In a move to support efficient cess arrears recovery and provide relief to stakeholders in the construction sector, the Government of Kerala has officially extended the period of the Building Cess Adalat up to 31st December 2025.
Background and Purpose:
- The Cess Adalat was initially launched in November 2021 as a special mechanism to resolve outstanding cess payments under the Building and Other Construction Workers Welfare Cess Act, 1996.
- It serves as a platform to streamline cess collection and allow defaulters to settle dues amicably and transparently.
Key Developments:
- Previous Extensions:
The Adalat was previously extended until 30th June 2025 under Order No. 546/2025/Labour dated 02.05.2025. - New Extension Until 31/12/2025:
Following a request by the Labour Commissioner (Letter No. LCO 2021/2022/EN(4)), the Government has approved an extension of the Adalat till 31st December 2025. - Installment Option for Payments:
Stakeholders can continue to pay arrears in up to 5 installments, as permitted under earlier orders (e.g., Order No. S.U.(Sadha) 1238/2023/Labour dated 04.10.2023). This ensures adequate time and flexibility for compliance.
Government’s Rationale:
The extension comes in light of the positive outcomes from the ongoing Adalat process:
- Increased cess collection efficiency
- Relief to construction sector stakeholders
- Support for the welfare of registered construction workers
The government has reviewed the Labour Commissioner’s recommendation and decided that the additional five-month window is necessary to accommodate the installment-based payment system.
Conclusion:
This extension reflects Kerala’s proactive approach in:
- Strengthening worker welfare mechanisms
- Ensuring effective revenue collection
- Facilitating compliance without coercion
All stakeholders are encouraged to take advantage of the extended timeline and settle their arrears through the Cess Adalat framework before the new deadline.