State Governments are required to re-organise the SEBs. However, they may continue the SEB as State Transmission Utilities and licensees for such time the State and Central Government agree. Setting up of the State Electricity Regulatory Commission made mandatory. An Appellate Tribunal to hear appeals against the decision of the CERC and SERCs. x) Metering of all electricity supplied made mandatory. Provisions relating to theft of electricity made more stringent. For rural and remote areas stand-alone systems for generation and distribution permitted. Thrust to complete rural electrification and provide for management of rural distribution by panchayats, cooperative societies, non-government organizations, franchises, etc.Building Bye lawBuilding bye-laws are a set of standards used to regulate various facets of a building everything from its design to its safety features. In these 'Model Building Bye-Laws', the Town and CountryPlanning Organisation(TCPO) under the Ministry of Urban Development(MoUD) has created a guide for State Governments, Urban Local Bodies, Development authoritiesto help them play a more effective role in enforcing the implementation of the master plans.In the Indian context, this model bye-law comes at a time when there is rapid urbanisation happening without a regulatory mechanism and the 74th Constitutional Amendment empowers local bodies to prepare and enforce master plans, for orderly development ofurban areas.

The 'Model Building Bye-Laws' contains eight chapters:1. Definitions2. Jurisdiction and applicability of the building bye-laws3. Development code pertaining to residential and non-residential premises4. General building requirements5. Structural safety and services6. Special requirements for occupancy/land development.7. Fire protection and fire safety requirements.8. Conservation of heritage sites including heritage buildings, heritage precincts and natural feature areas.

Jurisdiction and applicability of the building bye-lawsThe jurisdiction of these bye-laws are dealt with in the second chapter. These laws are applicable to buildings being constructed, change of use/occupancy of building, reconstruction of a building or a part of it. There are separate sections for each case. The bye-law clarifies that existing structures that are lawfully established wouldnot need to undergo removal, alteration etc.

Development code pertaining to residential and non-residential premisesThis chapter of the bye-laws deals with regulation of buildings within a premises. The topics covered include use, open space, height, number of dwelling units, parking standards for residential premises, resettlement ofjhuggi jhonprietc.

General building requirementsThis chapter deals with space requirements of various parts of the building. This depends on occupancy load and purpose of the building. For example the plinth or any part of a building or outhouse, has to located with respect to average road level in a manner to provide adequate drainage of the site but not at a height less than 45 cm.

Structural safety and servicesThis chapter has its base in theNational Building Code of Indiaand theBureau of Indian Standards. This chapter makes special mention of water harvesting and other water conservation techniques. It states that all plots of 100 sq m and above will need to have water harvesting structures. Also buildings with a discharge of 10,000 litres and above will incorporate a wastewater recycling system. The chapter also lists out the types of buildings that will need to have solar water heaters, these include hostels with more than 100 students, individual residential areas with plinth of more than 150 sq m, railways stations etc.Special requirements for occupancy, land developmentRequirements for factories, educational buildings, assembly buildings, petrol filling stations, burial and cremation grounds etc are indicated here. In case of factories, provisions under the Factories Act will have to be followed while in case of assembly buildings like cinema halls relevant provisions of the Cinematographic Rules/Acts will be applicable.

Fire protection and fire safety requirementsThis chapter covers the requirements for fire protection for multi-storied buildings and buildings which are 15m and above in height and low occupancy buildings like assembly, educational, business etc. These requirements work in tandem with other bye-laws found in Chapter 4.

Conservation of heritage sites including heritage buildings, heritageprecincts and natural feature areasThe chapter begins with a definition of different concepts like heritage building, heritage site, conservation, preservation, restoration, reconstruction. It then moves to the responsibilities of the owner of a heritage buildings. The responsibilities include repairand maintenance of the building. However repairs, redevelopment etc have to be carried out after permission from Commissioner ofMunicipality. There are other caveats which have to be followed such as involvement of the public prior to alteration of such buildings etc.

The chapter also lists out the role of the Heritage Committee and its composition. This committee will include members of the PWD, structural engineers, environmentalists, historians, chief town planners from different departments and representatives from state archaeological department. The terms of reference of the committee include: Advising Municipal Commissioner on granting development permission Preparing supplementary list of heritage sites Prepare supplementary guidelines on conservation principles

Rent Control Act

What is Rent Control?The practice of imposing a legal maximum (rent ceiling) upon the rent in a particular housing market, below the equilibrium rent is called rent control. Usually the objective is to limit the price that would result from the market, where inequality of bargaining power between landlords and tenants produces continually escalating prices. If the maximum is above the markets equilibrium (different market equilibrium is set for different housing or commercial rents), then the control is null and void. But if the set maximum is at a level below the equilibrium it will lead to a situation of excess demand or shortage. In a free market, rents would rise automatically filling the gap between the demand and the supply. Thus rent controls prevent prices from rising up to the equilibrium level thus protecting the rights of both tenants and land owners.

A prolonged debate has been going on over the pros and cons of rent control. While the proponents of rent control laws suggest that they prevent landlords from charging exorbitant rents and evicting tenants at will, the opponents suggest that rent control laws, by distorting incentives, lead to deterioration of existing housing stock, increased pull out of apartments from the rental housing market and thus reduced overall supply.

Every state has devised its Rent control act, which lays down guidelines in accordance to which the interest of the both parties (land owner & tenant) is protected. For example, The Andhra Pradesh Buildings (Lease, Rent and Eviction) Control Act, 1960 (Act No. 15 of 1960) is applicable only in Andhra Pradesh, similarly Andaman & Nicobar Islands Rent Control Legislation notified on 19.10.1965 is applicable in Port Blair Municipal Area, The Delhi Rent Control Act, 1958 (59 of 1958) etc.

The Arbitration and Conciliation Act, 1996

History of Dispute SettlementIndia has a history of dispute resolution through mediation (known as 'Panchayat') conducted by village elders. Decisions were binding on them often as a token of respect to the elder. The ancient courts called Kula, Sreni and Gana served as a platform for dispute resolution.

Even after the formation of a formal legal system, such village-based mediation was still used even in the settlement of complex disputes. Their popularity reflects the fact that such dispute resolution allows for the maintenance of relationships.

The law relating to arbitration is contained in the Arbitration and Conciliation Act, 1996. It came into existence from 25th January 1996. It extends to the whole of India except the State of Jammu and Kashmir. The Act is of consolidating and amending nature and is not exhaustive. But it goes much beyond the scope of its predecessor, the 1940 Act. The earlier act did not include any provisions relating to Foreign Awards and Conventions and Protocols. There were two different acts for Foreign Awards and Convention and Protocol on arbitration. Hence there was a need to amend the old one, the new Act came into force along with Conventions and Protocols and Foreign Awards in the same Act.

The Major Objectives of the Bill are:1. To resolve the conflict between some judgments of the High Court under the Act2. To speed up the pending as well as future arbitrations by providing for a time limit within which proceedings will have to be concluded3. To rectify certain mistakes which have crept into some provisions of the Act4. To provide for the establishment of a new Arbitration Division within each High Court where awards can be challenged under section 34, 34A or 365. To provide for Fast Track Arbitration following a special procedure

The Consumer Protection Act, 1986

The Consumer Protection Bill, 1986 seeks to provide for better protection of the interests of consumers and for the purpose, to make provision for the establishment of Consumer councils and other authorities for the settlement of consumer disputes and for matter connected therewith.

This act seeks to promote and protect the rights of consumers such as-a) The right to be protected against marketing of goods which are hazardous to life and property;b) The right to be informed about the quality, quantity, potency, purity, standard and price of goods to protect the consumer against unfair trade practices;c) The right to be assured, wherever possible, access to an authority of goods at competitive prices;d) The right to be heard and to be assured that consumers interests will receive due consideration at appropriate forums;e) The right to seek redressal against unfair trade practices or unscrupulous exploitation of consumers; andf) Right to consumer education.

LIST OF AMENDING ACTS The Consumer Protection (Amendment) Act, 1991 (34 of 1991) The Consumer Protection (Amendment) Act, 1993 (50 of 1993) The Consumer Protection (Amendment) Act, 2002 (62 of 2002)

Advantages:1. Complaints can be filed by any consumer (any person who buys any product or hires/avails a service) if what promised is not delivered.2. Nominal fees is charged, no stamp or court fee is needed.3. Fast processing of the complaints.4. The provisions of the Act are compensatory in nature.

The Income Tax Act, 1961

This act came into existence on the April 1, 1962. Income Tax act extends to the whole of India. This law was amended by finance act, 2013. The administration of direct taxes is looked after by the Central Board of Direct Taxes (CBDT). The CBDT is empowered to make rules for carrying out the purposes of the Act. For the proper administration of the Income-tax Act, the CBDT frames rules from time to time.

Income-tax is levied on an assessees total income and property. Such total income has to be computed as per the provisions contained in the Income-tax Act, 1961. Following are the steps to understand the procedure of computation of total income for the purpose of levy of income-tax.

Step 1 Determination of residential statusStep 2 Classification of income under different headsStep 3 Exclusion of income not chargeable to taxStep 4 Computation of income under each headStep 5 Clubbing of income of spouse, minor child etc.Step 6 Set-off or carry forward and set-off of losses

Step 7 Computation of Gross Total Income.Step 8 Deductions from Gross Total IncomeStep 9 Total incomeStep 10 Application of the rates of tax on the total incomeStep 11 SurchargeStep 12 Education cess and secondary and higher education cess Step 13 Advance tax and tax deducted at source

Property taxProperty tax is a levy charged by the municipal authorities for the upkeep of basic civic services in the city. In India it is the owners of property who are liable for the payment of municipal taxes whereas in countries like the United Kingdom, the occupier is liable. Generally, the property tax is levied on the basis of reasonable rent at which the property might be let from year to year. The reasonable rent can be actual rent if it is found to be fair and reasonable. In the case of un-let proper-ties, the rental value is to be estimated on the basis of letting rates in the locality. In the case of special class of properties like cinema theatres, it is estimated by adopting the accountancy method under which the rent is a certain percentage of the total average turnover during the year, i.e. actual receipts of the sale of tickets (excluding entertainment duty).

The Wealth Tax Act, 1957

Wealth Tax is a tax on the value of wealth owned by a person, levied under the Wealth Tax Act, 1957. It is one of the direct taxes. It is an annual tax. This act also extends to whole of India.

Section 3 of wealth Tax Act, 1957 provides that every Individual, HUF or Company, who is an assessee shall be charged wealth tax @1% on the amount by which his net wealth (determined on the basis of nationality and residential status, on the relevant valuation date) exceeds Rs. 15,00,000

Section 45 of Wealth Tax Act provides that no wealth tax shall be levied in respect of the net wealth of the following persons: Section 25 company

Any co-operative society Any social club Any political party A mutual fund specified u/s10 (23D) of the Income tax Act.

This law is applicable to any building or land appurtenant thereto whether used for Residential purpose or Commercial purpose or for the purpose of maintaining a guest house or otherwise, including a Farm House situated within 25 km from the local limits of the municipality.

The Cooperatives Societies Act, 1912

There are three sectors operating in the Union of India:1. PUBLIC SECTOR wherein the State i.e. The Union of India and the respective State Government undertake developments projects which are wholly owned by either the Central Government or the State Government.2. PRIVATE SECTOR which is a sector where private enterprises are permitted in certain fields of economic activities.3. CO-OPERATIVE SECTOR which is beautifully blended in between a public sector and the private sector. It has benefits of both the sectors and disadvantages of neither of them.

Promotion of thrift, self-help and mutual aid are the fundamental principles of co-operation. In a co-operative organization profit cannot be the sole motive. The prime objectives, in addition to the three fundamentals of co-operation mentioned above are to make available the goods and services in required quantity, of better quality and at a reasonable price to its members. It does not mean that a Co-operative Society is a charitable organization. It should, therefore, conduct itself in a business-like manner in attaining its objectives efficiently.

There are number of Co-operative Societies Acts functional in different states like Maharashtra Co-operative Societies Act, 1960, Pondicherry Co-operative Societies Act, 1972, Karnataka Co-operative Societies Act, 1959, Delhi Co-operative Societies Act, 1972, Kerala Co-operative Societies Act etc.

When the area of operation is restricted to one state, the State Co-operative Act & Rules, under which the society is registered will be applicable. In a particular state, if Co-operative Act and Rules is not enacted, the Central Act which is known as The Co-operative Act, 1912 and its rules will be applicable.

When the area of operation of Society is spread in two or more states. The Multi-State Co-operative Societies Act, 2002 and its rules shall be applicable.

As per section 2(16) of MCS Act, 1960,Housing society means a society, the object of which is to provide its members with open plots for housing, dwelling houses or flats; or if open plots, the dwelling houses or flats are already acquired, to provide its members common amenities and services.

There are different types of Co-op. Housing societies such as:1. Open plot societies2. Flat owners societies3. Tenants societies4. Housing board societies

The Indian Contract Act, 1872

In India, the Law of Contracts is contained in the Act called the Indian Contract Act, 1872 ("the Act"). This Act lays down the general principles relating to formation, performance and enforceability of contracts and the rules relating to certain special types of contracts like, Indemnity and Guarantee; Bailment and Pledge, etc.

Indian Contract Act extends to the whole of India except the State of Jammu and Kashmir and it came into force on 1st September 1872.

The Indian Evidence Act, 1872

The word, evidence means to show clearly; to make clear to the sight; to discover clearly; to make plainly certain; to ascertain; to prove.

The main principle which underlie the law of evidence are- Evidence must be confined to the matter in issue; Hearsay evidence must not be admitted; and Best evidence must be given in all cases.

The law of evidence is part of the law of procedure, i.e. the procedure court has to follow. The law of evidence is the same in civil and criminal proceedings. This law extends to whole of India except the state of Jammu & Kashmir.

Under the Act, whenever the status of any person as the owner of a piece of immovable property of which he is shown to be in possession is questioned, the burden of proving that he is not the owner lies on the person who asserts that he is not the owner.

The Indian Stamps Act, 1899

To raise revenue the British Government adopted a fiscal measure by enacting the Stamp Act, 1869 which was replaced by the Indian Stamp Act, 1879 (1 of 1879). Since the passing of the Act of 1879 the Stamp law was amended by ten different enactments. In spite of that need was felt to enact a more comprehensive law. Accordingly the Indian Stamp Bill was introduced in the Legislature. The Bill was referred to the Select Committee. On the recommendations of the Select Committee changes were made in the Bill. The latest amendment in this act was done in year 2006 under Finance Act.

There is a direct link between Registration Act and Stamp Act. Stamp duty needs to be paid on all documents which are registered and the rate varies from state to state. With stamp duty rates of 13 per cent in Delhi, 14.5 per cent in Uttar Pradesh and 12.5 per cent in Haryana, India has perhaps one of the highest levels of stamp duty. Some states even have double stamp incidence, first on land and then on its development. In contrast the maximum rate levied in most developed markets whether in Singapore or Europe is in the range of 1-2 percent. Even the National Housing and Habitat Policy, 1998, recommended a stamp duty rate of 2-3 percent. Most of the methods to avoid registration are basically to avoid payment of high stamp duty.Another fallout of high stamp duty rates is the understatement of the proceeds of a sale. This is also linked to payment of income tax and capital gains tax. When registration has not been effected, a transfer is not deemed to have taken place and hence capital gains tax can be totally avoided. Thus, the present provisions in various laws and their poor implementation have led to a situation where there is considerable financial loss to the exchequer on account of understatement of sale proceeds, non-registration and consequent non-payment of stamp duty and avoidance of capital gains tax.

The Land Acquisition Act, 1894

Land acquisition act states right to fair compensation and transparency in land acquisition rehabilitation and resettlement bill. This Act authorises government to acquire land for public purposes such as planned development, provisions for town or rural planning, provision for residential purpose to the poor or landless and for carrying out any education, housing or health scheme of the Government. In its present form, the Act hinders speedy acquisition of land at reasonable prices, resulting in cost overruns.

Shortcomings of Land Acquisition Act, 1894 Forced Acquisitions:Under the 1894 legislation once the acquiring authority has formed the intention to acquire a particular plot of land then then it can carry out the acquisition regardless of how the person whose land is sought to be acquired is affected.

No Safeguards:There is no real appeal mechanism to stop the process of the acquisition. A hearing (under section 5A) is prescribed but this is not a discussion or negotiation. The views expressed are not required to be taken on board by the officer conducting the hearing.

Silent on Resettlement & Rehabilitation of those displaced:There are absolutely no provisions in the Bill relating to the resettlement and rehabilitation of those displaced by the acquisition.

Urgency Clause:This is the most criticised section of the Law. The clause never truly defines what constitutes an urgent need and leaves it to the discretion of the acquiring authority. As a result almost all acquisitions under the Act invoke the urgency clause. This results in the complete dispossession of the land without even the token satisfaction of the processes listed under the Act.

Low Rates of Compensation:The rates paid for the land acquired are the prevailing circle rates in the area which are notorious for being outdated and hence not even remotely indicative of the actual rates prevailing in the area.

Litigations:Even where acquisition has been carried out the same has been challenged in litigations on the grounds mentioned above. This results in the stalling of legitimate infrastructural projects.

Henceforth Land Acquisition Act, 2014 Compensation:Given the inaccurate nature of circle rates, the Bill proposes the payment of compensations that is up to 4 times the market value in rural areas and 2 times the market value in urban areas. R&R:This is the very first law that links land acquisition and the accompanying obligations for resettlement and rehabilitation. Over five chapters and two entire Schedules have been dedicated to outlining elaborate processes (and entitlements) for resettlement and rehabilitation. The Second Schedule in particular outlines the benefits (such as land for land, housing, employment and annuities) that shall accrue in addition to the one-time cash payments. Retrospective Operation:To address historical injustice the Bill applies retrospectively to cases where no land acquisition award has been made. Also in cases where the land was acquired five years ago but no compensation has been paid or no possession has taken place then the land acquisition process will be started afresh in accordance with the provisions of this act. Multiple Checks and Balances:A comprehensive, participative and meaningful process (involving the participation of local Panchayati Raj Institutions) has been put in placepriorto the start of any acquisition proceedings. Monitoring Committees at the National and State Level to ensure that R&R obligations are met have also been established. Return of Unutilised Land:In case land remains unutilised after acquisition, the new Bill empowers states to return the land either to the owner or to the State Land Bank. Special Safeguards for Tribal Communities and other disadvantaged groups:No law can be acquired in Scheduled Areas without the consent of the Gram Sabhas. The Law also ensures that all rights guaranteed under such legislations as the Panchayat (Extension to Scheduled Areas) Act 1996 and the Forest Rights Act 2006 are taken care of. It has specialenhancedbenefits (outlined in a dedicated chapter) for those belonging to the Scheduled Castes and Scheduled Tribes. Safeguards against displacement:The law provides that no one shall be dispossessed until and unless all payments are made AND alternative sites for the resettlement and rehabilitation have been prepared. The Third Schedule even lists the infrastructural amenities that have to be provided to those that have been displaced. Compensation for livelihood losers:In addition to those losing land, the Bill provides compensation to those who are dependent on the land being acquired for their livelihood. Consent:In cases where PPP projects are involved or acquisition is taking place for private companies, the Bill requires the consent of no less than 70% and 80% respectively (in both cases) of those whose land is sought to be acquired. This ensures that no forcible acquisition can take place. Caps on Acquisition of Multi-Crop and Agricultural Land:To safeguard food security and to prevent arbitrary acquisition, The Bill directs States to impose limits on the area under agricultural cultivation that can be acquired.

Multi-state Cooperative Act:The objective of Multi-State Co-operative Societies (MSCS) Act 2002 is to facilitate the organization and functioning of the cooperative societies having jurisdiction in more than one States. This Act which came in force with effect from 19.8.2002 was enacted to replace the Multi-State Cooperative Societies Act, 1984. The Act facilitates voluntary formation and democratic functioning of multi-state cooperative societies as member driven institutions based on self-help and mutual aid and to enable them to promote their economic and social betterment and provides for functional autonomy.

Based on the experience of implementation of the MSCS Act, 2002, interaction and feedback received from various stakeholders including the multi- state co-operative societies and recommendations made by the High Powered Committee on Cooperatives constituted by the Government of India under the chairmanship of Shri S.O. Patil, a need was felt to further amend the Multi-State Co-operative Societies Act, 2002 to keep the legislation in tune with the changing economic policies and to facilitate the multi-state co-operative societies to take advantage of the new and emerging opportunities.The Union Cabinet approved the introduction of the Multi-State Co-operative Societies (Amendment) Bill, 2010 in the Parliament. These amendments are intended to enhance the public faith in the cooperatives and to ensure better accountability of the management towards its members and the law of the land.

It is proposed to define active member to ensure the member's active participation in the affairs of the society. Time bound decision by the society for admitting members is proposed to prevent inordinate delay by the society in admitting members. A clause is proposed to be inserted for ensuring that the members make their payment due to the society to be eligible for exercising their rights as a member. It is proposed to allow the MSCS to refund full or part of the share capital subscribed by the Government to reduce/eliminate Government control of these cooperatives.

To ensure presence of experts on the board, it is proposed to provide that the co-opted directors should have experience in the field of banking, management, finance or specialization in any field relating to the objects and activities undertaken by the MSCS. The Directors will also be required to disclose the interest of their relatives in the affairs of the society.

It is proposed to give freedom to the Board to constitute an Executive Committee and other committees or sub-committees as specified in the bye -laws. However, it is proposed that every society shall be required to constitute an Audit and Ethics Committee of the Board. The existing restriction on borrowings by the society is proposed to be relaxed.

The proposed amendments also include provisions for filing of applications, documents, inspections, payment of fees, charges and issuance of certificates of registration and maintenance of documents by Central Registrar in electronic forms. It also provides for cancellation of registration if obtained by mis-representations of facts, submission of false or misleading information, suppression of material facts or fraud etc. Reservation of seat for the SC/ST and women on the board, constitution of interim board of experts for rehabilitation of a sick society, election authority for conduct of election and Cooperative Rehabilitation and Reconstruction Fund for rehabilitation and development of cooperative societies have also been proposed.The proposed amendments also include provision for Cooperative Information Officer and Appellate Authority to provide information to the members about the affairs and management of the society; penal provisions for non-filing of returns; non-admission of new members by the administrators when the board is under supersession; obligation on the part of a Multi-Stats Co-operative Society to make available its products and services to its members and their patronage by the members, etc.

Registration Act, 1908Section 28 of the Registration Act, 1908 provides that if any person has immovable properties in more than one State, then he can register documents relating to their transfer in any of these States. Unscrupulous elements have abused this provision and they have registered their properties in the States with the lower registration fee and stamp duty. This causes a loss to the State where the property is actually situated. This section is proposed to be omittedAt present Book 4, i.e. the Miscellaneous Register -which contains details of all registered documents (except Wills) -is not open for access by the general public. This Book 4 is proposed to be made open to inspection by the public to ensure greater transparency.

Currently, in the Act, only the documents relating to the adoption of a son are required to be registered. To ensure gender equity documents relating to the adoption of daughters will be added to the clause. Registration will now be allowed anywhere in a given State or Union Territory. This is being done keeping in mind the convenience of the people, transparency and also to help promote the electronic registration of documents. As the computerization of land records is making rapid strides across the Country, it is desirable that the electronic registration of the documents is facilitated as it will ensure greater transparency also. The Act is proposed to be amended accordingly. Documents Such As Powers Of Attorney, Developers/Promoters Agreements and any other Agreements relating to the sale or development of immovable property now need to be mandatorily registered. This is being done with an intention to minimize cases of document forgery. At present the Sub-Registrars Office has no power to refuse registration of documents. This allows unauthorized individuals to get false registrations done. Accordingly a new section 18A is proposed to be inserted to provide for prohibition of registration of certain types of properties (such as those belonging to charitable institutions and the Government).

Relationship with the Right to Fair Compensation and Transparency in Land Acquisition, Resettlement and Rehabilitation Bill 2012Oneof the key features of the new Right to Fair Compensation and Transparency inLandAcquisition, Resettlement and Rehabilitation Bill 2012 is the greatly enhanced amount of compensation that is guaranteed to displaced families.However to calculate this amount, the formula relies on the current market values in place i.e. the registered value. Registered values are notoriously opaque and often out dated. If registration is made mandatory (and hence frequent) AND if it can be vetted/reviewed by members of the general public then there will emerge over time, accuracy in the reporting of land rates particularlyin rural areas. Furthermore because of the unprofessional and ad hoc way in which they are recorded,landtitles are often subject to dispute. These new amendments to theRegistrationActwill ensure greater accuracy in helping identify/determine beneficiaries (through cleartitles).

Specific Relief Act, 1963 Specific Relief Act, 1963 is nonetheless a very important promulgation by the Legislature in as much as it aims at providing a prompt remedy and protection of property both movable and immovable. The earlier Act of 1877 was repealed and given the new shape of Specific Relief Act, 1963 as per recommendations of the Law commission which met in 1955 to consider the desirability of making necessary changes in the then existing Act, in view of the changed circumstances and the current requirements Effective provisions already exist in "The Specific Relief Act, 1963" as amended from time to time to curb the unfair means and malpractices in the processes of sale, purchase, possession of properties or in otherwise change of hands by devolution, mutations, execution, execution of Wills, Gifts etc. But the present edition has been made all the more useful by cautiously updating it with latest available case law(s), amendments etc. to suit the present day requirements of the Bench and the Bar including the litigant public. Under the Specific Relief act, two kinds of suit fro possession of immovable property are contemplated. Section 8 of the Act provides for a suit for possession if a person is entitled to it. If a person is entitled to a property and if he is out of possession, he is to bring a suit under the general law the procedure of which is given in the Code of Civil Procedure and appeal is also provided against the decision of the Court. The person who has got better title is entitled to succeed in an action for possession provided his remedy is not otherwise barred. Under section 9 of the Specific Relief Act, a summary suit for possession is provided for. Here, if the suit is brought within six months of the date of dispossession, the person so dispossessed is entitled to be restored to possession of dispossession, the person so dispossessed is entitled to be restored to possession irrespective of the fact whether he has got title or not. Law recognizes that possession is the prima facie proof of title. Even if the defendant in that action has got title that title cannot avail him because he has got no right to take the law in his own hand and dispossess the person in possession. The jurisprudence of today has not shifted from fine-spun technicalities and abstract rules to practical justice. It must aspire to remove injustice as well as the sense of injustice and the reliefs that the court must grant must be effective as well as just. If a person is wrongly deprived of his right to work with the full capacity, the courts of law have the power to provide him a remedy and grant him such declaration and injunctions which will provide him relief. That remedy in law must repair and redress the wrong complained of and established. Today's laws cannot remain content merely by prohibiting something to be done but in appropriate cases sanction positive action and Courts of law must enforce such positive steps which may be called judicial activism. Transfer of Property Act, 1882Entry 6 of List III (Concurrent List) of Seventh Schedule to Constitution reads Transfer of property other than agricultural land; registration of deeds and documents. Thus, transfer of propertyis a Concurrent Subject. Both Central and State Government can take legislative action in respect of transfer of property except that relating to agricultural land. The Act proposes to prescribe law relating to transfer of property by act of parties. Thus, the Act applies only to voluntary transfer or property. It does not cover transfer of property by will.Transfer of Property Transfer of Property means an act by which a living person conveys property, in present or future, to one or more living persons, or to himself or to himself and one or more other living persons. Living person includes a company or association or body of individuals, whether incorporated or not. The act states that the property may be movable or immovable, present or future. Such transfer can be made orally, unless transfer in writing is specifically required under any law. Sale of immovable property Sale is a transfer of ownership in exchange for a price paid or promised or part-paid and part promised. Such transfer in case of tangible immovable property of value of Rs 100 or more can be made only by a registered instrument. Delivery of tangible immovable property is made when seller places the buyer, or such person as he directs, in possession of property. Thus, delivery of immovable property can be only by handing over actual possession to buyer or to a person authorised by buyer. Mortgage Mortgage is the transfer of an interest in specific immovable property for the purpose of securing payment of money advanced or to be advanced, by way of loan or an existing or future debt. The transferor is called a mortgagor, the transferee a mortgagee, the principal money and interest of which payment is secured are called as mortgage money and the instrument by which transfer is effected is called a mortgage-deed. Actionable Claim Actionable claim means a claim to any debt or to any beneficial in movable property not in possession (either actual or constructive) of the claimant. The debt should be other than a debt secured by mortgage of immovable property or pledge of movable property. The claim should be such be such as Civil Court would recognise as affording grounds for relief. Such debt or beneficial interest be existent, accruing, conditional or contingent.

Urban Land (Ceiling & Regulation) Act, 1976The repealed Urban Land (Ceiling & Regulation) Act, 1976 was a Central Act on a State subject (entry 18 in List II of the Seventh Schedule). This Act was enacted under Article 252 (1) of the Constitution after the Legislatures of the following 11 States passed the necessary resolution authorising the Parliament to enact a law in this behalf: Andhra Pradesh Haryana Gujarat Himachal Pradesh Karnataka Maharashtra Orissa Punjab Tripura Uttar Pradesh West Bengal The Act was subsequently adopted by the following 6 States on different dates: Assam Bihar Madhya Pradesh Manipur Meghalaya Rajasthan The other States did not adopt the Urban Land (Ceiling & Regulation) Act, 1976. The State of Tamil Nadu is, however, having its own Act known as Tamil Nadu Urban Land (Ceiling & Regulation) Act, 1978. The Act is now applicable to 12 States and 3 Union Territories which had towns with a population of more than 2 lakhs as per 1971 Census. The Act is presently applied to 64 urban agglomerations.

The main features of the Act, in brief, are Imposition of a ceiling on both ownership and possession of vacant land in urban agglomerations, the ceiling being on a grades basis according to the classification of the urban agglomeration. Acquisition of the excess vacant land by the state Government with powers to dispose of the vacant land to sub serve the common good; Payment of an amount for the acquisition of the excess vacant land, in cash and in bonds Granting exemptions in respect of certain specific categories of vacant land; Regulating the transfer of vacant land within the ceiling limit; Regulating the transfer of urban or urbanized land with any building (whether constructed before or after the commencement of the Act), for a period of 10 years from the commencement of the Act or the construction of the building whichever is later, Restricting the plinth area for the construction of future residential buildings.

Performance of the Act The performance of the Act has been quite dismal. The State Governments could physically acquire only 19,020 ha. Of excess vacant land out of an area of 2,20,674 ha. l.c. estimated to be in excess of the ceiling limits. This works out to a mere 9 per cent of the total estimated excess vacant land. At the same time, as much as 56,640 ha. of excess vacant land were exempted under Sections 20 of the Act (on grounds of "public interest" or on account of "undue hardships). 5327 ha. of the excess vacant land were exempted under Section 21 of the Act for the purpose of construction of dwelling units for weaker sections of the society. It is a matter of widespread knowledge that the provisions of the act, while unduly restricting the supply of land for meeting various needs, have led to corruption and unnecessary harassment of the people holding small parcels of land in the 64 notified urban agglomerations.Shortcomings in the Act :The Act has been termed as a draconian law and has been criticised severely. The implementation of the Act in the States/UTs has been dismal, mainly due to the following reasons:Vesting of too much of discretionary powers in the State Governments for granting exemptions.Highly expropriator nature of the Act.The Act, as it stands, does not provide for a mechanism to force the entry of the vacant urban land into the land market through appropriate fiscal measures. In view of the shortcomings in the Act, suggestions for review/repeal of the Act have been received by the Government from time to time. In the United Nations Conference on Human Settlements (Habitat II) held in Istanbul, in June 1996, it was resolved that the Governments at the appropriate levels including local authorities should strive to remove all possible obstacles that may hamper equitable access to land. It was also resolved to promote efficient land markets and support the development of land markets by measures of effective legal framework.

The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002An Act to provide for the declaration of certain highways to be national highways and for matters connected therewith. It enacted by Parliament in the Seventh Year of the Republic of India as follows1. Short title, extent and commencement.i. This Act may be called the National Highways Act, 1956.ii. It extends to the whole of India.iii. It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.2. Declaration of certain highways to be national highways.i. Each of the highways specified in the Schedule is hereby declared to be a national highway.ii. The Central Government may, by notification in the Official Gazette, declare any other highway to be a national highway and on the publication of such notification such highway shall be deemed to be specified in the Schedule.3. The Central Government may, by like notification, omit any highway from the Schedule and, on the publication of such notification, the highway so omitted shall cease to be a national highway.

Labour law Labor Law is the Body of Laws, Administrative Rulings, & Precedents which address the Relationship between & among Employers, Employees & Labor Organizations, often dealing with issues of Public Law. The terms Labor Laws & Employment Laws, are often interchanged in the usage. This has led to a big confusion as to their meanings. Labor Laws are different from Employment laws which deal only with employment contracts and issues regarding employment and workplace discrimination & other Private Law issues.Labor Laws harmonize many angles of the Relationship between Trade Unions, Employers & Employees. In some countries (like Canada), Employment Laws Related to Unionized workplaces are different from those relating to particular Individuals. In most countries however, no such distinction is made.The Final Goal of Labor Laws is to bring both Employer & Employee on the same Level, thereby mitigating the differences between the two ever-warring groups. Labor Laws emerged when the Employers tried to restrict the Powers of Workers Organizations & keep Labor Costs Low. The Workers began Demanding better Conditions & the Right to Organize so as, to improve their Standard of Living. Employers costs increased due to workers demand. This led to a chaotic situation which required the Intervention of Government. In order to put an end, the Government enacted many Labor Laws in the Country.The History of Labor Legislation in India can be traced back to the History of British Colonialism. In the beginning it was difficult to get enough Regular Indian workers to run British Establishments & hence Laws for chartering workers became necessary. This was obviously Labor Legislation in order to protect the interests of British employers. The Factories Act was first introduced in 1883 because of the pressure brought on the British Parliament by the textile moguls of Manchester and Lancashire. Thus we received the First Stipulation of Eight (08) Hours of work, the abolition of Child Labor, & the Restriction of Women in Night employment, and the introduction of Overtime Wages for work beyond Eight Hours. India has Various Labor Laws, such as Resolution of Industrial Disputes, Working Conditions, Labor Compensation, Insurance, Child Labor, Equal Remuneration etc.

Labor Policy in IndiaLabor Policy in India has been evolving in response to specific needs of the situation to suit requirements of planned Economic Development & Social Justice has two-fold Objectives, viz., Labor Policies are devised to maintain Economic Development, Social Justice, Industrial Harmony & Welfare of Labor in the country.

Highlights of Labor Policy:- Creative Measures to attract Public & Private Investment. Creating New Jobs with New Social Security Schemes for workers. Unified and Beneficial Management of funds of Welfare Boards. Model Employee Employer Relationships with Long Term Settlements. Vital Industries & Establishments declared as Public Utilities. Special conciliation mechanism for projects with investments of Rs. 150 cr or more. Industrial Relations committees in more sectors. Labor Law Reforms with Times. Empowered body of experts to suggest required changes. Statutory amendments for expediting & streamlining the mechanism of Labor Judiciary. Efficient functioning of Labor Department. More Labor sectors under Min. Wages Act. Modern Medical Facilities for workers. Rehabilitation packages for displaced workers. Restructuring in functioning of Employment Exchanges with modern Technology. Revamping of Curriculum & Course content in Industrial Training. Joint Cell of Labor & Industries Department to study changes in Laws & Rules.

Important Acts of Indian Labor Laws The Apprentices Act - 1961 The Payment of Wages Act -1936 The Workmens Compensation Act -1923 The Factories Act -1948 The Industrial Disputes Act - 1947 The Employees PF & MP Act - 1952 The Employees State Insurance Act - 1948 The Maternity Benefit Act - 1961 The Payment of Bonus Act - 1965 The Payment of Gratuity Act - 1972The Apprentices Act - 1961 Object of the Act :- The Main Objectives of Apprentices Act, 1961 is Promotion of New Manpower at skills. Improvement / Refinement of Old Skills through Theoretical & Practical Training in number of Trades & Occupation. The Scheme is also extended to Engineers & Diploma Holders. In India the Apprentices Act came into force in 1961 and was amended by the Act 41 of 1986. Its also a Statutory Obligation on the part of every Employer covered under the Act.Applicability of the Act :- The Apprentices Act applies to all Areas & Industries as notified by Central Government. The Act extends to Across all over the India. It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint; and different dates may be appointed for different States. The Act shall also Not Apply to any Area or Industry as per the notification by the Govt. Apprentice means a Person who is undergoing Apprenticeship Training in pursuance of a Contract of Apprenticeship. Apprenticeship Training means a Course of Training in any Industry or Establishment undergone in pursuance of a Contract of Apprenticeship & under prescribed Terms & Conditions which may be different for different categories of Apprentices. Eligibility & Duties of Apprentice: Qualifications: A Person shall not be Qualified for being engaged as an Apprentice to undergo Apprenticeship Training in any designated trade, unless he or she, The Candidate is not Less than Fourteen (14) Yrs of age, & has to Satisfies such Standards of Education & Physical Fitness as may be prescribed. Duration of Training:- Duration of Apprenticeship may be from 06 Months to 04 Years depending on the Trade, as prescribed in Rules. The Apprentice has to Learn his Trade Conscientiously & Diligently. Also attend Practical & Theoretical classes Regularly. Has to carry out all Lawful Orders of Employer with Contractual Obligations. The Apprentice has to work 42 to 48 Hours in a week, but not allowed to work between 10 pm to 06 am unless approved by Apprenticeship Advisor.

Duties of Employer under the Act: Contract with Apprentice :- The Apprentice appointed has to execute a Contract of Apprenticeship with the Employer. The Contract has to be Registered with Apprenticeship Adviser. If Apprentice is Minor, Agreement should be signed by his Guardian. [Sec 4(1)] . Leaves for Apprentice :- An Apprentice is entitled to Casual Leave of 12 days, Medical Leave of 15 days & Extraordinary Leave of 10 days in a year. The Employer has to provide Apprentice the Training in his Trade, & ensure that the Person duly Qualified is placeed as In-charge . To Carry out all Legal Contractual Obligations. Payment to Apprentice :- The Minimum Rates of Stipend prescribed under the Rules as follows. (Revised Rate w.e.f. 23rd Mar 2011).

Payment of Wages Act 1936Objective of the Act:- The Payment of Wages Act 1936 regulates paymentofwagesto Employees (Direct & Indirect).TheActisintended to be a remedy against unauthorized deductions made by the Employer or unjustified delayinpaymentofwages.All Employees are covered under the Act, those are drawing Average wages Rs:- 10000/- per month.Applicability of the Act: - The Payment of Wages Act 1936 is Applicable to All Factories, Industrial Establishment, Tramway Service, or Motor Transport Service engaged in carrying Passengers or Goods both by road for hire or reward. Air Transport Service, Dock, Wharf or Jetty, Inland Vessel, Mechanically propelled, Mines, Quarry or Oil-Field, Plantation, Workshop or other Establishment, etc.. Meaning of Wages:- Wages means all Remuneration expressed in terms of Money and include Remuneration payable under any Award or Settlement, Overtime Wages, Wages for Holiday & any sum payable on Termination of Employment. However, it does not include Bonus which does not form part of Remuneration payable, value of House Accommodation, Contribution to PF & ESI, Traveling Allowance, or Payment of Gratuity. [section 2(vi)]

Time of Wages Payment :If the Employee strength is less than 1000 in any Organization, then Wages shall be paid before the expiry of the 07th Day of the following month.If the Employee strength is more than 1000 in any Organization, then Wages shall be paid before the expiry of the 10th Day of the following month. In case of Termination of Employee by the Employer the wages shall be paid before the expiry of the Second working day from the Date of Termination DOT. Deduction from Wages: - The Maximum Deduction can be 50% of Monthly wages, However, maximum deduction up to 75% is permissible if deduction is partly made for payment to Co-operative Society. [section 7].Deduction on Account of Absence of Duty, Fines, House Accommodation if provided by Organization, Recovery of Advance, Loans given, Income Tax, PF, ESI contribution, LIC premium, amenities provided, deduction by order of Court etc. is permitted. Deduction of Fines: - The Maximum deduction as Fines from Wages should not exceed 03% during the same wage period. It should be recovered within 90 days from the date it was imposed. Record of Fines should be maintain in Fine Register (Form-II).

Mode of Wages Payment:All wages shall be paid in Current Coins or Currency Notes or in both.Employer can also pay the Wages either by cheque or by crediting the Wages in Employees Bank Account with Employees Authorization in written.Wages can be paid on Daily, Weekly, Fortnightly or Monthly basis, but wage period cannot be more than a month. Most Organization preferred Monthly Payment basis.Record Maintenance: The Employer has to maintain Various Register under the Act i.e. Register of Fines (Form-II), Register of Deduction (Form-III), Register of Advance (IX), Register of Wages (Form- IV & V), Muster Roll-cum-Register of Wages (Form VI) & Annual Return (for Air Transport Services). All the above mentioned Register & Records shall be maintained up-to-date. The attendance of the employee shall be marked not later than one hour after employee starts work for the day.

Workmens Compensation Act -1923Object of the Act: - This is an Act to provide for the payment by certain classes of Employers to their workmen (Employee) of compensation for injury by accident during the course of Employment. The Act is applicable all over the India & came into force w.e.f. 01st July 1924. Coverage of Employees:- All Employees of Any Categories / Capacity Irrespective of their Status or Salaries either Directly or hired through Contractor or a person recruited to work abroad for the Organization. Employers Liability Compensation:-In case of Death or Personal injury resulting into Total or Partial Disablement or Occupational Disease caused to a workman / Employee by accident arising out of and during the course of his employment, his Employer shall be liable to pay compensation under the Act.

Employer Shall not be so Liable:In Respect of Any Injury which does not Result in the Total or Partial Disablement of the Workman for a Period Exceeding Three (03) days.In Respect of Any injury, not resulting in Death or Permanent Total Disablement (PTD), caused by an Accident which is directly attributable to;(i) The Workman having been at the time thereof under the Influence of Drink or Drugs.(ii) The Wilful Disobedience of Workman to an order expressly given, or avoiding safety guidelines.(iii) The Wilful Removal or Disregard by the workman of any safety guard during On-Duty.Payment of Compensation Amount:In Case of Death of a Workman Results from the Injury during the Employment. Minimum Compensation for Death under the Act is Rs:-120000/- or an amount equal to 50% (Fifty per cent) of the Monthly wages of the Workmans multiplied by the relevant factor, whichever is higher. (Subject to Max. Rs:-8000/- per month w.e.f. 31st May 2010 or as per the Minimum Rates of wages of the State.).In Case of Permanent Total Disablement (PTD) of a Workman Results from the Injury. Minimum Compensation for PTD under the Act is Rs:- 140000/- or an amount equal to 60% (Sixty per cent) of the Monthly wages of the Injured workmans multiplied by the relevant factor, whichever is higher.

Guidelines on Factories ActOvertime Wages under the Act:- If a Worker works beyond 09 hours a day or 48 hours a week, Overtime Wages are Double the Rate of Wages are payable. [Sec - 59(1)]. A Workman cannot work in two factories. There is Restriction on Double Employment. [Sec - 60]. However, Overtime Wages are not payable when the Worker is on Tour. Total Working Hours including Overtime should not exceed 60 Hours in a week and Total Overtime Hours in a quarter should not exceed 50 Hours. Register of overtime should be maintained.Employment of Young Persons: - Any Child below age of 14 Years cant be employed. [Section 67]. Child above 14 but below 15 years of age can be employed only for 4.5 hours per day. [Section 71]. He should be certified fit by a certifying surgeon. [Section 68]. He cannot be employed during night between 10 pm to 6 am. [Sec-71]. Annual Leave :- A Worker having worked for 240 days gets One Day Leave for every 20 days & for a Child One Day Leave for working of 15 days. Accumulation of leave for 30 days. [Section 79]Display on Notice Board:- A Notice Containing Abstract of the Factories Act & the Rules made thereunder, with Name & Address of Factories Inspector & Certifying Surgeon in English & Regional Language should be displayed on Notice Board. [Sec - 108(1)].

The Industrial Disputes Act - 1947Objective of the Act:- The Main Objective of the Act to make Provision for the Investigation & Settlement of Industrial Disputes between Employer & Employee, and for certain other purposes. This Act extends to the whole of India, w.e.f. 01st April, 1947.

Definition of the Following:Industry :- It has attained wider meaning than defined except for Domestic Employment, covers from barber shops to big steel companies. [Sec - 02 (I)].Works Committee :- Joint Committee with equal number of Employers & Employees Representatives for discussion of certain common problems. [Sec - 03]Conciliation :- Is an attempt by a Third Party in helping to settle the disputes. [Sec - 04]Adjudication:- Labor Court, Industrial or National Tribunal to Hear & Decide Dispute. [Sec 7,7A & 7B].Power of Labor Court to give Appropriate Relief :- Labor Court / Industrial Tribunal can modify the Punishment of Dismissal or Discharge of Workmen & give Appropriate Relief including Reinstatement. [Sec. -11A] Right of a Workman during Pendency of Proceedings in High Court:- Employer has to Pay last drawn Wages to Reinstated workman when proceedings challenging the award of his Reinstatement are pending in the Higher Courts. [Sec -17B]

Guidelines of Industrial Disputes Act :-Persons Bound by Settlement:- When in the Course of Conciliation proceedings etc., all Persons Working or joining subsequently. Otherwise than in Course of Settlement upon the parties to the Settlement. [Sec -18]Period of Operation of Settlements & Awards:- A Settlement for a period as Agreed by the Parties, or Period of Six Months on signing of Settlement. An award for one year after its enforcement. [Sec -19]Lay off & Payment of Compensation:- Failure, Refusal or Inability of an Employer to provide work due to Shortage of Coal, Power or Raw Material, Accumulation of Stocks, Breakdown of Machinery & Natural Calamity. [Sec.25-C].Notice of Change:- In case of any change about the Conditions of Service the Employer has to give 21 days prior Notice to the Employee, as provided in IV Schedule. [Sec.9A].Prior Permission for Lay off :- When there are more than 100 workmen during preceding 12 months. [Sec.25-M]

The Maternity Benefit Act 1961An act to Regulate the Employment of Women in certain Establishment for certain period before and after Child-Birth & to provide for Maternity Benefit & Certain other benefits.Objective of the Act:- The Maternity Leave & Benefit Act is to protect the dignity of motherhood by providing complete health care to the Women & Her Child, when she is not able to perform her duty due to her health condition. In the modern world, as the participation of women employees is growing in every industry, so the need of the maternity leave & other benefits are becoming increasingly common. Applicability of the Act:- The Act extends to whole of India. In the first instance, to every establishment being a Factory, Mine or Plantation in which 10 or More persons are or were employed on any day of the preceding (12) Twelve months. (including any such establishment belonging to Government & to every establishment wherein persons are employed for the exhibition of equestrian, acrobatic and other performances. except employees covered under the ESI Act 1948. Right of Maternity Benefit:- Every Pregnant working women in any Establishment are Eligible for Maternity Benefit, provided they have served in the Establishment for at least 80 days in (12) Twelve months before the expected date of delivery. However, if a woman is earning less than Rs:-15,000/- she may be offered ESI scheme by her employer & she will receive the Maternity Benefit under ESI Scheme.

Payment of Bonus Act 1965Objective of the Act:- An Act to provide for the Payment of Bonus to Persons employed in certain Establishments on the basis of Profits or on the basis of Production or Productivity & for matters connected therewith. History of Bonus:- Bonus is really a Reward for Good work or Share of Profit of the unit where the Employee is working. The practice of Paying Bonus in India appears to have originated during 1st World War when certain textile mills granted 10% of wages as War Bonus to their workers in 1917. In certain cases of Industrial Disputes Demand for Payment of Bonus was also included. In 1950, the Full Bench of the Labour Appellate evolved a formula for determination of bonus. Applicability of the Act: - The Act is applicable to any Factory employing 10 or More persons where any processing is carried out with Aid of Power & also to Other Establishments (established for purpose of profit) employing 20 or More persons. This Act extends to the whole of India, w.e.f 1965.

Eligibility for Bonus:- Every Employees drawing wages upto Rs:-10000/-, shall be entitled for Bonus with minimum 30 (Thirty) Days worked performed by Employee during the Accounting period. {Sec 08}.

Payment of Gratuity Act - 1972Objective of the Act:- An act to Provide for a Scheme for the Payment of Gratuity to Employees engaged in Factories, Mines, Oilfields, Plantations, Ports, Railway Companies, Shops or Other Establishments and for matters connected therewith or incidental thereto, so far as it Relates to Ports & Plantations it does not apply to the State of Jammu and Kashmir. This Act Extends to the whole of India.Applicability of the Act:- The Act shall apply to Every Factory, Mine, Oilfield, Plantation, Port, Railway Companies, Every Shop or Establishment within the Meaning of any Law for the time being in force in Relation to Shops & Establishments in a State, in which Ten (10) or more persons are employed, or were employed, on any day of the preceding 01 year. The Act is applicable to All Employees, irrespective of the salary.Meaning of Gratuity:- The Payment of Gratuity Act 1972is a Social Security enactment. It is derived from the word Gratuitous which means Gift or Present. The Gratuity is a Lump Sum Payment to Employee when he / she retires or leaves the service. It is basically a Retirement Benefit to an Employee so, that he / she can Live Life Comfortably after Retirement. However, under the Gratuity Act, gratuity is payable even to an employee who Resigns after completing at least 5 years of service. In case uninterrupted continuous service of 04 years & 240 days also be consider for Gratuity Payment.

Employees Eligible for Gratuity:- Employee means any Person (other than Apprentice) employed on wages in any Establishment, Factory, Mine, Oilfield, Plantation, Port, Railway Company or Shop, to do any Skilled, Semi-skilled or Unskilled, Manual, Supervisory, Technical or Clerical work, whether terms of such Employment are express or implied, and whether such Person is Employed in a Managerial or Administrative capacity. Time of Gratuity Payment:- Gratuity is Payable to a Person on (a) Resignation (b) Termination on account of Death or Disablement due to Accident or Disease (c) Retirement (d) Death. Normally, Gratuity is payable only after an Employee completes Five Years of Continuous service. In case of Death and Disablement, the condition of minimum 5 years service is not applicable. [Section 4(1)].Amount of Gratuity Payable:- Gratuity is Payable @ 15 days wages for Every year of Completed service. In the last year of service, if the employee has completed more than 6 months, it will be treated as full year for purpose of gratuity. In case of seasonal Establishment, Gratuity is Payable @ 7 days wages for each season. [Section 4(2)].Wages shall consist of Basic plus D.A, as per Last drawn salary. However, allowances like Bonus, Commission, HRA, Overtime etc. are not to be considered for calculations of Gratuity Payable Amount. [Section 2(s)].

NEW Amendments in Labor Law

1) ESI ACTSalient features of the recent amendment to ESI Act:The wage ceiling has been increased from Rs.10, 000/- to Rs.15, 000/- with effect from 01.05.2010. A massive amendment to ESI Act has taken place and the same has become effective from 1st June, 2010.The number of employees brought down to 10 and more with or without power for deciding the applicability.In case the workman is unmarried and if his parents are not alive he can nominate his minor brother or sister as dependant upto a maximum age limit of 25 years.Apprentice has been brought under the definition of employee.The word "Inspector" has been replaced with the word "Social Security Officer"Proviso for re-inspection /testing inspection has been instituted. "Any officer of the Corporation authorised in this behalf by it may, carry out re-inspection or test inspection of the records and returns submitted under section 44 for the purpose of verifying the correctness and quality of the inspection carried out by a Social Security Officer".Limitation of 5 years now applies to proceeding under Section 45A.

2) THE WORKMEN'S COMPENSATION ACT (EFFECTIVE FROM 18.01.2010)Change of name of the Act as Employees Compensation Act 1923Enhancement in minimum compensation payable from Rs.80,000 to Rs.1,20,000 (in case of death) and from Rs.90,000 to Rs.1,40,000 (in case of permanent disability) and funeral expenses from Rs.2,500 to Rs.5,000.Reimbursement of actual medical expenses incurred during treatment of injury caused during course of employment.Increase in coverage by omission of restrictive clause in Schedule-II and inclusion of additional hazardous activitiesDisposal of cases of compensation by Commissioner within 3 monthsEmpower Central Govt. to specify monthly wages for the purpose of compensation and enhance minimum rates of compensation from time to time.

3) THE PAYMENTOF GRATUITY ACT, 1972 (EFFECTIVE FROM 24.05.2010)The maximum amount payable has been increased from Rs.3,50,000/ to Rs.10,00,000/-

4) THE KARNATAKA SHOPS & COMMERCIAL ESTABLISHMENTS ACTThe fee slab for registration/renewal has been enhanced as follows with effect from 22.04.2010Fee Slabs for Shops & Establishment (Registration and Renewal)S.NO.Number of EmployeesFee

1NIL Employees-Rs. 250/-

21 to 9 employees-Rs. 500/-

310 to 19 employees -Rs. 3,000/-

420 to 49 employees -Rs. 8,000/-

550 to 99 employees -Rs. 15,000/-

6100 to 250 employees -Rs. 30,000/-

7251 to 500 employees -Rs. 35,000/-

8501 to 1000 employees -Rs. 45,000/-

9 >1000 employees -Rs. 50,000/-

5) THE CONTRACT LABOUR (REGULATION & ABOLITION) ACT, 1970(Local amendment under Karnataka Government)Issue of Employment Card to workmen mandatoryWorking Hours - 8 hours in a day or 48 hours in a week.Bar on employment of female contract labour during 10 pm to 6 amBar on employment of child labourRest interval half an hour and spread over timings maximum 10 hoursExtra wages for overtime - more than 8 hours in a day or 48 hours in a week OT at twice the ordinary wages.Ordinary wages clarified - Includes Basic + DA or the consolidated wages.Weekly holiday with wagesNational & Festival Holiday - Total 10 holidays in a year

Labour law violation: 15 firms face criminal casesAs many as 15 leading private construction and infrastructure companies, executing the work for the prestigious Namma Metro project, have been slapped with criminal cases by none other than by the Union Ministry of Labour and Employment for allegedly violating labour laws.The Deputy Chief Labour Commissioner (Central), Ministry of Labour and Employment, Bangalore, has submitted a report in this regard to the Karnataka High Court on Wednesday during the hearing of a public interest litigation (PIL) petition filed by Samuel Sathyaseelan, a social worker, highlighting non-compliance of various laws that protect the interest of labourers involved in the project.

Site inspectionsThe report followed inspections by the officials of the Deputy Chief Labour Commissioner at various locations, including the construction sites, project offices, and camps where the labourers hired by the firms were housed.In March, the court had asked the Ministry to respond to the complaint about non-compliance of labour laws concerning welfare of contract labourers.Pointing out that a majority of the firms had hired workers from other States, the report stated that these companies had no licence to recruit migrant workers under the Inter-State Migrant Workers (Regulation of Employment and Conditions of Service) Act. Another major violation was no or improper maintenance of labourers register, wage slips, and employment cards.Assistant Solicitor General of India S. Kalyan Basavaraj said that criminal cases were filed before the court of metropolitan magistrate based on the inspection report.BMRCL argumentHowever, counsel for Bangalore Metro Rail Corporation Ltd contended that law on migrant workers are not applicable as the firms had not recruited the labour from other States and that migrants from there had been recruited locally.While majority of the companies had complied with the provisions of Building and Construction Workers (Regulation of Employment and Conditions of Service) Act, seven allegedly flouted the Contract Labour (Regulation and Abolition) Act norms.Meanwhile, the Ministry has also filed complaints against Kalindee Rail Nirman (Engineers Ltd) and Johnson Lifts Pvt Ltd for carrying out work without registering as per the BOCW Act.Living conditionsThough labourers were provided with temporary shelters and other facilities like utensils, cooking gas, mess, and so on, the report said abysmal hygiene in their quarters, toilets, washing area and so on was a cause for concern. While many firms improved their conditions after the notice, some still failed to maintain standards, the report found.Meanwhile, a Division Bench comprising Chief Justice D.H. Waghela and Justice B.V. Nagarathna adjourned further hearing to July 3 directing the Ministry on follow-up actions and the State government to report on how it has protected the labourers by ensuring compliance of laws by the contractors.

58-crore deal between DLF and Robert Vadra cancelled by IAS officer Ashok Khemka

Ashok Khemka, a senior bureaucrat in Haryana, was transferred three days after he ordered an inquiry into all land deals within the state between businessman Robert Vadra, who is the son-in-law of Congress president Sonia Gandhi, and realty giant DLF. Yesterday, Mr Khemka cancelled DLF's purchase of 3.5 acres from Mr Vadra for 58 crores. HERE'S YOUR 10-POINT CHEAT-SHEET TO THIS STORY: Mr Khemka has cancelled the mutation in favour of DLF for 3.5 acres of land from Mr Vadra. Effectively, this means that DLF can no longer be considered the owner of the property. (Case timeline) Mr Khemka says that guidelines were violated in how the land was transferred from Mr Vadra to DLF, and in the clearance given by the Haryana government to Mr Vadra to sell his land. (Probe ordered into Vadra-DLF land deal: Govt documents) Mr Vadra's company, Sky Light Hospitality, bought 3.5 acres in Manesar-Shikohpur in February 2008 for Rs. 7.5 crore. The next day, the plot was mutated in favour of Sky Light. That means that the title of the land was transferred to Mr Vadra within 24 hours of his purchase, a process that usually takes at least three months. Barely a month later, the Haryana government gave Mr Vadra's firm permission to develop a housing project on most of that land, escalating its worth so sharply that in June that year, DLF agreed to buy the plot for 58 crores. So in three months, the value of Mr Vadra's property jumped from a little over Rs. 7 crore to Rs.58 crore. The first installment was paid by DLF to Mr Vadra in June 2008. The property was formally transferred to DLF only four years later, in September this year. Because the payments were distributed over a period of nearly four years, capital gains taxes, owed on the profitable deal, could have been legitimately deferred by Mr Vadra's company. Last week, Mr Khemka ordered that all land bought and sold by Mr Vadra in Haryana should be scrutinized to determine the real value" of the properties. He says he felt that to evade stamp duty or taxes, the properties may have been registered at below their true market worth. Three days after he commissioned this inquiry and asked for it to be completed by October 25, he was transferred as Haryana's Director-General of Land Consolidation and Land Records-cum-Inspector-General of Registration. In an attempt to counter fierce criticism, Haryana chief minister Bhupinder Singh Hooda has said that Mr Khemka's transfer was "not a punishment" and that the Chief Secretary of the government will investigate the DLF-Vadra deal cancelled by Mr Khemka. (Read: Khemka transferred - Who said what) Mr Khemka says that his inquiry into Mr Vadra's property deals was motivated partly by the accusations of corruption made by activist-turned-politician Arvind Kejriwal, who has said that in return for sweetheart deals extended to Mr Vadra, DLF got special treatment in its main market of Haryana, where the Congress has been in power since 2004. Referring to Mr Kejriwal's allegations, Mr Khemka said, "The confidence of the people must be restored in public offices. So if the allegations being leveled is wild, let it come out. And if the allegations are true, then certainly actions must be called for. " (Watch) Mr Khekma has been transferred more than 40 times in a career spanning two decades, which he describes as "demoralising and dehumanising." In a letter to the Haryana government last week, he said that he was being persecuted for exposing land scams coordinated by builders, politicians and bureaucrats. However, in that letter written to the Chief Secretary of the Haryana government, Dr Khemka did not refer to his inquiry or concerns about Mr V