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

Registered & Head Office: Delhi Office: G-1/G-20, Commerce Centre, J. Dadajee D1/203, Aashirwad Complex Road, Tardeo, Mumbai - 400 034 Green Park Main, New Delhi - 110 016 Tel : (022) 23514134, 23514802, 23520507 Tel : (011) 32573257 Fax : 022-23521328 Telefax: (011) 26568763 Email : [email protected] Email: [email protected]

77th Annual Report and Accounts 2017-2018 www.baionline.in N O T I C E

The Seventy Seven (77) Annual General Meeting of the Members of Builders' Association of India, will be held on Saturday 4th August 2018 at 4.00 P.M. at Saipriya Resorts, Rushikonda, Visakhapatnam - 530 045 to transact the following business :- 1. To confirm the Minutes of the Seventy Fifth Annual General Meeting held on Saturday, 22nd July 2017 at 4.00 P.M. at Hotel Novotel, Hyderabad Airport, Hyderabad (Minutes have already been circulated to Members and also printed in Indian Construction Journal, December 2017 issue - Page no.52 to 55 and also hosted on BAI website www.baionline.in). 2. To take note of the result of BAI Organisational Election for the year 2018-19 (Enclosed). 3. To take note of the result of BAI Trustee West Zone Election for the year 2018-19 (Enclosed). 4. To consider, and if thought fit, adopt the Annual Report of the Association for the year ending 31st March 2018. 5. To consider, and if thought fit, adopt the Audited Balance Sheet and Income & Expenditure Account of the Association for the year ending 31st March 2018. 6. To appoint Auditors to audit the accounts of the Association for the year 2018-19 and fix their remuneration. 7. To consider, any other item, with the permission of the chair.

NEERAV PARMAR Hon. Gen. Secretary Builders' Association of India

Place : Mumbai Dated: 13.06.2018

Note: (i) Queries on Accounts and Reports should be communicated to BAI Headquarter on or before 30th July 2018. Centres Chairmen are requested to kindly circulate this information amongst their members. Please note no floor queries on accounts will be entertained. (The report is hosted on BAI website. (ii) Please bring this copy of Annual Report.

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

BUILDERS' ASSOCIATION OF INDIA2 77th Annual Report and Accounts – 2017-2018 BUILDERS' ASSOCIATION OF INDIA MANAGING COMMITTEE 2017-2018

President Mr. H. N. Vijaya Raghava Reddy

Vice Presidents Mr. L. D. Kotwani Mr. R. N. Gupta Mr. S. Narasimha Reddy Mr. Sachin Chandra Mr. V. N. Varadharajan

Hon. Gen. Secretary Hon. Gen. Treasurer Mr. C. G. Deochake Mr. Neerav Parmar

Imm. Past President Avinash M. Patil

State Chairmen / Co-ordinator

State Chairman – Andhra Pradesh State Chairman – Chattisgarh State Chairman - Gujarat Mr. P. Raja Babu Mr. Alok Shivhare Mr. Pankaj N. Saraiya State Chairman - Jharkhand State Chairman - Karnataka State Chairman - Mr. Chandrakant K. Raipat Mr. S. R. Swamy Mr. V. Santosh Babu State Chairman - Maharashtra State Chairman - Tamil Nadu State Chairman - Mr. Rajendra S. Athawale Mr. G. Ved Anand Mr. B. Sugunakar Rao State Chairman - State Co-ordinator - Assam State Chairman – Delhi Mr. Ravindra Tyagi Mr. Sanjib Goel Mr. Ram Avtar State Co-ordinator - Haryana State Co-ordinator - Madhya Pradesh State Co-ordinator - Puducherry Mr. Rajiv Goel Dr. Santosh Katiyar Mr. L. Carttigueane State Co-ordinator - Rajasthan State Co-ordinator - West Bengal Mr. Pradeep Kumar Jain Mr. Ashok Kumar Chandak

Members of the Managing Committee representing Centres Mr. Anilbhai R. Zinzuwadia Mr. Ashok Agarwal Mr. Baburao L. Shakkarwar Mr. Bhopinder Lal Mr. D. R. Sekar Mr. D. V. N. Reddy Mr. G. Diwakar Mr. G. Thilagar Mr. Jaiprakash Bhatia Mr. K. Annamalai Mr. K. Subramani Mr. M. Dhandavakrishnan Mr. M. Thirusangu Mr. Mathew Alex Vellapally Mr. Mohan S. Kataria Mr. N. Ramalingam Mr. N. Shanmugam Mr. N. S. Muralidhara Mr. Prabir Kumar Mukherjee Mr. Prakash H. Menda Mr. Prince Joseph Mr. S. Ramaprabhu Mr. S. I. Chunkhare Mr. S. S. Natarajan Mr. Suresh B. Patil Mr. T. V. Chandrasekaran Mr. V. Satya Murthy Mr. V. Srinivasa Murthy

Members of the Managing Committee representing Patron Members Mr. A. Chamaraja Reddy Mr. Alex P. Cyriac Mr. Basavaraj S. Totad Mr. Bhojraj Vithalrao Naik Nimbalkar Dr. Dharmesh C. Awasthi Mr. John Paul K. Mr. K. Viswanathan Mr. K. J. George Mr. L. Shanthakumar Mr. L. Venkatesan Mr. Mahesh M. Mudda Mr. Mu. Moahan Mr. N. M. Patel Mr. Narendra Kumar Mr. P. Narasimha Rao Mr. P. P. John Mr. P. Subramani Mr. Paul T. Mathew Dr. Rajiv B. Krishnani Mr. Ravindra Pradhan Mr. S. Ayyanathan Mr. S. Ganapathi Mr. S. D. Kannan Dr. Tarro T. Manghnani Mr. V. Ravinder Reddy

BUILDERS' ASSOCIATION OF INDIA3 77th Annual Report and Accounts – 2017-2018 Members of the Managing Committee representing Affiliated Associations Mr. Arvind V. Patel Mr. G.M. Ravindra Mr. R. Manoharan Mr. S. Pandiyen

Co-opted Members Mr. V.M. Fazal Ali Dr. D. Thukkaram Mr. M. Munireddy

Special Invitees Mr A.S. Gandhi Mr A.V. Sridhar Mr Abhay Garde Mr Anthony Rathnam Mr B. Anandhan Mr B. Ramesh Mr C.K.S. Panicker Mr C.N. Raja Mr Dinesh K. Patel Mr E. Keerthinathan Mr Girish Manapure Mr Girish Shah Mr Jagdish M. Parekh Mr Joshy Joseph Mr K. Selva Durai Mr K. Selvaraj Mr K.K. Raghavan Mr M. Aravinth Mr M. Baldwin Bruce Mr M. Rajendran Mr M.S. Ramprasad Mr Mahesh R. Mirani Mr Mahesh Verma Mr Mohan D. Bhate Mr Najeeb Mannel Mr P. Palani Mr P. Senthil Nathan Mr P.K. Ramachandran Mr P.M. Harshe Mr Prakash N. Dewalkar Mr R. Dharmalingam Mr R. Joseph Arputha Alex Mr R. Krishnaswamy Mr R. Mouraly Mr R. Srinivasan Mr Rajendra M. Upadhye Mr Rajendra Mulchand Gothi Mr Ramesh Marda Mr S. Balaji Mr S. Wilfred Mr Sukumar F. Chougule Mr Surendra K. Prahladka Mr Suresh Moorjani Mr T.V. Ramakrishnan Mr Tarak R. Mamlatdarna Mr U.M. Gurushanthappa Mr Uday N. Gokhale Mr Upendra J. Barot Mr V. Govthaman Mr V. Sivarajan Mr V.S.K. Moorthy Mr Vinod C. Gamdiwala

BUILDERS' ASSOCIATION OF INDIA4 77th Annual Report and Accounts – 2017-2018 Ref.: 554/M/2016-17 dated March 30, 2017

TO: THE TRUSTEES THE VICE-PRESIDENTS THE STATE CHAIRMEN / CENTRE CHAIRMEN THE MANAGING COMMITTEE AND THE GENERAL COUNCIL MEMBERS

Dear Sirs,

The election process for 2017-18 of Builders' Association of India has been completed on 30th March 2017. Following are the election results:

President : Shri H.N. Vijaya Raghava Reddy [Karnataka () Centre] Vice Presidents : 1. Shri Sachin Chandra 2. Shri R.N. Gupta [Patna Centre] [Delhi Centre] 3. Shri S. Narasimha Reddy (South-I) 4. Shri V.N. Varadharajan (South-II) [Hyderabad Centre] [Erode Centre] 5. Shri L. D. Kotwani [Mumbai Centre] Hon. Gen. Secretary : Shri C.G. Deochake Hon. Gen. Treasurer : Shri Neerav Parmar

St. Co-ordinator (Assam) : Shri Sanjib Goel (Guwahati Centre) St. Co-ordinator (Delhi) : Shri Ram Avtar (Delhi Centre) State Chairman (Gujarat) : Shri Pankaj N. Saraiya (Baroda Centre) St. Co-ordinator (Haryana) : Shri Rajiv Goel (Gurgaon Centre) State Chairman (Jharkhand) : Shri Chandrakant K. Raipat [Jharkhand (Ranchi) Centre] State Chairman (Karnataka) : Shri S. R. Swamy (Mysore Centre) State Chairman (Kerala) : Shri V. Santoh Babu (Aluva Centre) St. Co-ordinator (Madhya Pradesh) : Dr. Santosh Katiyar (Bhopal Centre) State Chairman (Maharashtra) : Shri Rajendra S. Athawale [Butibori (Nagpur) Centre] St. Co-ordinator (Puducherry) : Shri L. Carttigueane (Puducherry Centre) St. Co-ordinator (Rajasthan) : Shri Pradeep Kumar Jain [Rajasthan (Jaipur) Centre] State Chairman (Tamil Nadu) : Shri G. Ved Anand (Kanyakumari Centre) State Chairman (Telangana) : Shri B. Sugunakar Rao (Karimnagar Centre) State Chairman (Uttar Pradesh) : Shri Ravindra Tyagi (Modi Nagar Centre) St. Co-ordinator (West Bengal) : Shri Ashok Kumar Chandak (Durgapur Centre)

Members of the Managing Committee representing Centres: 1. Shri Anilbhai R. Zinzuwadia 2. Shri Ashok Agarwal 3. Shri Baburao L. Shakkarwar 4. Shri Bhopinder Lal 5. Shri D. R. Sekar 6. Shri D. V. N. Reddy

BUILDERS' ASSOCIATION OF INDIA5 77th Annual Report and Accounts – 2017-2018 7. Shri G. Diwakar 8. Shri G. Thilagar 9. Shri Jaiprakash Bhatia 10. Shri K. Annamalai 11. Shri K. Subramani 12. Shri M. Dhandavakrishnan 13. Shri M. Thirusangu 14. Shri Mathew Alex Vellapally 15. Shri Mohan S. Kataria 16. Shri N. Ramalingam 17. Shri N. Shanmugam 18. Shri N. S. Muralidhara 19. Shri Prabir Kumar Mukherjee 20. Shri Prakash H. Menda 21. Shri Prince Joseph 22. Shri S. Ramaprabhu 23. Shri S. I. Chunkhare 24. Shri S. S. Natarajan 25. Shri Suresh B. Patil 26. Shri T.V. Chandrasekaran 27. Shri V. Satya Murthy 28. Shri V. Srinivasa Murthy

Members of the Managing Committee representing Patron Members: 1. Dr. Dharmesh C. Awasthi 2. Dr. Rajiv B. Krishnani 3. Dr. Tarro T. Manghnani 4. Shri A. Chamaraja Reddy 5. Shri Alex P. Cyriac 6. Shri Basavaraj S. Totad 7. Shri Bhojraj Vithalrao Naik Nimbalkar 8. Shri John Paul K. 9. Shri K. Viswanathan 10. Shri K.J. George 11. Shri L. Shanthakumar 12. Shri L. Venkatesan 13. Shri Mahesh M. Mudda 14. Shri Mu. Moahan 15. Shri N. M. Patel 16. Shri Narendra Kumar 17. Shri P. Narasimha Rao 18. Shri P.P. John 19. Shri P. Subramani 20. Shri Paul T. Mathew 21. Shri Ravindra Pradhan 22. Shri S. Ayyanathan 23. Shri S. Ganapathi 24. Shri S. D. Kannan 25. Shri V. Ravinder Reddy

Members of the Managing Committee representing Affiliated Associations: 1. Shri Arvind V. Patel 2. Shri G.M. Ravindra 3. Shri R. Manoharan 4. Shri S. Pandiyen

We have not received nominations for the post of State Chairman from Andhra Pradesh and Chattisgarh.

The new office bearers will assume charge of their respective offices with effect from 1st April 2017 for a period of 1 year as per the BAI Constitution.

Thanking you,

Yours faithfully,

RAJU JOHN RETURNING OFFICER BAI ORGANISATIONAL ELECTIONS 2017-18

Copy to: 1. Shri V.M. Fazal Ali 2. Dr. D. Thukkaram Board of Scrutineers, 3. Shri A.B. Chitale} BAI Organisational Elections 2017-18

BUILDERS' ASSOCIATION OF INDIA6 77th Annual Report and Accounts – 2017-2018 Ref.: 810/M/2017-18 dated March 28, 2018

TO: THE TRUSTEES THE VICE-PRESIDENTS THE STATE CHAIRMEN / CENTRE CHAIRMEN THE MANAGING COMMITTEE AND THE GENERAL COUNCIL MEMBERS

Dear Sirs,

The election process for Trustee - West Zone of Builders' Association of India for one year term i.e. 2018-2019 has been completed on 28th March 2018. The Result of the Election is as follows:--

Shri Ram M. Bhatia has been unanimously elected as Trustee - West Zone for 2018-2019.

The new Trustee will assume charge with effect from 1st April 2018 for a period of 1 year as per the BAI Constitution.

Thanking you,

Yours faithfully,

RAJU JOHN RETURNING OFFICER BAI TRUSTEES ELECTIONS 2016-19

Copy to: 1. Shri V.M. Fazal Ali 2. Shri J.R. Sethuramalingam Board of Scrutineers 3. Shri A.B. Chitale 4. All General Council Member Elect 2018-19 }

BUILDERS' ASSOCIATION OF INDIA7 77th Annual Report and Accounts – 2017-2018 Report of the President and Managing Committee of Builders' Association of India for the year 2017-18

Friends, term duration and at higher interest rate. There is urgent need for investment by Pension Fund & Insurance fund The President and the Managing Committee have great in infra sector. pleasure in presenting the 77th Annual Report of the Association along with the Statement of Accounts and the Lack of adequate financing has also emerged as a Auditors' Report for the year 2017-18. significant reason for delays in construction works. The past 24 months have been marked by an economic CONSTRUCTION INDUSTRY PROFILE slowdown, and investors are becoming increasingly risk averse. Consequently, equity players are shying away The construction is a high volume low profit business. It from parking their funds in the infrastructure sector. Banks contributes about 10% to the gross domestic product too have made lending norms more stringent and several (GDP). Its fixed capital investment in form of security infrastructure projects have been unable to achieve deposit is less but working capital requirement is high. financial closure within the prescribed timelines. Apart from its contribution to GDP, it is also one of the largest contributors to employment of skilled and Abundant Opportunities unskilled people outside of agriculture, employing a total of about 50 million people. Infrastructure sector to provide impetus to construction activity The thrust on infrastructure development in the last few On the back of the government's renewed focus on years has been a key driver for the construction industry, infrastructure development, contractors are likely to opening up opportunities for both the contracting industry witness a significant increase in construction through direct construction contracts as well as for opportunities. The government is expected to pump in ancillary industries, including equipment and material more funds into the infrastructure sector, which is likely markets. In fact, nearly 60% of annual infrastructure to attract private investment too. Roads, railways power, investment covers construction sector. ports and airports are likely to be key growth drivers for the construction sector.Indian infrastructure looks at Over the past five years i.e. 2012-2017, there has been a construction opportunities across various sectors. significant slowdown in investment from 38% of GDP in 2008-09 to 28% of G.D.P. in 2013-2014. Further it has been Roads and Bridges came down to 25% in the year 2017-18. This has impacted capacity addition in various infrastructure sectors. Such Roads development has been a key focus area of the slowdown affected construction industry negatively. With government. Big-ticket initiatives such as the launch of Public - Private Partnership model (PPP) of infra the hybrid annuity model (HAM) coupled with the development Construction Industry graduated from cash approval of conducive policies to debottleneck the sector and carry contracts to that of an entrepreneur in recent are expected to provide an impetus to construction years. Many infrastructure developers have successfully activity. Besides this, the launch of an online marketplace completed project in time. PPP in turn brought about for cement procurement (NAM PRO) is likely to give a greater mechanisation and employment of skilled further push to construction activity by focusing on the personnel for earlier completion of work. construction of concrete roads. Significant opportunities will also be offered through programmes such as Bharat Project are often awarded with only partial acquisition of Nectivity project and . land, which can stalled project indefinitely if even 10-20% of the required land is not handed over to the developer According to India Infrastructure Research, the road sector in time. Furthermore, extensive environmental approvals will offer a construction opportunity of over of Rs 7 trilion are required at the start of the project itself. Regulatory till 2022. As per research conducted, 710 projects spanning authorities at the central and the state levels lack a length of over 58,000 km, spread across the national coordination, which leads to standoffs on critical highway and state highway segment, are in the pipeline. approvals. This is compounded by other issues such a The total investment likely to be mobilized by 2022 is inadequate support in the shifting of utilities for expected to be at least Rs. 12 trillion. construction. Contractors will have both indirect and direct opportunities since the government has stated its intent Infrastructure sector requires long term investment at to award projects irrespective of the award mode. Hence, lower interest rate having a long gestation period. In besides engineering, procurement and construction (EPC) absence of such finance infra players have to depend on projects, the public-private partnership (PPP) model could Bank finance which are for working capital and a short

BUILDERS' ASSOCIATION OF INDIA8 77th Annual Report and Accounts – 2017-2018 also slowly make a comeback. In terms of the pipeline of projects considered, construction opportunities to the tune of Rs. 2453.15 billion India Infrastructure Research complied an indicative list will be on offer in the power sector till 2022. Of this, of upcoming projects at the nation level. Overall, 244 opportunities worth Rs. 1400.7 billion will be in the projects valued at over Rs. 4 trilion are in the pipeline. thermal segment, Rs. 996.45 billion will be offered by Going forward, the targets for 2016-17 are ambitious. The hydro projects, and the remaining Rs. 56 billion worth of government aims to award 25,000 km and construct 15,000 opportunities will be in the nuclear power segment. km of road during the year. Overall, the national highway segment will offer project opportunities worth Rs. 1.5 Ports trillion in the next year. The National Highways Authority of India (NHAI) plans to award projects in a robust mix According of India Infrastructure Research, projects worth of EPC, build-operate-transfer (BOT) and HAM modes. Rs. 356.91 billion related to the construction of berths and Over 8,300 km of roads have been identified for container terminals are on the anvil at existing ports. Of development in the north eastern region by 2022, at an these, projects worth Rs. 74.75 billion are at the bidding investment of at least Rs. 864 billion. stage, while projects worth Rs. 249.94 billion have been announced. Type-wise, brownfield projects entail an At the state level, EPC opportunities look promising with investment of around Rs. 197.7 billion in states such as Uttar Pradesh, Maharashtra and Bihar remomdelling big Tamil Nadu, Kerala, Odisha and Gujarat. projects on an EPC basis instead of through PPs. New opportunities have also been showcased by states such as Sagarmala, the flagwhip programme of the Ministry of Telangana, Chhattisgarh, West Bengal and Odhish. Shipping, is expected to provide an impetus to the Overall, the state governments will spend over Rs. 7.4 development of three major ports -at Vadhavan, trillion for the development of roads and bridges, which Maharashtra; Sagar, West Bengal and Colachel, Tamil are expected to add a length of around 35,000 km. Nadu. The Sagar port project involves the development of a deep-sea port at an investment of Rs. 120 billion. In Power October 2016, the central government approved a grant of Rs. 5.15 billion to make the project financially viable. Power generation capacity along with the associated Vadhavan port, entailing an investment of Rs. 92.97 billion transmission and distribution network has increased for Phase I, will be able to handle 40-60 million tommes manyfold over the years. The availability of funds plays a 9mt) of cargo every year. The project will be developed crucial role in meeting the capacity addition requirement. by a joint venture of the Maharashtra Maritime Board and the Jawaharlal Nehru Port Trust. The Colachel port project According to the Natinal Electricity Plan, 2016, power involves an investment of Rs. 275.7 billion and will be generation projects will witness a total capacity addition implemented on a PPP basis. The Union cabinet gave in- of 72,495 MW during the period 2017-22. Of this, 50,025 principle approval for setting up a major port at Colachel MC capacity will be added in coal and lignite-based power in July 2016. In addition, new port projects, targeted to station, 4,340 MW in gas-based power stations, 15,330 MW add over 370 mt of capacity, worth at least Rs. 779 billion in nuclear generation and 2800 MW in nuclear generation. are coming up across various states. Besides this, there has been a big push by the government for setting up renewable power generation capacity of Construction accounts for nearly 65% of the total project 175000 MW by the year 2022, of which 115326 MW is cost (rough estimate) of a port project, while the remaining expected to be set up during 2017-22 (59674 MW has comprises electrical and mechanical costs. The actual cost, already been set up). however, depends on several factors, including the type of cargo facility (brownfield or greenfield), project scope, Based on the likely capacity addition for the period 2017- location, etc. 22, as well as year-wise expenditure phasing in the same period for advance action on projects coming up during Assuming a construction component of 65%, India 2022-27, the total fund requirement is estimated to be Rs. Infrastructure Research has estimated a construction 10.33 trillion. The figure comprises Rs. 8.59 trillion for opportunity of Rs. 738.66 billion at existing a new ports conventional power generation (72495 MW) and by 2022. renewable energy addition (115326 MW), as well as Rs. 1.74 trillion for the advance action plan for 2022-27. Railways

Typically, construction works accounts for 65-70% of the (IR) aims to invest Rs. 8.56 trillion in new total project cost of a hydro power project. The tracks, faster trains and station redevelopment by 2020 construction component in thermal power accounts for and, therefore, plans to increase debt to help fund this about 40% of the total project cost, while that in nuclear unprecedented modernization plan. To meet this power plants is about 20%. In contrast, renewable energy objective, around Rs. 2.5 trillion ($37 billion) of debt is projects offer relatively meager construction required till 2020. IR has prepared a prioritization plan opportunities. where the focus is on longer loops, line doubling and

BUILDERS' ASSOCIATION OF INDIA9 77th Annual Report and Accounts – 2017-2018 electrification projects. Doubling projects on high-density addition figures of the other 14 are not available.) routes are likely to get priority. The easing of foreign direct investment norms permitting overseas investments in Of the 22 projects in the pipeline, 18 have an investment high speed rail (HSR) development is a good sign for the requirement of at least Rs. 547 billion (the cost of four sector. projects is not available). Of this Rs. 547 billion, some portion is expected to be mobilized through AAI funds, Some big-ticket projects such as the dedicated freight as it plans to invest Rs. 83 billion in the next greenfield corridor (DFC), the Mumbai-Ahmedabad HSR, semi-HSR works. project, and station redevelopment and modernization have been undertaken to transform the railways sector. Type-wise, over 62 mppa of capacity is likely to be added With an investment of over Rs. 800 billion, the DFC project through eight brownfield projects, followed by over 87 is one of the biggest ongoing infrastructure project in the mppa through the development of new airports. country. With regards to project status, most of the projects have Another focus area for IR is the development of HSR been announced. Another three are under bidding (such projects. The eight proposed HSR corridors of 4,215 km as Navi Mumbai airport), while the Mopa airport project length translate into a financing requirement of over Rs. has recently been awarded to GMR. (It has been 421 billion. The first HSR in the country will run on the considered as being in the pipeline for the purpose of this Mumbai-Ahmedabad section and will involve an analysis despite being awarded because sub-contracting investment of Rs. 980 billion. Recently, in December 2016, opportunities still exist). the Japan International Cooperation Agency inked a State-wise, Andhra Pradesh and Maharashtra both have tripartite consultancy pact with the Ministry of Railways three upcoming projects, followed by two in Tamil Nadu. (MoR) and the National High Speed Rail Corporation of Other states that will witness airport development works India for the project. Besides, nine corridors, have been are Gujarat, Karnataka, Madhya Pradesh, Punjab, identified for the development of semi-HSR corridors in Nagaland, Odisha, Telangana and Goa. a phased manner involving the introduction of express trains running at 160 kmph. Additional expenditure will On an average, the share of construction in the total cost be incurred towards increasing speeds on select existing of an airport project pertaining to terminal expansion and routes. construction is about 66%; the construction share in works like aprons, runways, taxiways and allied works is 90%; Besides this, IR's station redevelopment and and in new air traffic control towers it is 45%. Given these modernization plan is likely to create huge construction assumptions, the airport sector represents a construction opportunities. In July 2015, the central government opportunity of Rs. 361.02 billion. It is difficult to ascertain approved IR's proposal to offer A-I and A-II category the construction opportunity individually for brownfield stations (407 stations) for redevelopment. An expenditure and greenfield projects since AAI has laid out its apex of Rs 1 trillion has been envisaged by IR for station plan based on the state of infrastructure only in cities redevelopment and logistics parks development by 2021- where it has projects. 22. A $5 billion fund for the redevelopment of railway stations called the Railways of India Development Fund Urban has been proposed by the MoR. Of this, the MoR will seek $500 million from the World Bank, $1 billion from the Civil construction has a huge share in the total cost of Ministry of Finance and the remaining from pension and urban transport projects, especially metro and sovereign funds. Japan has evinced interest in funding projects. As cities increasingly come up with decongestion station redevelopment projects. plans, the urban transport sector will continue to offer a lot of opportunity. Airports As per India Infrastructure Research, bases on investments In the aviation sector, the National Civil Aviation Policy, entailed by projects that are coming up (yet to be awarded) 2016 has been released and air traffic is once again on a between 2017 and 2022, investments worth Rs. 3.36 trillion growth path. India is projected to become the third largest are in the pipeline for this sector. About 48 metro/light/ aviation market by 2020, behind only China and the US. mono rail projects are currently in the pipeline. These Although most metro airports do not have current include greenfield projects as well as extensions to expansion plans, there is abundant opportunity in currently operational network and cover a total length of Greenfield and existing Airports Authority of India (AAI) about 1,828 km. Of these, the maximum investment will airports. be in the development of 37 metro rail projects. Most of the investment in these projects is likely to be mobilized According to India Infrastructure Research, there are 22 by 2020-21. key airport projects in the pipeline. Of these, eight projects are likely to add a capacitiy of about 150 million Of the total investment requirement of Rs. 3.63 trillion, passengers per annum (mppa). (The planned capacity over half (about Rs 2 trillion) will be for greenfield urban

BUILDERS' ASSOCIATION OF INDIA10 77th Annual Report and Accounts – 2017-2018 transport projects, while the remaining will be invested projects. Overall, projects in the pipeline are expected to in the expansion of existing metro/light/mono rail create more than 5,200 million litres per day (mid) of projects by 2022. additional treatment capacity. Most of the opportunity exists in the 86 greenfield projects. In the waste The construction component of a metro/mono rail project management segment, 10 projects have been announced based on the civil engineering works required accounts entailing an investment of around Rs. 23.25 billion. These for about 50% of the total project cost. Based on this projects are coming up in states such as Gujarat, Andhra estimate and the robust project pipeline, India Pradesh, Maharashtra, Bihar and Rajasthan among others. Infrastructure Research has estimated that the sector will provide a construction opportunity of about Rs. 1.82 Drinking water supply and waste water treatment projects trillion by 2022. have a construction component of 66%. As per India Infrastructure Research, the water supply and waste Water supply and Waste management management segments together will offer a construction opportunity of around Rs. 371.74 billion by 2022. The water supply sector continues to receive significant central support in the form of appropriate policies, In the next few years, prospects appears to be good for budgetary support as well as new programmes and developers, contractors and technology providers. schemes. At the central level, programmes such as the However, issues that restrict private participation and Atal Mission for Rejuvenation and Urabn Transformation, delay project implementation need to be addressed to the Swachh Bharat Abhiyan and the Smart Cities Mission maintain growth momentum in the construction sector. have been launched. Besides, state governments and local bodies are undertaking a number of water supply and sewerage projects to improve service delivery. These projects are expected to give a push to construction activities in the sector.

On the basis of projects tracked by India Infrastructure Research, it is estimated that an investment of over Rs. 540 billion is expected in 96 water supply and sanitation

Hybrid Annuity Model Projects The government has decided to introduce Hybrid Annuity 2. BOT Toll Model Model (HAM) to revive PPP (Public Private Partnership) in highway construction. At present, three different In this toll based BOT model, a road developer models –PPP Annuity, PPP Toll and EPC (Engineering, constructs the road and he is allowed to recover his Procurement and Construction) were followed by the investment through toll collection. This toll collection government while adopting private sector participation. will be over a period of nearly 30 years in most cases. There is no government payment to the developer Launch of the new model is due to the many problems as he earns his money invested from tolls. with the existing ones. Large number of stalled projects are blocking infrastructure projects and at the same time 3. Engineering, Procurement and Construction (EPC) adding to NPAs of the banking system. Model

In this context, the government has introduced Hybrid Under this model, the cost is completely borne by Annuity Model (HAM) to rejuvenate PPP. the government. Government invites bids for engineering knowledge from the private players. By features the HAM is a mix between the existing two Procurement of raw material and construction costs models – BOT Annuity and EPC. Hence to understand are met by the government. The private sector’s the HAM, we should know the basic features of the participation is minimum and is limited to the existing PPP models. provision of engineering expertise. A difficulty of the model is that financial is the high financial burden 1. The Build Operate and Transfer (BOT) Annuity for the government Model What is hybrid annuity? Under BOT annuity, a developer builds the highway, operates it for a specified duration and transfers it In financial terminology hybrid annuity means that back to the government. The government starts payment is made in a fixed amount for a considerable payment to the developer after the launch of period and then in a variable amount in the remaining commercial operation of the project. Payment will period. This hybrid type of payment method is attached be made on a six month basis. under the HAM.

BUILDERS' ASSOCIATION OF INDIA11 77th Annual Report and Accounts – 2017-2018 Housing Scenario 2013-2030

Housing census 2011 revealed that statutory towns in 2011). Urbanisation is a powerful process that have increased to 4041 compared to 3709 in 2001 unleashes great energy, brings social vibrancy and census. "Census Towns" has increased to 3892 from stimulates creativity and innovation. It leads to 1362 recorded in 2001 census. Country's new vocations, new requirements and generate population increased by 21.5% over 2001 census new opportunities for employment. Cities offer and is now 121 crores, out of which 30.1% i.e. 36.42 scale of economy thereby ensuring that business crores is urban and 84.58 crores is rural. and industries grows in making nation Demographers project that country's population prosperous. Cities will account for 70% of GDP by 2030 is expected to be 150 crores. Rate of and generate 70% new jobs, drive an almost urbanization is expected to increase from 30.1% fourfold increase in nation's per capita income and in 2011 to 34.40% in 2020 to reach to 40.70% in 2030. contribute 85% of total tax revenue. About 68 cities Urban population based on 40.70% rate is expected will have population of more than one million to be 61.05 crores. It means that country will add from present 42. Out of this 68 cities 13 cities shall 24.63 crores of urban population between 2011 have a population of more than 40 million as per upto 2030 (61.05 crores in 2030 minus 36.42 crores table 'A' below :

Table A Sr. No. Name of City Population by 2030 in million 1 Mumbai Metropolitan Region 33 2 Delhi National Capital Region (Excluding Noida, 25.9 Gurgaon-Faridabad & Ghaziabad) 3 Kolkatta 22.9 4 Chennai 11.0 5 Pune 10.0 6 Bangalore 10.1 7 Hyderabad 9.8 8 Ahmedabad 8.4 9 Surat 7.4 10 Jaipur 5.4 11 Nagpur 5.2 12 4.2 13 Vadodara 4.2

Housing Demand cores houses is in addition to 2.653 crores dwelling units shortage estimated by a technical group In order to accommodate additional urban constituted by Ministry of Housing at the end of population of 24.63 crores by 2030, Real Estate XIth Five Year Plan (2007-2012). Thus, the total Industry need to construct 25 lakhs houses/flats requirement is likely to be 7.579 crores units (4.926 per year for next 20 years. This requirement is + 2.653) by 2030. This works out to 37.90 lakhs worked out on the basis of 5 persons per household units per year for next 20 years. Real Estate i.e. 24.63 crores divided by 5 = 4.926 crores Industry at present delivers about 15 to 18 lakhs rounded off to 5 crores. This requirement of 4.926 flats/houses per year. It needs to scale up it's

BUILDERS' ASSOCIATION OF INDIA12 77th Annual Report and Accounts – 2017-2018 capacity to twice than the present one for delivery housing proliferated. City planners were forced to of 38 lakhs units. By and large industry is expand cities boundaries to accommodate people dominated by small and medium level realtors, but without first creating civic infrastructure. As a developing one or two buildings in a year and is result suburb areas got developed. However, in unorganized sector. Real Estate Industry looking to ever expanding housing need for urban contribute about 10.5% to GDP. Housing population, it is neither possible nor desirable to construction emerged as "sunrise" industry from continue with horizontal expansion. Such 2000 onwards. There are at present 47 listed horizontal expansion would result in conversion of companies in Mumbai Stock Exchange and many agriculture land into N.A. land. In such event of country's industrial houses have started real housing will absorb much of agriculture land so that estate as additional business activity. Mumbai country may not be in a position to feed 150 crores stock exchange as a result started publishing with two square meals a day. Secondly, horizontal "realty-index" looking to importance of housing expansion would necessitates providing civic in country's economy. In order to deliver 38 lakh infrastructure such as water supply, sewerage, units, cast-in-situ method of construction followed roads etc. on a much larger area at an enormous at present need to be changed to that of errection cost to be borne by resource starved local self of prefabricated building component. Needless to Governments. It would therefore be desirable to mention that real estate developer at present by restrict "Urban areas" by allowing vertical and large cater to demand from high income group expansion with higher F.S.I., leaving lot of open whereas more than 90% of demand is in middle vacant land for agriculture purpose. Another angle income and low income group. It is therefore to be looked into is bias of urban town planners for necessary for them to enter in to MIG and LIG segregating office/commercial areas from segment. If economy grows at 9% rate between residential areas. This has resulted in city like 2013-2030 than low income group demand would Mumbai where about 60 lakh people daily travels go on reducing and high income group and middle by suburban railway from North to South Mumbai income group demand would go up. where office areas are situated in the morning and reverse journey in evening. In absence of mass rapid Urban Town Planning - Need for change transport system in Delhi, it's roads were choke-a- Till seventies horizontal development of existing block with private vehicles and private and public cities to accommodate rising urban population was buses creating huge pollution. Ultimately problem norm with no concept of FSI. Increased migration could be resolved by providing rapid mass ultimately led planners to think about bringing transport system in terms of Metro Rail. It has not orderly development of urban areas. Thus borne only ensured less pollution but incidentally the concept of F.S.I. (Floor Space Index) or Floor increased property prices all along Metro's route. Area Ratio (F.A.R.). This concept came into being It is therefore necessary to have "mix user" plan in for first time in 1967 in metro like Mumbai. Later all suburban localities and integrated/satellite on this concept of FSI spread to other towns. Till township. Fortunately Planning Commission has 1990 urban planners were prescribing restrictive taken note of this urban scenario and in April 2012 F.S.I. with a view to curb migration into big cities recommended vertical growth of Indian cities by and also to save infrastructure cost. This has created selectively providing additional FSI beyond a situation in which migrants in search of shelter permitted index, at an extra charge of at least 50% started settling in "informal sector of housing" i.e. of the area rate. unauthorized construction due to limited housing Biggest problem facing housing industry is carving supply available in formal housing sector. Urban out urban landmass for constructing houses from planners failed to stop migration by prescribing country's total landmass of 331 million hectares. restricting FSI. Mumbai being financial capital Growing economy needs more land for attracted maximum people in search of jobs but infrastructure development such as National with limited houses in formal sector. Ultimately Highway Development Projects, Dedicated Freight emerged as "Slum capital" of country by 2010. Fact Corridors and Delhi-Mumbai Industrial Corridor. that almost 55% to 60% of it's 1.20 crores people Thus land for housing is going to become scarce now lives in slums is testimony to this development in future. Country's present landmass is utilised model. So is the case with Delhi, Kolkatta, as shown in Table 'B': Bangaluru, Chennai etc. where unauthorized

BUILDERS' ASSOCIATION OF INDIA13 77th Annual Report and Accounts – 2017-2018 Table 'B'

Sr. No. Land use Area in million Area in Remark Hectares percentage 1 Agriculture 195.25 59 Increasing population would ensure higher demand for agriculture produce. It would therefore be necessary to higher productivity of agriculture crops in view of conversion of agriculture land into N.A. for housing, infrastructure and industrial use. 2 Forest 69.50 21 This is minimum required to maintain ecological balance. 3 Urban -Industrial and 26.65 8 This is likely to go up in view of massive other N.A. land industrialization, urbanization and infrastructure projects. It is estimated that by 2030 additional land required would be 12 million hectares or 4% of total land area. 4 Unreported land 23.10 7 Future land requirement has to come from this source only. 5 Barren land 16.50 5 This need to put to better use. Total 331 100 Huge migration into urban areas requires near metropolitan areas will be another area in which development of outlying areas beyond main city state will have to play dominant role in land limits. However such development would require acquisition, infra development, leaving housing providing civic infrastructure as roads, water supply, development to real estate industry either by sewerage treatment plant by real estate developer. auctioning plots or allowing housing development Normally this should have been the duty of state but on public-private partnership on predetermined for resources starved state, "housing" is not a priority. agreed conditions of sharing developed housing In addition to this, main requirement is mass areas. transporation system which only state can provide. Current Scenario It is to be pointed out that with commencement of suburban train section between Virar to Dahanu on After boom period of 2005 to 2010, downturn in sale Western Railway has opened up huge opportunity volume started from 2011 onwards and is still for housing to real estate developers. This area from continuing. This can be seen from data published by Palghar to Dahanu can ideally be utilized for real estate research firms of sale figures of seven affordable housing since it will have connectivity to major Centres of Mumbai, Pune, Bangalore, Chennai, main city. This in turn would ensure development Ghaziabad, Delhi Gurgaon and Noida during 2011- of mini townships due to low land rate. Better 2013 period. According to Cushman & Wakefield infrastructure not only enhances quality of life but is demand supply scenario during 2012-2016 is detailed an enabler of economic growth. Satellite townships in Table 'C' below: Table 'C' Sr. Mumbai National Bengaluru Chennai Hyderabad Pune Kolkata No. Capital Region 1. Supply in Million sq.ft. 52.6 43 31 23 25 16 13 during 20012-16 2. Demand in Million 44 27 31 22 22 15 8 sq.ft. during 20012-16

BUILDERS' ASSOCIATION OF INDIA14 77th Annual Report and Accounts – 2017-2018 There is still demand in residential segment, but flat purchasers have to pay (E.M.I.). Some of the hardly in organised retail segment and very low in developers have started offering 10% lower rate than commercial / office segment. Real Estate Developers the current market rate. Needless to state that one of in order to boost up sale have started introducing the reason for low demand is high real estate price. 80% : 20% scheme, under which flat purchasers has However, the fact remains that slowdown in to pay only 20% on agreement. For balance 80% real economy in last 2 years has shaken confidence of estate developers obtain loan from Housing Finance flat purchasers, which can return only when Companies or Banks and pay equated monthly economy start growing at 8%. installments (EMI) till possession of flat. Thereafter,

BUILDERS' ASSOCIATION OF INDIA15 77th Annual Report and Accounts – 2017-2018 Real Estate Regulatory Authority, Regulating a New Regime Current scenario and BAI’s initiative

Despite, huge housing need vis a vis inherent reasons, the real estate prices are most likely to limitation of supply of land coupled with lack of remain in correction stage. infrastructure limiting vertical expansions, the overall Indian real estate market has been down The much awaited RERA law has become since almost more than 5 years. The consumer operative in major parts of the country and in rest confidence in buying under construction units is of the country with few exceptions, it is in offing. at its lowest due to large scale defaults by The new law has started making all reaound waves builders, both big and small and the unsold in the industry and in market conditions. While inventory has been steadily piling up. In some on the one hand the promoters including builders cases, investors are continuing due to parking of and developers have been gearing up to embrace unaccounted money. Affordable housing is doing with the stringent requirements of the new law, comparatively better. Earlier, the real estate prices on the other hand consumers and other stake had reached to unrealistic high levels and as a holders are quite thrilled to be empowered in the result the costs of all inputs including land, industry hitherto dictated by the builders. At the development rights, conractors, professionals, same time changes are not so simple because the interest, corruption had also significantly risen. most complex factor is whereas the enactment is Now post demonetization and with onset of RERA Central, the rules and the implementation of the law, due to poor market conditions, these costs law have been entrusted to concerned States and have started coming down. Union Territories and the new law will operate simultaneously with the existing various State The market which hitherto accommodated lot of laws and the Centre has limitation to deal with unaccounted funds is yet recovering form the the suejcts of land and construction, being the State shock of demonetization. subjects. While on the one hand law is very powerful having captured all the vital wrongs In such background the Real Estate (Regulation plugging the growth of the industry so far, it will and Development) Act, 2016 ("RERA") has started take a long time to settle the interpretational and rejunevating the market by introducing much implementational problems. While on the one required discipline which is likely to instill hand the industry is grappling with increased confidence in the buyers and investors in the inventory in hand, on the other hand, the RERA medium and long term. With few mistakes on lends credibility to the assurances by the drafting of the law, vagueness etc., the law has promoters. Therefore, ultimately the market will certainly captured the major wrongs that were become vibrant due to huge gap between the high crippling the industry and its goodwill. After the demand and comparatively short supply. At the RERA law has become effective from 1st May, same time, the disciplined market may not see the 2017, infusion of big funds in terms of FDI and kind of the appreciations and the kind of the jumps private equity is steadily on rise. Affordable which it had witnessed in the hitherto loosly hosuing has become more attractive due to regulated one sided market practices. government incentives. The new constructions are adding to existing supply of unsold inventory. Despite the limitation of administration in the State Even though in the new projects, assurances are hands, the law has such stringent provisions, quite RERA backed, the consumers have not yet come harsh consequences that it will not be possible for out of deep rooted fears and therefore are not so the wrong doers to bypass the law as in the past. much ready to book under construction units. At the same time despite the bright provisons, They raher prefer to pay higher and buy many of the provisons are not iron clad and leaves constructed units. The fears of end users not to many gaps with the result that it will take a lot of blindly rely upon the RERA backed promises is to time for the law to settle. Only time will tell, how an extent well placed considering the law and How much financial and administration support implementation problems in the courty and the new law will get from the State Governmetns, particularly by the State Government which kinds of people are appointed at the helm administration. For such and other economic

BUILDERS' ASSOCIATION OF INDIA16 77th Annual Report and Accounts – 2017-2018 of administration and adjudication, only time will transactions, so many case studies were required tell and would differ from State to State and but have not been done with the result that the hopefully in competition between the States, the law has not been able to take cognisance of many results will improve over a period of time. Law a realistic situations and many contexts . It is never and implementation will take a long time to settle. too late, the Government can invite the holistic case studies now also and exercise the power to The market which hitherto accommodated lot of remove difficulties. While rule making also the unaccounted funds is is yet to recover form the State Government should invite appropriate and shock of demonetization. informed representations because surely the RERA is not the first law of its kind to inculcate Government cannot afford to further kill the real discipline in the construction industry. There have estate industry on which the primary needs of the been Central laws like Consumers' Protection Act, citizens, the employment generation and 1986 and plethora of State laws like MOFA. There substantial economy are based. have been regular court decisions protecting the The project on land above 500 square meteres and rights of the consumers and declaring the consisting above 8 apartments are only covered obligations of the promoters. But because of the but the appropriate government can reduce the slow moving costly judicial system, the sufferings parameters. The projects in planning areas are are manifold and therefore the impact of the only covered but RERA can include projects judgemetns remains minimlal. The main factor beyond planning area in specific cases. that enables continuation of the dictates of the builders is very large gap existing between the The real estate projects including ongoing projects housing shortage vis a vis the inherent nature of in respect whereof completion certificate is not limited supply of immovable properties. Probably received on the date on which registration due to these reasons that before believing RERA provisions become effective will have to be backed assurances, the consumers will take their registered. Therefore, the need for planning in own time to be confident of the efficacy of the new respect of ongoing projects also. law at the grass roots. It is because of the deep rooted fears that inspite of so many attractive new Subject to specified exceptions, RERA will cover construction projects entering the market, that the development and redevelopment projects, plotted ultimate consumers' buying is confined mainly to developments, residential, commercial or for any constructed units except in affordable housing use will be covered. RERA law will also regulate enjoying governmetn incentive schemes. the activities of real estate agents operating in primarily market.. Some of the key changes likely to flow from implementation of RERA law are briefed in the Under the onerous new law, the developer is ensuing paras. responsible to the purchaser of the apartment in the real estate project whether sold on freehold On perusal of the law, an informed reader realises basis or leasehold basis. He continues to be that an honest attempt has been made to address responsible to the subsequent purchaser of the the burning issues concerning the consumers by apartment who acquires such apartment in resale. introducing stringent provisons for timely Similar will be the situation in cases of sales by possessions, transparent title papers along with the developer of any plot under plotted title clearance certificates and consequences for development, sale of building or part of building. defective titles, changes in plans only with prior The term "apartment" has been assigned quite approvals by flat buyers, disciplining fund wide meaning to include sales of all kinds of utilisation only after incurrence of cost and only premises used for whatever purposes including for he purposes of the project, time bound disposal residential, commercial etc. within the defined of complaints etc. However, drafting and coverage parameters of a real estate project. are not upto the mark. In the drafting of the law, glaring legal and language fallacies are there apart Before registration of the real estate project, sale from lacking co ordination between some of the is not be permitted and for registration, a provisions. Further, before enacting the law to commencement certificate is a pre condition. One address a complex field like real estates cannot advertise or market or invite for sale of the

BUILDERS' ASSOCIATION OF INDIA17 77th Annual Report and Accounts – 2017-2018 property in the project without registration. motu on the recommendation of the competent Pertinent to mention here that the condition of authority, if the Authority is satisfied that the commencement certificate as a pre requisite, is promoter has committed any of the specified already being diluted by some States to enable the defaults which have been assigned wide developers early registration and early marketing connotations after allowing opportunity of being and sales. heard.

Registration would require firm commitments and Lapse or revocation of registration would invite disclosures including w.r.t. legal title to the land very harsh consequences taking away the project whether owned or developed, encumbrances, from the hands of the promoter. In some cases such completion time, plans and specifications etc. steps may not ensure best interests of the allottees and the quality of the project itself. As for The provisions regarding completing the project misinformation and unfair trade practices, the in declared time are very stringent, subject to force registration can be withdrawn, this provision, if majeure which has been provided a very narrow implemented in spirit, will enhance the goodwill connotation which is unrealistic and in some cases of the industry and the real estate agents in will not be workable as the same is confined to primary market will also come under much only natural calamities. RERA would have the required monitoring. powers to grant extension for maximum one year in aggregate for reasons to be recorded in writing. Upon registration sales realisations to the extent of 70% would have to be parked in a designated The provisions to complete the project in declared bank account with scheduled bank to be used to time will require the promoters a lot of planning meet cost of construction and the land cost in the including financial planning and accepting the real estate project. The utilisation of the funds challenges as in the initial stages sales proceeds would be regulated through a process of prior may be slow. The stringent provisions to ensure certifications by three professionals namely the completion of the project in time would prevail architects, the engineers and the chartered upon a promoter to do the planning work of the accountants about stage of completion of the project more meticulously and may lead to project. In addition, the project will be subject to promoter engaging experts with responsibility special audit to get certified utilisation of funds in clauses and commensurate incentives to the accordance with the provisions of the Act. executives or working partners for timely completion. Hitherto the practice in the industry was to do virtually entire business by the funds of the needy For failure of timely possession, for flat purchasers and at their cost and consequences. misinformation, a member is entitled to withdraw The burden of all problems, the consequences of from the project and get full amount paid by him all happenings and contingencies were practically together with interest. This issue will create passed on the consumers. Now the crux of fund unimagined problems for the project and although mechanism in RERA provides that sell only after prices of real estates generally don't go down, if the project is approved by local authorities, collect that happens, withdrawals can trigger avoidable sales proceeds from the flat purchasers but the failure of the project. Further, the entitlement to withdrawal from the designated account will be withdraw from resctricted to the funds spent by the promoter for the project and demanding funds paid with the project implying that let the promoter first interest is without prejudice to any other remedy spend from his own resources and then to the available to the allottee. If the allottee does not extent of such spending he would be allowed to withdraw from project, then interest at the withdraw. Further, obviously withdrawal from prescribed rate will have to be paid for the period sales is possible only if sales are happening. But of delay. In case of defect in title, the promoter due to compelling provisions to complete projects would be liable to compensatory and penal in declared time lines, even in the face of slow liabilities. sales, it should not be possible to delay or slow down construction as used to happen hitherto. The registration granted under the law may be The framework of the law clearly indicates that if revoked by the Authority on a complaint or suo the project goes in red, the promoter will suffer a

BUILDERS' ASSOCIATION OF INDIA18 77th Annual Report and Accounts – 2017-2018 lot. The changes in the Insolvency and Bankruptcy respect of any matter which the Authority or the Code, 2016 read with provisons of the RERA adjudicating officer or the Appellate Tribunal is would mean that the funds collected from the empowered by or under the RERA. In such buyers will have to be spent for the project only. matters, the civil court cannot issue any injunction This is now resulting into exit of those promoters also. It is submitted that such cases cannot be tried who wanted to do business without owning at consumers court also. So far as possible entailing risks and who wanted to pass on the consequences of such bar is concerned, it will consequences of all risks upon the needy buyers depend upon the rule of law followed by the RERA and still earn huge dividends. The overnight in each State. Where rule of law will be followed, introduced discipline, is now resulting into exit of then the bar to civil court will augur better for the those promoters who want to do businsess in the affected persons. Where rule of law will not be capital intensive industry with megre capital. followed, it will be a big loss to the already slow Sudden exists will further spell bad times for the moving justice system. industry. Alhtough defaults and wrongs were quite Introduction of much required financial and common and all pervasive, as in the real estate product delivery discipline upon the real estate market big or brand did not necessarily meant development projects should lend required good, it was experienced that the consumers used confidence and attract fund providers including to prefer buying at a premium from the big private equity and FDI and may attract more builders and those enjoying brands. There is likely investors including small investors. Real Estate to be substantial difference in this context in as Investment Trusts will add to such investments. much as now in the RERA discipline consumers The industry has started consolidating. Such may find the assurances by SME builders also changes will ultimately enahcne the demand and equally reliable and therefore the price difference increase the construction activity. between branded and non branded may moderate.

The project would have to be developed and As far as corruption is concerned, it is always a completed in accordance with the approved plans, debatable issue as to who is more interested in layout plans and specifications and changes corruption. Even if some State Governments Act therein would be subject to the prior approval of tough and introduce stringent deadlines for stakeholders. RERA requires that the project shall granting approvals, there is no assurance that there be developed and completed by the promoter in will not be corruption for allowing and/or accordance with the approved sanctioned plans, ignoring wrongs. Therefore, need of the RERA layout plans and specifications. So far as changes was overdue but at the same time timely steps in respect of plans and specifications concerning need to be taken to streamline concerned an allotted apartment, the same would require departments. Not much has yet been done to deal prior consent of the apartment purchaser except with the menace of corruption as all parties require minor changes at the instance of the allottee or due funds to most complex and politicized elections. to architectural and structural reasons subject to At the same time more computerisation and more conditions. When it comes to changes in the digitisation should reduce scope for corruption. sanctioned plans, layout plans and specifications of the buildings or the common areas within the RERA has the potential to make the market project, with the prior consent of at least two-thirds disciplined and vibrant but to what extent and how of the allottees in which promoter will be excluded much fast changes happen is a matter of concern and allottees belonging to the same family shall because co ordinate approach is not so evident be counted as one allottee only. from various ministries and various government authorities as also between the Central Assurances will now become most conservative as Government, the State Government and the local against very casual and unviable ones. Large authorities. The State Governments should take township planning will require good immediate steps to discipline and monitor the understanding of law and at the same time law administration in the municipal and other local cannot harm such projects authorities concerned with granting construction approvals as lot of red tapism and rampant RERA law bars cases to be tried at civil court in corruption are only opens secrets.

BUILDERS' ASSOCIATION OF INDIA19 77th Annual Report and Accounts – 2017-2018 RERA - BAI’s representation with Hon’ble Union Minister for Urban Development

Ref: 426/A/2017-18 August 14, 2017 Shri Narendra Singh Tomar sale relating to such development is brought to the Hon’ble Union Minister for Urban Development, notice of the promotor within a period of five years Government of India by the allottee from the date of handing over Room No.104-C, Nirman Bhawan, possession, it shall be the duty of the promoter to Maulana Azad Road, rectify such defects without further charge, within NEW DELHI - 110 011 thirty days, and in the event of promoter’s failure to rectify such defects within such time, the aggrieved Respected Sir, allottees shall be entitled to receive appropriate Sub: Request for slight modification of Section 14(3), compensation in the manner as provided under this ‘defect liability period’. Act.”

Builders’ Association of India (BAI) is an apex all Sir, we appreciate the intention of legislature to India body of Engineering Construction Contractors provide a good structure to the customers and also and Real Estate Companies founded in 1941, with we wholeheartedly endorse the need of ‘structural more than 18,000 business entities as members safety and strength of the building to a period of 5 through its 160 plus Centres (Branches) throughout years’. However, we request you to kindly consider the country. Regional Associations Affiliated to BAI modifying the clause as to rectify ‘the workmanship, form indirect membership of more than 1,00,000. The quality or provision of services for a period of 5 years’ fundamental aim of the Association is to bring about as the materials or the fittings used in the premises all round improvements in the construction sector, could naturally make wear and tear, due to the while striving towards resolution of operational as regular use and passage of time. well as policy level problems faced by the To rectify the defect of construction materials or the construction industry. This involves making efforts fittings along with workmanship upto a period of 5 to obtain from policy makers and authorities, the year is unreasonable and we request you to kindly level of attention that the construction industry consider limiting the Section with rectifying the deserves in view of its tremendous contribution and ‘structural defect of the premises upto a period of 5 importance to the economy. years’.

At the outset, BAI appreciate the Union Government We hope you understand our request and do the for introducing the Real Estate Regulatory Act needful in the matter. (RERA) to regulate the functioning of Real Estate Industry. It was not only a long standing demand of Thanking you, BAI, but also the need of the hour to ensure Yours truly, transparency to one of the most important requirement of the human, that is, ‘Shelter’.

Sir, the Act has specifically mentioned in Section 14(3) that, “RERA lays down that, In case any H.N. VIJAYA RAGHAVA REDDY structural defect or any other defect in workmanship, President quality or provision of services or any other Builders’ Association of India obligations of the promoter as per the agreement for

BUILDERS' ASSOCIATION OF INDIA20 77th Annual Report and Accounts – 2017-2018 GST: Construction Industry

From 1st July 2017, India embraced the biggest “5. Supply of services overhaul of Indirect Taxation Structure and introduced Goods and Service Tax (GST) though The following shall be treated as supply out the country. The construction industry has for of services, namely: long been harassed by multiple taxation from both … the State and the Union Governments. A (b) construction of a complex, building, construction contract was taxed under both the Sales civil structure or a part thereof, including Tax as well as the Service Tax laws and the a complex or building intended for sale to apportionment provisions were far from precise. The a buyer, wholly or partly, except where the GST regime is a welcome development. Government entire consideration has been received after and taxpayers will not haggle anymore on the issuance of completion certificate, where question as to whether a particular construction required, by the competent authority or contract constitutes a sale of goods or a provision of after its first occupation, whichever is services or a works contract. There is no need to earlier. break up a construction contract and apportion it between the goods and services elements. Explanation.— For the purposes of this clause— Through this article, I aim to highlight a few pressing issues facing the construction industry. A caveat: the (1) the expression “competent authority” law is still in its infancy and the drafting of the statute means the Government or any leaves much to be desired. The Government has also authority authorised to issue not come out with any comprehensive circular on completion certificate under any law construction industry. The FAQs released by CBEC for the time being in force and in case are very basic: they explain what does not need any of non-requirement of such certificate explanation and are silent about almost everything from such authority, from any of the else. My views are based on whatever material is following, namely:— available as on date. Readers are advised to form (i) an architect registered with the their own independent opinion on the basis of the Council of Architecture provisions of the bare Act and the Rules. constituted under the Architects Act, 1972; or Nature of supply (ii) a chartered engineer registered A contract for construction simplicitor is a contract with the Institution of Engineers which involves the supply of goods as well as (India); or services. A contract for construction of a flat, on the other hand, involves a supply of goods, services as (iii) a licensed surveyor of the well as an undivided interest in land to the purchaser respective local body of the city of the flat. What then is the nature of the supply? Is or town or village or it a supply of goods or of services? Should the rules development or planning of composite and mixed supply be applied to such authority; contract? (2) the expression “construction” includes additions, alterations, Schedule II and construction industry replacements or remodelling of any The CGST Act and the SGST laws pre-empt any existing civil structure. enquiry into the nature of supplies involved in a … construction contracts by creating irrefutable 6. Composite supply statutory presumptions in Schedule II. There are two The following composite supplies shall be such presumptions contained in that Schedule which treated as a supply of services, namely: are of relevance here:

BUILDERS' ASSOCIATION OF INDIA21 77th Annual Report and Accounts – 2017-2018 (a) works contract as defined in clause It is my view that a contract for construction of flats, (119) of section 2" which also involves transfer of property in land or undivided share in land, will be covered by the ‘Construction services’ is not defined anywhere in ‘construction services’ entry, being a specific entry. the CGST law. However, the term ‘works contract’ All other types of works contract will fall within the is defined in Section 2(119) to mean: ‘works contract’ entry, which is a general entry.

“ “works contract” means a contract for Refund of unutilised Input Tax Credit building, construction, fabrication, completion, erection, installation, fitting The distinction between the content of ‘construction out, improvement, modification, repair, services’ entry and the ‘works contract’ entry is maintenance, renovation, alteration or fundamental to the way in which Section 54(3) commissioning of any immovable operates.Under Section 54(3), refund of unutilised property wherein transfer of property in input tax credit is allowed where the credit has goods (whether as goods or in some other accumulated on account of rate of tax on inputs being form) is involved in the execution of such higher than the rate of tax on output supplies (other contract” than nil rated or fully exempt), except supplies of goods or services or both as may be notified by the A contract for construction of a bridge or a road will Government. fall within the definition of ‘works contract’, but it will not be covered by the ‘construction services’ A notification has been issued under Section 54(3) clause. Per contra, a contract for construction of flats/ with respect to construction services.3 Thus, building will be covered by both clauses. The tax construction contracts for construction of flats/ rates and the input tax credit consequences for building involving transfer of property in land or construction services are significantly different from transfer of undivided share in land are not eligible the rates and credit consequences for works contract. for Section 54(3) benefit. But in all cases, the services providers rendering construction or works contract services are deemed But refund of unutilised credit under Section 54(3) to be providing supplies of services. As such the time is available in full in respect of construction contracts of supply and the place of supply rules relating to which do not pertain to construction of flats/ services will apply. buildingor do not involve transfer of property in land or transfer of undivided share in land. Such contracts Difference between construction services and works do not fall within the purview of the afore-mentioned contract notification, since they are classified as ‘works contract services’ and not ‘construction services’. Construction services is taxed at 18% on 2/3rds of the agreement value.1 The value of the construction Redevelopment agreements services should be arrived at after deducting the land component which is deemed to be 1/3rd of the flat A redevelopment agreement involves transfer of purchase agreement value. On the balance 2/3rds development rights by a society to a developer in value, the 18% rate of tax must be applied. Effective exchange for flats in the newly developed building. rate of tax is, thus, 12%. No monetary consideration is charged by the developer in case of the flats which are given to the On the other hand, a works contract is taxed at a flat existing tenants or members. The developer recovers rate of 18% of the full agreement value.2 the cost of construction along with profits from the flats sold to outsider purchases. In areas like Mumbai, even a handful of flats sold to outsiders 1 That is, 9% CGST and 9% SGST on 2/3rds of the agreement can cover the cost of construction of the entire value building and yet yield a reasonably good amount of – See Entry No.3(i) of the Notification No. 11/2017 – Central Tax (Rate) and Paragraph 2 of that notification. profit. 2 That is, 9% CGST and 9% SGST Now, there are complicated issues which need to be – See Entry No.3(ii) of the Notification No. 11/2017 addressed in order to understand the tax – Central Tax (Rate). consequences in a redevelopment agreement. I will 3 Notification No. 15/2017 first deal with the services provided by the developer – Central Tax (Rate).

BUILDERS' ASSOCIATION OF INDIA22 77th Annual Report and Accounts – 2017-2018 to the existing and the members in the to new members or outside purchasers in a redevelopment process. redevelopment scheme are classifiable as ‘construction services’. Such services carry monetary Services provided by developer to existing and new consideration. members Though the plain words of the statute lead to this The agreements which are entered into between a interpretation, it is absurd and inequitable. Under developer and existing or new members for this interpretation, a developer will give benefit of redevelopment of a building indisputably contain lower rate of tax under ‘construction service’ to new the elements of transfer of property in land or purchasers by giving the land element deduction transfer of undivided share in land. However, this (that is, 18% on 2/3rds of agreement value), but a is in itself will not lead to the conclusion that services higher rate of tax will be charged for existing tenants provided to existing as well as new members should or old members under ‘works contract service’ be classified as ‘construction services’. There is without any land deduction. This discriminatory another crucial distinction between construction treatment is in teeth of Article 14 of the Constitution services and works contract services, a distinction of India. This unequal treatment to existing and new which is in addition to the land element: members is not based on any rational or reasonable ‘construction services’ are confined by black letter classification. Indeed, if the affordable housing to only those contracts where the “building (is) objective of the Government is considered, 4 intended for sale to a buyer” . particularly in a place like Mumbai where The term ‘sale’,in relation to immovable properties, redevelopment is the only resort for many, this has been interpreted by the Supreme Court to have interpretation must be avoided. the same meaning as is given to the term in Section A developer has two options in this scenario. The 54 of the Transfer of Property Act, 1882. That is, a first option is to give the term ‘sale’ a wider meaning sale of immovable property requires the giving of to include exchange and barter and take land ‘price’ or monetary consideration in return for deduction by using comparable pricing method. This transfer of immovable property. [See Commissioner method is complicated and fraught with difficulties.5 of Income Tax v Motor and General Stores (P) Ltd It is quite possible that the assessing officer will not (1967) 66 ITR 692 (SC)]. The allotment of flats to accept this interpretation and will want to stick to existing tenants or members in the redeveloped the “plain language of the statute”. The second complex in return for development rights is not a option would entail challenging the Notification No. contract of sale, but one of ‘barter’ or ‘exchange’. 11/2017 in Court on the grounds of violation of Services of construction provided by a developer to Article 14 and to get the Court to read the word ‘sale’ existing members or tenants are thus not classifiable as including an exchange or barter. The Court can under ‘construction services’, but should be classified then be asked to direct the Government to evolve a as ‘works contract services’. suitable valuation mechanism for the land deduction Paragraph 2 of the Notification No. 11/2017 – Central or the Court may give any other suitable directions Tax (Rate) also seems to point towards this legislative with respect to the same. rd intent. The 1/3 deduction for land is possible only Transfer of development rights by existing members to if the agreement for purchase of flats contains the developer consideration expressed in monetary form. Existing tenants or members do not pay any monetary A society transfers development rights to the consideration. If the services provided to existing developer in return for flats being allotted to the tenants or members in a redevelopment arrangement existing members or tenants in the new building are classified as ‘construction services’, the valuation without any of those members or tenants having to mechanism in Paragraph 2 will fail. shell out money consideration for the same. Such transfer of development rights is not in the course On the other hand, services provided by a developer

4 See Clause 5(b) of Schedule II to the CGST Act. 5 Comparable agreements can be those which are entered into with new purchasers of the same complex. However, in many cases there is a considerable time gap between agreement with new purchasers and the agreement with existing members or tenants. In such cases, the comparable pricing method will not always work properly.

BUILDERS' ASSOCIATION OF INDIA23 77th Annual Report and Accounts – 2017-2018 or furtherance of business. A housing society is not formula which is needed to make these in the business of granting development rights. calculations.In fact, even the rule making authority Though the definition of ‘business’ in Section 2(17) is not able to come out with a formula. The rule- covers isolated transactions without profit motive, making authority has simply shrugged off its the entirety of the definition seems to require some responsibility and passed on the burden to some kind of commercial character to be present in a committee of bureaucrats which has not been formed transaction before it can be said to be a business. If till date, though the anti-profiteering clause has been every isolated transaction or activity without any brought into effect from 1st July, 2017 itself. commercial character is elevated to the status of business, every transaction or activity will In my view, Section 171 impairs the freedom of trade automatically become a supply in the course of and occupation guaranteed by Article 19(1)(g). business. Had this been the intention of the Whether the anti-profiteering mechanism Legislature, it could have simply levied the tax on theoretically constitutes a reasonable restriction all transactions and activities instead of going out of which is saved by Article 19(6) or not is a separate the way to restrict the concept of supply to a issue, but it is my view that Section 171 is not transaction “in the course or furtherance of business” reasonable at least till sufficient guidelines are and then defining the term ‘business’. As such, no prescribed by the proper authority. tax is leviable on transfer of development rights by *** the society to the developer. There are many such issues which need resolution Anti-profiteering Clause by the Government. Ideally, it is for Parliament to Section 171 of the CGST Act directs every supplier clarify the law. Circulars and other clarifications have to pass on the benefit of rate reduction or the benefit become an untrustworthy source of law nowadays of input tax credit to customers. However, no one with the Revenue regularly challenging its own seems to be very sure of how this benefit is to be circulars as being contrary to the statute. Much less computed in the first place. There is no formula or reliable are the twitter updates by the Government guidelines in the statute to help the taxpayer in this of India or the many press releases which are being regard. released almost daily. Neither the twitter updates nor the press releases have any legal sanction. It is my view that Section 171 is unenforceable till Certainly, these informal clarifications, even if they appropriate criteria is laid down in the statute. Its are held to be binding on the Central Government mandate is overbroad and thoroughly vague. A in future, will not bind the State Governments. In taxpayer cannot be expected to keep guessing as to our system of tax administration, it is not possible to what is the real meaning and effect of a statutory say that SGST officers will always give any credence provision and how to comply with statutory dictates. to Central Government clarifications.

One must note that even Parliament is unsure of the

BAI’s representation on Goods and Service Tax (GST) Ref.: 11/A/2017-18 dated April 6, 2017 Respected Sir,

Shri Hasmukh Adhia Subject:Request for constituting Industry Group for Revenue Secretary, Construction and Real Estate Sector. Ministry of Finance, Department of Revenue North Block, NEW DELHI -110 011 Builders’ Association of India (BAI) is an apex all

BUILDERS' ASSOCIATION OF INDIA24 77th Annual Report and Accounts – 2017-2018 India body of Engineering Construction Contractors prescribing procedures & documentation need to and Real Estate Companies founded in 1941, with underline certain unique pattern of business more than 16,000 business entities as members operation belong to Construction sector. To through its 150 plus Centres (Branches) throughout appreciate the significance of it For example:- the country. Regional Associations Affiliated to BAI form indirect membership of more than 1,00,000. The 1) The construction operation of a contractor is fundamental aim of the Association is to bring about geographic specific and not being carried all round improvements in the construction sector, simultaneously in all the States. while striving towards resolution of operational as well as policy level problems faced by the 2) To carry construction business, substantial construction industry. This involves making efforts enabling goods, plant & machineries, men & to obtain from policy makers and authorities, the level materials are put to frequent alternate usage of attention that the construction industry deserves instead project specific. For example: in view of its tremendous contribution and importance to the economy. a) Scaffoldings, enabling items, consumable, plant & machineries etc At the outset, we at Builders Association of India are frequently moved, including on would like to congratulate the government on perpetual basis from operating site to passage of the GST Bills by the Lok Sabha in a very other in various States, returning to smooth manner. Your Ministry has also been very same State/site etc on need basis. proactive in release of the several rules dealing with b) Service providers e.g. labour & GST. services, manpower supplies, safety team etc too are used similar to above It was very heartening to note that several industry pattern. groups have been formed to address the various concerns raised by the industry. However it is c) Pattern of turnkey contract scope or surprising to find that no such group has been formed execution seldom maintained as for the construction and the real estate sector. We ‘firm’, and subjected to frequent have also been trying to contact your office, however changes eg construction of road, we have been informed that due to the functioning bridges etc . Oft such turnkey of the Parliament, it would only be possible to fix a contracts are awarded with price meeting after 12th April, 2017. inclusive of taxes & duties.

In the meantime, we hereby send you a Under GST regime ‘supply and services’ are representation explaining our concerns for kind provided for levy of GST. However, the consideration. We would also request you to take our complexity of compliance, financial burden, representation directly on the matters related to this procedures & documentation etc, including sector by granting us suitable time to meet your execution of various contracts spreading into goodself. We look forward to hearing from you. GST regime, are specific issues of serious concern to members of construction industry. Thanking you. Therefore, model rules on above aspects need Yours truly, to be underscoring the unique nature of construction industry and to be accommodative than burdensome or imperative of additional cost implication.

In the above brief background, BAI H. N. Vijaya Raghava Reddy represents the following for consideration of President Council while framing the rules as well as Builders’ Association of India propose to forward the same to States concern requesting to address the concern of BAI Representation on GST - Construction Industry industry, including to accord suitable The Council for GST while framing the rules, opportunity of personal hearing through a

BUILDERS' ASSOCIATION OF INDIA25 77th Annual Report and Accounts – 2017-2018 delegation from BAI. contractor (both with materials & without it) be specific on respective 3) Specific issues exclusive to construction statutory obligation, procedures, industry merits consideration by Council and documentation etc. Under VAT States while framing rules, among others regime, the above have been a includes the following:- seriously contested issue and contractors unwarrantedly involved a) Multiple dispatches of goods as well in litigation blocking working funds. as mobility of labour & services across the country, while taxable but e) Given the concept and administrative could dominate serious wisdom of GST, BAI decries any administrative issue on proposal to have provision on Tax documentation, compliance with Deduction at Source. The present procedures, affront payment of tax experience of members under VAT while awaiting belated relief, etc. regime is very adverse and critical for very survival of business. It would be ideal to accommodate by levy on first movement to designated f) The inbuilt mechanism for set-of site as well as allow set-off on input, credit relating input services or but all subsequent movement to be supplies, be permitted instead on eschewed from subjecting to frequent condition precedent of other assessee levy of GST to mitigate having complied with their statutory administrative, statutory as well as compliance. Being quasi-judiciary procedural hardship. function, it be appropriately form part of scrutiny or audit exercise of b) On-going projects be considered to be jurisdictional authority on the State covered by prevailing statute during of providers of supplies or service. transition period and upto completion of the work completion BAI makes the present recommendation or alternative both the parties to taking into account the complexity and contract accorded option to switch mismatch stature of conducting construction over to GST on prescribed condition business, compared to trading or or manner. manufacturing sectors. BAI is sanguine of Council as well as State GST administration This would also include turnkey involved in framing the GST Act/Rules, infrastructure contracts presently would taken the above into consideration and qualify for abetment/RCM/ further accord an opportunity to make exemption etc under Finance Act personal submission by BAI delegates, with 1994, State VAT Acts, benefit of sole object to make GST administration for concessional tax under CST Act 1956. construction industry to be easy, simple and friendly. c) Context to operational pattern of construction industry viz sans fixed or stationary status of business, set- Ref: 149/J/2017-18 dated 3rd June 2017 of benefit under GST regime for To, contractor be simpler and self- Shri Hasmukh Adhia regulatory basis instead burdening Revenue Secretary them with policing concept reference Ministry of Finance, to obligation of input service/goods Department of Revenue, providers, as condition precedent to North Block, earn the benefit. New Delhi-110 011 Dear Sir, d) Rules with regard to GST Sub: GST Representation – Construction Sector administration specific to sub-

BUILDERS' ASSOCIATION OF INDIA26 77th Annual Report and Accounts – 2017-2018 Builders’ Association of India (BAI) is an apex all hereunder:- India body of Engineering Construction Contractors and Real Estate Companies founded in 1941, with A. Transitional issues: more than 18,000 business entities as members through its 160 plus Centres (Branches) throughout 01. Transition of ITC contained in ongoing works the country. Regional Associations Affiliated to BAI contracts [Section 140] form indirect membership of more than 1,00,000. The fundamental aim of the Association is to bring about Issue:- all round improvements in the construction sector, while striving towards resolution of operational as Presently, there is no provision for transition of ITC well as policy level problems faced by the of goods portion contained in on-going works construction industry. This involves making efforts contract under the existing law, though such works to obtain from policy makers and authorities, the level contract will be used in ‘supply’ under GST. It is of attention that the construction industry deserves pertinent to note that cenvat credit of service portion in view of its tremendous contribution and only is allowed in works contract service Finance Act importance to the economy. 1994 and hence goods portion is not captured in cenvat credit portion of ST – 3 returns. The nature of construction business is not alone Our Recommendation:- unique but very complex as well as geographically ITC lying in on-going works contracts should be spread-out. The administration of indirect taxes as allowed to be carried forward under GST applicable to BAI members can be characterized as very cumbersome, ambiguous and also betrays 02. S.142(11)(c) – uniformity in many respects, including with reference to its accounting method prescribed.The construction Quote: business nature not alone involves for perpetual “Where tax was paid on any supply both under the Value mobility of own goods from one operating site to Added Tax Act and under Chapter V of the Finance Act, another/other States e.g. construction equipment, 1994, tax shall be leviable under this Act and the taxable machineries, consumables, works & staff etc. The person shall be entitled to take credit of value added tax or business further involves the parallel construction service tax paid under the existing law to the extent of activities as carried by various sub-agencies/sub- supplies made after the appointed day and such credit shall contractors for the work off-loaded by the contractor. be calculated in such manner as may be prescribed”. Towards the above, computerization of entire construction business activities on various segments, Issue: have not fully been achieved and this aspect has It appears that the provision envisaged the situation bearing on GST statutory compliance.BAI is doing where VAT and service tax has been paid and the its best for suitable co-ordination with member to supply falls in the period after the appointed day have the construction business operation based on a other than that is covered in sub-clause (a) & (b). In satisfactory computerized system, which is also such a situation GST will not be payable to the extent expected to synchronies with the requirement of GST the supply falls after the appointed day. compliance.It is in above background and noting of Our Recommendation:- GST rules, procedure as well as prescribed format as The above clause is not clearly drafted as payment State Act is further awaited, BAI request that the made under the existing laws is conjoined by the effective date for GST introduction be considered word, ‘both’ whereas it should be any of the tax as for 1st Sept. 2017 and provide us leg space to be the credit is eligible for either VAT or service tax. ready for the required statutory compliance, BAI is Further, the manner in which such credit to be sanguine of all the stakeholders responsible for allowed to be carried forward needs to be prescribed. introduction of GST in India would appreciate the above recommendation and help the construction B. Input Tax Credit: industry accordingly. 01. Availability of ITC in case of works contract Builders’ Association of India (BAI) is also pleased services [Section 17(5)(c)] – to submit the points for consideration while framing the final GST Rules with regard to the construction Issue:- industry / infrastructure projects. The same are given ITC of works contract service is allowed for further

BUILDERS' ASSOCIATION OF INDIA27 77th Annual Report and Accounts – 2017-2018 supply of works contract service. In case of a builder Issue:- / developer selling under constructed flats, such ITC It is imperative that in case of inter-State works is used to provide construction service as the builder contracts input tax credit (CGST & SGST) of the goods / developer more appropriately covered under and services purchased and used in works contract ‘construction service’. Though construction is a part in the other State should be allowed against the of works contract, both are different limbs in Sch. II. payment of IGST. Similar issue will arise when the Our Recommendation:- goods and/or equipments are transferred to another Clarification is required that for the purpose of this State for use in the works contract whether for clause, from the point of ITC claimant ‘works consumption or return after use.In absence of express contract service’ means ‘construction service’. provision to this effect it appears that it may not be possible to capture such credits in Electronic Credit 02. No provision for credit of excise duty, CVD Ledger of the supplier of such service from one State [Section 140(3)] – to other State resulting into loss of substantial ITC.

Issue:- Non availment of input tax credit in inter-State works contract hits at the core of GST of allowing tax credit No provision exist today for credit of excise duty, at every stage of supply. Also the principle of ‘ONE CVD contained in stock of construction material like INDIA ONE TAX’ is given go bye and such works cement, steel etc. held immediately prior to the contract become uncompetitive. appointed day to be carried forward in the post GST Our Recommendation:- regime though the material shall be used for taxable Appropriate amendment is required to be made in supply after the appointed day where adequate the CGST Act and the State GST laws. evidence is available for duty paid goods. C. Exemption: Further, provision is made in proviso to S. 140(3) to allow credit of 40% of CGST applicable on stock of 01. Serial No. 66 & 67 of service tax exemptions goods lying as on appointed day in absence of duty to be continued in GST as decided by GST Council- paid documents [R. 3(a)(ii) of Transition Provision Draft Rules refers] for service provider. Issue:-

Our Recommendation:- The exemptions are given only to pure labour Adequate provision is required to be made u/s. contracts of construction, erection, commissioning, 140(3) to allow carry forward of credit of excise duty, installation, completion, fitting out, repairs, CVD contained in stock of goods lying in ongoing maintenance, renovation or alteration of a civil works contract as on appointed day. structure or any other original work pertaining to the Beneficiary-led individual house construction / Proviso to S.140(3) should include service providers enhancement under the Housing for All (Urban) to avail credit of excise duty, CVD contained in stock Mission / PMAY And single residential unit of goods as on appointed day. R.3(a)(ii) of otherwise than as a part of a residential complex. Transitional Provision Rules should be amended to Our Recommendation:- include to service providers. All these contracts are normally in the nature of works contract and not of pure labour contract. The Further, the provisions should be made in the exemption should be allow to the works contract respective State GST law to carried forward the credit service to be the actual effective exemption. Further, of VAT, Octroi etc. contained in the stock of sub-contractor providing exempt service should also construction material held in stock on appointed day be exempted. In absence of allowance of credit of inputs lying in 02. In Entry 12A of Notification 25/2012 – ST” the stock and works contract the builder / developer shall suffer great financial burden and hardship as Services provided to the Government, a local further supply is liable to be taxed in post GST era. authority or a governmental authority by way of construction, erection, commissioning, installation, 03. Input Tax Credit – completion, fitting out, repair, maintenance, renovation, or alteration of—

BUILDERS' ASSOCIATION OF INDIA28 77th Annual Report and Accounts – 2017-2018 Issue:- (a) a civil structure or any other original works meant predominantly for use other than for Even in case of works contract in the State, the commerce, industry, or any other business or supplier of service will have to obtain multiple profession; registrations in various States from where the goods and/or service are procured. Similar is the case where (b) a structure meant predominantly for use as the goods and/or equipments are transferred at the (i) an educational, (ii) a clinical, or (iii) an art or site of works contract in the other State. cultural establishment; or Obtaining registration at various sites of works (c) a residential complex predominantly meant contract will entail unnecessary cost and compliance for self-use or the use of their employees or other burden making such contracts un-remunerative and persons specified in the Explanation 1 to clause (44) non-competitive without any gain to the exchequer. of section 65B of the said Act; Our Recommendation:- under a contract which had been entered into prior Enabling provisions should be made to avoid to the 1st March, 2015, exemption was to continue multiple registration in case of inter-State works upto 31st March, 2020. However, no grand fathering contract from where no invoice is issued. of this exemption is provided in the present list of exemption in GST. E. Valuation:

Issue: - Valuation of construction service where the value of works contract includes un-divided portion of land– Discontinuance of the exemption shall put many service provider in difficulty as they have already Issue:- taken on the basis of the exemption notification. Our Recommendation:- Our Recommendation:- The exemption should be grandfatherin the GST The differential rate of tax with or without inclusion regime of value of land does not serve the purpose of correct method of valuation as enrished in decision of 03. Services by way of construction, erection, Hon’ble Supreme Court in case of CCE Kerala vs. commissioning, or installation of original works Larsen & Toubro [2015] (60) Taxmann.com 354 (SC). pertaining to an airport or port provided under a Further, the principle laid down in the case of Larsen contract which had been entered into prior to 1st & Toubro vs. State of Karnataka [2014] (303) E.L.T March, 2015 and on which appropriate stamp duty, 3(S.C) that the value addition made to the goods where applicable, had been paid prior to such date, transferred after the agreement is entered into with the flat purchaser can only be made chargeable to Provided that Ministry of Civil Aviation or the tax by the State Government is not adhered to. Ministry of Shipping in the Government of India, as Presently schedule of GST rates approved by GST the case may be, certifies that the contract had been Council prescribed 12% with full ITC in case of entered into before the 1st March, 2015: construction of complex, building, civil structure or part thereof, intended for sale to a buyer, wholly or Issue: partly (provided the value of land is included in the Discontinuance of the exemption shall put many amount charged from the service recipient). service provider in difficulty as they have already taken on the basis of the exemption notification. In case of works contract without inclusion of value of land in consideration the rate of tax is 18%. This Our Recommendation:- will hit badly in case of re-construction of dilapidated The exemption should be grandfather in the GST buildings which is the dire need in most of the cities. regime Our Recommendation:-

Exemption should be granted to the re-development D. Registration – of dilapidated buildings certified by appropriate authority, or the rate of tax should be 5%

BUILDERS' ASSOCIATION OF INDIA29 77th Annual Report and Accounts – 2017-2018 F. Others: Subject : GST Representation – Construction Sector. 01. Schedule II (5)(b) – Respected Sir, Issue:- Please refer our (BAI) representation submitted to Our Recommendation:- you wide letter Ref: 149/J/2017-18 dated 3rd June Necessary clarification should be issued to determine 2017, and during a recent review discussion had on levy of GST on under constructed property. The GST introduction while various practical and levy should be restricted upto issue of occupation procedural issue was identified, but the following certificate or completion certificate, whichever earlier, issues dominated the serious concern of members to give meaning to the impugned clause. and hence being indexed for suitable guidelines:-

The same are given hereunder The words, ‘first occupation’ not defined. ‘first occupation’ will determine that whether construction 1. UNADJUSTED TDS: would be deemed to have been completed once the Post GST regime among other unaddressed property is occupied first time. issues is about unadjusted TDS which need be considered suitably. Adjustment of 0.2 Obligation arising out of continuing contracts accumulated TDS or TDS to be effected in pre GST regime- against pending outstanding or TDS made by client/Govt Dept but not deposited with Issue: - authority as well as TDS certificate to be issued. Absence of such provision shall create undue hardship to the service provider and the receiver of 2. UNAVAILED ITC CREDIT: service. In case of supply of goods made prior to GST Our Recommendation:- introduction by the vendors but their bills Adequate provision should be made to save the either to be received/approved or pending performance arising out of continuing works contract for the commercial disputes etc after 1.7.2017. of pre GST regime to the post GST regime. Issue pertain to modality of availing ITC under State VAT Act and similarly of excise duty under CEA 1944 read with CCR 2004. Thanking you, Suitable guidelines for the benefit of members Yours faithfully, is solicited.

3. ON GOING PROJECT WORKS Number of projects are under execution and H.N. VIJAYA RAGHAVA REDDY bound to enter into post GST regime. The PRESIDENT scope and pattern of execution involve both BUILDERS’ ASSOCIATION OF INDIA the supply of goods as well as provision of services, including overseas partners and Copy to: Shri Upendra Gupta, GST Commissioner, import components, which is expected to North Block, New Delhi – 110 001 have commercial as well as financial GST Council Secretariat Government of India159-B, implication on our members. North Block, NEW DELHI – 1. 4. OUTSTANDING OF ‘C’ FORMS: For members it is a matter of serious concern to obtain ‘C’ forms both from their clients/ Ref.: 202 /J/2017-18 dated June 21, 2017 contractees as well as to be obtained from Shri Hasmukh Adhia, their assessing authority meant to be issued Revenue Secretary, to their vendors. This position of serious Ministry of Finance, Department of Revenue concern to our members and have a unique North Block, position context to pattern of construction NEW DELHI -110 011.

BUILDERS' ASSOCIATION OF INDIA30 77th Annual Report and Accounts – 2017-2018 business for more than one reason. This fundamental aim of the Association is to bring about position is expected to be serious one for post all round improvements in the construction sector, GST regime unless a suitable working while striving towards resolution of operational as guidelines is provides for the benefit of BAI well as policy level problems faced by the members. construction industry. This involves making efforts to obtain from policy makers and authorities, the level 5. NATURE OF CONTRACT : of attention that the construction industry deserves In prevailing situation, clients ( including in view of its tremendous contribution and public sector undertakings) have placed importance to the economy. contracts on divisible basis and the same position may not prevail in post GST regime. Sir, we are indeed very thankful to you for Therefore, for on-going contracts it is considering our request to reduce the GST Impact expected to be a challenging issue both on on government projects by 6% considering the commercial and statutory basis unless the on- hardship that the rate of 18% would have created. going contracts are permitted to operate on Such positive actions by the government motivate status quo basis. us to implement government regulations in true spirit. RECOMMENDATION BAI sincerely believe that a detailed However in order to ensure that the benefit reaches guidelines of specific nature as belong to the all concerned as per the intention of the government construction business as to be adoptable both we have following to put forth :- by the client/contractee/PSU as well as contractors, would go a long way for BAI 1. Benefit of 12% rate to be extended to sub- members to mitigate their hardship and also contractor working under the said projects. in avoiding unproductive litigation. With reference to above, please note that the service tax law had a provision exempting the sub- Yours faithfully, contractors where they were executing works contract for the main contractor who was enjoying exemption.

H.N. VIJAYA RAGHAVA REDDY We would request to extend a similar benefit under PRESIDENT GST to extend the exemption or benefit of the 12% BUILDERS’ ASSOCIATION OF INDIA rate even to the sub-contractor whether executing a works contract or a pure labour project under the Ref: 430/A/2017-18 dated August 17, 2017 main contractor. Shri Arun Jaitley Hon’ble Finance Minister 2. Definition of Governmental authority. Government of India, As per the minutes of the council it can be seen that North Block, projects which are being undertaken for NEW DELHI – 110 011 governmental authorities shall also attract a rate of 12%. In this regard we wish to submit that the Respected Sir, definition of governmental authority has not been specified under the act. We would suggest to include Sub: Benefit of 12% rate to be extended to sub- all government undertakings doing projects on a non- contractor working under the same projects. commercial basis within this definition rather than restricting the same to those entities that execute Builders’ Association of India (BAI) is an apex all functions of a municipality under the constitution as India body of Engineering Construction Contractors mentioned under the service tax provisions. and Real Estate Companies founded in 1941, with more than 18,000 business entities as members 3. Labour intensive government projects. through its 160 plus Centres (Branches) throughout It may be noted that the rate of 12% is justified for the country. Regional Associations Affiliated to BAI material intensive government projects, however form indirect membership of more than 1,00,000. The labour intensive projects including several

BUILDERS' ASSOCIATION OF INDIA31 77th Annual Report and Accounts – 2017-2018 maintenance projects would become unviable even Thanking you, at 12%. We would request to extend full exemption Yours truly, to these projects atleast those which are ongoing as on the GST implementation date.

Sir, we earnestly request you to kindly consider our H. N. VIJAYA RAGHAVA REDDY plea and grant us the relaxations as stated above to President ensure the benefit is practically enjoyed in all respects. Builders’ Association of India

BUILDERS' ASSOCIATION OF INDIA32 77th Annual Report and Accounts – 2017-2018 BAI's BAI succeeds in Round One of GST Achievement - GST on Works contract Services brought down to 12% from 18%

Since the beginning of the decision to implement GST Varadharajan, Vice President, South Zone-II; Mr. K. was taken, BAI has been in dialogue with Venkatesan, Chairman, BAI Southern (Chennai) Government of India (GoI) on construction Centre; Mr. R. Sivakumar, Zonal Secretary (South); industry’s concerns. While some of them were Mr. S. Ramaprabhu, Hon. Secretary, BAI Southern addressed to by the GoI, before implementation, (Chennai) Centre and Mr. Raju John, Executive many issues, contentious issues remained when GST Secretary, BAI met the Hon’ble Union Minister of was implemented on 1st July, 2017. Finance, Defence and Corporate Affairs and explained the following GST issues for immediate BAI continued to engage GoI in dialogue and made relief from the GoI :- numerous representations, had meetings, etc. Centres of BAI and regional construction industry 1. What is BAI and its members‘ contribution to Associations affiliated to BAI also made efforts. the nation building?

The latest such effort of BAI was on 30th July 2017, 2. Levying 18% GST on ‘Ongoing Contracts’, both when Mr. Arun Jaitley, Hon’ble Union Minister of private and Government, will ruin the project Finance, Defence and Corporate Affairs, was in execution viability. Contractors were paying an Chennai to meet representatives of 14 organisations, average tax @6%. of which BAI was one. The organisations were : 3. All infrastructure and majority of Government ¾ Apollo (Apollo) projects were exempted from payment of ¾ Confederation of Indian Industry (CII) Service Tax. This exemption should continue. ¾ Federation of Indian Chamber of Commerce 4. Levying GST on Mobilization Advance is and Industry (FICCI) unreasonable as the department is already in ¾ The Associated Chambers of Commerce and possession of Performance and Security deposit Industry of India (ASSOCHAM) from contractors. This levy will affect the working capital cash flow of the contractor. ¾ The Institute of Company Secretaries of India (ICSI) 5. To fulfil the dream of Prime Minister – Housing ¾ The Madras Jewellers’ & Diamond Merchants’ for All - Affordable Housing should be Association (MJDMA) completely exempted from GST. ¾ The Tamil Nadu Plastics Manufacturers’ 6. Land Valuation deduction, under construction Association (TAPMA) of complexes, should be based on actual cost of ¾ Builders Association of India (BAI) the land or to be based on value mentioned in the Ready Reckoner. Blanket deduction of one ¾ Confederation of Real Estate Developers’ third on account of land value will result Association of India (CREDAI) exaggeration of the value. ¾ Hindustan Chamber of Commerce (HCC) 7. Reverse Charge Mechanism provided in GST ¾ The Chennai Custom Brokers’ Association Rules while dealing with unregistered dealers (CCBA) needs review as construction industry is a ¾ The Institute of Cost Accountants’ of India unique industry comprises of many small ¾ The Southern India Chamber of Commerce & players with less than Rs.20 lakhs turn over. Industry 8. Own residential projects where a contractor is ¾ VIT University (VIT) engaged should also be considered for exemption, as provided for single resident unit. A small BAI delegation led by Mr. R. Radhakrishnan, Past President & Past Trustee, Mr. V. N. A representation on behalf of BAI was also presented

BUILDERS' ASSOCIATION OF INDIA33 77th Annual Report and Accounts – 2017-2018 to the Hon’ble Finance Minister, which is printed State for Finance and Corporate Affairs and Mr. herein below. Santosh Kumar Gangwar, Hon’ble Union Minister of State for Finance, were present. An exclusive luncheon of ‘Meet & Greet’ the Honourable Union Ministers was also organised, Mr. R. Radhakrishnan addressing the gathering which was followed by a Conclave, wherein during the Conclave. representative of the 14 organisations were present. Subsequently, at the 20th GST Council Meeting held Mr. Arun Jaitely, Hon’ble Union Minister of Finance, on 5 August, 2017, wide range decisions (printed Defence and Corporate Affairs; Mrs. Nirmala herein below) were taken, one of which was “Works Sitharaman, Hon’ble Union Minister of State contract services provided to Government, local (Independent Charge) for Commerce & Industry; Mr. authority or governmental authority, would attract Arjun Ram Meghwal, Hon’ble Union Minister of 12% GST with full ITC” (earlier it was 18%).

30.07.2017 Mr. Arun Jaitley, Hon’ble Finance Minister, Government of India, North Block, New Delhi – 110 001.

Sir, Sub.: GST Impact on on-going projects

1. Background 2. On-going Government Projects

1.1 Builders’ Association of India (BAI) is an apex 2.1 Notification No.25/2012 under the Service Tax all India body of Engineering Construction regime provided for an exemption in respect of Contractors and Real Estate Companies various construction and related projects when founded in 1941, with more than 18,000 provided to Government or local authorities business entities as members through its 160 specifically in relation to canal, dam, irrigation plus Centres (Branches) throughout the country. projects, water and sewerage projects. Regional Associations Affiliated to Bai from indirect membership of more than 1,00,000. The 2.2 Similarly, exemption was available for any fundamental aim of the Association is to bring construction and related work carried out for about all round improvements in the the Government where the contracts had been construction sector, while striving towards executed prior 01.03.2015 and the exemption resolution of operational as well as policy level was available upto 01.04.2020 through problems faced by the construction industry. Notification. This involves making efforts to obtain from 2.3 Exemption was available for construction and policy makers and authorities, the level of related work pertaining to road, bridge, tunnel attention that the construction industry or terminal for road transportation. deserves in view of its tremendous contribution and importance to the economy. 2.4 Similarly, exemption was available to construction and related works for railways, 1.2 While we welcome GST we have the following single residential units by way of on-going concerns for which we seek the Hon’ble exemption for contracts executed prior to Minister’s attention. 01.03.2015 and the exemption was available upto 01.04.2020.

BUILDERS' ASSOCIATION OF INDIA34 77th Annual Report and Accounts – 2017-2018 Most of these works are carried out by 4.2 In our business we have to engage small Government and specifically State Government masons, painters, welders, electricians, packers, under contracts where tax has not been factored cleaners, loaders, transporters, caterers, vehicle based on the exemptions. Given the fact that these operators, drivers, cleaners and construction are all ongoing contracts, suitable exemption must staffs who do not have any registration and be introduced to ensure that ongoing projects are many of them are well within the threshold limit not affected. Tax if any can be imposed on new of Rs.20 lakhs. However, the provisions do not projects subject to the conditions that the Act itself make any distinction and mandate payment of stipulates payment of the tax portion by the GST by us merely because, we are registered Government to the Contractor. and these persons are unregistered.

3. Works Contract It is our request that the provisions may be reviewed or suitable exclusions are given to labour 3.1 In the past, the biggest challenge is the work focused industries such as construction. contract was the distinction between material and labour and it was hoped that GST would 5. Single residential unit solve the problem. 5.1 Under the GST regime, exemption is given for 3.2 GST has solved this problem only partially and services by way of pure labour contracts of has created another issue. In terms of the GST construction, erection, commissioning, or provision as enacted only works contract that result installation of original works pertaining to a in immovable property are considered as supply of single residential unit otherwise than as a part service with a GST rate of 18%. of a residential complex; while in pre-GST regime, Notification No: 25/2012 exemption 3.3 All other works contracts will have to be tested was given for entire contract. under composite supply and if the equipment rate is say 28% it could result in the entire 5.2 Deduction towards Value of Land contract being taxed at 28%. 5.2 In case of construction complexes where the 3.4 Further, works contracts which involve element of land is involved along with the immovable property do not qualify for input composite supply, the deduction towards land tax credit in the hands of the recipient by virtue value may please be allowed on an actual cost of Section 17(5) of the CGST Act resulting in basis or be allowed on the basis of the value the clients refusing to reimburse the GST available in the Ready Reckoner used for portion. payment of Stamp Duty.

It is our request that all works contracts are We humbly request your good office to consider considered as supply of services and the extending the exemption for entire works Government may even consider having a lower contract for single residential unit. We also rate of 5% for all Government works contract. humbly request you to consider the valuation Similarly, the artificial restriction in Section 17(5) of land as mentioned in the representation. should be removed since construction of 6. Transition commercial building, warehouses, godowns, shopping malls, factory buildings, factory 6.1 On one hand the Government agencies are godowns and other commercial constructions are expecting the prices to come down based on the all affected. credit on materials but the reality is that majority of the materials are always brought 4. Reverse Charge Mechanism – Unregistered from small dealers who are not required to issue Suppliers an excise invoice. While the transition 4.1 While we can understand the object of reverse provisions indicate that a certain percentage of charge mechanism for notified categories, tax paid would be given back as release, the imposing GST on the registered person for proviso to Section 140(3)) of the CGST Act, 2017 dealing with an unregistered person has states that this benefit is not applicable to brought our business to a standstill. manufacturers or suppliers of services.

BUILDERS' ASSOCIATION OF INDIA35 77th Annual Report and Accounts – 2017-2018 We request that the transition provision may be impact. suitable amended to ensure that the benefit We humbly request your good office to consider available to traders are extended to service keeping advances received out of GST. providers. 9 Composition Benefit for Works Contract: 7. Rate of Tax 9.1 Under the pre-GST regime, composition benefit 7.1 Wooden furniture has moved from a VAT rate was made available under self-exercisable of 5% to a GST rate of 28%. This will kill the option for works contract. organized market and only open up evasion and unorganized sector supplies. We humbly request your good office to consider extending the composition levy for works contract 7.2 Solid and hollow blocks attracts a GST rate of up to the specified limit of Rs 75 Lakhs turnover 28% whereas the inputs for these blocks is fly in a year as a relief for small contractors. ash which is 0% GST; blue metal which is 5% GST. The element of cement in hollow block is We would like to be provided with an opportunity only 4% and cement is at 28%. There by the to be heard in person to highlight our concerns. credit availability on the input tax is hardly 7% whereas the output rate is 28% which has affected the sale of these products. Thanking you,

We request you to consider a GST rate of 12% for Yours faithfully, hollow blocks and solid blocks and furniture. for BUILDERS’ ASSOCIATION OF INDIA 8. Advances received out of GST:

8.1 Under the GST regime, the advances received are brought under GST. This will put contractors under hardship. The GST paid on advances received is akin to GST paid as advance tax. Finally, setting off the advance H. N. VIJAYA RAGHAVA REDDY against the invoice raised will only have interest PRESIDENT

Decisions taken on Services at 20th GST Council Meeting on 5 August, 2017 Sr. No. Description of service From To 1. Job work services in respect of the textiles and textile 18%/5% 5% products (including MMF yarn, garments, made-ups, etc. falling in Chapters 50 to 63) 2. Services by way of printing of newspapers, books 18% with full 12% with full (including Braille books), journals and periodicals where ITC ITC only content is supplied by the publisher and the physical inputs including paper used for printing belongs to the printer 3. Services by way of printing of newspapers, books 18% with full 5% with full (including Braille books), journals and periodicals using ITC ITC physical inputs owned by others (including an unregistered publisher/supplier) 4. Works contract services provided to Government, local 18% with full 12% with full authority or governmental authority and in respect of ITC ITC post-harvest storage infrastructure for agricultural produce, mechanized food grain handling system

BUILDERS' ASSOCIATION OF INDIA36 77th Annual Report and Accounts – 2017-2018 Sr. No. Description of service From To 5. Margin/commission payable to Fair Price Shop Dealers by 18% with full Nil Central/ State Governments ITC 6. Admission to planetarium 28% with full 18% with full ITC ITC 7. Rent-a-cab service Allowed option of 12% GST with full ITC. 5% GST with no ITC will also continue 8. Goods Transport Agency Service (GTA) Allowed option of 12% GST with full ITC under forward charge. 5% GST with no ITC will also continue. (However, the GTA has to give an option at the beginning of financial year) 9. In case of small house-keeping service providers (plumbers/carpenters) providing services through Electronic Commerce Operators (ECO), liability to pay GST placed on ECO 10. Partnership firm or a firm includes LLP ( Limited liability Partnership) for the purposes of levy (including exemption therefrom) of GST on legal services. 11. To clarify that legal services (including representational services) provided by an individual advocate or a senior advocate or a firm of advocates (including LLP) provided to a business entity in taxable territory are covered under reverse charge mechanism 12. Goods required by FIFA and Services provided by and to FIFA and its subsidiaries in connection with FIFA U-17 World Cup to be hosted in India in 2017 shall be exempted from GST 13. New crop insurance schemes Pradhan Mantri Fasal Bima Yojana (PMFBY) introduced from Kharif 2016-17 in place of National Agricultural Insurance Scheme (NAIS) and Modified National Agricultural Insurance Scheme (MNAIS), and Restructured Weather Based Crop Insurance Scheme (RWCIS) introduced in place of Weather Based Crop Insurance Schemes , shall be extended exemption from GST.

Date : 17-08-2017

In the meantime, consistent efforts by BAI and by BAI Centres have resulted in Union Government departments and some State Governments, taking measures to mitigate the hardship of contractors due to implementation of GST, particularly on ongoing contracts. Central Public Works Department and Union Ministry of Railways have formed Committees to look into the matter. Government of Madhya Pradesh has also taken necessary steps. Relevant circulars are printed herein below. Some news reports post 20th GST Council Meeting held on 5 August, 2017 are also printed. CENTRAL PUBLIC WORKS DEPARTMENT

OFFICE MEMORANDUM No. DG/SE/CM/Misc/75 ISSUED BY AUTHORITY OF DIRECTOR GENERAL, CPWD

Nirman Bhavan, New Delhi Dated: 10.08.2017

Sub:- Decisions taken in Technical Committee Meeting held on 28.07.2017

1. Refund of Service Tax Department refuses to refund the tax to the contractors the matter may be communicated DDOs of CPWD will give NOC to contractors to the directorate through respective DDOs. for refund of service tax wherever it is reimbursable. Wherever the Service Tax 2. Effect of GST in tenders / Contracts

BUILDERS' ASSOCIATION OF INDIA37 77th Annual Report and Accounts – 2017-2018 A committee (GST Committee) chaired by 1. Shri R.N. Gupta of Builders' Association of CE(CSQ)(Civil) and consisting of the following India members representing CPWD and Contractor's 2. Shri Randhir Singh Solanki of Contractor' bodies is constituted for formulated policy Association. regarding taxation in renders awarded/ received before 01.07.2017 and received after Issued from file No. CSQ/CM/16(1)/2017 01.07.2017. 1. All Spl. DGs, ADGs, CPWD, E-in-C, PWD, CPWD side. PWD, Delhi Govt. They are requested to endorse a copy of this O.M. to all CEs, SEs & 1) Director Finance. EEs. 2) Superintending Engineer (C&M) 2. All members of the GST Committee by email 3) Superintending Engineer (TAS) and post. Sd/- Contractor's ride. Executive Engineer (M)

GOVERNMENT OF INDIA MINISTRY OF RAILWAYS RAILWAY BOARD

No. ERB-I/2017/23/44 New Delhi, dated 31.07.2017

ORDER

1. Ministry of Railways (Railway Board) have the exigency arising out of above. decided to constitute a Committee to examine the impact of GST on Works Contracts. The 3. The Committee should submit its report within Committee will consist of the following:- one month from the date of its constitution.

(i) Shri P.S. Gupta, Executive Director/CE(G), 4. The headquarters of the Committee will be at Railway Board ...Convener New Delhi. (ii) Shri S.C. Jain, Executive Director (Works), 5. CE-I Branch of Railway Board will be the Nodal Railway Board ...Member Branch for functioning of the Committee. Therefore, all related works/issues including (iii) Shri Sanjay Lavania, Executive Director/ Parl. Questions, RTI cases, their execution and F(X)I, Railway Board ...Member other formalities with regard to the Committee, should be dealt with by CE-I Branch. 2. The terms of reference of the Committee will be as under:- 6. The Convenor and Members of the Committee will draw TA/DA as per extant Rules. i) To examine impact of GST due to increased tax liability on ongoing works contract of Sd/- civil engineering department awarded (M.M. Rai) before GST came into force. Deputy Secretary (Estt.) Railway Board ii) To suggest remedial measures to meet with

Copy to:- 1. The General Managers, all India Railways (including Metro & CORE) Construction and Production Units. 2. The director General, RDSO/Lucknow and NAIR/Vadodara.

BUILDERS' ASSOCIATION OF INDIA38 77th Annual Report and Accounts – 2017-2018 BAI’s efforts pays off . . .

25th GST Council Meeting recommendations vis-a-vis building and construction sector

The 25th GST Council Meet was held on 18th January 5. To expand pure services exemption under S. No. 2018 in Vigyan Bhawan, New Delhi. Given below in 3 of 12/2017-C.T. (Rate) so as to include a nutshell are the recommendations relevant for the composite supply involving predominantly building and construction sector. supply of services i.e. upto 25% of supply of goods. The most important recommendation from BAI’s point of view is bringing sub-contractors of main 6. To reduce GST on Common Effluent Treatment contractors at par i.e. levy of GST at 12%. This is Plants services of treatment of effluents, from due to persistent efforts of BAI at multiple levels. 18% to 12%. Some of the changes relating to GST rates on certain 7. To extend the concessional rate of GST on services are as follows : houses constructed / acquired under the Credit Linked Subsidy Scheme for Economically (A) Exemptions / Changes in GST Rates / ITC Weaker Section (EWS) / Lower Income Group Eligibility Criteria (LIG) / Middle Income Group-1 (MlG-1) / 1. To reduce GST rate on construction of metro and Middle Income Group-2 (MlG-2) under the monorail projects (construction, erection, Housing for All (Urban) Mission/Pradhan commissioning or installation of original works) MantriAwasYojana (Urban) and low-cost from 18% to 12%. houses up to a carpet area of 60 square metres 2. To reduce GST rate (from 18% to 12%) on the per house in a housing project which has been Works Contract Services (WCS) provided by given infrastructure status, as proposed by sub-contractor to the main contractor providing Ministry of Housing & Urban Affairs, under the WCS to Central Government, State Government, same concessional rate. Union Territory, a local authority, a 8. To levy concessional GST @12% on the services Governmental Authority or a Government provided by way of construction, erection, Entity, which attract GST of 12%. Likewise, WCS commissioning, installation, completion, fitting attracting 5% GST, their sub-contractor would out, repair, maintenance, renovation, or also be liable @ 5%. alteration of building used for providing (for 3. To exempt (a) services by government or local instance, centralized cooking or distributing) authority to governmental authority or mid-day meal scheme by an entity registered government entity, by way of lease of land, and under section 12AA of IT Act. (b) supply of land or undivided share of land (B) Rationalization of certain exemption entries by way of lease or sub lease where such supply 1. To defer the liability to pay GST in case of TDR is a part of specified composite supply of against consideration in the form of construction construction of flats etc. and to carry out suitable service and on construction service against amendment in the provision relating to consideration in the form of TDR to the time valuation of construction service involving when the possession or right in the property is transfer of land or undivided share of land, so transferred to the land owner by entering into a as to ensure that buyers pay the same effective conveyance deed or similar instrument (eg. rate of GST on property built on leasehold and allotment letter). No deferment in point of freehold land. taxation in respect of cash component. 4. To amend entry 3 of notification No. 12/2017- 2. To tax renting of immovable property by CT(R) so as to exempt pure services provided government or local authority to a registered to Govt. entity. person under reverse Charge while renting of

BUILDERS' ASSOCIATION OF INDIA39 77th Annual Report and Accounts – 2017-2018 immovable property by government or local without operator, of goods, attracts same GST as authority to un-registered person shall continue supply of like goods involving transfer of title in the under forward charge. said goods. Therefore, the GST rate for the rental services of self-Propelled Access Equipment (Boom. (C) Clarifications Scissors/Telehandlers) is 28%. To clarify that leasing or rental service, with or

14th January 2018

To,

Shri Arun Jaitley Hon’ble Union Minister of Finance & Corporate Affairs Ministry of Finance Government of India New Delhi Respected Sir,

Sub : For suitable inclusion / amendment in GST and Income Tax for enabling the Construction Sector across the country

While thanking the Government for reducing the GST 2. In construction industry, it is a common trade Rates from 18% to 12% for Government contractors, practice for contractors to build a site office at we assure our fullest support and cooperation to your the construction site for administrative Government. We herewith submit our earnest convenience and effective management. Under request on just and equitable approach on both direct GST Law, such contractors are required to and indirect taxes to be considered for the wholesome obtain separate registration (as business vertical) development of the entire construction sector which for such temporary site offices thereby will bring holistic growth to economy and will also increasing the compliance burden. The increase the fiscal revenue proportionately. contractors usually transfer expensive machineries (viz. boring, drilling, and GST: excavation equipments) from one site to another 1. The Construction Industry’s biggest expectation for usage across different states. from this Budget would be to include Taxing such trade movements coupled with construction sector in entirety under the GST impractical registration requirements has added regime. So far, only under-construction to the compliance woes of the sector. We humbly properties are included and sale of fully request for a specific compliance exemption for constructed property is not covered under the small and medium contractors till a limit of 5 ambit of GST. This partial exclusion has resulted crores per annum. in denial of input tax credits, cascading of taxes and a case for imposition of other local levies 3. The Government has introduced the concept of like stamp duty, registration fees etc. Across the ‘first occupation’ in the declared service category globe, many countries have included real estate under GST [Schedule II – 5(b)]. Under Service sector completely under GST. tax regime, Service tax was not charged on

BUILDERS' ASSOCIATION OF INDIA40 77th Annual Report and Accounts – 2017-2018 construction of complex, building etc., wherein Income Tax: the entire consideration was received after 1. From builders’ perspective, Delays by builders/ issuance of completion certificate. However, contractors in delivering the realty projects is a under GST, the said benefit has been extended common sight. As a result, a tax payer, who has even in the absence of the said certificate, sold a house and invested in another flat whose provided the ‘first occupation’ has taken place. construction is required to be completed within Though the said provision appears to be a the time limit prescribed under section 54 of blessing for the builders, the undefined Income Tax Act, is being denied exemption for expression ‘first occupation’ germinates into a such delays. We hereby request to include potential subject matter of litigation. Further, specific provision for the above genuine delay with regard to credit under GST, there is an as extension in section 54H of Income Tax Act. ambiguity if the ultimate developer shall be entitled to credit of tax on works contract 2. In the last budget, the Government had services. We humbly request the Government restricted to set-off of loss arising from house to bring suitable amendment in Schedule II of property against any other head to INR 2 lakh GST Law to give clarity / explanation on “first per annum. The said restriction has adversely occupation”. impacted the lives of common man. Requesting the Government to consider enhancing the limit 4. The long-pending issues viz., Taxability of sale / relaxing the condition as a special booster to of Floor Space Index (FSIs)/ Transfer of the housing sector. Development Rights (TDRs), Taxability of barter transactions in the form of giving away of free 3. Inclusion of leasehold rights and tenancy rights flats in lieu of development rights continues to in the definition of ‘land and building’ for the be taxed for the real-estate sector at deemed purpose of availing the benefit of reduced consideration/Guideline Value. We humbly holding period is humbly sought for due request the Government to bring suitable amendment. amendment for taxability of barter transactions 4. We humbly request the Industry friendly for giving free flats in lieu of TDR. Government for Resolution on the aforesaid 5. The subcontractors in the Construction sector issues in the upcoming Budget to be presented are still levied GST of 18 per cent which is on 1st February 2018 / in the ensuing GST earnestly requested to be reduced to 12 per cent Council meeting. for sub-contractors at par with Government Thanking You, Contractors. Yours faithfully, 6. For sale of apartments/complexes including land and building, GST is levied at 18 per cent, where 6 per cent (1/3) is deemed to be regarded as land value; this is an impediment when actual land value is much substantially lower. We humbly suggest to amend provision to have Land valuation deduction under construction H. N. VIJAYA RAGHAVA REDDY of complexes, should be based on actual cost of PRESIDENT the land or should be based on value mentioned BUILDERS’ ASSOCIATION OF INDIA in the ready reckoner

BUILDERS' ASSOCIATION OF INDIA41 77th Annual Report and Accounts – 2017-2018 26th GST Council Meeting

The 26th GST Council Meeting was held on 10th till 31.03.2018. Now, such provisions are proposed March, 2018. We are giving below some of the to be further deferred till 30.06.2018 and shall be important recommendations having a bearing on the introduced once modalities of implementation of building and construction industry. such RCM are finalized after addressing concerns of trade and industry. Filing of GST returns/statements Tax Deducted at Source ('TDS') and Tax A new model for filing GST returns was discussed extensively at the 26th GST Council meeting but in Collected at Source ('TCS) absence of its finalization, the current system of filing GST TDS is applicable in cases of payments made to GSTR-1 and GSTR-3B is proposed to be extended for specified Governmental authorities and notified another 3 months i.e. from April, 2018 to June, 2018. suppliers if the total contract value exceeds Rs. 2.5 Due dates for filing GST returns/statements shall be Lakhs (Section 51 of GST Act). Further, TCS needs to notified in due course of time. be deducted at the rate not exceeding 2% (1% GST Liability to pay tax under reverse charge and 1% SGST) of net value of taxable supplies in cases of collection of amount by e-commerce operators mechanism (RCM) in case of procurement (Who are not agents). Central and State Government's from unregistered persons systems needs to be reconciled appropriately to Various taxpayers are facing severe issues with provide appropriate credit of such TDS and TCS to respect to RCM in cases of procurement from respective taxpayers. Therefore, TDS and TCS unregistered persons. Such provisions were deferred provisions are proposed to be further deferred till 30.06.2018. SKILL DEVELOPMENT IN CONSTRUCTION SECTOR Government of India established National Skill Information System (LMIS). Ultimately in a meeting Development Corporation (NSDC) on 31st July 2008 held on 23rd August 2012 in the office of Mr. as not for profit company licensed under Section 25 Ramadorai, the then Adviser to Prime Minister on of the Companies Act, 1955. NSDC has targeted to Skill Development and present Chairman of National train 150 million people by 2022, out of incremental Skill Development Corporation, Construction Sector demand of 240 million. Skill Development a Council of India was formed jointly by four Associations namely Builders' As mandated under NSDC's programme Association of India (BAI), Construction Federation Construction Industry need to form a Construction of India (CFI), Confederation of Real Estate Skill Development Council to establish occupation Developers Association of India (CREDAI), and standards, operations and delivery mechanism, National Highway Builders' Federation (NHBF). certification and accreditation and Labour Market Members of the Governing Council are as follows:- Name of Member Name of Organisation Mr. Ajit Gulabchand Chairman, C.F.I. Mr. S.N. Subramanian C.F.I. Mr. B. Seenaiah Past President, BAI Mr. Sushanta Kumar Basu Past President, BAI Mr. Lalit Kumar Jain Chairman, CREDAI Mr. C. Shekar Reddy President, CREDAI Mr. V.C. Verma President of NHBF Col. Surinder Kuda of M/s. Ashoka Buildcon NHBF Mr. Niranjan Hiranandani Additional Industry Nominee Mr. Phillie Karkaria Additional Industry Nominee Mr. Devendra Choudhary, Additional Secretary, Ministry of power Planning Commission Nominee Mr. J. Ganguly Additional Industry Nominee Technical Adviser to be decided by Governing Council later.

BUILDERS' ASSOCIATION OF INDIA42 77th Annual Report and Accounts – 2017-2018 CONSTRUCTION SECTOR HIGHLIGHTS

1. PRADHAN MANTRI KAUSHAL VIKAS existing work force & employed in industry by YOJNA 2.0 Best in Class Employers. This is in addition to RPL Type, 1, 2 and 3under PMKVY2016-20. The PMKVY 2.0 was launched on 15 Jun 2016. Under this program, assessment will be carried The scheme requires the training centers to be out by employer & certificate will carry the logo uploaded and approved through the SMART of the employer along with SSC & Skill India. NSDC portal (http://www.smartnsdc.org/). This will help in achieving certification at larger Seven Job Roles have been included under the scale while ensuring its economy and quality program. Under the program the target of of certification. This scheme is available for 87,613 have been allocated. Details of workers of those employer who fall in best in 69757candidates have been uploaded by class category (annual turnover over 100 cr& training centers for PMKVY and 52,827 minimum 1000 employees as principal candidates have been assessed. Total employer). Target of 2,00,000 have been 313training centers have been affiliated under allocated to CSDCI under the scheme.It is PMKVY as on 31 May 2018.In this financial year expected that if employers are willing to no fresh allotment has been received from participate, CSDCI can achieve the target easily NSDC under the program. However, it has been in FY 2018-19. CREDAI national has already told by NSDC that allotment will begin soon. promised to do 1,00,000 certification of Large number of targets under PMKVY have construction workers through its members. been allocated to states for allotment to Training Centers(TCs) under CSSM(Centrally sponsored 4. RPL UNDER BOCW AND USE OF BOCW & state managed) component by states. Existing FUNDS FOR TRAINING OF job roles of level 3 to level 5 (listed under CONSTRUCTION WORKERS annexure by NSDC) can be selected by states as per requirements.States are allocating targets RPL/RPL with bridge course under BOCW are directly to TCs under CSSM components. being planned for various states. NSDC is coordinating in the effort. A proposal under 2. RECOGNITION OF PRIOR LEARNING BoCW fund from CREDAI national submitted (RPL) as Pilot project, however, the proposal has been returned by NSDC due to lack of policy clarity Under the Flagship of PMKVY 2.0, RPL in funding for the program.The issue is being program launched for those worker, who discussed continuously with MSDE & State already possesses the skill. However, Governments. States are ready to implement the recognition & certification of such workers are skilling of construction workers from BOCW required to be done based on NSQF level. Under Funds. UPSDM, MSSDS, Bihar, Madhya the RPL program, training/orientation duration Pradesh, Assam & Meghalaya have expressed varies from 12 to 80 hours and are carried out willingness to provide targets under in three types (Type 1- camp based, Type 2 – site based &Type 3- training center based). BOCW funds. However, there is generally lack Under the program the target of 1,09,500have of clarity on funding & support issues. Training been sanctioned for Construction Sector, & assessment only for three batches has taken 66,987candidates have been trained &42,528 so far for Chandigarh. have been certified till now. Proposal for more than 3 lakh targets have been received from PIA 5. ON SITE TRAINING & ACCEPTANCE OF andwere progressed at various stages. TEMPORARY TRAINING STRUCTURES UNDER GOVERNMENT SCHEME (SHORT 3. RECOGNITION OF PRIOR LEARNING TERM) TYPE 4 (RPL TYPE 4) (FOR BEST IN CLASS EMPLOYER) The issue has been projected to NSDC/MSDE for acceptance of on-site training under RPL Type 4have been introduced by the temporary training infrastructure for PMKVY government in Feb 2018 for recognition of 2. The acceptance of reason & necessity has been

BUILDERS' ASSOCIATION OF INDIA43 77th Annual Report and Accounts – 2017-2018 accepted by NSDC. However, formal approval/ 5. CSTI L&T, Kanchipuram, Tamil Nadu acceptance has not been received. 6. CSTI L&T, Pilakhuwa, Uttar Pradesh 6. APPRENTICESHIP AND NAPS 7. NAC Hyderabad, Telangana 8. OGM Technical Institute – Gurgaon, National Apprenticeship Promotion Scheme Haryana (NAPS) is being promoted by MSDE to enhance 9. Somani Ceramics, Bahadurgarh, Haryana employability of certified candidates. The SSCs have been asked to provide support and take 10. Invotech Precision Engineers, Vizag, AP up this initiative for their respective sectors. The 11. SIRD Guwahati, Assam Apprenticeship portal has been developed at 12. Simplex Dwarka, Delhi NSDC and is operational. Under the scheme 13. Ambey Tech, Ara Bihar two type of apprenticeship (paired QP & embedded QPs) are being promoted for level 3 14. Saint Gobain Gyprox, Wada, Maharashtra to level 5 job roles. 15. Bhaskar Foundation, Raipur, Chhattisgarh 16. Drishti, Khandwa, M.P CSDCI has proposed four job roles under paired scheme and three job roles under 17. MGSIRD & PR, Jabalpur, apprenticeship scheme. Curriculum 18. RRD & PRTC, Bhopal development for these job roles are under 19. RRD & PRTC, Gwalior progress. 20. RRD & PRTC, Indore 7. PMKVY – TECHNICAL INSTITUTES 21. RRD & PRTC, Now gong, 22. RRD & PRTC, Seoni The National Steering Committee had sanctioned 251 Polytechnics / Engineering 23. RRD & PRTC, Ujjain College in for construction sector. The selected 24. Kushal Credai, Pune , Maharashtra Polytechnics/ Engineering colleges have to 25. SBBS, Nagpur enroll the students as per the allocation and 26. AITMC, Sohna, Gurgaon, Haryana sanctioned trade/ QP. Till now data of 1746candidates have been received from 27. CSTI L&T, Cuttack Technical Institutions and 463 candidates have 28. CSTI L&T, Ahmedabad been assessed.As per policy the AICTE program 29. Veda Arc Institute, Lucknow portal will be interlinked into NSDC/SDMS portal so that the assessment and certification Demand based ToTs for TPs / PIAs (Project can happen seamlessly. However, due to non- Implementing Agency) are also being readiness of the SDMS system, the data conducted for RPL.CSDCI has been able to meet capturing, assessment& certification are being the requirements of Trainers, Master Trainer, done offline till date. More information is Assessors &Master Assessors so far. Till now available on http://www.aicte-india.org/ 220 ToT courses have been conducted and pmkvy.php 1646trainers/Lead Trainers &787 Assessors/ Lead assessors have been certified. Till now 64 8. TRAINING OF TRAINERS/ ASSESSORS job roles have been covered and efforts arebeing PROGRAMME (TOT/TOA) made to cover maximum spectrum of Job roles for training/assessment requirements. Following Training centershave been identified for running Training ofTrainers/Assessors 9. MINISTRY OF RURAL DEVELOPMENT programs&ToTs /ToAs are being conducted. &PRADHAN MANTRI AWAS YOJNA- GRAMIN(PMAY-G) 1. OP Jindal Community College – Punji Patra, Raigarh, Chhattisgarh CSDCI affiliated Training Providers are 2. RAGC- Dhanu, Maharashtra working in Chhattisgarh, Madhya Pradesh, 3. SAET- Guwahati, Assam WestBengal, Jharkhand for construction of houses under PMAY-G. State Rural Department 4. Quivan Skills – Kolkata, West Bengal other states like Rajasthan, Odisha, Punjab, and

BUILDERS' ASSOCIATION OF INDIA44 77th Annual Report and Accounts – 2017-2018 Maharashtra are also progressing & have issued Himachal Pradesh EOI.11,516 candidates have been enrolled this f. National Safai Karamcharis Finance and year and 5,284 have been assessed. Development Corporation (NSKFDC) Overall30,727candidates have been enrolled for g. National Backward Classes Finance & Rural Mason and 23,236 trainees have been Development Corporation (NBCFDC) assessed so far under scheme.CSDCI participates in various meetings organized by h. Goa Schools MoRD with State Secretaries of RD department i. West Bengal Schools of each State. Efforts are being made to cover j. Advanced Skill Acquisition Program, more states for this module of training program. Kerala 10. DEVELOPMENT TRAINING WITH OTHER k. Himachal Pradesh Kaushal Vikas Nigam LINE MINISTRIES (HPKVN) l. Punjab Skill Development Mission CSDCI has been in constant communication m. Jharkhand Skill Development Mission with Ministry of Housing & Urban Affairs, Society Ministry of Social Justice, Ministry of Road Transport & Highways, and Ministry of n. Andhra Pradesh Skill Development Shipping for various skilling related issues and Corporation is working closely for training programs under o. Madhya Pradesh Skill Development them. The issues of funding, mobilisation, wage Mission loss compensation, assured employment after p. National Highway & Infrastructure training for Smart Cities, AMRUT, HRIDAY, Development Corporation (NHIDCL), SANKALP are under discussion & concept Ministry of Road Transport & Highways notes have been shared. q. Haryana State Industrial & Infrastructure 11. LINKAGES WITH THE STATE Development Corporation Ltd (HSIIDC) GOVERNMENT r. Maharashtra Schools s. Gujarat Schools The Council is making efforts to connect to Skill Developments Missions of all States. It has t. Uttarakhand Skill Development Mission already opened offices at Guwahati for North u. Lend a Hand East & Bengal region and at Hyderabad for v. Don Bosco southern region. It is being planned to open regional office at Ranchi for Bihar, Jharkhand 12. INDIA INTERNATIONAL SKILL CENTERS & Odisha by Sep this year. As per advisory (IISC) issued by NSDC/MSDE, Sector Skill Councils Under the UK-India and Research do not need to have separate MoUs with States Initiatives (UKIERI), five job roles were as the skilling initiatives are to be taken as a benchmarked against the UK Standards. mandate. However, as per request of States, MoUs are being signed separately also. (a) Mason General – Level 4 CSDCIhas signed MoUs with the following (b) Foreman Electrical Works – Level 5 States/Organizations (c) Bar Bender and Steel Fixer – Level 4 a. Assam Skill Development Mission (d) Scaffolder System – Level 4 (ASDM) (e) Shuttering Carpenter System – Level 4 b. Ministry of Housing and Urban Poverty Alleviation (MoHUPA) QPs, Curriculum& Contents have been c. Uttar Pradesh Skill Development Mission developed for two approved job roles for (UPSDM) MasonGeneral & Foreman Electrician. Transnational qualification “Mason General” of d. Madhya Pradesh Skill Development CSDCI hasbeen mapped & vetted equivalent to Mission (MPSDM) NVQ Level 3 Diploma in Trowel occupation by e. National Urban Livelihood Mission – TQUK.IISCs will be providing training to

BUILDERS' ASSOCIATION OF INDIA45 77th Annual Report and Accounts – 2017-2018 candidates who want to migrate in foreign bodies (CII, ASSOCHAM) & State SSDM specially middle east countries. Certification will be as per international norms & will carry 15. LMIS SYSTEM the logo of international Assessment Agency. Labour Management Information System Some of assessments have been done, however (LMIS) for Construction sector was launched CSDCI has expressed some reservations on the (Beta version) on 21 Feb 2018 on the eve of subject issue due to non-clarity of many aspects Industry Meet. It has been named as including assessment processes followed. Fresh Construction Skilled Workers Management efforts are being made to make this process Information System (CSWMIS).Free registration simple & easy for implementation. has been provided to construction industry 13. ASSESSMENT FOR SCHOOLS partners, training partners & labour contractor ASSESSMENT UNDER MHRD with child login facility. Registration from industry, labour contractor & training provider Overall 11146 candidates have been assessed has started at slow pace. However, it is hoped under MHRD in Gujarat, Maharashtra and Goa that it will pick up & industry will take schools. Under the program, assessments are advantage of the platform of CSWMIS. curriculum based and results are provided to CSWMIS will provide the much-needed states. Under this scheme certificates are not platform for construction industry for getting being issued by CSDCI. However, NSDC plans skilled workforce. to issue certificate as per curriculum or NOS to participating students. 16. WORLD SKILL COMPETITION

14. VISIBILITY OF CONSTRUCTION SECTOR CSDCI has been given the responsibility for & CSDCI providing technical support to state SDM in conduct of skill competitions conducted by Following Initiatives have been takento increase states. CSDCI has also been tasked for visibility of the efforts & programs of CSDCI monitoring& conduct of world skill competitions (track 2 & track 3) for five job roles • Attractive Website with all details helping pertaining to construction. The competitions are training & Assessment & regular updation to be organised at four zonal levels vis. Jaipur, • Active participation on Facebook page, Lucknow, Bangalore & Bhubaneshwar. Twitter handle and YouTube channel Competitions at Jaipur & Lucknow has been • Interaction with NSDC/MSDE on regular completed& at Bangalore is in progress. basis&with all line ministries 17. TRAINING ACHIEVEMENT DETAILS FOR • Participation Rozgar Melas /State FY 17-18 AND FY 2018-19 Workshop/Exhibitions • Weekly Newsletter, Brochure, Banner Details of training & assessments in FY 2017-18 & FY 2018-19 till 31 May 2018 are as under • Participation in discussion with Industry

FY 2017-18

SCHEME ALLOTMENTS ENROLMENT ASSESSED PASS FAIL CERTIFIED PMKVY(STT) 87,613 55,486 39,870 33,893 5,977 33,893 RPL (PMKVY) 99,500 55,490 38,013 36,333 1,680 36,333 NON PMKVY 41,945 37,096 31,715 5,381 32,810 SPECIAL PROJECT 6,050 3,663 806 578 228 578 RPL (NON PMKVY) 605 384 345 39 345 TOTAL 1,57,189 1,16,169 1,02,864 13,305 1,03,959

BUILDERS' ASSOCIATION OF INDIA46 77th Annual Report and Accounts – 2017-2018 FY 2018-19

SCHEME ALLOTMENTS ENROLMENT ASSESSED PASS FAIL CERTIFIED PMKVY(STT) 400 9,759 8,481 1,278 8,481 RPL (PMKVY) 10,000 4,484 3,808 3,236 572 3,236 NON PMKVY 34,909 8,559 6,544 1,205 6,544 SPECIAL PROJECT 341 761 567 194 567 CSSM 1,556 320 287 33 287 RPL (NON PMKVY) 802 216 197 19 197 RPL TYPE 4 2,00,000 TOTAL 42,492 23,423 19,312 3,301 19,312

18. TOT/ TOA UPDATE

PARTICULARS 2017-18 2018-19 OVERALL TARGET ACHIEVED TARGET ACHIEVED TOT / TOA 130 134 110 17 RESULTS DECLARED 134 17 FT/LT 700 993 700 178 1646 FA/LA 500 435 350 29 787 JOB ROLES COVERED 55 64 64 64 TOT/TOA ON DEMAND 41 7

19. DEVELOPED QUALIFICATION PACK UK) of level 7 & 8 job roles. Qualification Packs development will be done by PWC and the cost As on date, CSDCI have developed 105 QP, 101 will be borne by DFID. CSDCI standard team are approved by NSDC and 86 are approved will provide procedural guidance & technical by National Skill Development Authority. Total support towards Identification of job roles, Assessment Criteria completed is 30 and total careerprogression and functional analysis of the Curriculum completed is 92. All the 86 QP identified job roles and QP development.The approved by NSQC are due for renewal. As per QPs will be submitted to QRC for approval once intimation received from NSDA CSDCI has it is completed. Sagarmala under ministry of submitted 29 QPs comprising 31 job roles where Shipping is approaching for new QPs for NSQF level changes approved by GC and NOS dredging time & again. However, Sagarmala committee members. have been apprised the limitations of our 20. NEW QUALIFICATION PACKS participation & availability of expertise. Punjab government has been insisting on development 10 New Qualification Packs for Plant & of QPs on brick manufacturing. Machinery have been identified for development in the current year. The 21. CONTENT BOOK DEVELOPMENT developmental work of P&M QP are under Total 14 content books have been developed in progress.Qualification Packs for Rural Mason English language, 7 of them translated in Hindi (Helper & Assistant) are completed and are at & 3 in Marathi. Six content had already been MoRD for validation of stake holders. printed till now. Around 36000 content books Qualification Packs on Mason Stone & Mason have been sold so far for PMKVY scheme & lime of level 4 with INTAC are also completed which amounts to a royalty of 8.0 lakhs. This and have been submitted to NSDC for QRC amount is yet to be received from NSDC.CSDCI approval. CSDCI is also developing 4 new QPs is developing 3 New contents with National with Price water house coopers &DFID Instructional Media Institute a department (Department for International Development,

BUILDERS' ASSOCIATION OF INDIA47 77th Annual Report and Accounts – 2017-2018 under DGET. Apart from this 2 other new provide better industry connect content is being developed by CSDCI. The skilling eco system is facing a daunting task 22. TRAINERS HAND BOOK DEVELOPMENT in upscaling & attracting the youth to join the sector as a career. The very nature of work NSDC had asked for development of Trainers involved in the sector & the wide applicability handbooks for seven job roles participating in across the ministries, demands & stakes are very PMKVY 2. seven Trainers handbooks have been high. High cost of training & high risk on completed and submitted to NSDC.3 new investment add to challenges in training eco Trainers handbook will also to be developed in system of the sectorand is not attracting the the current year. required interest & investment.CSDCI has taken 23. CONSTRUCTION SECTOR INDUSTRY the upscaling of training targets under different MEET government projects, increase regional presence & improve the quality of assessments & Construction Industry Meet was successfully certification to a new height.With concerted organized by CSDCI on 21 Feb 2018. The main effort of all stakeholders and enabling support outcomes have been sent to MSDE, NSDC & all from Governing Council&the Government, GC members. It is planned that such meetings CSDCIare sure to meet the laid down skilling be organised in different region quarterly to targets & expectations.

BUILDERS' ASSOCIATION OF INDIA48 77th Annual Report and Accounts – 2017-2018 Labour Law Matters

(i) Provident Fund Matter liable. The Provident Fund Act was enacted in 1952 when there was no contractors and if at all any Contractor not Principal Employer liable for contractor was there, there were only a few having Provident Fund Dues. less than 20 employees. Even when the contractor had Any employer employing 20 or more workers 20 or more employees, the Provident Fund Authorities whether eligible for coverage under provident fund did not allot Provident Fund Code number, when or not is required to get itself covered under the applied for since it was not enlisted in the Schedule-I Employees’ Provident Funds & MP Act (hereinafter in the Employees Provident Fund Scheme till referred to as EPF Act or Provident Fund Act). While 22.03.2001. However, neither the definition of engaging the contractor, a question always arises as ‘employee’ nor the paragraph 30 of the Employees’ to whether the principal employer is liable to pay Provident Fund Scheme has been amended. Needless employees provident fund contributions for the to reiterate that every enlightened employer those employees/workers of the contractors. Large contractors who are covered under the Provident Fund number of cases are pending and also the Provident Act and have independent code number. In this Fund Authorities have been invariably holding the context, it is pertinent to mention that the code number principal employer liable for the default of the to every establishment including contractor is granted contractors. The Provident Fund Authorities hold by the EPFO by complying with the following amongst the principal liable for the following reasons: other: The definition of an ‘employee’ under section 2(f) of CONDITIONS the Employees’ Provident Funds and Miscellaneous 1. Application Proforma for Coverage duly Provisions Act, 1952 means any person who is complete. (on Company letter head). employed for wages in any kind of work, manual or otherwise, in or in connection with the work of an 2. Copy of Memorandum / Partnership Deed etc., establishment, and who gets his wages directly or whatever applicable. indirectly from the employer and includes any person 3. List of present Employees with salary break-up employed by or through a contractor or in connection details and dates of appointment and parentage with the work of the establishment. etc. Engaging of contract labour has become a necessity 4. Chart showing number of employees, month of very employer in order to survive in the wise from the date of start of business. competitive scenario since it is not only cost 5. Chart showing number of employees, month effective but efficient also. The defaults in wise, engaged through contractor(s). depositing the provident fund contributions by the 6. Date of commencement of business. contractors is very common since they are not so 7. Copy of first invoice, if any. well organized and as such the provident fund authorities hold the principal employers liable for 8. List of Directors / Partners, i.e., Names, the dues payable or the defaults by the contractors. parentage, addresses, etc. Many employers have suffered in isolation by 9. Proof of residences of Directors. making the payment for which they were not liable. 10. Identification document of Directors. This article highlights that the principal employer 11. Particulars of the Bank Account of the Company. is not liable for the provident fund dues or defaults on the part of the contractor as covered by the 12. One blank cancelled cheque leaf. Employees’ Provident Funds & MP Act. 13. Pan number of the Company. While relying upon the definition of ‘employee’ under 14. Pan numbers of Directors/Partners/Proprietor. section 2(f) of the Act read with para 30 of the 15. Proof of ownership / tenancy, etc. of the Employees Provident Fund Scheme, the provident premises. fund authorities always insist upon the principal 16. Board Resolution / Authority. employers to ensure that the contractors as engaged 17. Copy of Aadhar card (though not required must pay the provident fund contributions and in case immediately, but start obtaining from of non-payment, the principal employers are held employees).

BUILDERS' ASSOCIATION OF INDIA49 77th Annual Report and Accounts – 2017-2018 On allotment of independent code number, a Most out of 9,26,297 establishments as covered with contractor acquires the status of ‘establishment’ (may more than 17,14,13,981 members of the fund are not it be a Company, firm, society or sole proprietorship) satisfied with the functioning of the Provident Fund and becomes responsible for deposit of Employees Departments. For want of proper functioning, an Provident Fund contributions. Besides that amount of Rs. 40,865.14 crore have not been administrative charges are paid to the EPFO by such accumulated with the EPFO whereas this amount establishments. The establishment of contractor belonged to the poor people who were compelled maintains records of employees, submit nomination to divert their hard earned money. This shows the forms, returns and complies with other formalities slackness on the part of the department. like maintenance of inspection book etc. etc. While In Pardeep Kumar vs. Presiding Officer and another, 2015 holding the principal employer liable for the default LLR 726, the Punjab and Haryana High Court has of the contractor(s) the provident fund authorities held that ‘employer-employee relationship’, in overlook the Form 5A under paragraph 36A of the respect of principal employer, would not exist if the Employees Provident Fund Scheme. When EPFO contractor, engaged in supply of man-power, is portal is opened by using the User ID and password having a valid licence under the Contract Labour of an establishment, on the first screen shot of EPFO (Regulation and Abolition) Act, 1970, records of portal, under the title ‘Establishment’, there are payment of wages and attendance show payments following six drop down options:- made by the contractor, EPF Employee Code number 1. View profile, 2. Contact details, 3. Digital allotted to the workman is through the firm of the signatures, 4.Form 5A, 5.Branches (Form 2A), 6. Contractor. Download PDFs. In Group 4 Securitas Guarding Ltd. & Another vs. And on the same page the following words are Employees’ Provident Fund Appellate Tribunal & Ors., mentioned: 2012 LLR 22 the Delhi High Court has held that where the contractor, being employer providing services of Form 5A data fields made editable. Employer may manpower, is having control over the personnel edit if required and print the Form again for being supplied by him to the establishments by way submission to PF office. of issuance of appointment letters, making payment On the next two pages of the portal the following of wages and other allowances, taking disciplinary words are mentioned: actions, affecting their placement, transfer, and termination of services, the relationship between such Not – To change name of establishment/address, a contractor and the establishment where the please update your Form 5A and submit a signed manpower is supplied by him would be of ‘principal copy of the same to the EPFO field office with to principal’ and not that of employer-contractor. documentary evidence of your new/correct address. In the Madurai District Central Co-operative Bank Ltd. It is intriguing as to why a principal employer should rep. by its Special Officer vs. Employees’ Provident Fund be held liable for the default in payment of Organisation, 2012 LLR 702, the Madras High Court contributions or delaying the same by the has held that when a separate code number was establishment of the contractor. Merely that the term allotted, the employees of the contractor, by no stretch ‘principal employer’ is not defined in the employees’ of imagination can be treated to be employees of the Provident Fund & MP Act or the Scheme, but it is principal employer. After hearing the arguments on matter of common sense and also too well settled that behalf of the parties (Employees’ Provident Fund when an employer engages contractor, then that Organisation as respondent), the Court held as under: employer is called as ‘principal employer. “With respect to the contractors, who are registered The Scheme of the Contract Labour (Regulation & with the Provident Fund Department, having the Abolition) Act stipulates that the principal employer independent code number, they are to be treated as will not be supervising the workers of the contractor ‘independent employer’. The petitioner, therefore, otherwise the contract labour system will be rendered cannot be treated to be ‘principal employer’ for the as sham, ruse and camouflage as held in in Steel purposes of those contractors”. Authority of India Ltd. vs National Union Water Front Workers, 2001 LLR 961 (SC). In Brakes India Ltd. (Brakes Division), Sholinghur-631 102, rep. by its Vice-President (Pers. & HRD) vs.

BUILDERS' ASSOCIATION OF INDIA50 77th Annual Report and Accounts – 2017-2018 Employees’ Provident Fund Organisation, Vellore rep. by clarifications are circulated. While the circulars are its Regional Provident Funds Organisation, 2015 LLR meant to bring about clarity and remove the mist but 635, the Madras High Court buttressed the same the EPFO that has been issuing circulars on the drop point in holding that the Employees’ Provident Fund of the hat to create more confusions among the Authority is not entitled to recover either Provident employers and employees. Mr. Anil Kaushik, Chief Fund contribution or damages from the principal Editor of Business Manager has rightly stated : “By employer in respect of employees engaged through issuing circulars one after another, they create contractors, registered with the PF Department, psychological pressure on employers to be fearful having independent code number. The Hon’ble and abide by circulars, be it blatantly against the spirit Court concluded: of judicial verdicts or interpretation of provisions beyond their scope.” This mindset of the “In the case on hand, the Contractor was allotted with Organisation need not only to be deprecated but also EPF allotment number vide No.TN/VLR/38789/ to be cured and rectified. The Organisation needs to SDC.2013 in the year 2003 itself. As per the ratio laid be reoriented, overhauled. There should not be any down in the judgment of this Court, the Contractor hesitation in its surgical operation even if some heads viz., Mr. A. Govindaraj should be treated as an roll in the process. independent employer.” Thus far BAI is relying mostly on EPF Appellate In Calcutta Constructions Company vs. Regional Tribunal decision on covering the construction Provident Fund Commissioner and Ors., 2015 LLR 1023 workers who are identified. the Punjab & Haryana High Court has held that so long so the code number is not allotted to the On 28th June 2017, a Double Bench of the Hon’ble contractor it is the liability of the establishment to Madhya Pradesh High Court have given a judgement pay the provident fund on account of the employees that, without identification of the workers, no amount employed by the contractor and thus, in essence, it is should be deducted for covering the construction the liability of the establishment to pay and not that workers in the EPF Scheme. of the contractor to pay contribution. Reference has [Summary of the order of Hon’ble Madhya Pradesh also been made to Para 30 of the Scheme inter alia High Court is also part of my report (Page No.25- stating that “the pith and substance of the language 30)]. of para 30 ex facie reveal that it is the employer who has to make the contribution at the first instance. This Reproducing here below some important news on Court also has an occasion to deal with this situation Labour issues for information:- in the judgement in Regional Provident Fund Commissioner vs. M/s. Ropar Thermal Plant (GGSTP) PF Account transfer while switching jobs to be PSEB’s 2013 LLR 243 where the contractor had not automatic soon if you have Aadhar. been given the Code number. It is till such time till Transferring your provident fund when you the code number was not allotted it is the change jobs is to be made automatic from next establishment who shall pay”. In all the above cases month, according to a report in The Times of India. before the Supreme Court and High Courts, the Regional Provident Fund Commissioners have been “We are trying to ensure transfer of money if one parties to the appeal or the writ petitions and as such changes jobs, without any application, in three the lame excuse of ignorance of the judgments will days,” chief provident fund commissioner VP Joy not be accepted by even a lay man. has been quoted as saying in the report. Strange are the ways of the Employees’ Provident However, he has also said that the account holder Fund Organisation. It shows swiftness in issuing has to have a verified Aadhaar ID. In such cases, the those circulars, which have possibility to be account will get transferred to any part of the country misinterpreted but it becomes slack and lethargic in automatically. conveying those decisions, which are succinct and This system will be in place very soon,” he has said. contain no ambiguity. It will, thus, be seen that as and when there is a favourable judgment for the The move is aimed at addressing the problem of Employees’ Provident Fund Organisation, the premature closure of accounts, which usually circular or clarification is issued without any loss of happens when a subscriber changes jobs. time but if the position is otherwise, no such The PF account has already become a permanent

BUILDERS' ASSOCIATION OF INDIA51 77th Annual Report and Accounts – 2017-2018 account. The government had introduced the Additionally, EPFO account holders can now Universal Account Number or UAN in October 2014. withdraw money for medical treatments or purchase UAN is a unique identification number accorded to of equipments, to aid their physical disabilities EPF subscribers. According to the EPFO website, the without medical certificates. UAN acts as an umbrella for the multiple member The amendments have been made in Employees’ identities allotted to the same member by different Provident Fund Scheme 1952, in order to avoid the establishments. requirement of submission of various certificates and However, once a subscriber changes jobs, it has been pro formas to get advance for medical treatment. his responsibility to get the account transferred. With Now, the subscribers will be able to avail the perks the latest move to automate the transfer of account, of loyalty-cum-life of up to Rs 50,000 at the time of the EPFO is moving one step ahead in being customer retirement for contributing 20 years or more to the friendly. scheme. Joy has also said the retirement fund body is planning Subscribers who have even contributed less than 20 to start a campaign to sensitise the subscribers why years in case of any permanent disability, can also the PF must be withdrawn only for ”major purposes avail the benefits. like housing, education of children, or serious hospitalisation”. Other than this, to make their facility more consumer centric and enhance the ease of its accessibility, EPFO NOW, YOUR OLD PF ACCOUNT WILL GET TRANSFERRED TO will soon be able to handle their claims through NEW EMPLOYER AUTOMATICALLY. mobile app UMANG. Additionally, EPFO account holders can now ESIC Matter withdraw money for medical treatments or purchase of equipments, to aid their physical disabilities on 31st July 2015, the ESIC Department have issued without medical certificates. a Circular covering the construction site workers in the provisions of ESIC Act from 1st August 2015. New Delhi: Planning to switch job, but worried about the hassles involved in changing the PF account? Immediately on this, BAI have swung into action by Take a sigh of relief! filing Writ Petitions at various High Courts. As of now on ESIC matter, we have Stay Orders at the Now, no longer you need to close your previous PF Hon’ble High Courts at Madurai, Hyderabad, account in order to open a new one, while making a Gujarat, Karnataka, Allahabad, Delhi and Rajasthan. job shift. From September 2017 onwards, PF account of an employee will be automatically transferred to In the meantime, Confederation of Real Estate the new employer Developers Association of India (CREDAI) have filed a Writ Petition on ESIC before a Double Bench of Goa This new provision will support the employees to Bench of Bombay High Court and it was dismissed continue their contributions till the time they retire by the Bench making it compulsory for construction from job. Earlier, employees had to terminate their site workers also covered in the ESIC Scheme. As old accounts and open new ones without even being CREDAI have not filed a Review Petition on the able to transfer funds in many cases matter, BAI’s various Stay Orders pending on ESIC Moreover, for Employees’ Provident Fund matter at different Hon’ble High Courts, were to be Organisation (EPFO) also, it was a huge challenge to vacated by the ESIC Department insistence on handle the premature closure of accounts. following the precedent of the Double Bench decision of Bombay High Court. To avoid this serious To recall, EPFO in past few months has taken a situation, on the advice of Senior Advocate, Shri number of initiatives facilitating its 4 crore Gopal Jain, BAI have filed this Special Leave Petition subscribers. These moves include – (SLP), ‘as an aggrieved party’ before the Hon’ble • facilitation to withdraw up to 90 percent of the Supreme Court. This matter has been admitted by accumulations in their PF account for purchase the Hon’ble Supreme Court of India. of homes. • provision of loyalty-cum-life benefit up to Rs 50,000.

BUILDERS' ASSOCIATION OF INDIA52 77th Annual Report and Accounts – 2017-2018 Employees Insurance State Insurance Act, Employees Compensation Act 1923 Building and Other Construction 1948 Workers (Regulation of employment and conditions of service) Act 1996 An Act to provide for certain benefits to The Workmen's Compensation Act, 1923 An Act to regulate the employment provides for payment ofcompensation to and conditions of service of building employees in case of sickness, maternity and the workmen and their dependants in the and other construction workers "employment injury" and to make provision case of injury by industrial accidents for certain other matters in relation thereto. and o provide for their safety, health including certainoccupational diseases and welfare measures and for other arising out of and in the course matters connected therewith or ofemployment resulting in death or incidental thereto. The object of the disablement. This Act is to confer various benefits to the Act applies to certain railway servants and construction workers like fixing person employed in hazardous hours for normal working days, employments such as factories, weekly paid rest day, wages for mines,plantations mechanically propelled overtime, basic welfare amenities at vehicles, construction work, etc. specified site, temporary living in Schedule [1] of the Act. However, the accommodation near Act is not applicable to the employees who site, safety and health measures etc; are covered under theEmployees' State National Campaign Committee for Insurance Act, 1948 Central Legislation on Construction Labour vs. Union of India 2010 (9) SCALE 442

Chapter V: Benefits Chapter II: Employees Chapter V: Building and other Compensation Sec 3: Employer's Liability Construction Sec49:Sickness Benefits for Compensation workers' Welfare Boards Sec 50: MaternityBenefits (1)Personal injury Sec 22: Functions of the Board Sec 51:DisablementBenefits (a)in respect of any injury(partial (a) Provide immediate assistance to a beneficiary in case of accident Sec 52:Dependent'sBenefits disablement) (b)in respect of any injury not resulting in (b) make payment of pension to the Sec52A:OccupationalDiseae death (or permanent disablement) beneficiaries who have completed the age of sixty years Sec 56: Medical Benefits (2)contracts disease as an occupational disease (c) sanction loans and (2093) Occupational disease advances to a beneficiary for Sec 4: Amount of Compensation construction of a house not exceeding such amount and on such terms and (4) Amount of Compensation conditions as may be prescribed Sec 8: Distribution of Compensation (d) pay such amount in connection with premia for Group Insurance Scheme of the beneficiaries as it may deem fit (e) give such financial assistance for the education of children of the beneficiaries as may be prescribed meet such medical expenses for treatment of major ailments of a beneficiary or such dependents as may be prescribed Section 53:Bar to receive or recover Section : 63: Saving of certain laws: compensation or damages under the will not effect any corresponding law Workmen's Compensation Act or any other in a State providing welfare schemes law for the time being in force. which are more beneficial to the building and other construction workers then those provided from Section 61 : bar to receive any similar benefits them by or under the Act under the provision of any other enactment.

BUILDERS' ASSOCIATION OF INDIA53 77th Annual Report and Accounts – 2017-2018 1. Under Section 63 of the BOCW Act only the 6. The circular attempts to penalize the employees operation of any corresponding laws which are by deducting contribution under two more beneficial to buildings and other enactments , BOCW Act and ESI Act , thereby construction workers other than those provided subjecting the minimal wage of the employee to them under the BOCW Act would apply. The to dual deduction which would amount to converse would also be true i.e where the double taxation. This would result in reduction BOCW Act is more beneficial than the Rules, of the net wage / take home of the construction regulations, scheme or any statute then the workers, without providing any additional BOCW Act would apply. benefits to them.

Implementation of the circular would make Section 7. Collection of the contribution by the 58 of the BOCW Act redundant Corporation, from the construction companies without providing any adequate resources for 2. The Hon’ble High Court while observing that the purpose of giving medical assistance, “it is settled that the employees/workers are assistance , accident assistance or not entitled to two parallel and similar benefits”, similar benefits to the large force of construction erred in dismissing the petition and leaving it workers would amount to unjust enrichment to the Department to take note at the and be detrimental to the construction workers appropriate stage. as they would neither get the benefits under the 3. In St. Stephen’s College v. University of Delhi ESI Scheme nor under any other Act or law and (1992) 1 SCC 558 this Hon’ble court held that owing to the Bar under section 53 & 61 of the where there is a general provision of law ESI Act. dealing with a subject, and a special provision Bar under Section 53 & 61 of the ESI Act dealing with the same subject, the special prevails over the general. If it is not constructed 8. The Hon’ble court while observing that “merely in that way the result would be that the special because the members of the association have provision would be wholly defeated.” been registered under the BOCW Act…. itself is not sufficient reason to deny extension of the 4. All beneficial provisions of the Workmen’s Insurance Act to such workers and employees” Compensation Act have been made applicable clearly lost sight of Section 53 and Section 61 of to construction site workers by virtue of Sec 58 the ESI Act which creates a bar on of the BOCW Act . The Extension of ESI Act to simultaneously claiming any compensation construction workers will make the provisions under the Workmen’s Compensation Act1923, of Sec 58 redundant and unworkable on account or receiving any similar benefits under the of the bar under Sec 53 of the ESI Act . Further provision of any other enactment. any other benefits such as accident assistance, maternity assistance & medical benefits will also 9. The Hon’ble High Court erred in stating that be barred as a result of Section 61 of the ESI the “ESI Act in no way can be stated to be against Act. the employers and or it is only in the favour of the employees”. The extension of the Act / Scheme Application Of The Circular Detrimental To The is prejudicial to both the employer who has to Interest Of Both Employer And Employees And bear the additional financial/procedural/ Leads To Unjust Enrichment technical burden and also to the employees who 5. The Implementation of the said circular and because of the bar under section 53 & Section extension of the ESI Scheme to construction 61 of the ESI Act will not be able to access the workers would be detrimental to both additional benefits under the BWOC Act and / employees and employers, without conferring or receive compensation under the Workmen’s any addition benefits/ protection to either. It Compensation Act1923. would create complete chaos , by disturbing the Implementation of the scheme would make the existing status quo, wherein the construction CESS collected under the BOCW Cess Act , workers are completely protected under the meaningless BOCW Act. 10. The BOCW Welfare Cess Act Lays down the

BUILDERS' ASSOCIATION OF INDIA54 77th Annual Report and Accounts – 2017-2018 payment for corpus to be maintained for the PETITIONER AS IN DUTY BOUND SHALL welfare board. Extension of the ESI Scheme to EVER PRAY. construction workers would make the purpose of the Cess superfluous and would have the effect of taxing the Employer twice , both under FILED BY the ESI Act as well as the BOCW Act. ( ______) ADVOCATE FOR THE 11. The States are struggling to utilise the cess PETITIONERS collected under the BOCW Act, for the benefit NEW DELHI of the workers. This Hon’ble court, in the National Campaign Committee case had DRAWN ON: 16.01.2017 expressed its shock, at the figures which were disclosed by various States , in respect of the FILED ON: ______Cess collected under the BOCW Act. That the cess collected by the State of Rajasthan came to Supreme Court Order on SLP No.957 600 crs, where as that of State of Maharashtra /2018 dated 7.5.2018 is attached in was Rs1,008 Crs. separate folder (PDF)

12. The extension of the ESI Scheme would raise (iii) Labour Welfare Cess several questions as to whether the builders ought to register under the BOCW Act? What A Writ Petition (Civil) No.318 /2006 filed before the would be the purpose of the Cess collected Hon’ble Supreme Court of India, in the matter of under the BOCW Act , if the benefits cannot be National Campaign Committee for Central passed on to the workers in view of the bar Legislation of Construction Labour (NCCL) – under section 53 and section 61 of the ESI Act? Petitioner Versus Union of India & Ors. – How and for what purpose would the Cess Respondents, the Hon’ble Supreme Court of India already collected under the BOCW Act be has issued the following order :- utilised ? “For the purposes of follow-up, we will take up the MAIN PRAYER matter on 19th September 2017. It is therefore most respectfully prayed that this Hon’ble Court may be pleased to:- The Affidavit filed by Ms. Fani Rao indicates that (i) Grant Special Leave to Appeal against the some State Governments have not transferred the impugned final Judgment and order dated — amount to the concerned Welfare Boards. The ———passed by the High Court of —— at — transfer of the amount may be carried out ——————————————— immediately preferably within two weeks from today, failing which we will require an explanation (ii) Pass such other order or orders as may be from the Chief Secretary of the State. deemed fit and proper in the interests of justice. We also reiterate our earlier direction given on 8. PRAYER FOR INTERIM RELIEF: 07.02.2012 to the following effect:

It is therefore most respectfully prayed that this c) The funds available with the Welfare Boards Hon’ble Court may be pleased to:- which have not been disbursed or are not likely to i) Ad-interim ex-parte stay the effect and be disbursed within a short period should be properly operation of the circular 31.July 2015 and order invested with the nationalised banks only. Funds dated available with the Welfare Boards shall not be utilised by the State for any other head of ii) grant such further and other reliefs as may be expenditure of the State Government etc. deemed fit and proper in the facts and circumstances of each case We make it clear that no State Government or Board shall utilise the amount that has been collected under AND FOR THIS ACT OF KINDNESS YOUR the Act for any purpose not authorised by the said Act.

BUILDERS' ASSOCIATION OF INDIA55 77th Annual Report and Accounts – 2017-2018 List the matters on 19th September 2017.” Government.

[Summary of the order of Hon’ble Supreme Court In order to generate more employments and a steps of India is also part of my report (Page No.31-32)]. towards ‘ease of doing business’, the Government by a Notification dated 16.3.2018 has allowed-fixed Friends, though BAI is fighting the matter of ESIC at term or contractual employment in all industrial various High Courts and also with the Labour sectors, a provision that until now applied only to Department for clubbing the ESIC and Labour apparel manufacturing. The move will effectively Welfare Cess, it would be appreciated, if members provide for a ‘hireand-fire’ policy by doing away cover their workers as Government is determined with existing retrenchment norms applicable to the to extend the social security cover to all workers. workers engaged in the industrial establishments as Minimum Wage Code Bill covered by Industrial Employment (Standing Orders) Act, 1946 generally employing 50 or more As you may be aware, the Union Cabinet has workers. The ‘industrial employment’ is defined by approved the Minimum Wage code and the Bill has section 2 of the Payment of Wages Act applying to been placed in Parliament (as attached along with factories, railways, transport services, air transport the corrigendum). This signals a formal start of the services, mines, plantation, construction, process of consolidating 4 labour laws into a development or maintenance of buildings, roads etc. minimum wages code. [It is pertinent to state here that the shops, What is the Wage Code Bill about? establishment or other industries not covered by Industrial Employment (Standing Orders) Act could * It will ensure a minimum wage across all sectors validly engage workers on fixed term basis as per by integrating four labour related laws. section 2 (oo) (bb) of the Industrial Disputes Act, * It will consolidate the Minimum Wages Act, 1948; 1947]. the Payment of Wages Act, 1936; the Payment of Four core construction workers to be covered Bonus Act, 1965; and the Equal Remuneration Act, under labour laws. 1976. In a recent judgement the Supreme Court has * At present, every state decides the minimum ensured relief to over four core construction workers, wage for different industries and labour the Supreme Court asked the Centre on 19.3.2018 to classifications. treat them as formal sector employees by bringing * The bill seeks to empower the Centre to set a them within the ambit of social welfare laws and minimum wage across all sectors in the country provide benefits like paid maternity leave, PF and and states will have to maintain that. minimum wages.

* States will not be able to pay less than the Sexual harassment cases increased by 50% on national floor wage set by the central campus in 2017 government; however, states will be able to In a written reply in Lok Sabha on 19.3.2018 the provide higher minimum wage in their Junior HRD Minister has stated that universities and jurisdiction than fixed by the central colleges across the country reported a 50% increase government. in sexual harassment cases in 2017.

* The new minimum wage norms would be Contractual employees entitled to 6 month applicable for all workers and employees maternity leave irrespective of their pay. There is no higher limit of wage prescribed in the code. This means all A ruling by Justice Anu Sivaraman came after workmen and employees irrespective of their considering two petitions filed by women working wages will be covered by the provisions of the on contractual basis under the State. They were code. allowed maternity leave only for 90 days whereas regular employees were entitled to leave of six (iv) Fixed Term Employment months. A petition filed by Rakhi PV of Fixed Term hiring of workers permitted by Nayarambalam and four others was considered as

BUILDERS' ASSOCIATION OF INDIA56 77th Annual Report and Accounts – 2017-2018 the lead case by the Court. CCI alleging unfair trade practices being adopted by the Cement manufacturing companies in jacking up Gist of Important Judgments artificially the price of cement. CCI registered the Merely non-mentioning the word ‘leave complaint as Case No.29/2010 and investigated the encashment’ in the leave rules, leave encashment matter. The Director General (Investigation) cannot be denied. investigated the matter and submitted his report to CCI. CCI forwarded the investigation report to the A partner of a firm of a company is not ‘employee’ respective companies and directed them to file their to be covered under the ESI Act, if he is a person not replies / objections with the findings of the DG(I). employed on wages. The case was heard by CCI on 21st, 22nd& 23rd February 2012. CCI passed the order dated 20th June Pension is a legally vested right of the employees 2012, declaring 10 cement companies along with which cannot be taken away without following Cement Manufacturers Association indulging into just and necessary procedure. unfair trade practices and ordered to deposit Granting leave encashment to one employee and Rs.6307.32 Crore, as penalty within 90 days from the refusing to another is a discrimination among date of the order and directed companies to “Cease employees, not sustainable. and Desist” from indulging in such activities in future Attachment of bank accounts of the employer by the th Provident Fund Authority for recovery of EPF dues CCI by its order dated 30 July 2012, in the case of on the basis of an order passed by it, before expiry RPTE-52/2006, found 12 cement companies to be of prescribed period of 60 days for filing appeal indulging into unfair trade practice. Since penalties against its order, is illegal and liable to be set aside. were already imposed on 11 companies including CMA other than Shree Cement Ltd. in Complaint Once the employer has adopted Government Pattern No.29/2010, a penalty of Rs.397.51 Crore was levied of leave, employees are entitled to leave encashment. on Shree Cement Ltd. with “Cease & Desist” order for not indulging in such practice, in future. No Cess under Building and Other Construction Workers ETC Act will be payable by a factory on All the cement companies, aggrieved with the orders additional construction expenses. of CCI, approached to Competition Appellate Tribunal to seek a stay on deposit of the penalty [Notification dated 16th March 2018 amount and for setting aside the orders of “Cease & from Ministry of Labour & Desist” in June / July 2012. Employment is attached in separate On 17th May 2013, the Competition Appellate folder (PDF File]. Tribunal passed the interim order of depositing 10% of the penalty amount imposed by the Commission Cement Cartel Case (relevant portion of the order is given below)

Builders Association of India (BAI) filed a “In that view, we find that there is a prima-facie case for complaint with the Monopoly & Restrictive Trade granting of stay at least in respect of the penalties, which Practice Commission (MRTPC Commission) in are of very substantial nature. The total penalties would February 2006 with regard to involvement of cement come in the range of Rs.6000 crores. While inflicting the manufacturers in unfair trade practices / penalties, the CCI has also taken into consideration, not cartelization and requested the Commission to only the 10% turnover, gross-turnover and other factors, investigate the matter. Later on Commission sought it has also taken into consideration the net profits earned some more information in support of complaint by these appellants, which are to say the least fabulous. which were made available to them in November The Commission has chosen to impose the penalty at 0.5 2006. MRTPC registered the complaint vide case times of the net profit for 2009-10 that too from 20th of RTPE-52/2006. Consequent upon coming into May, 2009. It is pointed out by the Commission that the existence Competition Commission of India (CCI) amount of 3 times of net profit calculated, is higher than in the year 2009, the case was transferred to CCI. 10% of the average turnover. In that view, the Commission has inflicted the penalties of 0.5 times of the In July 2010, BAI filed another complaint with the net profit for one year that is from 2009 to 2010 that too

BUILDERS' ASSOCIATION OF INDIA57 77th Annual Report and Accounts – 2017-2018 taking from 20th May, 2009 and 2010-11. Under such examination of the persons, whose statements were circumstances, we would chose to grant stay to the recorded by the Jt. DG or for any other purpose shall penalties, however with a condition that the appellants be entertained by the Commission. deposit 10% of the penalties inflicted. We make it clear th that the deposit of the penalty should be within one month The CCI, in its meeting held on 17 December 2015, from today. We also make it clear that if the penalties are discussed the orders passed by the Tribunal on not so deposited, the appeal shall be treated as dismissed 11.12.2015 and in accordance with the directions without further reference to the Court. contained at Para No.99, listed the matter for final hearings from 19th Jan to 21st Jan 2016\, as conveyed Thereafter, all the cement companies approached the vide CCI Letter No.1(29)/2010Sectt & 1/ Supreme Court of India for seeking stay on the orders RTPENo.52)/2006/Sectt dated 11.01.2016. Since the of the Tribunal dated 17th May 2013 to deposit 10% arguments could not be completed in three days as of penalty amount imposed by the Commission, The scheduled, CCI allowed the arguments to continue matter was heard in detail on 12th June 2013 but the on 22nd January 2016 which was kept reserved day Hon’ble Court refused to intervene in to the interim for continuing the arguments in case the arguments orders but extended the last date of deposit of the are not completed in 3 days. penalty amount from 16th June 2013 to 24th June 2013 with the directions that the amount of penalty may The Competition Commission of India have passed be kept in the form of Fixed Deposits in the separate fresh orders on 31.08.2016 and have found cement accounts of the each company companies of guilty of acting in concert and involved in the cartel. The Commission have kept The matter was argued in detail on the technicalities, the amount of penalty, same for all the companies, in the Tribunal in October / November 2015 and the as imposed on them in its earlier order in the year Tribunal in its order dated 11th December 2015, 2012 and directed them to deposit the penalty allowed the appeals and remanded the orders of the amount within 60 days from the date of order. Commission for passing fresh orders. The relevant portion of the orders are reproduced below :- The Cement companies have started filing appeal in Competition Appellate Tribunal against the order 98. In the result, the appeals are allowed. The impugned of CCI dated 31.08.2016. The Tribunal have directed order is set aside and the matter is remitted to the all the cement companies to deposit 10% of amount Commission for fresh adjudication of the issues of penalty imposed by the CCI before their appeals relating to alleged violation of Sections 3(3)(a) and are taken up for consideration. Accordingly, the 3(3)(b) read with Section 3(1) of the Act by the cement companies have deposited the 10% of the appellants. The appellant shall be entitled to amount of penalty amount as reflected in the orders withdraw the amount deposited by them in of the CCI. compliance of the interim order passed by the th Tribunal. Arguments have started in the Tribunal from 8 March 2017. As agreed by all the cement companies 99. The Commission shall hear the advocates/ except M/s. Shree Cement Ltd., the issue of Ambuja representatives of the appellants and BAI and pass Cements Limited in Appeal No.61/2016 will be fresh order in accordance with law. We hope and treated as lead case and other componies will be trust that the Commission shall pass fresh order as arguing the matter before the Tribunal, if required, early as possible but within a period of three months only on specifrc point which have not been convered from the date, which may be notified after receipt of in the arguments made by the couonsel of M/s. this order. Ambuja Cement Ltd. M/s. Shree Cement Ltd. will argue the matter separately. 100. The parties shall be free to advance all legally permissible arguments. They may rely upon The matter was again listed for hearing on 11th, 12th& thedocuments, which formed part of the record of 13th April 2017. When the proceedings in the Tribunal the Jt. DG or which may have been filed by them begin, Shri T. Srinivasa Murthy, learned counsel for before the commencement of hearing on 21.02.2012. M/s. Ramco Cements Limited (Appeal Nos. 54 and The parties shall also be free to press the applications 64 of 2016) informed the Tribunal that in Civil Appeal already filed before the Commission. However, no Nos. 4300-4301 of 2017, the Hon’ble Supreme Court application, which may be filed hereinafter for cross- has stayed further proceedings till the next date of

BUILDERS' ASSOCIATION OF INDIA58 77th Annual Report and Accounts – 2017-2018 hearing i.e. 2nd May, 2017. Competition Appellate Tribunal decided to defer the pleadings and taking the stock of situation on 4th May Since the appeal came out of the case which was part 2017 when some orders are likely to be passed by of the bunch matters filed against the impugned the Supreme Court on 2nd May 2017. order dated 31.08.2016 of the Competition Commission of India, the Tribunal consider it Penalty imposed on Ramco Cements Ltd. by CCI - appropriate that all the cases led by Ambuja Cement Rs.258.63 Crores. Limited are adjourned to 4 th May, 2017 for further directions. Case is being argued in Tribunal by Ms Shruti Iyer and Mr.Rahul Balaji. Pursuant to the Orders of the Competition Commission of India dated 31st August 2016 in the The bunch of cement appeals were listed before the th matter related to Case No.29/2010 and RTPE-52/ Hon’ble COMPAT for hearing on Thursday, the 4 2006, all the cements companies and CMA alleged May 2017. of cartelization in the order have filed appeals in the On the last date of hearing i.e April 11, 2017, the Competition Appellate Tribunal, under Section 53B COMPAT observed that M/s Ramco Cement of the Competition Act 2002, which came up for Limited (Appeal No. 54 and 64 od 2016) filed Civil th hearing on 11 April 2017. Appeal Nos. 4300-4301 of 2017 before the Hon’ble The appeals were heard by Hon’ble Shri Rajeev Kher Supreme Court of India whereby further – Member and Hon’ble Ms. Anita Kapoor – Member. proceedings in Appeal No. 64 of 2016 pending before the COMPAT were stayed. Accordingly, COMPAT The matter was listed for hearing for three days i.e. considered it appropriate that all the bunch of cement for 11th, 12th& 13th April 2017 and the issue of Ambuja appeals be adjourned to May 04, 2017 for further Cements Limited in Appeal No.61/2016 was to be directions. treated as lead case. Other companies will be th pleading on the points / issues that are different and On 4 May 2017, during the course of the not convered in the pleadings of Ambuja Cement proceedings, the Counsel for Ramco Cement Ltd. Case and all the counsels agreed to that. submitted that the appeal pending before the Supreme Court is listed before the Hon’ble Supreme Before the proceeding could start, one the counsel Court on May 08, 2017. In view of the pendency of informed the Tribunal that Ramco Cements Ltd. the appeal before the Hon’ble Supreme Court, it was (formarly Madras Cement) have moved the requested by the Counsel for Ramco to adjourn the application in the Supreme Court against the orders matter. Accordingly, COMPAT adjourned the bunch of the Competition Commission of India and they of cement appeals for further directions to July 12, have been granted stay. The matter is listed for 2017. hearing in the Supreme Court of India on 2nd May 2017 and it will not be appropriate to plead the case The COMPAT also heard the interim application until and unless the outcome of the hearing in the filed by Lafarge India Limited in Appeal No. 62 of Supreme Court is known. The members of the 2016 for change of name of Lafarge India Limited Tribunal wanted to know the exact orders of the to Nuvoco Vistas Corporation Limited and change Supreme Court but same could be made available of bank deposit from SBI to HDFC Bank of 10% of by the councels present in the Tribunal. But it was total penalty amount deposited with the Registry informed that they have obtained the stay against of the COMPAT. After hearing the Counsel for the orders of CCI and the matter is listed for hearing Lafarge, the COMPAT permitted change of name on 2nd May 2017. and shift of fixed deposit from SBI to HDFC Bank as prayed for by Lafarge. Accordingly Shri Rajeev Kher – Member,

BUILDERS' ASSOCIATION OF INDIA59 77th Annual Report and Accounts – 2017-2018 Upto date Brief Report of the Cement Cartlization Case transferred to National Company Law Appellate Tribunal against CCI Orders dated 31.08.2016 in the matter related to Case No 29/2010 & RTPE/2006 Under Section 53B of the Competition Act, 2002.

Details of Appeals filed by Cement companies and taken up for consideration :-

Ambuja Cements Limited Old Appeal No. 61/2016 I.A.No. 27/2017 TA (AT) (Compt.) No. 26 of 2017 Old Appeal No. 65/2016 TA (AT) (Compt.) No. 8 of 2017

ACC Limited Appellant Old Appeal No. 46/2016 TA (AT) (Compt) No. 09 of 2017 Old Appeal No. 47/2016 TA (AT) (Compt.) No. 11 of 2017 and LA No. 10/2017 Jai Prakash Associates Ltd. Old Appeal No. 49/2016 and I.A.No. 171/ 2017 TA (AT) (Compt.) No. 12 of 2017 Old Appeal No. 50/2016 TA (AT) (Compt.) No. 13 of 2017

Cement Manufactures) Association (CMA Old Appeal No. 5 1/2016 TA (AT) (Compt.) No. 14 of 2017 Old Appeal No. 66/2016 TA (AT) (Compt.) No. 28 of 2017 and LA No. 12 & 13 of 2017

Century Textiles & Industries Ltd Old Appeal No. 52/2016 - TA (AT) (Compt.) No. 15 of 2017 Old Appeal No. 53/2016 - TA (AT) (Compt.) No. 16 of 2017

The Ramco Cements Limited Old Appeal No. 54/2016 - A (AT) (Compt.) No. 17of 2017 Old Appeal No. 64/2016 - TA (AT) (Compt.) No. 27 of 2017

J.K. Cement Limited . Old Appeal No. 55/2016 - TA (AT) (Compt.) No. 18 of 2017 Old Appeal No. 72/2016

The India Cements Limited Old Appeal No. 57/2016 - TA (AT) (Compt.) No. 19 of 2017 Old Appeal No. 58/2016 - TA (AT) (Compt.) No. 20 of 2017

Ultra Tech Cement Limited Old Appeal No. 59/2016 - TA (AT) (Compt.) No. 21 of 2017 Old Appeal No. 60/2016 - TA (AT) (Compt.) No. 23 of 2017

Binani Cement Limited Old Appeal No. 68/2016 I.A.No. 38/2017 TA (AT) (Compt.) No. 29 of 2017 Old Appeal No. 69/2016 TA (AT) (Compt.) No. 30 of 2017

Present: For Appellants: - Shri G.R. Bhatia, Ms. Nidhi Singh Prakash, Ms.. Modhulika Bose & Shri Chandramauli Dwivedi, Shri C.A. Sundaram and Shri Ramji Srinivasan, Advocates in - TA(AT)(Compt.) Nos. 11 & 12 of 2017 SeniorAdvocates assisted by Ms. Nisha Kaur Oberoi, Shri Gautam Chawla, Ms. Atreyye Sarkar, Ms. Shri Jeevan Prakash, Advocate in TA (AT) (Compt.) Ankita Gulati, Ms. Harshita Parmar, Shri Apoorv Nos 13/2017 and 27/2017 Shri Pramod B. Agarwala Tripathi,Shri War Inayat & Shri Abhishek Gupta, and Shri Aayush Agarwala, Advocates in - Advocates in - TA(AT) (Compt) Nos.26 & 27 of 2017 TA(AT)(Compt.) Nos. 14 and 15 of 2017

Shri Ramji Srinivasan, Senior Advocate assisted by Shri T. Srinivasa Murthy & Ms. Shruti Iyer, Shri Harman Singh Sandhu and Ms Nitika Dwivedi, Advocates in - TA (AT) (Compt..) Nos. 16 & 25 of Advocates in TA(AT)(Compt.) Nos. 08 and 09 of 2017 2017

BUILDERS' ASSOCIATION OF INDIA60 77th Annual Report and Accounts – 2017-2018 Shri C.S.Vaidyanathan, Senior Advocate assisted by Ambuja Cement Limited argued the matter on 3rd Shri Aditya Verma, Advocate in - TA(AT)(Compt.) August, 4th August & 8th August 2017 and Nos. 18 and 19 of 2017 concluded his arguments on 8th August. Counsels appearing on behalf of other companies argued the Shri Sameer Parekh, Ms. Sonali Basu Parekh, Shri matter on 9th& 10th August 2017. All the appellant Lalit Chauhan, Shri Aditya Sharma, Ms. S. Lakshmi, completed their arguments / submissions on 10th Shri Akash Jindal and Ms. Tanya Chaudhary, August 2017. Advocates in - TA (AT) (Compt.) Nos. 20 and 21 of 2017 Shri Salman Khurshid, Senior Advocate assisted by Shri Vaibhav Gaggar and others, appearing on behalf Ms.Nisha Kaur Uberoi, & Ms. Nandita Sahai, of Competition Commission of India, argued the Advocates in - TA(AT)(Compt.) Nos. 23. & 24 of 2017 matter on 23rd August, 24th August and 31st August For Respondents: 2017 (on 3 days) and also replied to the objections / queries raised by the Counsels of cement companies Shri Salman Khurshid, Senior Advocate assisted by & CMA. He completed his arguments on 31st Shri Vaibhav Gaggar, Ms. Neha Misra, Shri Rishabh August 2017. Juneja,Ms. Smriti Jam, Shri War Khurshid, Ms. Gitanjali Kapur, Shri Arpit Shukia, Ms. Sakshi Shri C.A. Sundaram on behalf of Ambuja Cement Kotiyal and Ms. Azra Rehman for Competition Ltd. Learned counsel appearing on behalf of the Commission of India other appellants further argued the matter on 19th September 2017 and 5th October 2017. The Tribunal Shri Vasant Rajsekharan, Advocate (upto 22.8.2017) was going to reserve the judgment on 5th October and Ms Gyatri Verma, Advocate from M/s Seth Dua 2017 itself but Shri Vaibhav Gaggar appearing for &Associates for Builders Association of India CCI requested for 10 minutes time on next hearing for Shri Salman Khurshid for which the Chairman BENCH agreed and matter was posted for 11th October 2017 Justice S.J. Mukhopadhaya with the directions that Parties may file their Mr. Balvinder Singh respective written submissions by the next date.

Chairperson On 11th October 2017 Shri Salman Khurshid did Member (Technical argued the matter for a brief time. Some of the Appellants filed their written submissions by 11th It was pleaded before bench that the leading case in October 2017 which were kept on record. Tribunal the matter will be of Ambuja Cement Limited and further noted that hearing has already been other companies will plead / make their submissions concluded and reserved the judgment. Chairperson before the bench where there is difference and / or further ordered that Learned counsel for the company specific matter. Mr. C.A. Sundaram, Respondents, if so choose may file short written learned Senior Counsel appearing on behalf of submissions by 16th October, 2017 of not more than three pages.

Standardising of Bidding Documents

Construction Industry Development Council It was felt that a symposium should be arranged, (CIDC) initiating a 'High Powered Working Group wherein engineering and construction companies to Harmonise and Standardise National Bidding and other stake holders get an opportunity to elicit Documents'. BAI President is a Member of this views to make the 'Model EPC Contract' a broad Working Group. The first meeting of the High based and nationally accepted document. The Powered Working Group (HPWG) was held on views of participants in the symposium, accepted 24th January 2017 in New Delhi. The second by the HPWG and NITI Aayog would be meeting of the HPWG was held on 24th April, 2017 incorporated in the 'Model EPC Contract' to evolve in New Delhi. The third meeting or the HPWG was the modified edition and subsequently based on held on 21st June, 2017. the accepted provisions following shall be developed for appending with this document.

BUILDERS' ASSOCIATION OF INDIA61 77th Annual Report and Accounts – 2017-2018 1) Works Manual. Chairma, HPWG; Mr. H. N. Vijaya Raghava 2) Arbitration & Dispute Resolution Manual. Reddy, President, BAI; Dr. P. R. Swarup, Director General, CIDC; Mr. R. N. Gupta, Vice-President, 3) Technical Specification Manual. BAI; Mr. S. Narasimha Reddy, Vice-President, BAI; 4) Safety, Health and Environment Manual. Mr. C. G. Deochake, Hon. Gen. Secretary, BAI; Mr. Accordingly, a 'National Symposium on B. Seenaiah, Past President, BAI; Mr. B. Sugunakar Harmonizing Contract Conditions' was organised Rao, State Chaiman, BAI Telangana and Mr. K. by Construction Industry Development Council of Sriram, Past State Chairman, BAI Karnataka & Co- India (CIDC) at the direction of NITI Aayog, on ordinator for the symposium, graced the dais 5th October, 2017 in Hotel Novotel Hyderabad during the symposium. Airport, Hyderabad. The symposium was hosted Representatives of top engineering and by BAI. construction companies were present in the Mr. Pradip Bhargava, Former Addl. Chief symposium and gave their opinion and made Secretary, Government of Madhya Pradesh & suggestions. They have been requested to send their opinion and suggestions in writing to CIDC.

HPWG/NBD/Symposium/2017 October 14, 2017

To, Mr. Raju John Builders' Association of India

HIGH POWERED WORKING GROUP TO "HARMONIZE & STANDARDIZE NATIONAL BIDDING DOCUMENTS" - "Symposium on Model EPC Contracts" organized by Builders' Association of India held on 5th October, 2017 at Hotel Novotel, Airport Approach Road, Rajiv Gandhi Intl Airport, Hyderabad.

Greetings! October 13, 2017 To: It was nice meeting you on 5th October, 2017 at Shri Raju John Hyderabad in the National Symposium organized Executive Secretary, BAI by BAI. The discussions held during the Symposium were very fruitful, where several useful views were Dear Raju John, expressed. I am herewith enclosing two points which should CIDC Secretariat is in the process of collating views/ be forwarded to the empowered working group of suggestions from all stakeholders. We are pleased EPC model document. to enclose once again the editable format of 'Model 1. On award of work to the contractor, Bidding Document for EPC Contracts circulated by Department can sign a Tripartite agreement NITI Aayog', for suggesting changes / Comments along with the Bank as one of the party. At in 'track-change mode'. You are requested to send present such structure is followed for few PPP your valuable suggestions at your earliest. project. This can be implemented in all EPC Further we are enclosing a copy of the views projects. expressed by Shri Radhskrishnan, Past President of 2. On submission of each bill, on verification of BAI. work executed through 3rd party Engineer. Regards Under the Tripartite agreement, Bank can release 90% payment and balance can be made to release after the department approval of the Dr. P. R. Swarup said bill. Director General, CIDC Thanking you, Encl: 1. EPC Document R. RADHAKRISHNAN 2. Email from Shri Radhakrishnan All India Past President & Trustee

BUILDERS' ASSOCIATION OF INDIA62 77th Annual Report and Accounts – 2017-2018 CPWD Matters

Due to the persistent efforts of Mr. R. N. Gupta, Vice-President, BAI and his Team, CPWD has issues three Office Memorandum giving clarifications on GST on works awarded / tender processed before the commencement of GST w.e.f. 01.07.2017 (except road work), payment under clause 10C on account of increase in wages of labour and payment of escalation made under 10CC on substitute items for project works. The said Office Memorandums are printed herein below :

CENTRAL PUBLIC WORKS DEPARTMENT Office Memorandum No. SE/TAS/GST/10 Issued by Authority of Director General, CPWD

Nirman Bhavan, New Delhi Dated : 04.12.2017

Sub:- Clarification on GST Regarding

Due to imposition of Goods and Services Tax (GST) tenders invited, received or agreements drawn with effect from 01.07.2017 and after considering the before the commencement of GST i.e. before various representations made by the Builders 01.07.2017, it has been decided to adopt the following Associations of different regions with a view to guidelines: mitigate the problems faced by contractors in the

Sr. Work Position Action to be taken No. 1. Interim relief payable to the contractor GST rate being 18%, the interim relief @ 6% of the gross account impact of GST on the work amount of since previous bill will be payable on awarded/tender processed before the date submission of undertaking in the prescribed format of commencement of GST with effect from as below. 01.07.2017 (expect road work.) No interim relief is payable in case of applicable GST being 12%. "I/We hereby undertake to refund to Engineer-in- Charge, excess amount if any, paid to me/us which otherwise was not payable to me/us after sanction at GST Compensation Statement."

Note:- The detailed illustration for above model calculation sheet is enclosed This issues with the approval of DG, CPWD

No.158/SE(TAS)/GST/2017/192-E Sd/-

Superintending Engineer (TAS) Office Memorandum No. SE/TAS/GST/08 Issued by Authority of Director General, CPWD

Nirman Bhavan, New Delhi Dated : 04.12.2017

Sub:- Clarification on GST Regarding

BUILDERS' ASSOCIATION OF INDIA63 77th Annual Report and Accounts – 2017-2018 Due to imposition of Goods and Services Tax (GST) tenders invited, received or agreements drawn with effect from 01.07.2017 and after considering the before the commencement of GST i.e. before various representations made by the Builders 01.07.2017, it has been decided to adopt the following Associations of different regions with a view to guidelines: mitigate the problems faced by contractors in the Sr. Work Position Action to be taken No. 1(a) Works on which both service tax and work The agency will submit to Engineer in change GST contract tax was payable. . compensation statement as per the attached model calculation alongwith necessary authenticated documentary proofs. The G.S.T. compensation statement will be scrutinized by EE for approval of competent authority within 15 working days of receipt of the statement. The superintending Engineer / Project Manger shall approve the statement within 15 working days of receipt from the Engineer in Charge. 1(b) Works on which only service tax was The GST @ 18%/12% as applicable shall be reimbursed payable i.e. involving predominantly on production of receipt of payment of GST towards labour component only. work contract. 2 Payment under clause 10 C on account of GST @ 18% / 12% as applicable shall be paid alongwith increase of wages of labour. the payment of 10C. 3 Payment of escalation made clause 10CC Payment of escalation under 10CC in respect of on substitute item for project works. . Substitute items shall be made as per model calculation attached for quantities within the Deviation limit specified in Schedule F of the contract. No payment shall be made for quantities beyond the Deviation limit as market rate is payable in that situation. Note:- The detailed illustration for above model calculation sheet is enclosed This issues with the approval of DG, CPWD. No.158/SE(TAS)/GST/2017/192-E Sd/- Superintending Engineer (TAS)

No.158/SE/(TAS)/2017 /191-E Dated : 04.12.2017

Copy to:- 1. All the SDGs, all the ADGs, All the CEs CPWD/E-in-C (PWD) GNCTD through web site for information please.

Superintending Engineer (TAS)

Office Memorandum No. SE/TAS/GST/09 Issued by Authority of Director General, CPWD Nirman Bhavan, New Delhi Dated : 04.12.2017 Sub:- Clarification on GST Regarding

Due to imposition of Goods and Services Tax (GST) mitigate the problems faced by contractors on works with effect from 01.07.2017 and after considering the executed after 01.07.2017, it has been decided to various representations made by the Builders adopt the following guidelines: Associations of different regions with a view to

BUILDERS' ASSOCIATION OF INDIA64 77th Annual Report and Accounts – 2017-2018 Sr. Work Position Action to be taken No. 1 Payment under clause 10 C on account of GST @ 18% / 12% as applicable shall be paid alongwith increase of wages of labour. the payment of 10C. 2 Payment of escalation made clause 10CC Payment of escalation under 10CC in respect of on substitute item for Project works. . substitute items shall be made as per model calculation attached. For quantities within the deviation limit specified in schedule F of the contract. No payment shall be made for quantities beyond the deviation limit as market rate is payable in that situation.

Note:- The detailed illustration for above model calculation sheet is enclosed. This issues with the approval of DG, CPWD

Sd/- Superintending Engineer (TAS)

No.158/SE/(TAS)/2017 / 190-E Dated : 04.12.2017

Copy to:- 1. All the SDGs, all the ADGs, All the CEs CPWD/E-in-C (PWD) GNCTD through web site for information please.

Superintending Engineer (TAS)

SE/TAS/GST/Part-2 Model calculation in respect of payment of escalation under 10CC in respect of substitute items. Suppose the rates of agreement items - A contract), will be added while calculating the value to be substituted is of 'M' in the formula mentioned under clause 10CC The market rate of the agreement items = MO of GCC 2014 i.e. M = C + F + I - J + Q to be substituted Where Market rate of substituted items = MS M = The cost of work on which escalation will be Therefore, as per clause 12.2.2 GCC 2014 for project payable and original work the rate payable to the contractor for the substitute items shall be the rate for the C = Gross value of work done since previous agreement item (to be substituted) so increase to the quarter. extent of the difference between the market rate of F = Full assessed value of Secured Advance for substitute item and the agreement item (to be which escalation Payable in this quarter. substituted). I = Advance payment for which escalation is Therefor, the rate payable to the contractor for the payable in this quarter. substitute item = P 'A' + (MS-MO) J = Extra Items / deviated quantities of items paid For calculation of 10CC the amount so calculated on as per Clause 12 Based on prevailing market the basis of agreement rate i.e. 'A' and quantity rates during this quarter. executed in this quarter S (Maximum upto the permissible deviation limit as per schedule 'F' of the Q = Amount of substitute item = A x S

BUILDERS' ASSOCIATION OF INDIA65 77th Annual Report and Accounts – 2017-2018 BAI led by Mr. R. N. Gupta, Vice-President, BAI and assisted by Mr. Ram Avtar, State Chairman, BAI Delhi and their team, gave a detailed memorandum to Central Public Works Department (CPWD) requesting them to review contract conditions and revise the registration limits and its validity. They also consistently followed up on the same. This has resulted in CPWD issuing the below office memorandum dated 4th October, regarding Rules for Enlistment of Contractors in CPWD which will be effective from 18th Oct 2017. The salient features of this Office Memorandum: 1) Registration validity of contractors converted to composite category has been extended up to 31st March 2020. 2) Registration Limit for Class I contractors has been enhanced from Rs.20.0 cr. to Rs.30 crs; Class II from Rs.5.0 cr. to Rs.10.50 cr.; Class III from Rs.1.50 cr. to 2.5 cr. and Class IV from 0.6cr to 0.80 cr. 3) Requirement of experience for each class has been accordingly amended. 4) Criteria for financial soundness will now be determined by the working capital and net worth certified by C.A.

BUILDERS' ASSOCIATION OF INDIA66 77th Annual Report and Accounts – 2017-2018 BUILDERS' ASSOCIATION OF INDIA67 77th Annual Report and Accounts – 2017-2018 BUILDERS' ASSOCIATION OF INDIA68 77th Annual Report and Accounts – 2017-2018 BUILDERS' ASSOCIATION OF INDIA69 77th Annual Report and Accounts – 2017-2018 ‘Indian Construction’ congratulates Mr. R. N. Gupta, Mr. Ram Avtar and their team on their achievement and wishes them the very best.

BUILDERS' ASSOCIATION OF INDIA70 77th Annual Report and Accounts – 2017-2018 BAI's pre-Union Budget 2018 presentation

Department of Revenue, Union Ministry of Finance, December, 2017 in North Block, New Delhi. pre-budget meetings with the trade and industry associations every year to discuss suggestions / The BAI delegation was led by Mr. R. N. Gupta, Vice- recommendations in respect of tax issues pertaining President, BAI; Mr. K. Vishwanathan, Chairman, to different sectors. Since the past many years, BAI BAI's Taxation, Royalty, Entry Tax and Indirect Tax has always been invited and BAI has been making Committee; Mr. CH. Ramakotaiah, Past State elaborate presentations. Chairman, BAI Andhra Pradesh; Mr. Sandesh Mundra, Chairman, BAI's Goods & Service Tax For the forthcoming Union Budget 2018-19, a Committee; CA Tarun Ghia, Chairman BAI's Direct combined of Builders' Association of India (BAI), Taxes Committee; Mr. Raju John, Executive Confederation of Real Estate Developers Secretary, BAI and Mr. Satnam Singh Arora, Associations of India (CREDAI), Construction Executive Officer, BAI Delhi Office. The BAI Federation of India (CFI) and National Highway delegation gave Power Point presentation, details of Builders Federation (NHB) was convened on 4th which are printed below : GST vis-a-vis Real Estate Builders

Title Provisions of Issues being Effects on Indian Our the Law faced Economy Suggestions Explanation 2 of the said 1. Proper deduction Notification prescribes that mechanism should be land value shall deemed to prescribed in Valuation be 1/3rd of total value. Two rules. issues arise:- 2. Suitable clarification 1. The deduction is should be issued and this prescribed through deemed deduction should Notification which is not not be a compulsion as at proper. The similar situation some locations, land value Section 15 - Value of arose in Service tax and the forms 60% of total value. taxable supply read with deduction mechanism was Hence, compulsory Notification No. 11/2017 held unconstitutional in Court may struck down deemed deduction should dated 28.06.2017 - case of Suresh Kumar deduction mechanism be avoided. Valuation mechanism for Bansal vs Union Of India & resulting into high litigation 3. We request you to allow Valuation deduction of land value is Ors. on 3 June, 2016. cost. Further, benefits given deduction of land in case of improper. 2. This deduction seems to to affordable housing works contract used for be compulsory. However, in project will be of no use. affordable housing projects, Notification No. 20/2017- case of Joint Development where consideration Central Tax Agreements, bifurcation is includes land value. (Rate) New Delhi, the 22nd available for land value and August, construction value. 2017 3. As per Notification No. 20/2017, lower rate of 12% is prescribed for works contract services used for affordable housing projects. However, 1/3rd deduction for land value is not available in this case. So it makes no difference whether we claim lower rate or not because for construction services, the rate of tax effectively is 12% after land deduction.

BUILDERS' ASSOCIATION OF INDIA71 77th Annual Report and Accounts – 2017-2018 Title Provisions of Issues being Effects on Indian Our the Law faced Economy Suggestions Tax will not be levied if unit Until the term first sold after first occupation or occupation is defined, completion certificate, everybody will try their own Valuation Schedule II, Entry 5(b) which ever is earlier. means to substantiate first Suitable clarification is However, how to occupancy. Revenue will be required. substantiate first at a loss with respect to tax occupation is no where amount and further litigation defined. cost.

Consideration to builder includes maintenance charges. Taxability of same is not clarified. However, the same should be considered as naturally bundled. Natural' bundling implies If maintenance charges are Suitable clarification is Coverage of Supply Section 7 that the recipient of the not treated in bundle then, required. supply has no option to developers will not disclose decide whether he wishes it separately. So for better to receive the various disclosure, it should be elements of the supply clarified. being provided as a bundled supply. Whereas, if such an option to decide is possible then the supply cannot be said to be 'naturally' bundled and such a supply will not be 'composite' supply. Therefore, clarifications required in for inclusion of value of maintenance charges as a composite supply.

GST vis-a-vis Civil Engineering Construction Contractors

Section 2(119) "works Definition of works contract contract" means a contract covers only immovable for building, construction, property. Hence, any works To remove this ambiguity, fabrication, completion, executed on movable we request you to take one erection, installation, fitting property has to be classified of the following measure Works Contract on out, improvement, under composite supplies Department may have to viz.- movable property modification, repair, or mixed supply, as the incure litigation cost. a. To include works maintenance, renovation, case may be. executed on movable alteration or commissioning Execution of works includes property in the definition of of any immovable property multiple activities in its works contract. Or wherein transfer of property ambit and to classify it b. To provide guidelines to in goods (whether as goods either as mixed or as classify works contract as or in some other form) is composite supply is an composite or mixed involved in the execution of onerous task and prone to supplies. such contract; lots of litigations.

BUILDERS' ASSOCIATION OF INDIA72 77th Annual Report and Accounts – 2017-2018 Notification No. 20/2017- These notifications allow Discriminatory treatment for Central Tax (Rate) dated lower rate of 12% on contractors and sub- 22.08.2017, Notification No. specified works contract contractors is in violation of 24/2017 - Central Tax services provided to Article 14 of the (Rate) dated 21.09.2017 specified Government Constitution. Petitions are and Notification No. 31/ orgainisations. However, already admitted on this 2017 - Central Tax (Rate) only the contractor will be issue by two High Courts. Lower rate benefit granted Rate of tax dated 13.10.2017. eligible to take benefit of If the case goes in to contractors should be lower rate and the sub- petitioner's favour then, it extended to sub- contractor will still be liable will have retrospective contractors also. to pay tax @ 18%. effect as per Article 12. In Resultantly, contractor will such cases, court may pay output tax of 12% and order refund by the claim credit of tax charged department, adversely by sub-contractor @ 18%. effecting cashflow's. Huge unutilised credits will create issues in contractor's fund flow.

Section -17(5)(c) - (5) ITC of tax charged on works Defeats the purpose of 1. Credit of works contract Notwithstanding anything contract service is blocked seamless credit. Further, services if such services contained in sub-section (1) for end user of such service. loss of credit will increase are related to business of section 16 and sub For example - If Mr. A the costing and increased premise should be allowed section (1) of section 18, receives works contract cost may increase black otherwise it will defeat the input tax credit shall not be service for renovation of his money generation in this purpose of seamless credit. available in respect of the factory, which is used by sector. Hence the clause needs to Input Tax Credit following, namely:- him for production of be suitably amended to (c) works contract services taxable goods then also he cover those cases where when supplied for is not entitled to claim credit structure is used for construction of an of such tax. residence purpose. immovable property (other 2. Credit blockage if works than plant and machinery) Further, this provision also contract service is used to except where it is an input blocks credit in situation provide construction service for further supply of where works contract service should be removed. works contract service; services are used as input for providing output construction services. This blockage needs to be removed.

In earlier regime, exemption was provided for service Provided to the Government, Local Authority or a We request that the rate Notification No. 9-2016 Governmental authority by Negative effect on should be reduced and this Lower rate dated 1/3/2016 in entry 12- way of construction, infrastructure development. service should be taxable at A & Notification No. 9-2016. erection, commissioning, lower rate of 12%. St. dated 1/3/2016 in entry installation, completion, 14 A fitting out, repair, maintenance, renovation, or alteration of monorail, metro rail, ports and air- ports. But from 1/7/2017, GST @ 18% is applicable to all the above works.

BUILDERS' ASSOCIATION OF INDIA73 77th Annual Report and Accounts – 2017-2018 Title Provisions of Issues being Effects on Indian Our the Law faced Economy Suggestions The exemption are given only to pure labour contracts of construction , All the contracts are erection, commissioning, Government's effort to normally in the nature of installation, completion, provide house to all works contract and not of Lower rate GST on single residential fitting out, repairs, sections of society will go in pure labour contract. The unit maintenance, renovation or vain. GST @ 12% will exemption should allow the alteration of the structure or adversely effect prices in works contract service also. any other original work real-estate sector. Further Sub-contractor pertaining to Individual providing exempt service house construction under should also be exempted the PMAY

Definition of Government Entity does not cover cases of NBCC where the stake is 75% Government Entity" means an authority or a board or any other body including a society, trust, corporation, i) set up by an Act of Parliament or State We request that the Legislature; or definition of government Exemption Government works ii) established by any Negative effect on entity should be relaxed to undertaken prior to Government, infrastructure development. cover entities with more 1.7.2017 with 90per cent. or more than 51% government participation by way of control. equity or control, to carry out a function entrusted by the Central Government, State Government, Union Territory or a local authority." Lack of Uniform methodology for assessment of pre GST taxes

Notification No. 20/2017- Presently, construction Central Tax (Rate) New service for roads is taxable Delhi, the 22nd August, at the rate of 12%. This rate Negative effect on We request you to reduce Lower rate 2017 - Works contract is very high for taxing a infrastructure development. tax rate. service for construction of basic infrastructure project. roads Therefore, we request you to reduce the tax rate at 5%. GST vis-a-vis Real Estate Builders and Civil Engineering Construction Contractors Coverage of Supply 1. As per section 7 of the 1. Taxability of movement of Non-compliance may 1. The supply of capital CGST Act, supply includes capital goods within the increase due to hardships goods (whether to own place all forms of supply of goods same business including in working capital or to the customer) be kept and/or services. branch transfers will cause management reducing outside the purview of GST, 2. As per Recommenda- lot of financial hardship. Government's tax base. and only the leasing/ renting/ tions made by GST council Capital goods like transfer of right to use the in its 23rd Council meeting, machines, cranes etc. asset be subject to tax.

BUILDERS' ASSOCIATION OF INDIA74 77th Annual Report and Accounts – 2017-2018 a Circular No. 21/21/2017- require huge capital 2.a. Suitable circular needs CGST was Issued to extend deployment and levy of tax to be issued. the clarification for inter- when they are moved for b.Circular should also state movement of rigs, business purposes will cover taxability in case tools and spares, and all prove to be a huge financial branches belonging to goods on wheels [like burden for entities owning same entity, located in cranes]. these and moving them same or different States from one place of business and having separate GST to another. number. 2. Lack of proper clarification will lead to mis- interpretation of the circular and may create disputes between the officials and the entities. 3. A lot of hardship to business entities may result into non-compliance by them and thereby reducing the tax base of the Govt

Credit notes can be issued Suitable amendment is in two circumstances viz - required. a. Return of goods b. Change in price of Mutiple treatments will Credit Notes Section 34 of CGST Act - existing supply of goods or result in non-compliance, Credit and Debit Notes services huge litigations and However, law does not reduction in tax base. permit issue of credit note for cancellation of service.

As per the recommendation made by the GST Council in its 23rd meeting, exemption have been granted on payment of GST on advance receipt of goods, however, in case of Section 13 of the CGST Act services, the same is still Working capital loss to Exemption on payment of indicates the provisions for continued and GST is businesses will result in tax GST on advances should Time of Supply determining the time of payable on receipt of evasion and non- also be extended to supply in respect of advances. compliance. advances received on services. In case of long term account of supply of advances of contracts, services. where mobilization advance is paid to the contractors and the recovery of such advances is also done proportionately from the invoices being raised. Thus, this results in blockage in working capital.

1. Section 54 allows refund Rule being inconsistent with Suitable amendment and Refund of unutilised Section 54 of CGST Act and of unutilised credit on Act may get struck down. clarification is required. credit on account of Rule 89(5) of CGST Rules "inputs". The word "inputs" Court's may allow refunds inverted rate structure is not defined in the Act. with retrospective effect. Reading it with Rule 89(5), Interest cost and cashflow

BUILDERS' ASSOCIATION OF INDIA75 77th Annual Report and Accounts – 2017-2018 we may conclude that it issues may arise. intends to allow refund of input goods and input services. 2. Rule 89(5) prescribes formulae for calculating eligible refund claim. The formulae is - Maximum Refund Amount = {(Turnover of inverted rated supply of goods) x Net ITC ÷ Adjusted Total Turnover} - tax payable on such inverted rated supply of goods It seems that this formulae is meant for claiming refund of excess credit due to inverted rate structure for supply of goods only. However, Act allows refund for both supply of goods and services. Further, if we go through this formula then, it mentions adjusted total turnover which includes turnover for goods as well as turnover for services. We have to guess the applicability of refund provisions. There is no clarity.

Credit on stock held cannot Rigid conditions in credit This provision restricts Transitional Provisions Section 140(3) and 140(6) be claimed if invoice is availment will attract non- seamless flow of credit. of CGST Act earlier than 12 months from compliance and govt.'s tax Therefore, suitable the appointed day. base may reduce. amendments should be made to remove it.

Credit can be claimed for Defeats the purpose of -Capital Goods used solely motor vehicles if they are seamless credit. Further, for providing taxable service. Input Tax Credit Section 17(5)(a) of CGST used for transportation of high costing may increase -Used only during Act goods. However, some black money generation in construction activity. machineries used in this sector. -Never used for plying on the construction sector falls in road. the category of motor -GST liability at the time of vehicles. Hence, those sale of such machinery. vehicles cannot be Therefore if ITC denied, then classified as vehicles for double taxation. transportation of goods and -Other plant & Machinery contractors and builders are allowed ITC u/s 16. lossing its credit. So we -Defeats the purpose & request you to issue a fundamental of GST law. Compliances clarification that credit -ITC of Motor Vehicles used should be allowed for such in transportation of goods is plant and machineries. admissible u/s 17(5)(a) exceptions.

BUILDERS' ASSOCIATION OF INDIA76 77th Annual Report and Accounts – 2017-2018 Compliances . 1) Lack of Clarity on GST . 1. Return of all type of GST Provisions (Rules and for all categories of Regulation) assessee should be made 2) Increased compliance, quarterly.. with increase in the number 2. While filing GSTR 3B of returns to be filed monthly and thereby paying annually tax monthly but differing/ 3) Problems in GSTN Portal extending dates of filing GSTR-1 and GSTR-2, does not allow assessee to take correct quantum of ITC. Hence end up paying more out put tax. 3. Mandatory scrutiny should not be done by Dept for all assessee claiming tax credit in TRANS-1 of more than one crore. Instead this should be done at random and in extreme cases where credit shown is more in proportion to turn over. 4. No penalties for the returns filed up to December-2018, by which time majority confusion for GST should get settled. Only interest on delayed payment may be collected. 5. Interest rate also should be brought down to 15% from 18%. 6. Process of advance ruling should be made faster. There should be some time frame/limit for giving ruling.

Direct Taxes vis-a-vis construction industry

Taking some of the benefits granted by the Finance ¾ Section 2(42A) amended for land or building, Act, 2017 to logical ends while many real estate transactions place on leaseholds, tenancies. To serve spirit of ¾ Reduced holding period for land and building : amendment, all immovable properties should to stimulate housing sector : need to give be included to stimulate housing sector. consequential effects Suggestion : Amend further section 2(42A) to include ¾ Ref. Section 2(42A), 54, 54B, 54D, 54F all immovable properties. • Amended sec. 2(42A) : Reduced holding ¾ Tax on unsold properties held as stock in trade period of 24 months from 36 months : Set off limit of Rs. 2 lakhs applied. Ref. : Sections • Consequential effects for new asset to be 23(5), 71(3A) provided u/s. 54,54B, 54D, 54F • New section 23(5) taxes notional rental Suggestion : Amend sections 54, 54B, 54D, 54F to income from properties held as stock in bring in alignment with holding period u/s. 2(42A) trade after prescribed period. Mainly for

BUILDERS' ASSOCIATION OF INDIA77 77th Annual Report and Accounts – 2017-2018 builders, developers. • Finance Act, 2016 granted benefits for affordable housing to housing projects • In many cases, the builders pay interest on approved on or after 1st June, 2016. Finance funds borrowed for construction. Eligibility Act, 2017 has further relaxed some of the u/s. 36(1)(iii) as business expenditure. relevant conditions. • New section 71(3A) provides ceiling of Rs. Suggestion : Clarify that amendments by Finance Act, 2 lakhs for set off of income 2017 will also apply to projects approved on or after • under the head house property against any 1st June, 2016. other head of income. ¾ Taxation of Consortiums/JVs/AOPs : Ref. Sec. • Effect of combined application of sections 40(ba), CBDT Circular dated 7th March 2016, Sub 23(5) and 71(3A) would mean double head : Section 40(ba) sufferings by the builders, developers. • Substantial number of real estate Suggestion : Amend section 71(3A) to exclude transactions are structured as JVs. provisions of section 23(5). • Some of these joint ventures become ¾ Taxation Joint Development Agreements : taxable as AOPs. Relaxation granted to individuals and HUFs • While in case of a partnership, u/s. 40(b), • In towns and cities, due to land availability remuneration, interest to partners are being scarce, more developments are allowable deductions subject to prescribed happening through vertical expansions via ceilings, in cases of AOPs, section 40(ba) JDAs. Tax on most JDAs are litigated w.r.t. does not allow such deductions. time of taxation and/or value for taxation. • In practice, in many cases, the JV partners • While relaxations by F. A. 2017 are provide specific services, specialised welcome, the equity lies in favour of all services. Therefore, there such deduction joint developments, for capital gains as well may be allowed subject to fair market as for stock in trade and for all types of valuation of such services. assesses. This will encourage real estate Suggestion : Amend section 40(ba) to allow joint developments. remuneration, interest to JV partners. Making the • The new section incorporates provisions of same subject to section 40A(2) with protect revenue’s section 50C but only partly with the result interest. that relief provisions to assesses aggrieved ¾ Cicrular : CBDT vide Circular dated 7th March against higher stamp valuation are not 2016, has clarified regarding the Taxability of applied. Consortium members. • While holding constitutional validity of • Industry has welcomed the Circular as it section 50C the courts have also taken lends clarity to taxation of JV partners. One cognisance of relief remedies built in the of the requirements of Circular is each said section. member of JV is independently responsible • For capital gains inter alia from JDAs, the for executing its part of work through its exemption provisions are contained in own resources. Practically, in many cases, section 54, 54F, 54EC., 54EE. However, the the works may be subcontracted to the JV time limits in the said sections have not partner. The independence needs to be seen been extended w.r.t. Section 45(5A). w.r.t. who bears risk and rewards of its part. Suggestion : Extend scope of section 45(5A) to all assessees and to transfers of capital assets as well as Suggestion : Amend circular or issue clarification. non capital assets. Make section 50C fully applicable ¾ TDS : to section 45(5A). Extend time limits of section 54, 54F,54EC, 54EE in alignment with section 45(5A). • JV/AOP members should be allowed to declare to the contractee under rule 37BA, ¾ Incentive to Affordable Housing : Section 80IBA:

BUILDERS' ASSOCIATION OF INDIA78 77th Annual Report and Accounts – 2017-2018 that the income of the Joint Venture is this. taxable in hands of the individual Suggestion : Once tax deducted, allow assessee to members. Such declaration should enable claim deduction in any year(s). Introduce a pass book the the contractee to issue separate TDS system. certificates in the name of the partners. ¾ Capital Gain Exemption for investment w.r.t. Suggestion : Issue clarification. Sections 54, 54F: ¾ Section 44AD : Presumptive taxation at 8%: • Section 54 and 54F provided tax exemption Extend to LLPs also. for investment into “a” residential house. • Section 44AD relating to presumptive Finance No. 2 Act, 2014 replaced “a taxation applies only to small businesses residential house “with “one residential carried on by resident Individuals, HUFs house”. and Firms excluding LLP. More and more • Same litigations continue as for e.g. 4 flats businesses of real estates are carried on can comprise in “a house” as well as “one now by LLPs in place of partnerships. The house”. purposes of ease of taxation will be better served by extending the benefit to LLPs Suggestion : Amend section enabling CBDT to also. prescribe guidelines w.r.t. “one” residential house. Suggestion : Extend 44AD benefit to LLPs also. ¾ Taxation of Retentions money/margin in the hands of contractors / sub-contractors : ¾ Tax Deductions at Source : Lend introducing continuing credit system : • Law has settled that retention money becomes taxable only when the concerned • One of the main issues that keeps the obligations under the contract are fulfilled income tax law away from ease of doing or contingencies get decided. business is mis matches in TDS due to differences in accounting by the deductor • However, ICDS III relating to construction and the deductee. contracts, provides for taxation of retention money also on percentage completion basis • If a simple rule is introduced that once tax in a manner that every year part of at source has been deducted paid into retention money also becomes taxable. This government treasury, then the deductee will result into lot many litigations. Further, may claim deduction in any year(s) of his application of section 5 takes place first and choice. Introduce pass book system to do then section 145.

BUILDERS' ASSOCIATION OF INDIA79 77th Annual Report and Accounts – 2017-2018 Covergence and Stepping Forward May 30 (Tue) - June 2 (Fri), 2017 Grand InterContinental Seoul Parnas, Korea - a report

The 43rd Convention of International Federation of IFAWPCA Board meetings as Proxy to BAI's Asian and Western Pacific Contractors Associations IFAWPCA Board Member - Mr. Avinash M. Patil, (IFAWPCA) was held between 30th May, 2017 and Imm. Past President, BAI, who could not attend the 2nd June, 2017 in Hotel Grand InterContinental, Convention. Seoul, Korea. The theme for the 43rd IFAWPCA Convention was Mr. H. N. Vijaya Raghava Reddy, President, BAI was 'Convergence and Stepping Forward' the Chief Delegate and led a 100 members strong delegation of BAI. Mr. H. N. Vijaya Raghava Reddy addressed the delegates during the General Assembly, which is Mr. S. Narasimha Reddy, Vice President, BAI was given below. the Alternative Nominee. He also attended the

Speech of Mr. H. N. Vijaya Raghava Reddy, Chief Delegate of Builders' Association of India made at 43rd IFAWPCA Convention at Seoul, Korea

Delegates of IFAWPCA, Distinguished Guests, initiation such as providing world class cement Ladies and Gentlemen, concrete corridors, industrial corridors, dedicated freight corridors housing for all by 2022, 100 smart Thank you for this great opportunity and warm cities, clean India, ultra modern mega power projects hospitality. many more would lead for super demand for India is a country with an incredible history, it is so building fraternity. rich in architecture, we have buildings that are Government extends red carpet invitation to FDI thousands of years old and co-existing with with ease of doing business in India. Our contemporary ones in India, in general it is a dream Government encouraging all countries to work destination for business development through together in the areas like digitalisation, solar power, building India. research and development R & D to improve the India is regarded by the World Bank and many technology and quality. Please take the opportunity global rating agencies as the fastest growing major to build up your net work and explore potential economy in the world. Indian Construction Industry business partnership. is expected to be one of the largest in the world in a Urbanisation is taking place at a very fast pace in few years from now. Therefore, I wholeheartedly India. This requires substantial construction in all invite you to India and offer the platforms of BAI forms of Infrastructure like Road, Rail, Air, Water, spread throughout the country to advance your Power, Sanitation, Public Health, Sports, interest in India. Entertainment, Shopping, Education, Health care, I represent construction fraternity BAI consists of one Hospitality, Tourism, IT and Residential sectors. lakh plus members, the large construction trade body The Construction industry in India expects growth in India it is my pleasure to talk about our country rate of 7 to 8% per annum over the next 10 years. and its foreseen growth. Government of India

BUILDERS' ASSOCIATION OF INDIA80 77th Annual Report and Accounts – 2017-2018 Conductive policy frame work and tax incentives are Reasons to Invest India in place for select infrastructure and affordable housing sectors. 9 INDIA is the 8th largest economy in the world with a GDP of US $ 1.3 trillion. Opportunities exist in all the above areas where we 9 INDIA’s economy is growing by around 7 to are looking at Innovative, faster and cost effective 8% per annum since 2010. technology. 9 INDIA is one of the youngest countries in the We are focusing on ; world, with 50% below the age 25 yr. 9 High savings rate of 37 % of GDP. ¾ Green building solutions. 9 INDIA’s growth has been driven by high ¾ Sustainable and environment friendly building domestic consumption which is expected to materials. grow substantially in the coming years. 9 INDIA has a robust, diversified and well ¾ Training and skill development of construction regulated financial system. sector workers. 9 Indian Stock Exchange is the second oldest in Make in India is getting global recognition. The the world (165 years). Investments are safe with whole world enthusiastically celebrates the relatively high returns. International Yoga day. India is enjoying 9 INDIA has a stable political scenario with unprecedented success through its space dynamic leadership. programme.

BUILDERS' ASSOCIATION OF INDIA81 77th Annual Report and Accounts – 2017-2018 PADMA Awards Vis-à-vis BAI

BAI for a long time started lobbying for bestowing d) Pioneers in infrastructure development like first Padma Awards for deserving contractors and it is public private partnership work in roads, thus decided to fix eligibility criteria for nominating buildings, seaports, state transport, bus depots contractors for Padma Awards. The following are the or bus stations. broad norms decided by the Office Bearers:- e) Those construction contractors continuing a) He should be a Patron Member of BAI. business since 1947 or even earlier till date and have established name for quality b) Those construction contractors who initiated workmanship. mechanisation of construction activities on roads, be it hard surface (i.e. concrete) or flexible f) Promoting use of green buildings or pavement (i.e. bitumen surface) or in other technologies in building works. infrastructural facilities such as pipeline, ports, etc g) Socio Economic status and contribution of the contractor towards manpower and to the c) Work carried out in remote and difficult areas growth of construction industry. such as Sikkim, North Eastern States, J & K, H.P. or work executed in country under hostile h) Other honours, Awards received by the environment such as Afghanistan. Contractor. Nominating Shri P.R. Mundle for Padma Awards

The Managing Committee Meeting of Builders' RESOLVED that, the office of Construction Industry Association of India (BAI) held at Coimbatore on Development Council (CIDC) will be requested to 25th November 2017, have unanimously passed the support the initiative of BAI in nominating Shri P.R. following Resolution to nominate the name of Shri Mundle for 'PADMASHRI' Award". P.R. Mundle, Past President of BAI, a renowned construction contractor, noteable philanthropist, an As authorised by the Managing Committee, BAI academician and a renowned social worker for President have sent Nomination for Shri P.R. 'PADMASHRI' Award. Mundle, Past President, BAI, for 'Padmashri' Award, to Shri Ramnath Kovind, Hon'ble President of India, "IT IS RESOLVED that, Shri P.R. Mundle's name will vide letter No.597/N/2017-18 dated 28th November be nominated for 'PADMASHRI' Award and Senior 2017; Shri Narendra Modi, Hon'ble Prime Minister Members of Builders' Association of India (BAI) will of India, vide letter No.596/N/2017-18 dated 28th send letters recommending his name for November 2017 and Shri Rajnath Singh, Hon'ble 'PADMASHRI' Award to the Hon'ble Prime Minister Union Minister of Home Affairs, vide letter No.595/ of India, the Hon'ble President of India, and the N/2017-18 dated 28th November 2017. Hon'ble Home Minister of India. IT IS ALSO

Introduction of Youth Wing and Ladies Wing

Ref: 429/A/2017-18 dated August 16, 2017 Please refer to the report of Shri V.N. Varadharajan,Vice President, BAI, South Zone-II on To: the subject matter circulated in the 2nd Managing Chairmen of all BAI Centres committee / General Council meeting held on 22ndJuly 2017 at Hotel Novotel, Hyderabad. Dear Friends, In this regard, I also feel, BAI should take initiative Subject: Introduction of Youth Wing / Student in enrolling Youth / Student to BAI YOUTH WING Wing at all BAI Centres. who are the children of our members and their friends who are in the construction field and also

BUILDERS' ASSOCIATION OF INDIA82 77th Annual Report and Accounts – 2017-2018 those who are pursuing Engineering courses, so that Please contact the undersigned for any clarification BAI effectively create second rank leadership, who you may be required in this regard. will be well equipped with latest technology. Thanking you, While visiting Mysore, I was surprised to see the excellent functioning of BAI Youth Wing called Yours faithfully, 'SHILPI' and if any member who need counselling of opening Youth Wing /Student Wing, may please contact the Office Bearers of BAI Mysore Centre.

The subject matter will be discussed as an agenda H.N. VIJAYA RAGHAVA REDDY item, during the ensuing Managing committee / President General Council meeting to be held on 15th Builders' Association of India September 2017 at Mumbai. Copy to: 1. All Office Bearers of BAI Headquarter. I, therefore request the Centre Chairmen to come out 2. All Office Bearers of BAI Centres. with concrete proposal for opening of Youth Wing /Student Wing at BAI Centres.

EXCON - Report

As a common meeting point for the stake holders of various cities across India between 4th October and Indian and International construction equipment 17th November, 2017. Office-bearers and senior industry, Confederation of Indian Industry (CII), functionaries of BAI Centres in the respective cities India's Premier Industry Association have organized also participated in the Road Shows. The Road EXCON 2017, between 12th and 16th December 2017, Shows were organised in, Ahmedabad, Bengaluru, Karnataka. Presently in its 9th Edition, Bhubaneshwar, Chandigarh, Chennai, Delhi, the International Construction Equipment and Guwahati, Hyderabad, Indore, Jaipur, , Technology Trade Fair was supported by the Indian Kolkatta, Lucknow, Madurai, Nagpur, Nasik, Patna, Construction Equipment Manufacturers' Association Pune, Ranchi, Vadodara, Vijayawada and (ICEMA) as Sector Partner. Vishakhapatnam.

EXCON 2017 was supported by Builders' The Print and electronic media covered the Road Association of India. Shows and an exhibitions.

CII had organised Road Shows of EXCON 2017 in

BUILDERS' ASSOCIATION OF INDIA83 77th Annual Report and Accounts – 2017-2018 XXVIII All India Builders’ Convention 19th to 21st January, 2018 Bangalore

XXVIII All India Builders’ Convention (AIBC) was traditional lamp in the second half of Friday 19th held in at Clarks Exotica Resorts & Spa, Bangalore, January, 2018 in an impressive setting within the between 19th and 21st January, 2018. sprawling campus of Clarks Exotica Resorts & Spa. Mr. M. Venkaiah Naidu, Hon’ble Vice-President of The XXVIII All India Builders’ Convention was India was the Chief Guest. His Excellency Mr. hosted by Karnataka (Bangalore) Centre. Karnataka Vajubhai Vala, Hon’ble Governor of Karnataka, was (Bangalore) Centre had earlier hosted the XII All the Guest of Honour. Mr. P.C. Mohan, Member of India Builders’ Convention in January 1987. Parliament also graced the occasion. Mr. H. N. Vijaya Raghava Reddy, President, BAI; Mr. R. After receiving the go ahead from the Managing Radhakrishnan, Chairman XXVIII AIBC Convention Committee of BAI at its meeting held on 2nd July, Committee; Mr. B. Seenaiah, Chief Patron, XXVIII 2016 in Nashik, Karnataka (Bangalore) Centre AIBC; Mr. K. Subramani, Chairman, XXVIII AIBC formed a ‘Convention Committee’ and ‘Organsing Organizing Committee; Mr. K. S. Someshwara Committee’. Office-Bearers of Karnataka (Bangalore) Reddy, Organizing Secretary, XXVIII AIBC and Mr. Centre supported the ‘Organising Committee’ in Srinivasa Reddy, Chairman, BAI Karnataka successfully organising the XXVIII AIBC. The (Bangalore) Centre, graced the dais during the various ‘Sub-Committees’ formed under the aegis inauguration. of the ‘Organising Committee’ of XXVIII AIBC geared up and initiated the various basics for Mr. K. Subramani, Chairman, XXVIII AIBC organising the XXVIII AIBC. Organizing Committee delivered the opening remarks. He welcomed Mr. M. Venkaiah Naidu, A meeting of ‘XXVIII All India Builders’ Convention Hon’ble Vice-President of India; His Excellency Mr. Committee’ was held at Bangalore on 7th July 2017, Vajubhai Vala, Hon’ble Governor of Karnataka; Mr. to finalise the Convention Brochure, shortlist list of P. C. Mohan, Member of Parliament; Mr. H. N. Vijaya Sponsors, shortlist Chief Guest for Inauguration and Raghava Reddy, President, BAI; Mr. R. Valedictory Sessions, Speakers for Technical Session, Radhakrishnan, Chairman XXVIII AIBC Convention etc., wherein all members concerning the Convention Committee; Mr. B. Seenaiah, Chief Patron, XXVIII were present. AIBC; Office-Bearers of BAI head office; Managing Committee & General Council members of BAI and In the first half of Friday 19th January, 2018 the Fourth others. The honourable dignitaries were formally Meeting of the General Council 2017-18 of BAI was welcomed by presentation of flower bouquets by the held. Mr. H. N. Vijaya Raghava Reddy, President, senior functionaries of BAI. BAI chaired the meeting. Others who graced the dais during the meetings were : Mr. S. Narasimha Reddy, Thereafter Mr. R. Radhakrishnan, Chairman XXVIII Vice President, BAI; Mr. V.N. Varadharajan, Vice AIBC Convention Committee addressed the President, BAI; Mr. Sachin Chandra, Vice President, gathering. In his address he highlighted that BAI has BAI; Mr. C. G. Deochake, Hon. Gen. Secretary, BAI; chosen the theme for the XXVIII AIBC as ‘Building Mr. Neerav Parmar, Hon. Gen. Treasurer, BAI; Mr. India’, considering the ambitious programme of Avinash M. Patil, Imm. Past President, BAI; Mr. S. Government of India led by Shri Narendra Modi, R. Swamy, State Chairman, BAI Karnataka; Mr. Hon’ble Prime Minister of India, that of providing Srinivasa Reddy, Chairman, BAI Karnataka world class infrastructure to the country, creating (Bangalore) Centre; Mr. K. Subramani, Chairman, best irrigation facility, creating world class smart Organising Committee and Mr. Raju John, Executive cities, interlinking of rivers and providing housing Secretary, BAI. The customary meeting to brief the for every citizens of the country by 2022. He further office-bearers was also held couple of hours before said that AIBC’s are held regularly by BAI to educate the General Council Meeting. its members, as regards availability of latest technology, latest equipment, latest business XXVIII AIBC was inaugurated by lighting of the practices, etc. and for that BAI members from across

BUILDERS' ASSOCIATION OF INDIA84 77th Annual Report and Accounts – 2017-2018 the length and breadth of India come together. He top 50. To be able to achieve this, a drastic change in reminded the delegates that before he took up this approval system is mandatory. Currently on an coveted position as Hon’ble Vice President of India, average it takes 18 to 24 months to have real estate the Chief Guest was till recently holding the post of projects approved. Almost all infrastructure projects Union Development Minister, which is considered require clearance from Environmental & Forest as the guardian of Indian construction industry and Ministries at multiple layers, which not only induces in his this capacity had 14 months back during the abnormal delay in completion of projects, it will also concluding ceremony of BAI Platinum Jubilee increase the final cost of executing the project. One Celebrations in Chennai, had acknowledged the window approval will be an apt solution. As regards importance of builders fraternity in developing implementation of ‘Goods and Service Tax (GST)’, India. He appreciated the Hon’ble Prime Minister he said BAI wholeheartedly appreciates the of India’s move for a cashless society and said that Government for introducing GST in the country in BAI will support him in this and also would play view of simplifying the taxation structure. Though 100% role in developmental initiatives. He stressed the Government of India have reduced the GST that players of Indian construction industry are very levied on ‘construction projects’ from 18% to 12%, capable and are even undertaking lot of works on the sub-contractors are still levied GST of 18%. He the international level too. In conclusion he assured requested that it be reduced to 12% for sub- that players of Indian construction industry will be contractors also. In the matter of ‘Issues relating to capable of fulfilling the desires of the Hon’ble Prime the Land Acquisition’, he said that Government Minister. should take full responsibility of land acquisition and avail the same for contractors before awarding the In his address, Mr. H. N. Vijaya Raghava Reddy, contracts and provide, also the required funds for President, BAI, initially spoke about BAI as regards the project so that there will not be cost & time run its history, its vast reach over the length and breadth over. As regards ‘Cartelization by Cement of India and its activities. He said that the XXVIII Manufacturers’, he stressed the need for a ‘Cement AIBC theme ‘Building India’ is to build a nation, Regulatory Authority’ as Cement Manufacturers are which is in alignment with the Government of India’s known for indulging in cartelisation. In the matter plan to build a new vibrant India. As regards of ‘Labour Welfare Cess’, he said that construction Government of India’s initiatives, such as 100 smart industry expects to employ 80 million workers by cities, industrial corridor, power projects, dams, the year 2020 and that the productivity of indian bridges, airports, seaports, housing for everyone by construction workers is the lowest currently. The 2022 at a cost of Rs.65 Lakhs Crores, he assured that Government have collected more than Rs. 40,000 construction sector would like to work with great Crore as on 30th September 2017, towards ‘Labour pride with the Government of India and help Welfare Cess’, and requested that a minimum of 20% translate the plan and BAI’s own vision of ‘Building of this amount should be available for skilling the India’ into a living reality. He went on to highlight construction workers. He requested the Government the Indian construction sector, saying that to make available a ‘Corporate Social Responsibility’ construction sector is a major contributor to India’s (CSR) amount set aside for skilling the construction GDP employing more than 35 million workers. He workers. Regarding ‘Labour Laws’, he said the highlighted some of the core issues faced by the Government of India should consider rationalising Indian construction sector, which if addressed by the the labour laws by combining all the social security Government will widely organize the sector welfare measures with a TDS form of collection. This throughout the country, dissolve policy paralysis, he said will facilitate the builder and contractor to reduce untimely project delays, bring fair play in concentrate on his business as Government will take trading of raw materials and thus resulting in the care of the social security welfare of the workers. In benefit of the economy, people of the country and conclusion he asked for ‘Relaxation of Banking players at every level of the construction sector Norms’ saying that the Government of India should ecosystem. He said that addressing these factors are recommend to Reserve Bank of India (RBI) for also critical in attracting FDI to the sector and fast relaxing the Non Performing Asset (NPA) norms for tracking India’s infrastructure development. contractors, as the repayment of the loan by the Stressing the need for ‘Single Window Clearance’, contractors are mainly due to the non payment / he said India has recently jumped up in ranks for delayed payment of bills by the works authorities of ease of doing business and is aiming to break into the Government Departments.

BUILDERS' ASSOCIATION OF INDIA85 77th Annual Report and Accounts – 2017-2018 It is noteworthy to mention here that Hon’ble Vice- assured that RERA is not for ‘strangulation’ but President of India considered the speech of BAI ‘promotion’ and ‘regulation’ for development of the President, very important in as much as the Hon’ble country and that real estate industry has welcomed Vice-President of India requested for the printout of it, since due to some fly-by-night operators, the the BAI President’s speech, immediately after he whole industry was getting a bad name. He agreed completed his speech. that the problems will be there in the initial stages, which will be ironed out in due course. He said that The XXVIII AIBC Souvenir was released by His during his tenure as Union Urban Development Excellency Mr. Vajubhai Vala, Hon’ble Governor of Minister, he took initiative and called 9 (nine) Union Karnataka and the first copy was presented by him Ministers of the Government of India, e.g. Civil to Mr. B. Seenaiah, Chief Patron & Past President, Aviation Minister, Environment Minister, Consumer BAI. Affairs Minister, Railways Minister, Defence Minister, etc. for meetings atleast seven to eight times After releasing the XXVIII AIBC Souvenir, Mr. and stressed the need for ‘Single Window Clearance’ Vajubhai Vala, Hon’ble Governor of Karnataka, system and the idea is to have online approval – addressed the gathering, wherein he welcomed the within 60 days applications to be approved and gathering on behalf of Government of Karnataka. He deemed to have been approved beyond 60 days. He said that such regular gathering of BAI members, lamented the ‘Red Tape’ cluture and said that it not only strengthens the association by the country should be converted to ‘Red Carpet’. He said that also. He added that the builders and contractors are contractors and builders are partners with the not working just for making money but for prestige Government in nation building and they should be of nation building also. Construction of roads, given due respect. He added the increased highways, bridges, dams, housing, airports, seaports urbanisation necessitates that the Government and will show the prestige of the nation. To be equipped Private sector should partner and take up with latest modern construction technology and developmental activities. He added that Government methodology, he stressed the need for the established has no business to be in business and should only be of an institution. He highlighted the need for skill a facilitator. He said that construction industry is upgradation of construction workers, which is regarded as one of the major economic activity needed for quality work and completion of the employing around 40 million workers. It accounts project without delay. for more than 60% of the plan outlay and a major contributor to the GDP growth of the country. The In his inaugural address Mr. M. Venkaiah Naidu, Government of India has ambitious plan of Hon’ble Vice President of India, appreciated the developing the country’s infrastructure and we are concept of AIBC’s, which according to him enhances in need of cooperation from you all for achieving the knowledge of the participants by focusing on this. Government of India has already announced modern construction techniques, which they may and shortlisted more than 100 cities as Smart Cities need for building national monuments. He also and at some places we have even completed the appreciated the various activities of BAI, particularly bidding process. He said that, post demonetisation, its role as a bridge between the government and the banks are flush with funds, and construction and construction industry to mitigate the difference building industry should get funds easily. He between the two. He said he was confident that the touched upon the need for ‘Standard Contact Government will look into various issues of BAI like Conditions’. He highlighted need for skill simplifying of procedure for approval of land development. In conclusion he said that builders and acquisition and single window clearance and contractors should have integrity and do good work. establishing a ‘Cement Regulatory Authority for cement cartelisation. He said that the Union The dignitaries on the dais were honoured with Government is aware the major role of development mementoes. Thereafter Mr. K. S. Someshwara Reddy, of infrastructure and real estate sector to enhance Organizing Secretary, XXVIII AIBC, proposed the the GDP growth as well as to generate more Vote of Thanks. employment. He said that when he was the Union Urban Development Minister he had taken initiative An exhibition of construction materials and to get the Real Estate Regulation Development machinery was also organised on the sidelines of Authority (RERA) Bill passed by the Parliament. He XXVIII AIBC. Many major construction machinery

BUILDERS' ASSOCIATION OF INDIA86 77th Annual Report and Accounts – 2017-2018 and material manufacturers participated in the Chairman, Technical Session, XXVIII AIBC. Others exhibition. The exhibition was formally inaugurated who graced the dais during the inspiration talk by in the morning of Saturday, 20th January, 2018 by Sri Sri Ravi Shankar were : Mr. H. N. Vijaya Raghava Mr. Ramalinga Reddy, Hon’ble Minister for Home, Reddy, President, BAI; Mr. R. Radhakrishnan, Government of Karnataka. He also moved around Chairman XXVIII AIBC Convention Committee; Mr. the exhibition and interacted with the exhibitors. B. Seenaiah, Chief Patron, XXVIII AIBC; Mr. K. Subramani, Chairman, XXVIII AIBC Organizing Thereafter, in the morning of Saturday, 20th January, Committee; Mr. K. S. Someshwara Reddy, 2018 the ‘Technical Session’ of XXVIII AIBC was Organizing Secretary, XXVIII AIBC and Mr. inaugurated by Chief Guest Mr. Ramalinga Reddy, Srinivasa Reddy, Chairman, BAI Karnataka Hon’ble Minister for Home, Government of (Bangalore) Centre. Before addressing the gathering Karnataka. Apart from the Chief Guest, others who Sri Sri Ravi Shankar visited and moved around the graced the dais during the inauguration of the exhibition and interacted with the exhibitors. ‘Technical Session’, were : Mr. H. N. Vijaya Raghava Reddy, President, BAI; Mr. V. N. Varadharajan, Vice- In his address to the gathering, which was listened President, BAI; Mr. C. G. Deochake, Hon. Gen. to in pin drop silence, Sri Sri Ravi Shankar Secretary, BAI; Mr. Neerav Parmar, Hon. Gen. appreciated and congratulated the efforts of BAI in Treasurer, BAI; Mr. S. R. Swamy, State Chairman, organising the AIBC and the concurrent exhibition. BAI Karnataka; Mr. R. Radhakrishnan, Chairman He said that building and architecture have been a XXVIII AIBC Convention Committee; Mr. B. inherent part of ancient India and has been used Seenaiah, Chief Patron, XXVIII AIBC; Mr. K. across the globe in ancient times. He gave examples Subramani, Chairman, XXVIII AIBC Organizing of ancient India monuments, which are still standing. Committee; Mr. K. S. Someshwara Reddy, As regards the building and construction he said, Organizing Secretary, XXVIII AIBC; Mr. G. N. like any other industry, this industry is also having Ravindra, Treasurer, Organizing Secretary, XXVIII its ups and downs, but the challenges are more in AIBC; Mr. K. Sriram, Chairman, Technical this industry. He exhorted the gathering to face the Committee, XXVIII AIBC and Mr. Srinivasa Reddy, challenges. He highlighted the potential for the Chairman, BAI Karnataka (Bangalore) Centre. Mr. building and construction industry in India vis-a- R. Radhakrishnan, Chairman XXVIII AIBC vis tourism, real estate, etc. for that infrastructure Convention Committee began the proceedings of the like residential complexes, hotels, etc. These are huge inaugural session, by speaking about BAI and the opportunities. He touched upon the stress levels in issues of the building and construction industry. the India business sector and the health problems due to that. He said that if the labours are eating In his inaugural address, Mr. Ramalinga Reddy, unhealthy food without nutrition, they cannot get Hon’ble Minister for Home, Government of motivated at work and will take more time to Karnataka, assured that the contentious issues like complete a given task. Due to the health problems, FIR, Single Window Clearance, GST, raised by Mr. there is no passion in the work, ethics is missing, R. Radhakrishnan will be looked into by the State productivity goes down and efficiency goes down. Government. He stressed the importance of builders He said construction workers should be given and contractors in developmental activity and that balanced nutritious food and that his organisation their problems need to looked into properly. He has successfully experimented on this. He touched upon the importance of using latest highlighted the need for small and easy exercises on technology, machinery and materials for better and work sites and offices, like breathing and meditation. faster construction. He appreciated BAI on He assured that this will increase the productivity. organising the exhibition along with AIBC. He He lamented the lack of properly skilled workers in assured BAI that their request for land in Bangalore India and highlighted the need for skill development. for establishing a skill development institute will be He said only good salary and incentives is not looked into by the Government. enough, workers and staff should be given ‘M & M’ i.e. meals and meditation. Top bosses’ interacting On Saturday, 20th January, 2018, after the regularly with their subordinates is good for the inauguration of the ‘Technical Session’. Sri Sri Ravi company, he said. He said other countries needs Shankar of the ‘Art of Living Foundation’ addressed Indian builders to work in their countries and hence the delegates. He was introduced by Mr. K. Sriram, huge scope is there for Indian construction industry.

BUILDERS' ASSOCIATION OF INDIA87 77th Annual Report and Accounts – 2017-2018 He said that India has huge potential for developing AIBC; Mr. Srinivasa Reddy, Chairman, BAI construction materials and machinery, instead of Karnataka (Bangalore) Centre and Mr. Raju John, importing it. He exhorted members to believe in Executive Secretary, BAI. themselves and move onward and open up their field of operation beyond their living thing. As regards Mr. H. N. Vijaya Raghava Reddy, President, BAI; challenges, he said that one should not be misguided Mr. R. Radhakrishnan, Chairman XXVIII AIBC and that truth will always prevail. Sri Sri Ravi Convention Committee and Mr. B. Seenaiah, Chief Shankar, thereafter guided the gathering through a Patron, XXVIII AIBC, initiated the ‘Open House’ short meditation session. He even answered queries discussion. Many members opined on industry and raised by some of the delegates. BAI organisational issues, which were clarified or taken note of. The technical sessions were held after the lunch session on Saturday, 20th January, 2018 and morning Thereafter, Mr. K. S. Someshwara Reddy, Organizing session of Sunday, 21st January, 2018. The various Secretary, XXVIII AIBC, moved the ‘Resolutions’ to speakers and the topics in the technical sessions were be adopted by the XXVIII AIBC. After some highly informative. They were : discussion on some of the resolutions and changes incorporated, the following resolutions were 9 Dr. Sujit Kumar, who spoke on ‘Aesthetics in adopted. the pursuit of Green Habitats’. 9 Dr. Jyothi Gupta, who spoke on ‘Smart Cities’. “It is resolved to meet the Hon’ble Prime Minister 9 Mr. Rajendra, who spoke on ‘Relevance of of India after getting an appointment to appraise the Traditional Construction Technique in the problems faced by the Construction Contractors and Modern Context’. Infrastructure providers. We appeal to the Hon’ble 9 Mr. S. J. Vijay from M/s. Salman L cap INC, Prime Minister to resolve these issues. who spoke on ‘3D Volumetric Concrete Costing’. 1. It is RESOLVED that, the Government of India 9 Mr. Rajeev B. Bhatnagar, Head CSR & CST L&T should consider establishing a separate Ministry Constructions for Building and Construction Industry due to 9 Mr. V. Suresh, Former CMD, HUDCO, who the heavy investment opportunities expected to spoke on ‘On Building a New India’. be in Building and Construction Sector – that 9 Mr. Raj Pillai, MD, M/s Pruvankara on ‘New is, Infrastructure Development and Housing – Age Architecture’. in the next two decades.

In the afternoon of Sunday, 21th January, 2018, the 2. It is RESOLVED that, the Government of India ‘Valedictory Session’ and ‘Open House’ was held. should recommend to Reserve Bank of India Dignitaries who graced the dais during the (RBI) for relaxing the Non Performing Asset ‘Valedictory Session’ and ‘Open House’ were : Mr. (NPA) Norms for contractors, as the repayment H. N. Vijaya Raghava Reddy, President, BAI; Mr. V. of the loan by the contractors are mainly due to N. Varadharajan, Vice-President, BAI; Mr. S. the non payment / delayed payment of bills by Narasimha Reddy, Vice-President, BAI; Mr. Sachin the Works Authorities of the Government Chandra, Vice-President, BAI; Mr. C. G. Deochake, Department. Hon. Gen. Secretary, BAI; Mr. Neerav Parmar, Hon. Gen. Treasurer, BAI; Mr. S. R. Swamy, State 3. It is RESOLVED that, the Government contracts Chairman, BAI Karnataka; Mr. R. Radhakrishnan, should include in their tenders, a clause for Chairman XXVIII AIBC Convention Committee; Mr. resolving of disputes only through B. Seenaiah, Chief Patron, XXVIII AIBC; Mr. K. Institutionalised Arbitration instead of Adhoc Subramani, Chairman, XXVIII AIBC Organizing Arbitration, which is as per the Arbitration Committee; Mr. K. S. Someshwara Reddy, Amendment Act 2016. Organizing Secretary, XXVIII AIBC; Mr. G. M. Ravindra, Treasurer, Organizing Secretary, XXVIII 4. It is RESOLVED that, NITI Aayog should give AIBC; Mr. N. M. Krishnamoorthy, Chairman, directive to all the State PWD that, they should Accommodation Committee, XXVIII AIBC; Mr. M. adopt CPWD contract conditions, so we have Ramesh, Chairman, Registration Committee, XXVIII uniform form of contract across the country.

BUILDERS' ASSOCIATION OF INDIA88 77th Annual Report and Accounts – 2017-2018 5. It is RESOLVED that, the Government of India 13. It is RESOLVED that more deserving people should consider relaxing Coastal Regulation from building and construction industry should Zone (CRZ) Rules due to the large scale be encouraged and given ‘Padma Awards’ as it urbanisation and consequential requirement of is being given to other industries/professionals. more housing units expected in the next two decades. 14. It is RESOLVED that, the Government of India should consider easing the implementation 6. It is RESOLVED that, the Government of India procedure of Goods and Service Tax (GST) should consider promoting construction of steel Rules for Construction Industry. composite structures as it is faster and economically beneficial. It is also RESOLVED 15. It is RESOLVED that, the Real Estate Regulatory that, the Government of India should encourage Act (RERA) should include the sanctioning use of Precast material for quicker completion authorities and service providers from the of construction projects, both in housing and Government side also with in the provision of commercial complexes. the Act for achieving the desired result envisaged by the legislature. 7. It is RESOLVED that, the Government of India should consider releasing the land bank to Real 16. It is RESOLVED that, the Government should Estate Developers for constructing Affordable provide land at free of cost for creating skill Houses to fulfil the dream of the Government upgradation Centres at various parts of the to provide “Housing for All by 2022”. country. It is also RESOLVED that, the Government should permit the use of Labour 8. It is RESOLVED that, the Government of India Welfare Cess collected under the Building and should accept the recommendation of Mr. Vijay Other Construction Workers Welfare Cess Act, Kelkar Panel on PPP and BOT projects, so that 1996 for skilling the construction workers. Public-Private-Partnership (PPP) projects in infra sector will have more takers. 17. It is RESOLVED that, the Government of India should include representatives from Builders’ 9. It is RESOLVED that, the Government of India Association of India (BAI) in the Committees should encourage research for using alternate constituted by the Government of India and also material in place of sand, as sand dredging is representation in the Government for the banned by the Supreme Court. development of Construction Industry.

10. It is RESOLVED that, the Government of India 18. It is RESOLVED that, to set up Anti-Corruption should consider rationalising the Labour Laws Cell at all 170 centres of BAI throughout the by combining all the social security welfare country with Head Office at Bombay to promote measures with a TDS form of collection. This anti-corruption in all the Government and will facilitate the builder and contractor to Private Sectors. Offering or Accepting bribe is concentrate on his business as Government will an offence, hence youth wings of BAI will work take care of the social security welfare of the to promote & adopt anti-corruption in the workers. country and work to gradually eradicate corruption completely by 2022. It is further 11. It is RESOLVED that, the Government of India resolved that the details of step by step should consider constituting a ‘Cement implementation shall be discussed in all BAI Regulatory Authority’ as Cement meeting and implemented. Manufacturers are known for indulging in cartelisation with profiteering purpose. 19. It is RESOLVED that, the Government of India should consider exempting the levy of Goods 12. It is RESOLVED that, the Government of India and Service Tax (GST) for the membership should consider establishing a single point collected by Charitable Institution like Builders’ window for permission of major infra projects Association of India (BAI) as it’s main object is as well as housing projects. enhancing the image of Construction Industry.

BUILDERS' ASSOCIATION OF INDIA89 77th Annual Report and Accounts – 2017-2018 ¾ Overall Best BAI Centre (Above 200 Members) 20. It is RESOLVED that, before calling tender for : Southern (Chennai), Mumbai and Karnataka work, the Government agencies should allocate (Bangalore) Centres proper budgetary fund for such work, to avoid delay of reimbursement to the contractors as ¾ Image Building Activities by a Centre : Pune, also to avoid subsequent litigation. Tirupur, Erode Centre, and Delhi Centres.

21. It is RESOLVED that, the Government of India ¾ Organising Best Training Programme or should ensure the availability of land at the Seminar : Tuticorin, Hyderabad and Eastern contractors’ disposal at the time of awarding (Kolkatta) Centres. the contracts. In other words, the execution of projects should not be delayed due to ¾ Maximum Membership Growth : Hyderabad, acquisition of land. Satara Centre and Muvattupuzha Centres.

22. It is RESOLVED that, the Government of India ¾ Best Efforts by any Centre for Quality should consider establishing Internship Construction : Kumbakonam and Programme / Skill Upgradation Institutes / Rajasthan (Jaipur) Centres. Agencies for fresh Diploma and Degree ¾ Best Builders’ Day Celebrations : Chengalpattu, Engineers before recruiting them for doing the Pudukottai, Coimbatore, Thanjavur and actual job. Tiruchirappalli Centres.

It is resolved to request Hon’ble Prime Minister for ¾ Maximum Membership Retention : Ulhasnagar an appointment on his convenience to discuss / and Silchar Centres. appraise the problems faced by the Construction Industry.” ¾ Best publication by a BAI Centre : Southern (Chennai) and Mumbai Centres.

The resolutions were sent to the Hon’ble Prime ¾ Best performing Chairman of BAI’s functional Minister of India under a cover letter by the BAI Committees : Mr. R. Radhakrishnan, Chairman, President, receipt which was duly acknowledged by Platinum Jubilee Celebrations and Mr. Neerav the PMO. Parmar, Chairman Legal & Arbitration. The resolutions were also sent to all the Members of ¾ Best Performing State Chairman : Mr. M. Parliament (Rajya Sabha and Lok Sahba) under a Thirusangu, State Chairman, Tamil Nadu, covering letter by the BAI President. Puducherry & Andaman Nicobar; Mr. John Paul K, State Chairman, Kerala and Mr. Suresh Awardees of ‘BAI Awards 2016-17’ had been B. Patil, State Chairman, Maharashtra. announced during the 76th Annual General Meeting of BAI held at Hyderabad hosted by Nalgonda ¾ Best Vice President Award : Mr. Mu. Mohan, Centre. The trophies were presented to the recipient Vice President. Centres and individuals during the XXVIII AIBC. ¾ Special Award for conducting Platinum Jubilee The following is the list of awardees. Celebration : Southern (Chennai) Centre.

¾ Overall Best BAI Centre (Below 200 Members) ¾ Special Award for Maximum Participation in : Mysore, Dhule and Tirunelveli Centres. IFAWPCA Convention held at Seoul, South Korea : Hyderabad Centre.

BUILDERS' ASSOCIATION OF INDIA90 77th Annual Report and Accounts – 2017-2018 BAI Awards 2016-17

''BAI Awards 2016-17' were announced during the during the "XXVIII All India Builders' Convention" 76th AGM of BAI held on 22nd July 2017 at held at Bangalore on 19th January 2018. Hyderabad. The Award Presentation was held

Overall Best BAI Centre (Below 200 Members) 1. Mysore Centre 2. Dhule Centre 3. Tirunelveli Centre Overall Best BAI Centre (Above 200 Members) 1. Southern (Chennai) Centre 2. Mumbai Centre 3. Karnataka (Bangalore) Centre Image Building Activities by a Centre 1. Pune Centre 2. Tirupur Centre 3. Erode Centre 4. Kottayam Centre 5. Delhi Centre Organising Best Training Programme or Seminar 1. Tuticorin Centre 2. Hyderabad Centre 3. Eastern (Kolkatta) Centre Maximum Membership Growth 1. Hyderabad Centre 2. Satara Centre 3. Muvattupuzha Centre Best Efforts by any Centre for Quality Construction 1. Kumbakonam Centre 2. Rajasthan (Jaipur) Centre Best Builders’ Day Celebrations. 1. Chengalpattu Centre 2. Pudukottai Centre 3. Coimbatore Centre 4. Thanjavur Centre 5. Tiruchirappalli Centre Maximum Membership Retention 1. Ulhasnagar Centre 2. Silchar Centre Best publication by a BAI Centre 1.Southern (Chennai) Centre 2.Mumbai Centre Best performing Chairman of BAI’s functional 1.Shri R. Radhakrishnan Chairman Committees. – Platinum Jubilee Celebrations 2.Shri Neerav Parmar Chairman Legal & Arbitration Best performing State Chairman. 1. Shri M. Thirusangu, State Chairman, Tamil Nadu, Puducheery & Andaman Nicobar 2. Shri John Paul K, State Chairman, Kerala 3. Shri Suresh B. Patil, State Chairman, Maharashtra Best Vice President Award. Shri Mu. Mohan – Vice President (South) Special Award for conducting Platinum Southern (Chennai) Centre Jubilee Celebration. Special Award for maximum participation in Hyderabad Centre IFAWPCA Convention held at Seoul, South Korera.

BUILDERS' ASSOCIATION OF INDIA91 77th Annual Report and Accounts – 2017-2018 Changes of Guard at BAI

BAI's Organisational Elections for 2018-19 On 28th March 2017, Shri Lal Chand Sharma, Past culminated on the 28th March 2018. Shri Raju John, President of BAI, formally installed Shri A. Executive Secretary, BAI officiated as the 'Returning Puhazhendi as President of BAI for 2018-19 by Officer' for conducting the elections. adorning him with the "BAI's President's Medallion". He also installed the other office bearers of 2018-19. Shri A. Puhazhendi was unanimously elected as the President of BAI for 2018-19. The next day, that is, on 29th March 2018, Shri H.N. Vijaya Raghava Reddy handed over the 'BAI Key' to Shri C.G. Deochake, Hon. Gen. Secretary, BAI (2017- Shri A. Puhazhendi, symbolising handing over of 18) formally announced the results of 'BAI's charge. Organisational Elections for 2018-19' in the evening of 28th March 2018. A large number of senior functionaries of BAI from many Centres were present, which included BAI's Result of the election of a Trustee necessitated due office bearers for 2017-18 and 2018-19 also. to the demise of Shri D.L. Desai (Shankarbhai) was also announced. Shri Ram M. Bhatia was In the morning of 29th March 2018, a joint meeting unanimously elected as Trustee of Western Region of Office Bearers 2017-18 and Office Bearers 2018-19 of BAI for the term 2018-19. was held in the BAI office.

BAI WEBSITE ‘www.baionline.in’

BAI launched its website ‘www.baionline.in’ at the BAI members / visitors can download : Managing Committee Meeting at Nashik on 9th August 2008. With the launch of www.baionline.in, 9 BAI Constitution (BAI Rules & Regulations) BAI too aims at giving its members top-of-the-line 9 Membership Application Form service. 9 Membership Data Updation Form

As of now www.baionline.in offers the following BAI members can get their membership number services : through www.baionline.in. 9 All circulars meant for BAI Centres and senior Services to be introduced over a period, include : functionaries will be hosted. 9 Important Judgements, Circulars and 9 Website based email service to BAI members. Notifications by Government(s) and /or 9 ‘News & Discussion Board’ – news concerning Departments will be hosted. the construction industry will be hosted and 9 Tender information. members/visitors can air their opinion on the same. 9 Latest Price Index Numbers. 9 ‘Meeting Room’ – akin to the concept of 9 Construction industry related exhibition/trade ‘chatting’, senior functionaries can hold fair information. meetings via video conferencing. 9 Information on all publication of BAI and its 9 Archives of ‘Indian Construction’ and other Centres. publications by BAI Centres. 9 Details of office-bearers of BAI. 9 Total detailed membership database of BAI. 9 Links to important websites i.e. like minded national & international organisations, ‘Wheeling & Dealing’ – is a platform for BAI Government organisations concerning having members and others for offering machinery to be dealings with construction industry, service given on hire or request machinery on hire / offer providers, construction companies, etc. specialised service or request for specialised service, etc.

BUILDERS' ASSOCIATION OF INDIA92 77th Annual Report and Accounts – 2017-2018 Finance of the Association Meetings were held at:

The Headquarter, due to its better financial During the financial year under report, (Four) discipline, was generating surplus for the last 16 Managing Committee and Four General Council years, and the current year also we have a surplus Meetings were held at: of Rs. 95,79,772/-. This is a major th achievement, though there was a marked decline in 1. Mysore on 20 May 2017. (MC & GC) interest income. It is also a fact that, the Trustees are 2. Hyderabad on 22nd July 2017. (MC & GC) prompt and alert in keeping the Fixed Deposits with 3. Mumbai on 15th September 2017. (MC & GC) Banks which offers the highest return. 4. Coimbatore on 25th November 2017. (MC) Functions of BAI Headquarter Office 5. Bengaluru on 19th January 2018. (GC)

BAI Headquarter and BAI Delhi Office with a staff Committees: of 14 members functioning exceptionally well under the control of Executive Secretary, Mr. Raju John. The Managing Committee authorised the President, Mr. H.N. Vijaya Raghava Reddy to re-constitute the Meetings Committees for the year 2017-2018.

During the financial year under report, 4 (Four) Accordingly, the following Committees were Managing Committee and 4 (Four) General Council constituted with its Chairpersons as under:

NAME OF COMMITTEES Chairman Central Government Department & PSU Shri Ved Khurana Cement & Bulk Material Purchase Shri V. Unnikrishnan CIDC Co-ordination Committee Shri Sanjay Tyagi Constitutional Amendment Shri J.R. Sethuramalingam Contract Conditions Shri H.S. Pasricha Corporate Membership Development & Communications Shri K. Sriram Energy Shri K.R. Dhanasekar Goods & Service Tax Shri Sandesh Mundra Grievances Dr. Tarro T. Manghnani Housing & Real Estate & Infrastructure & Development, Shri M.V. Antony ISO, Green Building. Image Building Activity Shri B. Adinarayana Reddy Indian Construction Shri Neerav Parmar Labour Welfare, Provident Fund, ESIC & Labour Cess Shri Shri Rajiv Goel Legal & Arbitration Shri Jagdish Prasad Agarwal Mechanisation Shri V.G. Sakthikumar Membership Development & New Centres Shri Mu. Moahan MES Shri Jawahar Mohanlal Mutha MSME Shri Saumil A. Patel National Highways Shri Abdul Faizy Permanent Asset Creation Shri R.P. Selvasundaram Public Relations Shri N.S. Muralidhara Railways Shri K. Venkatesan Skill Development Shri K.L. Mohan Rao Taxation, Royalty, Entry Tax, Direct Tax and Indirect Tax Shri K. Viswanathan

BUILDERS' ASSOCIATION OF INDIA93 77th Annual Report and Accounts – 2017-2018 BAI Membership / Affiliations the Executive Board of IFAWPCA. • Affiliated to International Federation of Asian • Shri Mahesh M. Mudda on the Expert & Western Pacific Contractors’ Associations Committee and Shri Neerav Parmar on the State (IFAWPCA), Philippines. Level Advisory Committee of Building & Other • Founder Member of Construction Industry Construction Workers (Regulation of Development Council (CIDC), New Delhi. Employment and Conditions of Service) Act 1996 for Government of Maharashtra. • Member of IMC Chamber of Commerce & Industry, Mumbai. • Dr. Anand J. Gupta on Central Advisory Committee constituted by the Ministry of • Member of Indian Council of Arbitration, New Labour, Government of India, under the Delhi. Building and Other Construction Workers • Member of Employers’ Federation of India, (Regulation of Employment and Conditions of Mumbai. Service) Act 1996. • Member of Indian Roads Congress. • Shri H.S. Pasricha, Member, Central Advisory • Member of Federation of Indian Chambers of Contract Labour Board, Ministry of Labour, Commerce & Industry, New Delhi. Government of India. • Member and Promoter of Construction Skill • Shri R.N. Gupta, Member, Central Public Work Development Council of India (CSDCI), New Department (CPWD) Technical Committee. Delhi. • Shri R. N. Gupta & Shri Rajiv Goel , Member, Ministry of Housing & Urban Affairs BAI’s Representatives on various Committees (MoHUA), Ministry of Human Resource • Shri H.N. Vijaya Raghava Reddy, President, Development (MHRD) BAI as Member, Board of Governors of National Offices of BAI Centres Institute of Construction Management & Research. (NICMAR). There has been a growing trend amongst BAI Centres • Shri H.N. Vijaya Raghava Reddy, President, to go in for their own office premises, with facilities BAI as Member, Board of Governors of for conducting meetings, training, etc. The premises Construction Industry Development Council owned by these Centres are registered under the (CIDC). name of “Trustees Builders’ Association of India”. • Shri H.N. Vijaya Raghava Reddy, President, As on date, the Centres who have their own office BAI as Member, Board of Governors of National premises are Andhra Pradesh (Hyderabad), Delhi, Academy of Construction (NAC). Eastern (Kolkata), Karnataka (Bangalore), Nanded, • Shri B. Seenaiah, Member, Review Committee Nashik, Pune, Rajasthan (Jaipur), Sangli and for Contract Management System formed by Southern (Chennai). Ministry of Statistics & Programme ‘Indian Construction’ Journal Implementation (MOSPI). • Shri H.N. Vijaya Raghava Reddy, President, Mr. Neerav Parmar was the Chairman, Indian BAI as Member, National Council of Construction Journal Committee for 2017-2018. The Construction Federation of India (CFI). printing of the magazine has been continued with a marked change and your journal is becoming more • Shri H.N. Vijaya Raghava Reddy, President, and more popular. BAI in the focus group formed for WTO. ‘ • Shri H.N. Vijaya Raghava Reddy, President, The journal has admittedly established a numero-uno BAI as a Chief Delegate of 44th IFAWPCA position in construction related trade magazines as Convention. is evident from non-member subscribers, which includes, Engineering Institutes, Government • Shri Sushanta Kumar Basu represent BAI on the Departments and Undertakings including many Working Group of Construction constituted by Works Authorities. Planning Commission for the 12th Five year Plan (2012-17). The Association is also sending around 1000 • Shri S. Narsimha Reddy as Board Member on complimentary copies to like-minded organisations

BUILDERS' ASSOCIATION OF INDIA94 77th Annual Report and Accounts – 2017-2018 in the country and abroad, Government Authorities, New Centres. Engineering Colleges, Department Heads, Works Authorities etc. The rising paper, printing and postal For the year 2017-18, BAI opened Centres at costs coupled with low advertisement revenue forces Gandhinagar in Gujarat State; Raigad and Shahada BAI General Fund to cross subsidise the publication in Maharashtra State; Greater Jaipur in Rajasthan; as it is not self sufficient. Western UP Electrical in Uttar Pradesh State; Kundli and Faridabad in Haryana State; BAI Membership Subscription. Chandigarh in Union Territory; Amaravathi in Andhra Pradesh; Ettumanoor in Kerala State; The subscription for various categories of Ramanathapuram and Tiruvallur in Tamil Nadu membership with the Association were as follows :- State. 2017-18 was an eventful year for BAI as far as Annual Membership growth of the BAI movement is concerned. BAI now planning to open new BAI Centres at Annual Subscription Rs.2,640 various places in the country. Entrance Fee Rs. 100 'INDIAN CONSTRUCTION' Rs. 200 Membership Strength GST Rs. 493 As on 31st March 2018, the membership was 18,191, Total Rs.3,433 which included 14,667 Patron Members and 3,524 Annual Members. Patron Membership Builders’ Day 2017. One time subscription - Membership for 20 (Twenty) years. Rs.25,000 The theme for the ‘Builders’ Day 2017" was ‘BUILDING INDIA’ and the writeup was 'INDIAN CONSTRUCTION' Rs. 200 GST Rs.4,500 Construction industry is a major contributor towards Total Rs.29,700 India's GDP. It employs around 40 million people, and any movement in the construction sector affect Affiliated Association Membership the economy directly as it has forward and backward linkages with more than 250 other industries. Annual Subscription Rs. 4,840 The vision of the current Central Government is to Entrance Fee Rs. 500 build 50 million houses by 2022, in addition, to 'INDIAN CONSTRUCTION' Rs. 200 develop smart cities and mega industrial corridors. GST Rs. 961 The Government also targeted 175 Giga Watts of Total Rs. 6,501 renewable energy in next few years, in addition to power generation, the issues of transmission and Affiliated Association - Patron Membership distribution of electricity, plant is also planned. The plan of modernising Railway systems including Membership (One time subscription) Rs.30,000 signals, engines and railway stations. The 'INDIAN CONSTRUCTION' Rs. 200 Government is planning metro rail in fifty cities and Service Tax Rs. 4,500 high speed trains in various corridors. The Government is also putting up new ports and Total Rs.34,550 modernizing the old ones through an ambitious plan Corporate Membership called Sagarmala. Similar focus is also provided for upgrading the existing Airports and putting up Memberships (One time subscription) Rs.3,00,000 regional airports to enhance connectivity to places Annual Subscription Rs. 10,000 of economic and tourist importance. The Government is planning to develop in the Defence Service Tax Rs. 46,500 Sector with more than Rs.13 lakh crore and also Total Rs.3,56,500 installing Nuclear Power Sector with estimated investment of Rs.50,000 Crores. All the above needs the involvement of contractors

BUILDERS' ASSOCIATION OF INDIA95 77th Annual Report and Accounts – 2017-2018 in large numbers as construction is essential for by BAI Centres are now covered along with coloured implementing the plan. We, the Contractors have to photographs. The journal now supports and equip with most modern technique of construction promotes national and international construction with resources and equipment to construct a new industry trade shows held in India and abroad, many India. Let us start 'BUILDING INDIA', so that our of with whom the journal has strategic tie-ups. The future generation will be proud of the Construction journal is sent on a ‘Complimentary’ to Government Industry's contribution. organsations and/or officials, with whom the Indian ABC industry has a working relation. Now, the Builders’ Day was celebrated by almost all Centres journal is also subscribed to by educational in a befitting manner. institutions across India imparting knowledge in the OBITUARIES : ABC industry. It is due to his efforts that ‘Indian Construction’ journal is now recognised as number Mr. Dhurvkumar L. Desai (Shankarbhai), A one journal of the construction industry in India. Crusader . . . His contribution is publishing ‘Mumbai BAI lost the following Trsutee. Construction’ – the monthly bulletin of BAI Mumbai Centre is no less. Here too he ensured that the bulletin 1. Mr. Dhurvkumar L. Desai popularly known as carried information for BAI members from the ‘Shankarbhai’ was a Trustee of BAI since 2010. He Mumbai metropolitan region, which can be useful joined BAI in 1966 and is one of the founder members in managing and planning their business. of BAI Mumbai Centre. He has been Chairman of Mumbai Centre (1998-2000); Hon. Gen. Secretary, He is the recipient of many awards and accolades. BAI (2007-08); Hon. Gen. Treasurer, BAI (2004-06) and Vice President, BAI (2006-07). He has the unique ¾ Recipient of ‘Journalist of the Year 2001’ Award distinction of actively participating in all the All India from Accommodation Times. Builders’ Convention held by Mumbai Centre – 1981, ¾ Honoured for contribution to journalism in 1996, 2001 and 2003. construction related journals and publications by Institute of Construction Management & In the last two decades or so ‘Indian Construction’ Research, Navi Mumbai underwent a metamorphosis, thanks to the efforts of Mr. D. L. Desai (Shankarbhai), who took the reins ¾ Honorary Membership from Practicing of ‘Indian Construction’ in May 2000, before which Engineers Architects & Town Planners he was ‘Principal Advisor’ for nearly six months. To Association (India). begin with its name had to be changed, for acceding ¾ Recipient of IFAWPCA-INDIA CHANAKYA to some norms of ‘Registrar of Newspapers’. It was AWARD in 2013 name was slightly changed to “Indian Construction ¾ Recipient of ‘Lifetime Achievement Award’ by Journal for the Indian Architecture, Building and BAI Mumbai Centre in 2014 Construction Industry”. For the information of all, its earlier name was ‘Indian Construction – Bulletin ¾ Recipient of ‘Lifetime Achievement Award’ by of Builders’ Association of India”. The new name BAI Pune Centre in 2016 was choosen, keeping in mind the widening ¾ Recipient of ‘Lifetime Achievement Award’ by membership profile of BAI, which now includes real BAI Butibori (Nagpur) Centre in 2017 estate developers, architects, consultants, etc. With a primary aim of giving service to the constituents • Shri Harkant Vachharajani, Past Chairman of the Indian ABC industry i.e. Architect, Building of BAI Gujarat (Ahmedabad) Centre, th and Construction Industry, the journal started expired on 8 March 2017. carrying information useful for the day-to-day • Shri A.S. Chinnaswamy Raju, Past running of the business. Statistical figures useful for President & Past Trustee of BAI, expired tendering and billing; judgements on taxation, labour on 31st March 2017. and other related issues; information on latest • Shri Dipankar Das, Past Vice President, methodology of doing business vis-à-vis machinery, BAI, expired on 7th May 2017. methods and financial engineering; etc. now forms the core of the journal. Reports of events organised • Shri Ravsaheb Yewale, Vice Chairman of BAI Ahmednagar Centre for 2017-18,

BUILDERS' ASSOCIATION OF INDIA96 77th Annual Report and Accounts – 2017-2018 expired on 15th April 2017. • Shri Dattatraya Pandurang Mhaiskar, • Shri M.S. Nandkumar, Past State Chairman & Managing Director of M/s. Chairman, Karnataka, expired on 10th June IRB Infrastructure Developers Ltd., Patron 2017. Member of BAI Mumbai Centre, expired on 3rd January 2018. • Shri Nilakanta Rao, Past Chairman of BAI Hyderabad Centre (Father of Shri V. • Shri Ganpatrao Morge, Past Chairman of nd Sudhakar, Past Chairman, Hyderabad BAI Nanded Centre, expired on 2 March Centre), expired on 28th August 2017. 2018. • Shri M. Chandramouli, Patron Member of • Shri Prem Sehgal, Past Chairman of BAI th BAI Mysore Centre, expired on 13th Jamshedpur Centre, expired on 16 March October 2017. 2018. • Shri Adala Raghava Reddy, Patron • Shri Sudhir Patel, former Executive Member of BAI Hyderabad Centre, Director of M/s. The Modern Construction expired on 5th November 2017. Shri D.S. Co. Ltd., Patron Member of BAI, expired th Vajram, Past Vice President of BAI, expired on 20 March 2018. on 7th November 2017. • Shri Rajpal Arora, Hon. Secretary and • Shri Ramesh Khurana, Patron Member of Managing Committee Member-Elect for BAI Pune Centre, expired on 8th November 2018-19 of BAI Delhi Centre, expired on th 2017. 28 March 2018. • Shri Sukumar, Executive Committee • Shri Abhay Jambekar, Past General Member of BAI Thiruvarur Centre, expired Council Member of BAI Mumbai Centre, th on 23rd November 2017. expired on 30 March 2018. • Shri H. Viswanatha Rao, Past State • Shri A.V.N. Raju, Past Chairman, BAI st Chairman, Karnataka, expired on 30th Puducherry Centre, expired on 1 May December 2017. 2018.

BUILDERS' ASSOCIATION OF INDIA97 77th Annual Report and Accounts – 2017-2018 Attendance Sheet Forming Part of Annual Report for the Year 2017-18 Attendance (out of five meetings)

Name Attendance Name Attendance Shri H.N. Vijaya Raghava Reddy, President 5 Shri Mathew Alex Vellapally 3 Shri S. Narasimha Reddy, Vice President 5 Shri Mohan S. Katariya 1 Shri V.N. Varadharajan, Vice President 5 Shri Mu. Moahan 4 Shri Sachin Chandra, Vice President 5 Shri N. Ramalingam 4 Shri R.N. Gupta, Vice President 4 Shri N. Shanmugam 4 Shri L.D. Kotwani, Vice President 2 Shri N.M. Patel 3 Shri C.G. Deochake, Hon. Gen. Secretary 5 Shri N.S. Muralidhara 4 Shri Neerav Parmar, Hon. Gen. Treasurer 5 Shri Narendra Kumar 5 Shri Avinash M. Patil,Imm. Past President 3 Shri P. Narasimha Rao 5 Shri P. Subramani 5 State Chairmen / State Co-ordinators Shri P.P. John 1 Shri P. Raja Babu (Andhra Pradesh) 4 Shri Paul T, Mathew 3 Shri Sanjib Goel (Assam) 3 Shri Prabir Kumar Mukherjee 2 Shri Alok Shivhare (Chattisgarh) 2 Shri Prakash H. Menda 5 Shri Ram Avtar (Delhi) 5 Shri Ravindra Pradhan 2 Shri Pankaj N. Saraiya (Gujarat) 3 Shri S. Ayyanathan 4 Shri Rajiv Goel (Haryana) 4 Shri S. Ganapathi 4 Shri Chandrakant K. Raipat (Jharkhand) 2 Shri S. Ramaprabhu 4 Shri S.R. Swamy (Karnataka) 5 Shri S.D. Kannan 3 Shri V. Santosh Babu (Kerala) 5 Shri S.I. Chunkhare 3 Shri Rajendra S. Athawale (Maharashtra) 5 Shri S.S. Natarajan 2 Dr. Santosh Katiyar (Madhya Pradesh) 1 Shri Suresh B. Patil 4 Shri L. Carttigueane (Puducherry) 2 Shri T.Y. Chandrasekaran 1 Shri Pradeep Kumar Jain (Rajasthan) 5 Shri V. Ravinder Reddy 3 Shri G. Ved Anand (Tamil Nadu & 5 Shri V. Satya Murthy 1 Andaman Nicobar) Shri B. Sugunakar Rao (Telangana) 4 Shri V. Srinivasa Murthy 5 Shri Ravindra Tyagi (Uttar Pradesh) 1 Shri Ashok Kumar Chandak (West Bengal) 3 Representatives of Affiliated Association Members Shri Arvind V. Patel 1 Members of the Managing Committee Shri G.M. Ravindra 2 Dr. Dharmesh C. Awasthi 3 Shri R. Manoharan 1 Dr. Rajiv B. Krishnani 2 Shri S. Pandiyen 3 Dr. Tarro T. Manghnani 5 Shri A. Chamaraja Reddy 4 Past Presidents Shri Alex P. Cyriac 4 Shri B.N. Dikshit 1 Shri Anilbhai R. Zinzuwadia 2 Dr. Brahm Datt 0 Shri Ashok Agarwal 4 Shri Shriprakash Goel 3 Shri Baburao L. Shakkarwar 3 Shri V. Ramachandran 2 Shri Basavaraj S. Totad 4 Shri R. Radhakrishnan 5 Shri Bhojraj Vithalrao Naik Nimbalkar 2 Shri A.K. Yussouf 4

BUILDERS' ASSOCIATION OF INDIA98 77th Annual Report and Accounts – 2017-2018 Name Attendance Name Attendance Shri Bhopinder Lal 2 Shri P.R. Mundle 1 Shri D.R. Sekar 2 Shri Ajit Gulabchand 0 Shri D.V.N. Reddy 4 Shri S.A. Vichare 1 Shri G. Diwakar 2 Shri Lalit Sangtani 0 Shri G. Thilagar 2 Shri Bhagwan J. Deokar 4 Shri Jaiprakash Bhatia 1 Shri Cherian Varkey 2 Shri John Paul K. 5 Shri B. Seenaiah 2 Shri K. Annamalai 3 Shri S.K. Basu 5 Shri K. Subramani 5 Shri K. Viswanathan 4 Members co-opted to Managing Committee Shri K. J. George 1 Shri V.M. Fazal Ali 4 Shri L. Shanthakumar 4 Dr. D. Thukkaram 1 Shri L. Venkatesan 4 Shri M. Muni Reddy 3 Shri M. Dhandavakrishnan 2 Shri M. Thirusangu 5 Shri Mahesh M. Mudda 1 Special Invitees Trustees Shri Abhay Garde 2 Shri Ashok K. Choudhary 1 Shri Anthony Rathnam 0 Shri D.L. Desai (Shankarbhai) 0 Shri A.S. Gandhi 1 Shri N. Sachitanand Reddy 2 Shri A.K. Srivastava 0 Shri R. Subburaman 3 Shri A.V. Sridhar 1 Shri Vijay Jagannath Devi 2 Shri B. Anandhan 2 Shri Lal Chand Sharma 3 Shri B. Babu Rao 0 Shri K. Ramanujam 4 Shri B. Ramesh 1 Shri C.K.S. Panicker 2 Chairpersons of Committees Shri C.N. Raja 1 Shri Abdul Faizy 4 Shri Dinesh K. Patel 2 Shri B. Adinarayana Reddy 2 Shri D.K. Banerjee 1 Shri H.S. Pasricha 0 Shri E. Keerthinathan 2 Shri J.R. Sethuramalingam 5 Shri Girish Shah 2 Shri Jagdish Prasad Agarwal 0 Shri Jagdish M. Parekh 3 Shri K. Sriram 3 Shri Joshy Joseph 0 Shri K.L. Mohan Rao 4 Shri K. Selvaraj 2 Shri K.R. Dhanasekhar 2 Shri K. Selva Durai 1 Shri M.V. Antony 3 Shri M. Arvinth 1 Shri N.S. Muralidhara 4 Shri Mohan D. Bhate 2 Shri Rajiv Goel 0 Shri M.S. Ramprasad 1 Shri R.P. Selvasundaram 0 Shri Shri M. Rajendran 1 Shri Sanjay Tyagi 3 Shri Mahesh R. Mirani 0 Shri Saumil A. Patel 0 Shri Mahesh Verma 2 Shri V.G. Sakthikumar 0 Shri Najeeb Mannel 1 Shri Ved Khurana 3 Shri P.K. Ramchandran 1 Shri V. Unnikrishnan 2 Shri P. Senthil Nathan 1

BUILDERS' ASSOCIATION OF INDIA99 77th Annual Report and Accounts – 2017-2018 Name Attendance Name Attendance Shri Prakash N. Dewalkar 3 Shri P.M. Harshe 0 Shri R. Dharmalingam 0 Shri R. Josef Arputha Alex 0 Shri R. Krishnaswamy 1 Shri R. Mouraly 0 Shri Raghawan K.K. 1 Shri R. Srinivasan 1 Shri Ramesh Marda 2 Shri Rajendra M. Upadhye 0 Shri Rajendra M. Gothi 0 Shri S. Balaji 3 Shri Sukumar Chougule 3 Shri Suresh Moorjani 0 Shri S. Wilfred 0 Shri Tarak R. Mamlatdarna 0 Shri T.V. Ramakrishnan 1 Shri Upendra J. Barot 1 Shri Uday N. Gokhale 1 Shri U.M. Gurushanthappa 1 Shri V. Govthaman 1 Shri V. Sivarajan 2 Shri Vinod C. Gamdiwala 2 Shri V.S.K. Murthy 2

BAI Centres Chairmen Shri Bhavesh Kumar (Patna) 3 Shri L. Narsing Rao (Kamareddy) 1 Shri Sanjeet Kumar Singh (Jharkhand Ranchi) 1 Shri U. Surender (Karimnagar) 3 Shri Kaushal K. Singh (Jamshedpur) 0 Shri Gurram Krishnaiah (Khammam) 0 Shri Subrata Das (Eastern Kolkata) 1 Shri CH Pavan Reddy (Mahaboobnagar) 2 Shri Ajit Singh Alag (Durgapur) 0 Shri G. Srinivas Reddy (Medak) 0 Shri Ranjit Kumar Debnath (Haldia) 0 Shri Soma Srinivas Reddy (Nalgonda) 4 Shri Gobind Khaitan (Guwahati) 2 Shri M. Surender Rao (Nizamabad) 3 Shri Ranadhir Basu (Silchar) 1 Shri S. Giriprasad Reddy (Ranga Reddy) 1 Shri H. S. Pasricha (Delhi) 1 Shri Manda Ilaiah () 4 Shri Jagdish Prasad Agarwal 2 Shri M.K. Anantha Reddy (Chitradurga) 1 (Delhi East Shahdara) Shri Sanjeev Bansal (Delhi North) 4 Shri R.B. Dayanand (Hassan) 1 Shri Manoj Kumar Singla (Delhi West) 2 Shri Srinivasa Reddy (Karnataka Benglore) 3 Shri Amarjeet Singh Abbot Delhi South) 0 Shri S. Mahadevaswamy (Mysore) 3 Shri Umesh R. Acharya (Gurgaon) 3 Shri H.R. Shashidhar Naik (Shimoga) 2 Shri Vijay Kumar (Karnal) 3 Shri Tomy Pulickattil (Alleppey) 1 Shri Rameshwar Dayal Khandelwal 3 Shri V.S. Mytheen (Aluva) 4 (Rajasthan Jaipur)

BUILDERS' ASSOCIATION OF INDIA100 77th Annual Report and Accounts – 2017-2018 Name Attendance Name Attendance Shri Manish Gupta (Jodhpur) 0 Shri K.A. Johnson (Angamaly) 2 Shri Manoj Sharma (Agra Cant.) 0 Shri M.K. Ashik (Calicut) 0 Shri Ashok Kumaar Sharma (Aligarh) 1 Shri K.K. Abraham (Changanacherry) 2 Shri Arun Kumar Tyagi (Bagpat) 0 Shri Joby Kurian (Ettumanoor) 2 Shri Praveet Chaudhary (Bareilly) 0 Shri V.S. Jayachandran [Kerala (Trivandrum)] 1 Shri Satish Kasana (Gautam Budh Nagar) 3 Shri Zachariah Abraham [Kochi (Cochin)] 1 Shri Dinesh Sharma (Ghaziabad) 1 Shri V.M. Meheboob Ali (Kodungallur) 0 Shri Ravinder Nagar (Greater Noida) 1 Shri Stanley Scaria (Kottayam) 4 Shri Rajeev Agarwal (Hapur) 0 Shri Rajesh Mathew (Muvattupuzha) 3 Shri Vikas Agarwal (Kanpur - South) 1 Shri C. Abdul Kareem (North Malabar) 0 Shri Manoj Kasana (Loni) 0 Shri John Philip (Thiruvalla) 1 Shri Harjeet Singh (Lucknow) 0 Capt. George Thomas (Thripunithura) 3 Shri Hariom Bhardwaj (Meerut) 1 Dr. C.R. Ramdas () 0 Shri Vijay Kumar Bansal (Meerut Cantt.) 1 Shri R. Rajasekar (Chengalpattu) 5 Shri Vipin Kumar Sirohi (Modi Nagar) 0 Shri V. Xavier Antonyraj (Chettinadu) 4 Shri Vipin Kumar (Moradabad) 0 Shri K. Rajavel (Coimbatore) 4 Shri Manbir Tyagi (Moradabad Northern Rly.) 2 Shri P. Janakar (Dindigul) 1 Shri Rajiv Tyagi (Muzaffarnagar) 0 Shri R.P. Selvasundaram (Erode) 3 Shri Yoginder Kasana (Sitapur) 1 Shri B. Ashok (Kallakurichi) 0 Shri A. Nagamalleswara Rao (Amaravathi) 3 Shri S. Shajahan (Kanyakumari) 3 Shri M. Sri Hari (Nellore) 1 Shri B. Arasakumar (Kodaikanal) 1 Shri M. Kesava Raju (Rajahmundry) 0 Shri R. Venkatesan (Kumbakonam) 4 Shri N. Srinivasa Reddy (Ravulapalem) 2 Shri K. Ramesh (Madurai) 2 Shri M. Sri Rama Krishna (Tanuku) 3 Shri K. Yuvaraj (Maduranthagam) 0 Shri V. Venkateswara Rao (Vijayawada) 2 Shri S. Chandrasekaran (Mayiladuthurai) 1 Shri G.V. Ravi Raju (Visakhapatnam) 1 Dr. Alhaj S.M. Mohamed Ibrahim (Nagapattinam) 0 Shri Kakarla Ramesh Babu (Vizag Steel City) 0 Shri K. Mani (Namakkal) 3 Shri V. Gangadhar (Adilabad) 1 Shri V. Perumal (Neyveli) 0 Shri G. Jayasimha Reddy (Greater Hyderabad) 2 Shri N. Padmanabhan (Nilgiri) 0 Shri P. Janardhan Reddy (Hyderabad) 1 Shri S. Sultan Ibrahim (Perambalur) 0 Shri A. Vijaya Kumar (Ponneri) 0 Shri Rajendra Bhupal Khanderajure (Ichalkaranji) 1 Shri M. Ramesh Kumar (Pudukkottai) 1 Shri Sanjay Shantaram Patil (Jalgaon) 1 Shri N. Anandhan (Ramanathapuram) 0 Shri Sopan Damodar Patil (Kolhapur) 0 Shri K. Muruganandam (Salem) 1 Shri Suresh Ramrao Pensalwar (Latur) 0 Shri K. Venkatesan (Southern Chennai) 4 Shri Dhirenkumar T. Pagar (Malegaon) 0 Shri R.K. Kumar (Thanjavur) 4 Shri Pradeep Nagawekar (Mumbai) 3 Shri Best Ravi M. (Theni) 2 Shri Ashok Kriplani (Nagpur) 0 Shri R. Kailasanathan (Thiruthuraipoondi) 0 Shri Naresh Painjane (Nanded) 1 Shri R. Murugesan (Tiruchirappalli) 2 Shri Gopal Atal (Nashik) 1 Shri A. Kumar (Tirupur) 3 Shri Sudhir Patil (Parbhani) 0 Shri T. Raja (Tirunelveli) 1 Shri Pramod Subhashrao Nimbalkar (Phaltan) 1 Shri G.P. Ravichandran (Tiruvallur) 2 Shri Jagannath Jadhav (Pune) 4 Shri V.K. Rajendiran (Tiruvannamalai) 0 Shri Santosh Karwe (Sangamner) 0 Shri R. Saravanan (Tuticorin) 0 Shri Jayant P. Patankar (Sangli) 1

BUILDERS' ASSOCIATION OF INDIA101 77th Annual Report and Accounts – 2017-2018 Name Attendance Name Attendance Shri B. Ramamoorthi (Vellore) 0 Shri Jakir Ajam Mirza (Satara) 1 Shri J. Immanuel Koilraj (Andaman & Nicobar) 1 Shri Kishor Kashinath Patel (Shahada) 0 Shri N.K. Gunasekarane (Puducherry) 1 Shri Rajesh B. Deshmukh (Solapur) 2 Shri S. Swaminathan (Karaikal) 2 Shri Deepak B. Bhojwani (Ulhasnagar) 3 Shri D.D. Bajaj (Bilaspur) 0 Shri Anil Laxman Sawant (Wai) 0 Shri Shailesh Tiwari (Durg-Bhilai) 1 Shri Sharda Prasad Singh (Jagdalpur) 1 Shri Kanmal Jain (Kanker) 1 Shri K. Chandrasekhar Rao (Raipur) 1 Shri Niresh P. Naik (Goa) 1 Shri Sanjay Shah (Vadodara) 1 Shri Rajeshbhai N. Shah (Bharuch) 1 Shri Kirti M. Thacker (Gandhinagar) 1 Shri Bhavesh C. Jani (Gujarat Ahmedabad) 2 Shri Smitkumar Kaneria (Rajkot) 0 Shri Yogendra Talati (Surat) 1 Shri Ramesh Nathani (Bhopal) 1 Shri Arun Kumar Jain (Indore) 0 Shri Charanjit Singh Chadha (Jabalpur) 0 Shri Mahesh P. Gundecha (Ahmednagar) 2 Shri Pradeep R. Chadha (Amravati) 1 Shri Rajendra Kharade (Baramati) 1 Shri K. Rajakumaran Nair (Butibori Nagpur) 4 Shri Sanjay S. Desale (Dhule) 2

Note: Discrepancy, if any, may kindly be informed to the Head Quarter Secretariat on or before 10th July 2018.

BUILDERS' ASSOCIATION OF INDIA102 77th Annual Report and Accounts – 2017-2018 Team 2018-19

President Mr. A. Puhazhendi

Vice Presidents Mr. Rajendra Singh Kamboh Mr. O.P. Sharma Mr. CH Ramakotaiah (South-I) Mr. M. Thirusangu (South-II) Mr. Pratap B. Salunkhe

Hon. Gen. Secretary Hon. Gen. Treasurer Mr. Neerav Parmar Mr. Pradeep G. Nagawekar

Imm. Past President Mr. H. N. Vijaya Raghava Reddy

STATE CHAIRMEN

Andhra Pradesh Chattisgarh Mr. V. Venkateswara Rao Mr. K. Chandrasekhar Rao

Delhi Gujarat Mr. Ram Avtar Mr. Nimesh D. Patel

Haryana Jharkhand Mr. Rajiv Goel Mr. Chandrakant Raipat

Karnataka Kerala Mr. K. S. Someshwara Reddy Paul T. Mathew

Maharashtra Tamil Nadu Puducherry & Andaman Nicobar Mr. Vilas K. Birari Mr. S. Ayyanathan

Telangana Mr. D. V. N. Reddy

State Co-ordinators (2018-19) Assam Madhya Pradesh Mr. Sanjib Goel Dr. Santosh Katiyar

Rajasthan West Bengal Mr. Pradeep Kumar Jain Mr. Surojit Samanta

Members of the Managing Committee representing Centres

Mr. Abhay M. Garde Mr. Baburao L. Shakkarwar Mr. Bhopinder Lal Mr. C.K.S. Panicker Mr. D. Kempanna Mr. D. R. Sekar Mr. G. Diwakar Mr. G. Thilagar Mr. K. Annamalai Mr. M. Dhandavakrishnan Mr. Mathew Alex Vellapally Mr. N. Shanmugam Mr. N. Sivakumar Mr. N.R. Prashar Mr. N.S. Muralidhara Mr. P. Narasimha Rao Mr. P. Subramani Mr. P.P. John Mr. Prabir Kumar Mukherjee Mr. R. Sivakumar Mr. R. R. Sridhar Mr. Raj Pal Arora Mr. Rajendra S. Athawale Dr. Tarro T. Manghnani Mr. V. Santosh Babu Mr. V. S. Jayachandran Mr. V.S.K. Moorthy Mr. Y. Ishwar Rao

BUILDERS' ASSOCIATION OF INDIA103 77th Annual Report and Accounts – 2017-2018 Members of the Managing Committee representing Patron Members

Mr. B. Sugunakar Rao Mr. Basavaraj S. Totad Mr. C.G. Deochake Dr. Dharmesh C. Awasthi Mr. Joji Joseph Mr. K. Rajavel Mr. K. Subramani Mr. K. Venkatesan Mr. K.J. George Mr. L. Shanthakumar Mr. Mahesh M. Mudda Mr. Mohanlal S. Katariya Mr. N. M. Patel Mr. Najeeb Mannel Mr. Narendra Kumar Mr. Prakash H. Menda Mr. R. Rajasekar Mr. Ravindra Pradhan Mr. S. Ganapathi Mr. S. Narasimha Reddy Mr. S. Ramaprabhu Mr. T.V. Chandrasekaran Mr. V. Satyamurthy Mr. V. Srinivasa Murthy Mr. V. Unnikrishnan

Members of the Managing Committee representing Affiliated Associations

Mr. Arvind V. Patel Mr. Andrew Vethanayagam Mr. B. Ramesh Mr. A.S. Rajasekharan

BUILDERS' ASSOCIATION OF INDIA104 77th Annual Report and Accounts – 2017-2018 Builders' Association of India (All India Association of Engineering Construction Contractors & Builders)

Reports from BAI Centres 2017-2018

www.baionline.in

BUILDERS' ASSOCIATION OF INDIA105 77th Annual Report and Accounts – 2017-2018 BAI Centre’s Report 2017–18 members in the field of construction so as to make Ahmednagar Centre this sector devoid of problems. The Seminar was attended by BAI members, politicians, leaders Mr. Mahesh P. Gundecha was installed as the belonging to all parties as well as the Labour Officer. Chairman of Ahmednagar Centre for 2017-18 on 4th Accordingly, we were able to come to an May 2017 alongwith other office bearers of the understanding in terms of wages and other issues. Centre. Mr. S.B. Tamesekar, Retd. Secretary- The very next day, the agreement was signed by the Maharashtra PWD was the Chief Guest & Mr. BAI members, the trade union leaders and the Rajendra Athawale, State Chairman, Maharashtra, Labour Officer.Labour related issues are always a was the Guest of Honour. Mr. Jawahar M. Mutha, major concern in the construction field especially to Founder Chairman of the Centre also graced the the members of BAI. A seminar on this issue occasion. Members and their families from “Builders faced problems” was conducted at Hotel Ahmednagar attended the installation function. The Royal Park on 6th August 2017. Based on the media cover the function. deliberations made in the seminar, a delegation from this Centre approached the Labour Secretary and the Alleppey Centre Labour Commissioner to try and resolve matters.

The Installation function of the office bearers was A programme connected to “Environment conducted on 6th May, 2017 at Hotel Ramada, Protection” was conducted to create awareness Punnamada, Alappuzha. The guests of honour were among the members regarding the importance of Hon. Minister of Finance, Dr.Thomas Issac and constructing “Eco friendly” buildings in the Tourism Member of Parliament Mr. K.C.Venugopal. Mr. Sector. In an effort to do our bit in conserving and Thomas Joseph, Chairman, Municipal Council of protecting the environment, we joined the fight Alappuzha, Mr.V. Santhosh Babu, State Chairman against Global warming by planting 5000 tree of BAI, KeralaandMr. P.P.Chitharanjan, Chairman saplings in various parts of the District. The of Matsyafed, also participated in the function. Apart inauguration of the tree sapling planting function from the BAI members and their families, other BAI was conducted by Mr. Thomas Joseph, the Municipal leaders and invited guests also attended the function. Chairman near the Alleppey Railway Station More than 250 people participated in the premises on 05th June 2017. The tree sapling planting programme. ceremony at the Alleppey beach was inaugurated by Rev.Fr.Kutiamassery.The function at Alleppey A workshop on “Personality Development” was NTBR finishing point was inaugurated by Mr.V. conducted at Rotary East Hall, Alappuzha on 28th Santhosh Babu, State Chairman of BAI, Kerala.We May 2017. This daylong programme was conducted planted tree saplings in 50 steel guards in schools, by two eminent resource persons from Ernakulam, tourist points, beach, road sides, parks etc. Mr. RajeevK.P and Mrs. Priya Sivadas. It was The Centre initiated a “Fight Disease” programme attended by 55 members and was highly appreciated as part of our community outreach activities. by one and all. Medicines were supplied through the Palliative Care A Seminar on “Souhrida Nirmana Meghala”was Unit functioning in Alleppey Medical College convened on 28th July 2017 on a houseboat. The Hospital, Alappuzha, to patients who couldn’t afford Seminar was inaugurated by Mr. V. Santhosh Babu, the cost. The Alleppey Centre undertook this State Chairman, Kerala, BAI. The Key-Note address initiative in all its seriousness and incurred the cost was delivered by Mr. Raju Apsara, State General of medicines for a period of 6 months. Secretary of the Vyapari Vyavasayi Ekopanasamithi. A Blood Donation Camp was organized at YMCA Mr. John Paul, Past State Chairman, BAI, Kerala and hall in Association with Blood donating forum on members from other Centres also participated in it. 17th June 2017. About 150 men and women Seminar on “Solving Problems in the Construction participated in the camp. Dr.Haneef and his team Sector”was conducted at Hotel Sisir Palace on 31st from the Alappuzha Medical College Hospital led July 2017. The purpose of the seminar was to initiate the Camp. The Camp was a huge success. discussions on tackling the problems faced by Yet another charitable service undertaken by the

BUILDERS' ASSOCIATION OF INDIA106 77th Annual Report and Accounts – 2017-2018 Centre was in the Education Sector. The Centre encouraging. sponsored five students by bearing the entire educational expenses for an academic year. Andaman Nicobar Islands Centre Moreover, all the learning materials such as notebooks, pens, pencils, instrument boxes and Chairman, Office-Bearers and senior functionaries even basic necessities such as uniforms and of the Centre, accompanied byMr. R Radhakrishnan, schoolbags were distributed to the needy students Past President & Past Trustee-BAI called upon Mr. belonging to various places of the district. Jagdish Mukhi, LG–UT of Andaman & Nicobar Islands . They presented him a bouquet and briefed Adopting the National slogan of “Swatch Bharath” him about the various activities of BAI. mission, we promoted the ideology of a clean nation by placing 50 Steel Waste Bins in several parts of A delegation of the Centre, led by Chairman Mr. J Alleppey town and its surrounding area. Mr. V. Immanuel Koilraj and other office bearers, called on Santhosh Babu, State Chairman, Kerala inaugurated the Admiral D K Joshi, PVSM, AVSM, YSM, NM, the function by handing over the materials to the VSM (Retd), LG – UT of Andaman & Nicobar Islands Director of DTPC. at Raj Niwas on 6th November 2017 and discussed various infrastructure related for the development To promote sports in young generation we of the islands. Delegation offered their full support sponsored food for all participants who attended the to the administration in development of the Foot Ball Coaching camp organized by MIKASA infrastructure. LG also assured BAI of looking into FOOT BALL CLUB. The coaching lasted for one their request for single window clearance for all month in EMS Stadium, Alappuzha.A twenty-one proposals. kilometer marathon was organized by the BAI, Muvattupuzha Centre on 28-01-2018 at Bharuch Centre Muvattupuzha. Mr. Deepak Dinesan, Secretary of BAI, Alleppey was the only participant from the state On 28th April 2017, the Centre conducted a meeting of Kerala who was able to successfully complete the of all members of the Centre to review previous year 21Km marathon. projects and brainstorming for the year 2017-18.

The Builders’ Day was celebrated on 19th November The Centre conducted Professional Training 2017 at Hotel Haveli Backwaters, Alleppey. Mr. Programme on 17th June 2017 in association with P.K.Babu, Superintending Engineer, Kerala PWD Ambuja Cement for Civil Engineers and Supervisors inaugurated the function. Mr. Thomas Joseph, working under various contractors and builders at Municipal Chairman, Mr. John Paul, Past State Hotel Reneta, Bharuch. Chairman of BAI,Kerala, Mr. P.P.John, Mr. Muralidharan, etc participated in the function along Lecture on ‘Placement Guidance’ for the Students with members of BAIand their families. of Civil Engineering Department was organized by SVMIT Engineering College, Bharuch, on 29th July, Alleppey Centre organized an agitation programme 2017. Shri Jayesh Patel, Chairman, BAI Bharuch against the price rise of construction materials by Centre, was the Guide Speaker. staging a dharna in front of the Collectorate by joining hands with the Lensfed and Kerala State On 15th September 2017, the Centre celebrated Private Contractors Association. Engineers Day in association with Bharuch Civil ABAI family meeting was conducted on 28th May Engineers Forum and Bharuch District Contractors’ 2017 in the Rotary Hall. The centre took the lead for Association at Hotel Regenta, Bharuch. the successful conduct of the programme. Sports activities, cultural programmes and quiz Members of BAI Bharuch Centre with their family th completions were held for the entertainment of was arranged a Get-together on 4 November 2017. children and family members. A music night was th also arranged with it. The purpose of organizing such On 19 January 2018, a meeting of all members of a meeting was to encourage the development of the Centre conducted to discuss the review inter-personal relationships. The result was implications of PF & GST matter.

BUILDERS' ASSOCIATION OF INDIA107 77th Annual Report and Accounts – 2017-2018 Chandigarh Centre engineers as well as BAI members present on the occasion. All the past Centre Chairmen were Builders’ Association of India – Delhi Centre, in honoured with 15 gram silver coin in rememberance association of members from other centres, opened of 15 years of the centre and labourers were its first Centre in Union Territory at Chandigarhon honoured and presented gifts. The function was Wednesday, the 31st January 2018. Centre opening appreciated by senior members of the centre. ceremony was held on 31st January 2018 in Chandigarh. The Centre opening ceremony was During the year, two seminars on GST were attended by Shri R N Gupta, Vice President – BAI, conducted on the different locations for the benefits Shri Ram Avtar, State Chairman – Delhi, Shri Rajiv of the members. Also a hungar strike was organised Goel, State Co-ordinator – Haryana, Shri Ved at the office Kanchipuram Collector Office and Khurana, Chairman – Central Govt Deptt & PSU memorandum was also handed over to him Committee, Shri Vijay Kumar, Chairman - Karnal regarding scarcity of river sand in the state. Centre – Haryana and Shri Sandeep Gupta of M/s Independence Day was celebrated and the national Srishti Enterprises with his team of members fromthe flag was hoisted at the Centre Office premises. Two Chandigarh Centre. Skill development programme were organised for the benefits of the masons. Centre’s member strength Shri R N Gupta, Vice President welcomed all the from 212 to 314. Centre also held 11 Executive senior members of BAI as well as the new members Committee Meetings and 4 General Body Meetings and gave brief introduction of BAI to enable the during the year. members to understand and the benefits they can derive by joining this Association. Shri R N Gupta A Hunger Strike for a day was conducted in the lauded the efforts of Shri Ram Avtar and Shri Rajiv Kanchipuram Collectors Office area a memorandum Goel who have contributed efforts in Centre opening. was given to the Collector regarding the scarcity of Shri Ram Avtar, State Chairman – Delhi and Shri availability of river sand. Rajiv Goel also spoke on the occasion and introduced the members to the gathering. Shri R N Gupta Independence Day was celebrated by the Centre and installed Shri Sandeep Gupta of M/s. Srishti the flag was hoisted by the Centre Chairman in the Enterprises Chairman of Chandigarh Centre and Centre’s office premises. distributed Patron Membership Certificates to the new members present on the occasion. Shri Gupta Two Skill Development programmes were requested the members to bring more and more conducted by the Centre for Masons. members to help the BAI grow in new stations where there is no BAI Centre. Changanaserry Centre

Chenglapattu Centre The Centre formed a Committee to meet the Hon’ble Chief Minister &Hon’ble Labour Minister of the State Chairman and the team of his office bearers of the in connection with the labour related issues. BAI - Chenglapattu Centre, for the year 2017-18, were installed in the Installation Ceremony function held The Centre also decided to take action for in MM Hotels, Kanchipuram. The ceremony was construction of BAI Office in association with M/s. presided by Mr. H.N. Vijaya Raghava Reddy, Changanacherry Builders Consortium Pvt. Ltd. President and the installation ceremony was done by Mr R Radhakrishnan, Past President& Past The Centre organised Builders’ Day in association Trustee, BAI. Mr. V.N. Varadharajan, Vice President with Thiruvalla Centre and also arranged one State and Mr Mu Mohan, Past Vice President also spoke Committee meeting. on the occasion. 10 Patron Members & 40 other members were also inducted in BAI in the function. The Centre organised one day Seminar on “How to keep the Quality of Concrete” in association with the Chenglapattu Centre celebrated the Builders Day on Ultra Tech Cement. 30.10.2017. Mr. Paraman Pachai Muthu, prominent speaker was the Chief Guest and he delivered an The Centre donated one Water Cooler at excellent motivating speech to the labourers, Thrikodithanam Police Station for public use.

BUILDERS' ASSOCIATION OF INDIA108 77th Annual Report and Accounts – 2017-2018 The Centre supplied study material to 20 students Meetings, One General Body Meeting, Three in need in co-operation with Ardra Charitable Technical Seminars on GST and two family get Society (MOC). together during the year. Two prominent firms were also inducted in the family of BAI at Cochin Centre The Centre organized cleaning programme at during the year. Changanacherry Railway Station to promote “Swatcha Bharath”. Coimbatore Centre

The Centre conducted the election programme in Buildmat 2017 – International Construction & January 2018 to elect the office bearers for the year Interior Fair was held between 2nd and 5th February 2018-19. in CODISSIA Trade Fair Complex, Coimbatore. It is well known as South India’s Largest Construction Cochin Centre Fair conducted by Architects, Engineers & Builders. Mr. R. Radhkrishnan, Past President & Past Trustee- Mr. Zacharia Abraham was installed as the BAI inaugurated BuildMat 2017 on 2nd February in Chairman of Cochin Centre for 2017-18 by Padma the presence of Mr. Rajamani Muthu Ganesan, Vibushan Dr. E. Sreedharan on 27th April 2017. Mr. Director, Chettinad Group. Other senior members V. Santhosh Babu, State Chairman, BAI-Kerala was from BAI as well as the industry were also present the Guest of Honour. The outgoing Chairman Mr. on the occasion.. The print and electronic media also Manoj Mathew formally handed over the charge to covered the event. Mr. Abraham. Other office bearers of Centre were also installed during the function. Shri Cherian Delhi Centre Varkey, Past President; Shri P.K. Ramachandran, Past Vice President & Past Trustee; and Chairmen BAI–Delhi Centre Co-sponsored Seminar on of BAI Centres attended the function. “EMPLOYEES’ PROVIDENT FUND Representatives of CREDAI, IIA, Institute of ORGANIZATION’S INITIATIVES; DIFFICULTIES Engineers, Graduate Civil Engineers Association, FACED BY EMPLOYERS” and “AMNESTY KMA Chamber of Commerce and Rotary SCHEME OF EPFO” at PHD House, August Kranti International, were also present. Marg, New Delhi-110016, onFriday, 26 May 2017at 2.00 p.m, which was attended by Shri R.N. Gupta, The Centre celebrated “Builders Day 2017-18” on 21st Vice President, Shri Ram Avtar, State Chairman- October 2017. Eminent jurist Justice C.N. Delhi, Shri Rajiv Goel, State Co-ordinator – Haryana Ramachandran Nair was the Chief Guest and and members of Delhi and other senior members delivered the key note address on the theme from Delhi. ‘Building India’. Mr. V. Santhosh Babu, State Chairman-Kerala was the Guest of Honour and Mr. BAI-Delhi Centre organized a Meeting of Members Cherian Verkey, Past President was honored for his of Delhi & adjoining Centers on Thursday, the 6th long and illustrious career in the field of construction. July 2017 at New Friends Club, Mathura Road, New The Chairman of the Centre and other senior office Delhi – 110065 to hear the difficulties being bearers co-ordinated in organizing the event. experienced by them consequent upon introduction of GST with effect from 1st July 2017. The meeting A road show on EXCON 2017 was held on 3rd was attended by the members in large numbers and November 2017 at Hotel Radisson Blue, Kochi. deliberations took place. The meeting was chaired Senior functionaries of the BAI & from construction by Shri R N Gupta and was also attended by Shri industry attended the show. Mr. M.V. Antony in his Ram Avtar, State Chairman-Delhi, Shri Rajiv Goel, address attributed the problem of low productivity State Co-ordinator – Haryana, Shri Sanjay Tyagi, Past faced in the infrastructure sector to several factors State Chairman-UP, Shri H S Pasricha, Chairman – like lack of mechanization, trained labour and Delhi Centre and Chairmen of Delhi & adjoining modernization. Others also spoke on the occasion centres. on issues relating to construction machinery, potential infrastructure projects etc. BAI- Delhi Centre extended non-financial support top Gnosis Services Pvt. Ltd. for organizing 3rd The Centre conducted 12 Executive Committee edition of Smart Green Sanitation for Smart Green

BUILDERS' ASSOCIATION OF INDIA109 77th Annual Report and Accounts – 2017-2018 Cities on 9th June 2017 at Le Meridian . BAI Members Government Departments& PSU Committee and in Delhi & Haryana were sent the information of the other senior members from Delhi and new members event. Some of the members attended the seminar. who have joined the new centers. Shri R N Gupta, Vice President welcomed all for attending the BAI–Delhi Centre extended the non-financial function and efforts put in by Shri Ram Avtar and support to KTM Technologies Pvt. Ltd. for other senior members in organizing the function. organizing Conference on Raw Materials for Steel & Power on 12th Sep 2017 at Le Meridian Hotel, New During the year, the Centre conducted 12 Executive Delhi. The Conference was graced by the high profile Committee Meetings and audited accounts of the officials from the Ministry of Steel as well as from Centre, alongwith the accounts of other centres the Steel Industry. Shri H S Pasricha, Chairman, BAI sponsored and opened during the year were sent to Delhi Centre and Shri S.S. Arora, Executive Officer, BAI-HQ in time. Senior members of the Centre BAI Delhi Office attended the Seminar. interacted with the senior officials of CPWD and other Government Departments to issues BAI–Delhi Centre extended non financial support for clarifications on the GST and other technical matters Acetech Alpha Awards 2017 organized on 15th and got the necessary orders / clarifications issues December 2017 at New Delhi. The BAI logo was for the benefit of BAI members on all India basis. printed on the back drop of the event well as on literature and brochures distributed to the delegates Delhi South Centre attended the event. Delhi Centre, in association with Centres in Delhi & BAI–Delhi Centre extended non –financial support Haryana, opened Delhi South Centre on 11th May to M/s. Franchise IndiaHoldings Ltd for organizing 2017 in the ceremony held at Essex Farms, Hauz the “10th Annual Estate Awards 2018” on 27th January Khas, New Delhi. The senior BAI office bearers and 2018 at Hotel JW Marriott, Aerocity, New Delhi. The members attended the opening ceremony includes BAI logo was printed on the back drop, brochures Dr. Brahm Datt, Past President &Past Trustee, Shri and literature of the event. Lal Chand Sharma, Trustee & Past President, Shri R.N. Gupta, Vice President,Shri Ram Avtar, State BAI –Delhi Centreextended non –financial support Chairman-Delhi, Shri Rajiv Goel, State Co-ordinator- to KATM Technologies Pvt Ltd for the “Smart the Haryana, Shri H S Pasricha, Chairman-Delhi Centre, India Logistics Summit –1st Edition” on 2nd February Shri Sanjiv Bansal, Chairman-Delhi West Centre, Shri 2018 at Le – Meridian Hotel, New Delhi. The seminar Manoj Singla, Chairman-Delhi North Centre,Shri was attended by Executive Officer. The BAI logo was Ved Khurana, Chairman – Central Govt Deptt & PSU printed on the back drop of the Seminar as well as Committee, Shri Amarjeet Singh Abbot from M/s. on literature distributed to the delegates attended Amber Electroceth Limited and senior GC & the Summit. Executive Committee Members from UP, Delhi & Haryana and new members joined BAI. Shri S S Arora, Executive Officer-Delhi Office also attended BAI – Delhi Centre Celebrated Builders Day on 17th the ceremony. Dr. Brahm Datt was the Chief Guest March 2018 at Chelmsford Club, New Delhi. The and Shri Lal Chand Sharma was Guest of Honour. Builders’ Day celebrations were attended by members from all the Centers opened in the recent Shri R N Gupta introduced senior member on the past. The prominent persons attended the function dais and spoke about the various problems being were Shri R N Gupta, Vice President, Shri Ram Avtar, confronted by the construction industry and BAI is State Chairman-Delhi, Shri Rajiv Goel, State Co- doing for the construction. Dr Brahm Datt and Shri ordinator-Haryana, Shri H.S. Pasricha, Chairman- Lal Chand Sharma spoke on the occasion about BAI. Delhi Centre, Shri Sanjiv Bansal, Chairman-Delhi Dr. Brahm Datt installed Shri Amarjeet Singh Abbot West Centre, Shri Manoj Singla, Chairman-Delhi of M/s. Amber Electroteth Limited as Chairman of North Centre, Shri Umesh Acharya, Chairman- the Centre and distributed the certificate to the new Gurgaon Centre, Shri Vijay Kumar, Chairman- members. A Cocktail dinner was hosted for all Karnal Centre, Shri Raju Gaba, Chairman-Kundli attended the Centre Opening ceremony by Shri Ram Centre, Shri Siddartha Khosla, Chairman-Faridabad Avtar, State Chairman-Delhi. Centre, Shri Ved Khurana, Chairman - BAI Central

BUILDERS' ASSOCIATION OF INDIA110 77th Annual Report and Accounts – 2017-2018 Dhule Centre Cement was organized by the Centre on 26th July 2017 and Mr. Sandeep Singh Sandhu, Vice President- The Centre organised a Seminar on New DCR on Sales & Marketing briefed the members about 16th April 2017. company profile, available service networks, new eco friendly products details etc. Mr. Hari Prasad Rao, Members of the Centre participated in Conclave 2017 DGM-Technical Services & Mr. L. Balamurugan, on 21st April 2017 at Mumbai and a Lecture Meeting Asstt Manager from JSW Cement also spoke on the on RERA Act and Affordable Housing by CA occasion & thanked the members for their attention. Ramesh Prabhu, on 11th May 2017. Members of BAI Mr. B. Janakar, Chairman of the Centre for their Dhule Centre attended the Workshop at Nashik, continued support in the activities of the Centre and organized by Mr. Gautam Chatterji. ‘One Day Agitation coupled with Hunger Strike’ on 6th July 2017. Inaugural function of Sir Vishveshwara Smarak Smriti Hall at Dhule was done by Mr. Chandrakant Durgapur Centre Dada Patil, on 22nd December 2017. 28th Installation Ceremony of the Centre was held 35 Members of BAI Dhule Centre attended “XXVIII on 13th May 2017 at Hotel Citi Residency, City Centre, All India Builders’ Convention” held at Bangalore, Durgapur and Mr. Ajit Singh Alag was installed as between 19th – 21st January 2018. Chairman for 2017-18. Mr. Sashank Sethi, Distt Magistrate, Paschim Bardhamn was the Chief Guest BAI Dhule Centre members attended State level & Mr. S. K. Basu, Past President was Guest of meeting held at Nashik, on 3rd March 2018. Honour. Mr. Ashok K. Chandak, State Co-ordinator, West Bengal was felicitated on the occasion. The Builders’ Day was celebrated by the Centre on 1st programme was partly sponsored by M/s Jackson April 2018. India. It was followed by cocktail lunch.

Dindigul Centre Eastern (Kolkata) Centre

Mr. P Janakar was installed as the Chairman for 2017- Mr. Subrata Das was installed as Chairman of the 18, alongwith his team of office bearers, Mr. A Centre for 2017-18 by Mr. S. K. Basu, Past President Puhazendhi, Past Vice President who was the Chief on 14th April 2017 at Tollygunge Club, Kolkata. Mr. Guest. Mr. R Sekvarahm NE, MIE, Chief Engineer Ashok K Chandak, State Co-ordinator, West Bengal PWD was the Guest of Honour and delivered the was also felicitated. Mr.Chandak in his address, key note address on the role of Engineers towards stressed on membership growth in the state of West the development of the Nation. Bengal. Mr. S.K. Basu also delivered an inspirational speech. Members from Durgapur Centre, headed by A Technical Seminar ‘Disaster Management’ was Chairman Mr. A.K. Alag graced the occasion. The organized by Centre on 25th May 2017. Dr R programme was concluded with a fellowship dinner. Kadasamy ME, Ph.D. Principal, Arulmigu Palaniandavar Polytechnic College, Palani was the 67th Annual General Meeting of the Centre was held Chief Guest and delivered the keynote address and on 27th June, 2017 at the Centre’s Conference Room. spoke in detail on the types of disaster management In presence of General Members, the Annual Report in detail. Senior office bearers co-ordinated the for 2016-17 and Audited Accounts with Balance organising the Technical Seminar. Sheet was submitted which was passed by the General Members of the Centre and reported to An awareness programme ‘Introduction of New Headquarter before stipulated time. Products & Service Facilities by NIPPON PAINT’ was held by Centre on 23rd June 2017. Chief Guest Eastern (Kolkata) Centre organized Workshop of Mr. T. Ashok Kumar, Sales Head-Madurai – Nippon ‘Implication of GST on Works Contract and Real Paints delivered the keynote address and spoke in Estate’ on 30th August 2017 at Rotary Sadan, Kolkata. detail about new products of the company. Mr. Khalid Aizaz Anwar, Senior Joint Commissioner, GST, Govt of West Bengal and Mr. J.B. Dutta, Asstt. Centre organized a Technical Meeting with JSW Commissioner, CGST, Government of India

BUILDERS' ASSOCIATION OF INDIA111 77th Annual Report and Accounts – 2017-2018 alongwith other officials were present. On behalf of other Centres opened Faridabad Centre, fourth BAI, Mr. S.K.Basu, Past President spoke and Centre in Haryana. The Centre opening ceremony explained the problems being faced by contractors was held on Saturday, the 24th February, 2018 at BAI alongwith CA Animesh Mukhopadhyay. Mr Khalid Office in Delhi at Ashirwad Complex, Green Park, Aizaz Anwar delivered the keynote address and New Delhi-110016. The officials participated in narrated the gist of GST and with other officials also centre opening function were Shri R.N. Gupta, Vice explained the solution to various problems. Before President, Shri Ram Avtar, State Chairman– Delhi, concluding the session, Sr Joint Commissioner Shri Rajiv Goel, State Co-ordinator-Haryana, Shri Raj proposed to hold another such programme after a Pal Arora, Hon. Secretary-Delhi Centre, Shri S.K. gap of 3-4 months so that they can explain the latest Singla – Executive Committee Member-Delhi Centre, developments in this regard. He also suggested if Shri Umesh Acharya, Chairman Gurugaon Centre– there are any issues which require redressed, BAI Haryana and Shri Siddhartha Khosla of M/s Sukriti can make representation to appropriate authority. Door & Hardware Pvt. Ltd. with his team ofmembers Government officials were felicitated at the end of of Faridabad Centre. Shri Satnam Singh Arora, the workshop. Members from Haldia Centre also Executive Officer, BAI Delhi Office was also present attended the workshop. on the occasion.

Excon Road Show was held on 31st October, 2017 at Shri R.N. Gupta, Vice Presidentwelcomed all the Lalit Great Easter, Kolkata. Senior members from the senior members of BAI and also the new members Centre headed by Chairman attended the who have joined BAI. He briefed new members programme. Sri S.K. Basu, Past President about BAI which enabled them to understand BAI. participated as speaker in the panel discussion. Press He also thanked Shri Ram Avtar and Shri Rajiv Goel coverage of the road show with photographswas also for their efforts for making it possible to open fourth sent to the BAI Headquarter. Centre in the state. Shri Ram Avtar, and Shri Rajiv Goel also spoke on the occasion and introduced the Erode Centre members to the gathering. Shri Ram Avtar introduced Shri Siddhartha Khosla of M/s. Sukriti The installation function of the new team of office Door & Hardware Pvt. Ltd. who are already a Patron bearers of the Centre for the year 2017-18 was held Member from Delhi East Centre and requested him on 17th April 2017 at EBET College Campus, to come to Faridabad Centre and take the charge of Kangeyam in the presence of Mr. H.N. Vijaya the Centre being opened today. Shri Khosla also Raghava Reddy, President, Mr. R. Radhakrishnan, appreciated Shri Ram Avtar for showing confidence Past President &Past Trustee and Mr. G. Ved Anand, in him and lead a Centre. Shri R.N. Gupta formally State Chairman, Tamil Nadu and Mr. R.P. installed Shri Siddhartha Khosla as Chairman of Selvasundaram, Chairman and his team of office FaridabadCentre, alongwith his team, and bearers were installed and administered oath of distributed Patron Membership Certificates to the office. new members of the Centre present on the occasion. Shri Khosla in his addressed thanked the senior Erode Centre celebrated its 30th Anniversary by members for showing faith in him to lead the Centre carrying out an ‘Image Building Activity’, wherein and assured that he will put all his efforts in making the Centre constructed a Traffic Island and Karur Faridabad Centre strong and will work very hard to Bye Pass Road which was inaugurated by the associate more and more members in BAI. founder Chairman Mr. S.P. Periyasamy.The Centre also de-silted the Check Dam in Sathyuanagar which Gandhinagar Centre was not de-silted for a long time due to which water storing capacity had decreased considerably. BAI’s Gandhinagar Centre was inaugurated on 29th April efforts increased the storage capacity of the Check 2017. Mr. Arvind Patel, Chairman-Gujarat Dam and wastage of water during rainy season can Contractors Association was the Chief Guest. Mr. be considerably avoided. Kishor Viramgama, CMD M/s Iron Triangle Ltd, Mr. Neerav Parmar, Hon Gen Treasurer, Mr. Pankaj Faridabad Centre Saraiya, State Chairman-Gujarat, Mr. Pradeep Nagawekar, Chairman-Mumbai Centre, Mr. Nitin BAI Delhi Centre, in association of members from Shah, Past State Chairman-Gujarat and Mr.

BUILDERS' ASSOCIATION OF INDIA112 77th Annual Report and Accounts – 2017-2018 Mohinder Rijhwani, Hon. Secretary, Mumbai Centre Patron Members and 3 Annual Members. Mr. R.B. were the Guests of Honour. Mr. Neerav Parmar Dayanand was installed as Chairman of the Centre installed Mr. Kirti M Thacker as the Chairman of with his team of office bearers by Mr. H.N. Vijaya Centre alongwith other office bearers. Other Raghava Reddy, Past State Chairman, Karnatka at prominent members of the centre were also present Hotel Hassan Ashok. on the occasion. The Centre celebrated Builders’ Day on 22.10.2017 A Seminar on the subject “Impact of Goods and at Hotel Hassan Ashok, which was attended by Service Tax (GST)” was organized on 13.04.2017 at members in large numbers. Shri Sriram was the guest Gajjar Hal, Nirman Bhawan, Ahemdabad. Mr. Jigar speaker in the function. Shah, Advocate (Indirect Taxation) from M/s. Lakshmikumaran & Sridharan was the main During the year,the Centre conducted 7 Executive speaker. Contractors in large numbers attended Committee Meetings and also added 7 Patron Seminar. Members in the family of BAI at Hassan Centre.

28th April was celebrated as “World Day for Safety Hyderabad Centre & Health of Construction Sites” and a seminar was organized Gahdni Labour Institute at Ahmadabad The installation function of new Office Bearers of BAI jointly by Gujarat Contractors’ Association (GCA) Hyderabad Centre for the year 2017-18 was held on and Builders’ Association of India (BAI), The Gujarat 3rd April 2017. Mr. P. Janardhan Reddy, Chairman, Institute of Civil Engineers & Architects, The Gujarat Mr. Anirudh Gupta, Vice Chairman, Mr. K. Chandra Institute of Housing & Estate Developers and Shekar Reddy,Hon. Secretary, Mr. Y.S. Rama Bandhkam Mazoor Sanghathan. Members in large Raju,Hon. Joint Secretary, Mr. S.Srinivas Rao, Hon. numbers attended the Seminar. Treasurer of BAI Hyderabad Centre for 2017-18.

The Centre organized Blood Donation Camp and 15th Senior member of BAI Hyderabad Centre Mr. August (Independence Day) Celebrations jointly S.Narsimha Reddy was elected as Vice President, with other organizations and more than 150 South Zone–I. participants attended the event. During the year, the Centre has concentrated on the The Centre conducted 11 Executive Committee problems being faced by the construction industry Meetings during the year. GST Matter, Arbitration in Roads, Bridges, Housing, Irrigation etc.The Centre issue, Recovery of Royalty matters, Tender EMD, Bill has also conducted Seminar on Goods and Service Payments of Contractors, Hot Mix Bitumin Plant Tax (GST). Pollution Issue, star rate issue small tender package issue, New formula for Price Escalation steel & The Centre has enrolled 620 more members as on Cement solved with Government Authority in 31st March 2018. goodfaith of mernbers. Indore Centre Guwahati Centre BAI Indore Centre was organized a Seminar on 11th Mr. Sanjib Goel, State Co-ordinator, BAI, Assam June 2017 at Hotel Sayaji. CA Arvind Chawla and addressed a press conference in Guwahati. He CA R.S. Goyal, were the eminent Speakers on GST briefed the media about and its activities in Assam Law. State. He also briefed the media about the various issues confronting the building and construction The Centre conducted meetings on 23rd June, 2017, industry in Assam State. His briefing appeared in 15th July 2017, 20th July 2017, 18th October 2017, 10th local papers published from Assam. November 2017, 19th January 2018 and 22nd February 2018, to discuss on GST matter, Amendment in Hassan Centre tender condition of model tender document, Royalty matter to represent at Hon’ble Supreme Court and BAI Hassan Centre, sponsored by the BAI Bangalore also various issues faced by construction contractors. Centre was opened on 4th February 2017 with 33

BUILDERS' ASSOCIATION OF INDIA113 77th Annual Report and Accounts – 2017-2018 Jamshedpur Centre year 2017-18 was held on 23.08.2017 at Hotel Nandha. In this meeting Dr. Sevarkodiyon, Jamshedpur Centre hosted the ‘Eastern Region conducted a session on Question & Answers Conference of BAI’, which was chaired by Mr. Sachin regarding general health issues for the benefit of Chandra, Vice President. Mr. Chandrakant Rajpat, members of the Centre. State Chairman-Jharkhand, Mr. Ashok K. Chandak, State Co-ordinator–West Bengal, Mr. S.K. Basu, Past As a goodwill gesture, Karaikal Centre distributed President, Mr. S.K. Pradhan, Past Trustee graced the various household articles, on 02.10.2017 for the meeting. Issues concerning the civil engineering, Keeraithottam fire accident victims which affected infrastructure and real estate industry in the region 100 families. as well as in the country were discussed. BAI Organizational issues were also discussed. Third General Body meeting of the centre for the year 2017-I8 was held on 11.10.2017 at Hotel Nandha. In Kanpur South Centre this meet,Writer Mr.Nakeeran, conducted a seminar regarding environmental problems of our society for On 7th July 2017, the Centre organized a Workshop the members of the Centre. and deliberated on post GST scenario. Mr. Dharmendra Srivastava, Chartered Accountant, On 25.10.2017, Office bearers and senior members addressed the session.The media covered the event. of the Centre met Governor Dr.KiranBedi to demand actions on various problems being faced by our On 16th December 2017, a condolence meeting was works with regard to their construction in state PWD. held on the sad demise of Late Shri D.L. Desai Also on 02.11.2017 our office bearers participated in (Shankarbhai), Trustee, BAI. a meeting called by Town Planner regardingregularization of unapproved plots. On 5th March 2018, a general get together was organized by the Centre at Ganges Club. The new On 27.12.2017, the 4th General Body meeting of the Patron Members were felicitated with their Patron centre was held at Hotel Nandha.ln this meet, Diary Membership Certificates. 2018 &Calendar 2018 were released and issued to the members along with New Year compliments Karaikal Centre On 09.0l.2018 the Office bearers of the Centre met Installation Function of Karaikal Centre Chairman our Chief Minister Mr. Narayanasamy to submit Mr.S.Swaminathan & new team of Office bearers for memorandum regarding problems being faced by the year 2017-18 was held on on 24.04.2017 and 45 contractors on implementation of GST new members were inducted into the Centre. Members are also attended in the installation Karnataka (Bengaluru) Centre function of BAI Puducherry Centre on 23.04.2017 and Installation Ceremony of new Office Bearers of the BAI -Thiruthuraipoondi Centre Installation function Centre was held on 28th April 2017 at The Capitol on 25.O4.2017. Hotel. The Chief Guest was Shri P. Ravindra Pai, Managing Director – M/s. Century Real Estate General Body meeting of the centre was held on Holdings Pvt. Ltd. Shri H.N. VijayaRaghava Reddy 06.06.2017 at Hotel Nandha. In the meet, Auditor President, BAI installed Sri Srinivasa Reddy as Mr.R.Swaminathan,C.A conducted Questions & Chairman and his team of New Office Bearers. He Answers regarding GST and on 28.06.2017, CTO- also administered the oath to the New Office bearers Karaikal, Mr.Saravanakumar,was invited by our Sri S. R. Swamy, State Chairman, Karnataka, BAI was centre to clarify our member’squeries on GST. present as Guest of Honour and congratulated the new office bearers. President also addressed the On 06.07.2017, Karaikal Centreconducted the gathering and congratulated newly elected chairman protestregarding scarcity of river sand and and his team of office bearers and wished them a submitteddemand letter to the District Collector. successful year in the service of the builders’ Senior members participated in the protest. fraternity. Chairman, Shri Srinivasa Reddy addressed the gathering and thanked all for electing Second General Body meeting of the Centre, for the

BUILDERS' ASSOCIATION OF INDIA114 77th Annual Report and Accounts – 2017-2018 him as Chairman. The function was followed by President, BAI and Convention Chief Patron. Entertainment and dinner. After the inauguration there was visit to Exhibition, The Honouring of Artisans and Builders’ Day High Tea and technical presentation followed by celebration was held on 15th November 2017 at Entertainment and Dinner at the same venue. Builders’ NGV Club. Shri P.C. Mohan, Member of Inauguration of Technical session was inaugurated Parliament was the Chief Guest of the function, Shri by Shri Ramalinga Reddy, Hon’ble Home Minister, H.N. Vijaya Raghava Reddy –President, BAI & Government of Karnataka on 20th January 2018. Shri President – Builders’ NGV Club was the Guest of R. Radhakrishnan, Past President &Past Trustee, BAI Honour and Shri S. Narasimha Reddy Vice and Chairman Convention Committee briefed about President, BAI South Zone I and Shri S.R. Swamy, the Technical Sessions and Shri H.N. Vijaya Raghava State Chairman, Karnataka, BAI graced the occasion. Reddy, President, BAI delivered Presidential The function was presided by Shri Srinivasa Reddy Address – Chairman, BAI, Karnataka (Bangalore) Centre. Chief Guest Shri Ramalinga Reddy addressed the BharathRathna Sir M. Visvesvaraya Memorial gathering. Award was conferred to Shri S. Prabhakar, Chief Engineer, BBMP. He thanked Chairman and other There was two Technical Sessions Dr. Sujit Kumar members of BAI for conferring the award to him. addressed on Aesthetics in the pursuit of Green Three senior builders who were honoured for their Habitats.Sri SriSri Ravi Shankar Guruji, Art of Living outstanding contributions in the construction sector gave spiritual discourse. - Shri P.L. Venkatarama Reddy- Managing Director- There were three Technical Sessions on 21st M/s. V2 Holdings Housing Development Pvt. Ltd., January 2018. Shri C.G. Chandrappa – Managing Director of M/s. Maruthi Constructions and Shri K.N. Srinivasa – After the Lunch, President initiated Open house Asphalting Contractor. The meeting was adjourned discussion and passing of Resolutions, Award for dinner with cultural programmes. function and valedictory followed by Entertainment and Dinner. “XXVIII All India Builders’ Convention” was held from 19th to 21st January 2018 at Clarks Exotica During the year, the Centre conducted 9 Executive Committee Meetings and the Annual General Resorts, Bangalore.About 600 Delegates participated th in the Convention and 65 Exhibition Stalls was Meeting of the Centre was held on 24 January 2018. exhibited. There was technical presentation from 12 At the close of the year, the members strength of companies during the three days convention Centre stood at 712. Kerala (Trivandrum) Centre On 19th January 2018 morning session was Registration of Delegates, Photo Session, High Tea, During the year, 6 executive committee meetings Technical presentation and Managing Committee were conducted in different venues. All Executive &General Council Meeting at Galaxy Hall and members actively participated during these followed by Lunch. Inauguration of the “XXVIII All meetings. The Centre also had 5 General body India Builders’ Convention” was held at 3.00 p.m. meetings and most of the members attended the at Ocean Hall. Chief Guest of the function was functions with family. Hon’ble Vice President of IndiaShri M. Venkaiah Naidu and Guest of Honour was His Excellency Shri The Centre conducted Builders’ Day celebrations of VajubVala, Governor of Karnataka. Presided by Shri 2017-18, at Hotel Horizon in the month of December. R. Radhakrishnan,Convention Committee District collector Smt. Vasuki IAS was the Chief Chairman, Shri H.N. VijayaRaghava Reddy, Guest and KASE Director Shri Sriram Venkatraman, President, BAI, Shri K. Subramani – Chairman, IAS was the Guest of Honour. PRS memorial gold Organizing Committee, Shri K.S. Someshwara medal for the best outgoing Civil Engineering Reddy – Secretary, Organizing Committee, Shri B. student of CET Trivandrum was awarded in this Seenaiah – Convention Chief Patron and Shri function. State Chairman Shri V. Santhosh Babu Srinivasa Reddy – Chairman, BAI, Karnataka inducted 8 new members. A grand musical nite by (Bangalore) Centre was on the Dais. Souvenir was CETAAT was also organized. released by the Hon’ble Vice President of India and the first copy was given to Shri B. Seenaiah, Past The Centre organised an interactive seminar on GST

BUILDERS' ASSOCIATION OF INDIA115 77th Annual Report and Accounts – 2017-2018 at Hotel Hycinth, which was well attended by most C5, an initiative for “Better Trivandrum” mentored of our members. Senior officials from Sales Tax by District Collector, and partnered by BAI Society Department and Gulathi Institute of Finance and and Pelican Foundation was officially inaugurated Taxes answered most of the queries from our by Hon’ble Minister Sri. Kadakampalli Surendran, members. at Women’s college in the presence of Worshipful Mayor Adv. Prasanth and District Collector, Smt. The Centre conducted a very successful Seminar on Vasuki, IAS. “GST Implementation and FAQs’ on 10th June 2017 at Trivandrum Chamber Hall. This was organized The activities of C5, the joint Project of BAI Society in association with M/s Sridhar & Co. This was well and Pelican is monitored by a Project Management attended by our members and got benefitted from Committee headed by Senior Member Shri David it. Alexander and other members are Shri P. Ganesh, Nandakumar, Shri Wilson George, and Shri Ajith A Technical Seminar on Electrical safety in Pratap. Multistoreyed Buildings was organized by the Centre in connection with Builders Day in December It is worth mentioning that, during the year, lot of 2017. This was also well attended by Electrical activities by the members of Executive committee Engineers from many firms. and also by most the members of the centre done a lot of hardwork and dedicating their valuable time A very informative technical session on “Innovations in conducting frequent meetings so as to raise funds in Concrete” was organised in association with for the purchase of office space, which we consider MAHA Cements on March 8th 2018 at Hotel South a milestone in the history of BAI Kerala Park for Practising Engineers. There was good (Trivandrum) Centre. This office is now acting as the participation from all members. Liaison Office of BAI, Kerala in Trivandrum.

Centre Chairman, Secretary, Treasurer, MC/GC The involvement and activities of our center member and other members from the centre actively members in State level and National level participated in all the state committee meetings programmes has turned the Centre to a promising hosted by various centers across the Kerala in the BAI Centre in India. last year. This year, our vision is to Focus on strengthening Representatives from the Centre attended most of the membership of our centre and making our centre the Builder’s Day celebrations of various BAI Centers a very proactive one, like the many other leading across Kerala. centres in India.

The Centre Chairman, Shri Jayachandran VS was Kottayam Centre nominated as the Vice Chairman of Builders Association of India (Kerala) for 2018-19. He has also The installation function of the office bearers of the been appointed as Managing Committee Member of Centre was held in Thailand. BAI. Members of the Centreattended in all Managing The idea of having own office space for our Centre Committee and General Council Meetings and also was a long cherished dream and the like minded State level meetings. members of our Centre decided to form a Charitable Society in the name, BAI Kerala Charitable and The Centre conducted the Builders’ Day programme Welfare Society, under the chairmanship of the Past in a grand manner. Centre Chairman, Shri Harikumar. Now, the BAI Charitable society has started associating with The Centre conducting Skill Development government and other statutory bodies for the socio- programme for Civil Engineers and Diploma holders economic growth of . This will and also give training in different aspects of civil definitely improve the image of Builders Association engineering. of India, among the public. Kundli Centre

BUILDERS' ASSOCIATION OF INDIA116 77th Annual Report and Accounts – 2017-2018 Chairman and other senior members were also BAI Delhi Centre, in association of members from present on the occasion. other centers opened Kundli Centre, third Centre in Haryana. The Centre opening ceremony was held A EXCON 2017 Road Show was organized in on 13th September, 2017 at BAI Office in Delhi at Madurai on 9th November 2017 at Hotel Poppys, Ashirwad Complex, Green Park, New Delhi-110016. Madurai. Mr. S. Rajumohan, Vice Chairmen CII gave The officials participated in centre opening function the opening remarks and stressed the importance of were Shri R. N. Gupta, Vice President, Shri Ram updating technologies. Mr V G Sakthikumar, COO Avtar, State Chairman– Delhi, Shri Rajiv Goel, State – M/s Schwing Stetter and Mr K Ramesh, Chairman- Co-ordinator-Haryana, Shri Raj Pal Arora, Hony Madurai Centre also spoke on the occasion. Office Secretary-Delhi Centre, and Shri Raju Gaba of M/ bearers and more than 80 members from the centre s.Superior Furniture with his team of members of attended the road show. Faridabad Centre. Shri Satnam Singh Arora, Executive Officer, BAI Delhi Office was also present Malegaon Centre on the occasion. Malegaon Centre arranged a ‘GST Awareness Shri R N Gupta, Vice President welcomed all the Seminar’ on 5th August 2017. CA Ravi Rathi was the senior members of BAI and also the new members key note speaker and briefed the gathering about the who have joined BAI. He briefed new members details of GST. Members of BAI and their company about BAI which enabled them to to understand BAI. staff and other attended the seminar in large number. Shri R N Gupta formally installed Shri Raju Gaba as Chairman Mr Dhirenkumar Pagar & other senior co- Chairman of KundliCentre, alongwith his team, and ordinated in organizing the seminar. distributed Patron Membership Certificates to the new members of the Centre present on the occasion. Mumbai Centre Shri Ram Avtar and Shri Rajiv Goel also spoke on the occasion. The Mumbai Centre hosted the ‘First BAI Western Regional Meeting 2017-18’ on 28th April 2017 at Madurai Centre Bombay Exhibition Centre. Mr. L.D. Kotwani was formally installed as the Vice President by Mr. Madurai Centre conducted a Technical Seminar on Avinash Patil, Imm Past President. Mr. L.D. Kotwani ‘Water Proofing, Building Repair, Maintenance and chaired the meeting. BAI office bearers and senior Expansion Joint’ in Madurai on 27th December 2016. members from Maharashtra and other states also Mr. V. Ramachandran, Past President & Past Trustee graced the Dias during the meeting. Issues was the Chief Guest. On the occasion Mr. confronting construction industry and real estate in Ramachandran handed over to Madurai Centre western region in particular and the whole country trophy of BAI Awards 2015-16 for “Best Builders’ in general were discussed. The meeting was held Day Celebration”. ‘Diary 2017’ of the Centre was also coinciding with ‘World Build-India 2017’ released on the occasion. Senior members of the International Exhibition for Building, Construction Centre co-ordinated organizing of the event. and Architectural Products, which was held from 20th to 22nd April 2017. Under the aegis of its “Builders’ Day 2016-17", the Centre conducted ‘Elocution Competition’, in the Mr. Suresh Patil, State Chairman-Maharashtra (2016- campus of Thiagarajar College of Engineering, 17) during his tenure introduced the concept of ‘BAI amongst engineering students of collages in and Maharashtra State Awards’ and accordingly called around Madurai on 27 January 2017. for entries from Centre in four categories, viz. Best Overall Centre, Best Image building Activity by a A special lecture was arranged by Madurai Centre Centre, Best Builders Day Celebrations and Best and Thiagarajar College of Engineering, Madurai on Membership Growth by a Centre. The awards to the ‘Construction Management’ on 22nd February 2017. winning Centres were presented during the Dr. Mangesh G. Korgaonker, DG-National Institute meetingheld on 20th April 2017 in the presence of of Construction Management& Research, Pune, was Mr. Avinash M Patil and other senior members. The the keynote speaker. Mr. V. Ramachandran, Past winning Centres were Best Overall Centre – Mumbai President & Past Trustee, Mr. M. Selvakumar, & Ulhasnagar Centres, Best Image Building Activity

BUILDERS' ASSOCIATION OF INDIA117 77th Annual Report and Accounts – 2017-2018 – Nanded Centre & Sangli Centre, Best Builders’ Day Celebrations – Nashik Centre and Best Membership BAI Mumbai Centre hosted the Third Meetings of Growth by Dhule Centre. the Managing Committee and General Council of BAI for 2017-18 on Friday, the 15th September 2017 ‘World Build-India 2017’ International Exhibition for in the Conference of Bombay Exhibition Centre at Building, Construction and Architectural Products, Goregaon. The meetings were chaired by Mr. H.N. was held in Mumbai from 20th to 22nd April 2017 Vijaya Raghava Reddy, President – BAI. In the which was supported by BAI Mumbai Centre. Mr. afternoon of Thursday, 14th September 2017, the Pradeep Nagawekar, Chairman-Mumbai Centre was customary meeting to brief the office bearers was one of the dignitaries to inaugurate the exhibition. held which was chaired by Mr. H.N. Vijaya Raghava Reddy, President-BAI and attended by senior office Mumbai Centre alongwith with IL&FS Academy of bearers of the Association. The ‘Core Committee Applied Development (IAAD) and GIZ (Indo- Meeting’ was also held in the afternoon of Thursday, German co-operation) organized a workshop of ‘De- 14th September, 2017, which was chaired by Mr. H.N. construction Manual for Indian Building and Vijaya Raghava Reddy, President – BAI. Office Construction Industry’ on 17th Feb 2017. The Bearers of BAI, Chairman/Co-Chairman of BAI’s workshop was held for soliciting the practical inputs Functional Committees, Trustees and Presidents from BAI members on the ‘De-construction Manual were the invitees in the Core Committee Meeting. for Indian Building and Construction Industry’. Mr Pradeep Nagawekar, Chairman formally The Convention Committee of “XXVIII All India inaugurated the workshop with Mr Uwe Becker, Builders’ Convention” also met in the afternoon of Project Director, Resource Efficiency & Management Thursday, 14th September 2017. Mr. H. N. Vijaya of Secondary Raw Materials, GIZ & Mr Gaurav Raghava Reddy, President and Mr. R. Bhatiani, COO , M/s IL&FS. A Panel Discussion- Radhakrishnan, Past President &Past Trustee and cum-Open House was also held. Senior members Chairman – Convention Committee briefed the from the centre as well as the industry attended the members about the developments with regard to workshop. organizing the Convention in Bangalore, between 19th-21st January 2018. BAI Mumbai Centre organized a ‘Workshop on RERA and GST’ on Saturday 15th July 2017 in AC 2nd Annual Conference on “Real Estate (Regulation Seminar Hall of Institution of Engineers (India), and Development) Act, 2016” was organized by M/ Maharashtra State Centre, Haji Ali, Mumbai. It was s Exalt Communication Infomedia on 2nd December inaugurated by lighting traditional lamp and senior 2017 in Mumbai and was supported by BAI Mumbai officials from MahaRERA and BAI-Mumbai Centre Centre. Delegations from M/s L&T Realty, Tata participated. Dr. Vasant Prabhu, Secretary, Realty, Lavasa, Hiranandani, AYG Realty, E&Y, Maharashtra Real Estate Regulatory Authority was Reliance etc. BAI Members, members from the Chief Guest and delivered the keynote address. Maharashtra Society Welfare Association and others CA Tarun Ghia dwelt upon in detail on MahaRERA from the real estate sector. There were six sessions and later answered queries of delegates. CA Sandesh in the conference and matters relating to the real Mundra dwelt on GST. Panel consisting of CA estate and RERA were discussed in details which Sandesh Mundra, CA Rajkamal Shah, Adv Shailesh helped the participants in clearing their doubts. Ms. Sheth and CA Bharat Shemlani & Shri Neerav Rupali Dalve from Exalt Communication Infomedia Parmar, Hon Gen Treasurer-BAI answered questions and Mr. Swapnil Salekar, Accounts-BAI coordinated from the delegates. the event.

‘Big5 ConstructIndia’ – Exhibition of Construction Muvattupuzha Centre Materials and Machinery was inaugurated on 14th September 2017 at Mumbai. The Exhibition was BAI Muvattupuzha Centre, in association with supported by BAI Mumbai Centre and senior Muvattupuzha Town Club, Indian Medical members from the Centre were present during the Association, Resident Associations, Hotel & inauguration. The Award Presentation Ceremony of Restaurant Association organized a marathon of 21 ‘Indian Construction Industry Awards 2017’ was Kms, 10 Kms and 5 Kms on 28th January 2018. The held. marathon was sponsored by Dentcare, Illahia

BUILDERS' ASSOCIATION OF INDIA118 77th Annual Report and Accounts – 2017-2018 College, Federal Bank, Manhotou, JCB, Tata Pipes, Vijaya Vittala School, Mysore, on 18th June 2017. East Tea, Stereohouse etc. Organizer given a very crucial message i.e. ‘Run for the future’. Many On 21st June 2017, BAI Mysore Centre members with honorable MPs, MLAs, politicians were there to flag their family attended in large numbers participated off the marathon which was participated byh 2500 in International Yoga Day 2017. The event was from different cities and out of Kerala in from of more organized by District Administration with help of than 5000 spectators . The Centre made a name in NGOs. the hearts of people and gave a big publicity to BAI through print and electronic media. Mr Geordy K. BAI Mysore Centre in association with Indian Green Abraham, Hon. Secretary of Centre also participated Building Council, Mysore Chapter have organized in the ‘10km Mini Marathon’. Chairman & Office Mygreen 2017, on 24th& 25th June 2017 at Jayamma bearers of the Centre in association of past and Govindegowda Convention Hall, Mysore. present functionaries of BAI Kerala state and Kerala Centres co-ordinated organizing of the event. Farmers Day was observed on 24th June 2017 with the help of Indian Green Building Council (IGBC) Mysore Centre organized interactive session with farmers and experts from the field of agricultural. Green Treasure Mr. S. Mahadevaswamy took over as the Chairman Hunt 2017 flagged off by Corporator Snake Shyam of BAI, Mysore Centre, during the installation and prizes were distributed to the winners. ceremony of new office bearers for the year 2017-18. Shri S. Narasimha Reddy, Vice President, South On 28th June 2017, more than 100 Saplings planted Zone-I, was the installing officer and administered in a park of private layout at Udburu Village, the oath of office to the new incoming team of office Mysore. bearers of the Centre. Mr. Malayappan Murali, MD of M/s. Shriram Properties was the Chief Guest and BAI Mysore Centre felicitated the meritorious he spoken about the challenges faced by the children of construction workers. Dr. Ravindra construction contractors during all stages of project Dastikop Professor, was the Chief Guest on the execution. He advised Mysore Builders not to occasion. dishearten from threats and to take care of all the stakeholders and continue with all the works to On 7th August 2017, the Centre organized an achieve their targets specified on time and within Interactive Meeting on Goods and Service Tax (GST) the budget. at Hotel Sepoy Grande, Mysore. Mr. H.V. Krishnan, Senior Superintendent, Service Tax and Mr. Kumar BAI Mysore Centre had organized Sports events Pal M. Jain, Chartered Accountant and certified GST during May day celebration. The Chief Guest of the Consultant, interacted with BAI members regarding function Mr. Meghana G. Devange renowned sports GST implementation. personality, winner of many Gold medals in National and International sports events inaugurated by BAI Mysore Centre celebrated Independence Day on providing the shot-put and releasing a bunch of 15th August 2017. balloons. Prizes were distributed to the winners of the sports events. On 2nd September 2017, MBCT handed over a Cheque of Rs.50,000/- to construction worker Mr. BAI Mysore Centre along with Indian Green Chandrachari, who lost both his hands while doing Building Council (IGBC), Mysore Chapter have bar bending work towards his medical expenses. The organised ‘World Environment Month 2017’. The donation was made to the injured worker based on event inaugurated by Dr. T.V. Ramachandra, Co- the information collected from a newspaper article. ordinator of Energy and Welfare Research Group (EWRG), Centre of Economical Sciences, IISc A delegation from BAI Mysore Centre, comprising (Bengaluru) at a function held at Nityostava the members Mr. Sriyuths, Mr. S.R. Swamy, Mr. N. Convention Hall. Subramanya, Mr. Subramanya Rao, submitted a memorandum to Mr. Krishna Byregowda, Hon’ble BAI Mysore Centre have conducted Drawing Minister, Government of Karnataka, Representative Competition for children – Pick N Speak (Debate) at for Government of Karnataka in the GST Council.

BUILDERS' ASSOCIATION OF INDIA119 77th Annual Report and Accounts – 2017-2018 inaugurated the Seminar. Mr. H.N. Vijaya Raghava On 3rd September 2017, Smt. Geetha Mahadeva Reddy, President, BAI and Mr. S.R. Swamy, State Prasad, Sugar and Small and Medium Scale Chairman, Karnataka, were the Guests of Honour. Industries State Minister, was felicited by BAY Mysore Centre and MBCT, upon her assuming the MyBuild-17, the annual Exhibition of Construction charge as the Minister. Materials, Equipments, was inauguratedby Chief of Ramakrishna Ashrama, Mysore.Mr. Mahima J. Patel Mr. S. Mahadevaswamy, Chairman, BAI Mysore and Mr. S.R. Swamy, State Chairman, Karnataka, Centre was the Chief Guest for the one day were the Guests of Honour. Around 200 stalls were Workshop on Energy Conservation and Building put up to show case latest electrical equipments. Code organized by KREDAL at Hotel Southern Star on 5th September 2017. He inaugurated the BAI members visited Ramco Cement Plant, Near programme which was attended by several members Trichy, Tamil Nadu and had interaction meeting of BAI. with Management, Staff of the company. They explained the whole manufacturing process, packing Engineers’ Day and Teachers’ Day celebrated by BAI of cement etc. Mysore Centre on 12th September 2017 at Hotel Pai Vista, Mysore. From 17th to 22nd January 2018, Engineering Students from Shilpi wing participated in Internship On 25th September 2017, BAI Mysore Centre programme conducted by BAI Mysore Centre. felicitated Toppers in Civil Engineering & Students visited various construction sites and were Construction Technology Management at Guru exposed to practical aspects of construction. Residency, Mysore. Dr. M. Madaiah, former Vice Chancellor of Mysore University, was the Chief On 17th February 2018, Mysuru Builders’ Charitable Guest. Mr. S.R. Swamy, State Chairman, Karnataka, Trust organized ‘Health Check-up Camp’ for the was the Guest of Honour on the occasion. general public. Doctors from Narayana Hospitals, Annapoorna Eye Hospital participated in this camp BAI Mysore Centre have arranged Overseas Trip to along with BAI and Spoorthi. Russia. Around 41 members (BAI family) went to Russia tour from 29th September to 4th October 2017, During the year, the Centre conducted 11 Executive visited Moscow and Saint Petersburg. Committee Meetings.

On 15th October 2017, Free Mega Health Check-up Nalgonda Centre Camp at Nityananda Kalyana Mantap, for construction workers and general public was The centre hosted the Second Meetings of the organized by Mysore Builders Charitable Trust, BAI Managing Committee & General Council of Builders’ Mysore Centre in association with Appolo BGS Association of India for 2017-18 at Hotel Novotel Hospital, Mysore. 250 construction workers and (Hyderabad Airport), Hyderabad on 22nd July 2017.In general public attended this camp. the afternoon of Friday, 21st July 2017, the customary meeting to the brief the office bearers was held which Builders’ Day was celebrated by BAI Mysore Centre was chaired by Mr. H.N. Vijaya Raghava Reddy, on 29th October 2017, with the theme ‘BUILDING President, BAI and attended by other office bearers. INDIA’. Mr. Ashish R. Puravankara, MD, M/s. The Centre also hosted a ‘Core Committee Meeting’ Puravankara Ltd., graced the function as Chief Guest on Friday, 21st July 2017 and chaired by Mr. H.N. and Mr. S.R. Swamy, State Chairman, Karnataka, Vijaya Raghava Reddy, President, BAI. was the Guest of Honour. The Centre also organized wonderful cultural programme on the occasion. The Convention Committee of ‘XXVIII All India Builders’ Convention’ also met in the afternoon of The Centre arranged a Press Meeting for Buildtech Friday, 21st July 2017. Mr. H.N. Vijaya Raghava 2017, an International Seminar on 3D Printing, Reddy, President, BAI and Mr. R. Radhkrishnan, Past Robotics, Automation in Construction, on 10th President & Past Trustee-BAI and Chairman, November 2017. Dr. P.R. Swarup, Director General, Convention Committee briefed the members about Construction Industry Development Council (CIDC), the developments on the organizing of the

BUILDERS' ASSOCIATION OF INDIA120 77th Annual Report and Accounts – 2017-2018 Convention in Bangalore between 19th& 21st January and site staff. Vote of thanks was delivered by Ms. 2018. V. Poovitha.

In the evening of Friday, 21st July, 2017, Nalgonda During the year Centre conducted 12 Namakkal Centre had organized a ‘Felicitation Function’ Builders Trust Meetings, 10 Executive Committee wherein Mr. Guntakandla Jagdish Reddy, Hon’ble Meetings and General Body Meeting on 17.11.2017. Minister for Energy and SC Development, was the Chief Guest. Puducherry Centre President & other BAI senior functionaries were felicitated in the function. The new team of Office bearers of Puducherry Centre for the year 2017-18 were installed on 23rdApril 2017 Namakkal Centre at Hotel Grand Sarena, Puducherry. The function was conducted on a grand scale, and about 200 BAI Namakkal Centre, in association of BAI-Salem members attended the function. Centre organized a seminar on GST which was attended by more than 150 members. Five Executive Committee meetings and Two General body meetings were held during the year. Centre organized a ‘Meeting-cum-Workshop on GST’ on 27th Oct 2017. CA Gopal Krishna Raju was On 21.03.2017, a petition was given to Puducherry the keynote speaker and gave a detailed presentation Chief Minister, PWD Minister and Chief Engineer and also answered queries raised by the participants. regarding non availability of Fund for the Around 100+ participants consisting of members & construction & infrastructure projects in the state. their accounts staff were present. Mr. K. Mani, Chairman and his senior office bearers/members of On 24th May 2017, BAI Puducherry Centre and the centre co-ordinated the meeting. PONCEA together gave petition to Puducherry Chief Minister regarding sand issues. The Centre celebrated ‘Builders’ Day 2017-18’ on 17th December 2017 in Builders Mahal at Namakkal. Mr. On 6th July 2017, we conducted Fasting programme Arachallur C Nallasamy, President-Farmers in front of Chief Engineers Office against the pending Association was the Chief Guest and delivered a bill payments. special address on the topic of ‘ILLARAM’. Mr. V.N. Varadharajan, Vice-President delivered the keynote Our Association had met close to 20 times with the address on the theme ‘Building India’. Mr. PSK Chief Engineer, Chief Minister and P W D Minister Periyasamy-Chairman, BAI Namakkal Trust to solve the payment crisis and to clear the pending released Centre’s Project Diary 2018 and Monthly bills of the contractors, for the last 3 years Calendar 2018. Outstanding students from 10th& 12th Standard, engineering students, doctors from Pudukkottai Centre medical camp for construction workers etc. were honoured. More than 200 persons consisting of BAI Mr. M. Ramesh Kumar was installed the Chairman members & their families and senior members from of the Centre by Mr. R. Radhakrishnan, Past the centre participated in the celebrations.Chairman President & Past Trustee, BAI. Also present were Mr. and his team of office bearers of the centre co- V.N. Varadharajan, Vice President, Mr. G. Ved ordinated the organizing of the celebrations. Anand, State Chairman Tamil Nadu& Andaman & Nicobar, Mr. Mu Moahan, Imm. Past Vice President Namakkal Centre organized one day safety and Mr. M. Thirusangu, Imm. Past State Chairman awareness seminar about construction, with the co- Tamil Nadu& Andaman Nicobar. Other office ordination of Department of Industrial Safety and bearers of the centre were also installed on the Health (Building and other construction works) occasion. Salem, Government of Tamil Nadu. In the seminar, topics like safety in general; all aspects of safety at Under the aegis of Mr. R. Muthukumar, GC Member construction site, BOCW Act, handling of from the Center and Vice Chairman, Tamil Nadu construction equipment etc. were discussed. Safety State PWD Committee, constructed a ‘toilet block’ day oath was taken by all participants, BAI members costing Rs.2.50 lakhs in Government High School,

BUILDERS' ASSOCIATION OF INDIA121 77th Annual Report and Accounts – 2017-2018 Kilikudi, Pudukkottai District which was more than 100 children were felicitated and given inaugurated on 10th Octobe 2017 by Mr. H.N. Vijaya gifts & certificates at the hands of Chief Guest Capt. Raghava, Reddy, President, BAI. On the Mrs. Gauri Pawar – Pilot & Guest of Honour Miss occasion,school uniforms to the students were also Geetanjali Kulkarni – Marathi Actress. distributed by the Centre at the hands of Mr. R. Radhkrishnan, Past President & Past Trustee, BAI. Builders’ Day celebrated by the Centre on 10th A water RO system and the school name board was November 2017 at the Residency Club, Pune and the inaugurated. Senior functionaries from the state were theme for 2017-18 was “BUILDING INDIA”. present on the occasion. Senior members and office bearers of the centre co-ordinated the organizing of Mr. Ranjeet More, Mr. Subhash Deshpande &Mr. D. the ‘BAI Image Building Activity. S. Chaudhari, senior members of the Centre were felicitated for their exemplary work in the field of Pune Centre construction at the hands of Chief Guest Mr Keshav Varkhedkar-Chief Engineer, CIDCO, Navi Mumbai Installation Ceremony of Pune Centre was held at in a traditional manner by offering them a shreefal, Residency Club Pune on 05.04.2017 for New Office shawl and a Memento. Members shared their Bearers for 2017-18 were installed. Mr. V.V, Gaikwad experience and enlightening thoughts to encourage – Secretary (Retd), Water Resources, Government of other for performing and achieving better. 70 plus Maharashtra was Chief Guest and Mr. H.N. Vijaya members attended the function. Raghava Reddy, President, BAI grace the occasion as Guest of Honour. BAI Pune Centre has been awarded prestigious ISO 9001 : 2015 by TUV NORD a German Group, through Centre organized 3 Half Day Seminar on Real Estate their establishment TUV India. Mumbai dated 3rd Regulation Act (RERA) on 25th May 2017, 8th June December 2017. BAI Pune Centre is first centre in 2017 and 6th July 2017 in which eminent speakers India awarded ISO certification. were invited to speak on RERA for the benefit of members and delegates attended the seminars. 21st Edition of Well Build Structure Competition Almost 100 delegates attended each seminar and (WBSC) was held and 40 plus companies benefit from the deliberations took place in the participated. It is held primarily to encourage Seminars. Quality, Speed & Economy, Labour welfare and safety aspects are also considered as important Centre also organized 2 Half Day Seminars on Goods aspects. BAI-BG Shirke Awards for 2017 competition & Service Tax (GST) on 22nd June 2017 and 26th July were awarded in the presence of 300 plus building 2017. Senior officials and consultants who professionals. Mr. V G Jana of M/s. B G Shirke participated in the deliberations were Sh Rajesh C Construction & Technology Pvt. Ltd, sponsor of the Advani, Dy Commissioner of State Tax, CA Shri WBSC Awards did the honors of giving away awards Sandesh Mundrawho explained in detail the impact to the winner participants. Shri Siddhhath Shah was of GST on ongoing construction, Real Estate Projects. Chairman-WBSC Committee. More than 100 delegates attended the seminar on the each occasion. Alongwith WBSC Awards, Centre also declared BAI–PBGS Life Time Achievement Award “Nirman BAI-Student Internship Programme – 10th Edition Ratna” and it was conferred to Shri Gobind Ajwani was conducted between 30.5.17 to 30.06.2017 in from Ajwani Infrastructure Pvt Ltd. for his which 140 students participated and 11th Edition was exemplary services to BAI and construction industry, conducted between 18.12.2017 to 06.01.2018 in which society and educational field. A citation, memento 163 students participated. Students were given and purse of One Lac Eleven Thousand was certificate of Internship. Shri Jaideep Raje and Shri presented, sponsored by M/s B G Shirke Sanjay Vaichal were the coordinators of both the Construction Technology Pvt. Ltd. Students Internship Programmes. As one of most active Centre in the family of BAI, To encourage and appreciate efforts of Children of Pune Centre received an Award from BAI HQ for BAI members, a Children’s Felicitation Programme “Image Building Activities by a Centre” for the year was held on 12.08.2017 at Ladies Club, Pune and 2016-17 during National Convention at Bangalore

BUILDERS' ASSOCIATION OF INDIA122 77th Annual Report and Accounts – 2017-2018 on 21st January 2018. Ramanathapuram Centre

Pune Centre under its social obligation, every year, BAI Ramanathapuram Centre held the General Body constructs a set of Toilet block / Fresh Rooms for Meeting on 19.9.2017 at ABC Maideen Mahal, rural schools which imparts education to mostly girls Rameswaram Road, Ramanathapuram. The students and constructed Toilet Block / Fresh Room Chairman & other office bearers were installed on at Village Rule Near Khadakwasla under the 19.11.2017 at FSM Hall, Rameswaram Road, guidance. Ramanathapuram. During the year Centre conducted 3 general body meetings and one Rajasthan (Jaipur) Centre Executive Committee Meeting.

Mr. Rameshwar Khandelwal was installed as Sangli Centre Chairman of the Centre for 2017-18 by Mr. S.P. Goel, Past President alongwith his team of office bearers, BAI Sangli Centre celebrated “Builders Day 2017- Other senior and GC Members were also present on 18” on 19th December 2017. Prof. Dr. Mrs. Shailashree the occasion. The 2017-18 team of ‘Spoorthi’ – the Hedge-Haridas, Faculty, Economics & Strategy, ladies wing was also installed on the occasion. Mrs. MIOT School of Business was the Chief Guest and Nilima Jain took over the reins from Mrs. Usha Goel. delivered the keynote address on the theme”Building India”. Mr. Suresh B. Patil, Imm. Past State Members of the Centre had a meeting with Director Chairman-Maharashtra was felicitated for receiving General CPWD on 1st July 2017 at New Delhi, ‘Best State Chairman Award 2016-17’. Chairman, Mr. regarding Service Tax & GST Matter. Jayant Patankar and other senior members co- ordinated the organising of the event. A representation was submitted to the Hon’ble Finance Secretary (Revenue Department), Jaipur, on Shimoga Centre GST for ‘ongoing projects’. BAI Shimoga Centre celebrated ‘Vana Mahotsava The Centre celebrated Builders’ Day in a befitting 2017’ in the premises of the Centre office. Mr. manner. Satishchandra, Asstt Conservator of Forests was the Chief Guest. Mr. Basavarajappa, ‘Public TV Hero Seminars and Workshops were also conducted by Awardee’ was the Guest of Honour. The theme of the Centre and also in association with other the celebrations was ‘Grow more Trees in the Maland Institutions / Organisations. Region to improve the rain fall and to improve ecosystem of the region. The members and their The Centre arranged mega medical and blood family members planted saplings with good quality donation camp on 8th April 2017, Tree plantation on manure and was carried out by Centre. This has 9th April 2018, Swatchta Abhiyan on 11th June 2017. improved the status of Centre in the District and Clubs are approaching the Centre for their guidance. The Centre organised a General Meeting on 6th Chairman Mr. Shashidhar Naik and his team of office October 2017 and issues regarding GST, Royalty, bearers co-ordinated the organizing of celebrations. CPWD etc. were discussed. Concurrently a meeting Mr. P. Subramani, Past State Chairman, Karnataka, of ‘Spoorthi’ (ladies wing) was also held and Mr. H.B. Jayappa and past Chairmen of the Centre ‘Spoorthi’ donated Rs.25,000 to a needy college were also present on the occasion. student and also plan to adopt more such needy students in future. Mrs. Vinita Kheria and other Silchar Centre ladies from wing were present on the occasion. Chairman and other senior functionaries from Centre Mr. Ranadhir Basu was installed as the Chairman of and state were present in the General Meeting and the Centre on 21st May 2017 in a gala ceremony. Mr. also co-ordinated the meeting. H.N. Vijaya Raghava Reddy, President was the Chief Guest. Mrs. Sushmita Deb,MP and Mr. Dilip Kumar During the year, the centre conducted 18 Executive Paul, MLA of Silchar & Deputy Speaker of Assam Committee Meetings. Legislative Assembly were the Guests of Honour. In his brief address, President-BAI exhorted the

BUILDERS' ASSOCIATION OF INDIA123 77th Annual Report and Accounts – 2017-2018 members of the Centre to do massive tree plantation, Builders, Architects and Labour Contractors. construct toilet block for girls in Government schools Through this forum, the Centre submitted etc. The first issue of ‘Karamyogi’ a magazine representation regarding highway road problem in published by the Centre was released on the the city. occasion. Senior officials of works authorities connected with the construction industry and During the year, the Centre conducted seven families of the members attended the ceremony. Executive Committee Meetings and four General Body Meetings. Silchar Centre organized a ‘Seminar on GST’ on 11thAugust 2017 in Silchar. Mr. Sandesh Mundra, Southern (Chennai) Centre Chairman of BAI’s Goods & Service Tax Committee was the Chief Guest & keynote speaker. Mr. Vels University organized “World Water Day Sibabrata Dutta, CA; Mr. Nimalandu Kar Celebrations’ and ‘One Day National Workshop on Prukayastha, Cost Accountant and Mr. Arindam Sustainable Solutions for Water, Water Treatment Bhattacharjee, CA also spoke on the occasion. Mr. and Reuse’ and Mr.R. Radhkrishnan, Past President Sudip Dutta, Asstt Commissioner of Central Taxes & Past Trustee-BAI was the Chief Guest. Other senior and other GST officials were present. After the members from centre participated in the speeches of speakers was followed by question deliberations. answer session. Mr. Ranadhir Basu, Chairman coordinated the organizing of seminar with other The Southern Builders’ Charitable Trust Building bearers. Boomi Pooja and Foundation Stone Laying Ceremony held on 23.04.2017 at Ambattur Industrial Silchar Centre celebrated “Builders Day 2017-18” on Estate. All India Past President & Chairman of The 22nd October 2017. Flex Posters highlighting the Southern Builders’ Charitable Trust, Mr. importance of safety, quality etc. were prepared and R.Radhakrishnan, Mr.H.N.Vijaya Raghava Reddy, displayed at the work site of BAI Members in Silchar. President-BAI, Mr. B.Seenaiah, Past President, A get-together, presided over by Chairman Mr. Mr.V.N.Vardarajan, Vice President-BAI, South Zone Ranadhir Basu, was also organized and Secretary II, Mr.M.Thirusangu, Past State Chairman, Mr. K. and Treasurer of the Centre presented their report Venkatesan, Centre Chairman and Office Bearers & on the occasion. Members participated in the Ceremony. Mr.R.Radhakrishnan, Chairman of the Trust Solapur Centre welcomed the guests and Members in his welcome address. Mr.K.Venkatesan, Chairman, Southern Engineers Day was celebrated by the Centre on 15th Centre, Mr. B. Seenaiah, the former President-BAI, September 2017. Prof. Prakrsha Sangave from Orchid Mr.V.N.Varadharajan, Vice President-BAI and College of Engineering, Solapur, was the Chief Guest Mr.M.Thirusangu, Past State Chairman delivered the for the function. felicitation address. At the end of the function Mr.J.R.Sethuramalingam, Managing Trustee Solapur Centre celebrated ‘Builders’ Day 2017-18’ on thanked all the participants. 19th October 2017. Mr. Avinash M Patil, Imm. Past President-BAI, Mr. Raja Mane, Editor, Lokmat First State Level Meeting was held on 28.04.2018 with Solapur, Mr. Rajendra Athawale, State Chairman- the patronage and kindness of BAI-Trichy Centre. Maharashtra and Ms. Swapna Khadekar, Architect, Matters related to present level difficulties being were the Guest of Honour. They all addressed the faced by the various Members in the construction gathering on the theme ‘Building India’ and various field were discussed. In this meeting, on behalf of issues. Mr. Rajesh Deshmukh, Chairman and his Southern Centre, Members from different position team of office bearers co-ordinated the organizing and category took part in the meeting. of the event. Elocution competition, children games and blood donation camp were also arranged. The A seminar on “International Business Opportunities” media covered the event. was arranged on behalf of M/s.Asian Development Bank in Hotel Haytt Regency, Chennai on 03.05.2017. BAI Solapur Centre has been taken initiative to form Mr.K.Venkatesan, Chairman of Southern Centre the construction forum of Engineers, Promoters, participated as a special Guest and delivered his

BUILDERS' ASSOCIATION OF INDIA124 77th Annual Report and Accounts – 2017-2018 speech and along with him more than 10 Senior appreciated the up-keeping of accounts and Members of Southern Centre participated in the expressed his happiness for auditing the accounts Seminar. for last 25 years. Mr. R. Radhakrishnan, Past President & Past Trustee-BAI appreciated the Meeting with Affiliated Association was arranged wonderful job done by the Centre in conducting the on 15.05.2017 by Southern Centre at Hotel Queen’s Platinum Jubilee Celebrations, State Convention, Park, Chennai. The meeting was presided over by BAIMAT, Monthly Regular Health Camps, Workers Centre Chairman Mr.K.Venkatesan. Subject related Training Programme, Seminars, etc. which he said to RERA, M-Sand, EWS Affordable Housing Scheme not only beneficial to the members but also to society and issue on the status of balance amount from at large. Other senior members/officials also spoke Corporation of Chennai were thoroughly discussed on the occasion and praised the Centre. and clarified. Office Bearers of the Centre and Office Bearers from various Affiliated Associations joined On 1st June 2017 at Kodaikanal State Level Core the meeting. Committee meeting was organized. The Chairman, Kodaikanal Centre took charge of the function and Builders’ Association of India delegates under the the meeting progressed well. In this meeting our leadership of Mr.R.Radhakrishnan met the Chief Chairman Mr. K.Venkatesan, Immediate Past Vice Minister of Tamilnadu Sri.EdappadiK.Palaniswamy President Mr.Mu.Moahan, Southern Zonal Secretary at the Chamber of Chief Minister on 17.05.2017 at Mr.R.Sivakumar, State Secretary Mr.S. Ayyanathan, 10.00 a.m and submitted a Memorandum and and State Treasurer Mr.O.K.Selvaraj participated. discussed issues pertaining to difficulties being faced by the construction industry & non-availability of Centre organized one-day workshop on Goods & river sand. Mr.V.N.Varadharajan, Vice President, Services Tax (GST) on 9th June, 2017 to enlighten Mr. G.Vedanand, State Chairman, Mr.S.Ayyanathan, members about the nuances of GST. Three speakers State Secretary, Mr. K.Venkatesan, Centre Chairman, CA Gopal Krishna Raju, CA S Sathyanarayanan and Mr.Mu.Moahan, Past Vice President, CA Sumit Kedia, with the help of power point Mr.O.K.Selvaraj, State Treasurer and presentation, elaborated on different issues of GST Mr.R.Sivakumar, Zonal Secretary were among the in the three sessions and fourth session was for prominent Members present. question – answers. Mr R Radhkrishnan, Past President & Past Trustee-BAI and other senior office Mr. R. Radhkrishnan, Past President & Past Trustee- bearers from the state/centre graced the occasion. BAI was the Chief Guest and delivered the keynote Participants in workshop thanked Chairman Mr. K. address during the ‘National Conference Regarding Venkatesan and Southern Centre for arranging Sustainable Technology in Civil Engineering’, wonderful workshop. organized by KCG College of Technology, Karapakkam, Chennai. Following the decision to go for strike taken in the previous meeting, one day strike with fasting was BAI Southern Centre and Tamil Nadu State Sand observed on 06.07.2017 from 9 am to 5 pm In the Lorry Owners Federation jointly organized an presence of Mr.R.Radhakrishnan,Past President and agitation on 20th May 2017 to attract attention of the under the Leadership of Mr.K.Venkatesan, TN Government of non-availability of sand. Chairman, Southern Centre, the members of Chairman of centre Mr. K. Venkatesan and senior Agitation Committee raised slogans to express their members and functionaries of the centre actively protest, staged agitation to draw the attention of participated in the event. The agitation was followed government. More than 25 Associations related to by a Press Meet. Builders’ fraternity took part in this agitation. This protest was carried out in the presence of Annual General Meeting of Centre was held on 30th Mr.V.N.Varadharajan, Vice President, Mr.G.Ved May 2017 in Hotel Ashoka, Chennai. Chairman Mr. Anand, State Chairman, Tamil Nadu & Andaman K. Venkatesan commenced the meeting by Nicobar, Mr.Ponkumar, Former President of welcoming all the seniors, office bearers / members Tamilnadu construction – Employees Welfare Board, and briefed about the centre activities during 2016- Mr.Suresh Krishna, Chairman, CREDAI, Chennai, 17. Mr. V. Ramachandran, CA & Auditor of BAI Mr.S.Yuvaraj, Chairman of Tamilnadu Sand Lorry Southern Centre addressed the members and Owners’ Federation, Mr.Mu.Moahan, Past Vice

BUILDERS' ASSOCIATION OF INDIA125 77th Annual Report and Accounts – 2017-2018 President worked as a co-ordinator of this Agitation Dental Care Bus screened more than 250 construction Committee. More than 25,000 agitators joined the labourers, made use of this service for their health agitation from various Associations. check-up. Free medicines worth Rs.50000 were distributed with the courtesy of Southern Builders’ BAI-Southern Centre Image Building Committee Charitable Trust. During health check-up, Apollo organized tree plantation Program at Tiruvengadam Hospital Doctors revealed that 2 workers aged Nagar, Ambattur on 15.8.2017. Tree guards valued around 21 years suffered severe cardiac pain and approximately at Rs.40,000/- were presented by the found the symptoms of the disease through scanning Committee Chairman and Saplings by Committee of ECG. In addition to that, BAI agreed to render Co-Chairman. Chief Guest Mr.K.Venkatesan, free and efficient medical treatment to two labourers Chairman, Southern Centre planted the saplings. to overcome from their ailing cardiac related pain More than 25 EC/GC Members attended the with the guidance of Apollo Hospital. function. Member expressed their thanks to Committee Chairman Mr.R.R.Sridhar & Co- EPC Contract Model Documents Review Meeting Chairman Mr.P.Ramkumar for their wonderful conducted by Builders’ Association of India with arrangements. More than 200 trees were planted. coordination of EPC Committee from Delhi held on 05.10.2017. Members from all over India attended On behalf of Southern Centre RERA Meeting was the above Meeting and shared their views. Centre organized at Hotel Savera on 18.08.2018 from 10.00 Chairman Mr.K.Venkatesan along with All India am to 2.00 pm by its Committee Chairman Past President & Past Trustee, Mr.R.Radhakrishnan, Mr.L.Shantha Kumar. More than 150 Members All India Immediate Past Vice President participated in the Meeting. Mr.Jaya Prakash, Mr.Mu.Moahan had expressed their views and Advocate, Foxmandel Associates described about insisted that EPC needs to implement the Contract RERA and Mr.P.Thiagarajan, Additional Director Model Document as soon as possible without any (Retd.), DTCP explained on the subject related to further delay. unapproved lands/ Buildings. Members were very much delighted as their queries were properly On commemoration of Builders’ Day Celebrations clarified and given appropriate explanation. All our Southern Centre organized an Oratorical India Vice President Mr.V.N.Varadharajan Competition for the Students was held in the participated in the Meeting and Mr.G.Ved Anand, Guinness Auditorium in Annamalai University on State Chairman, Tamil Nadu & Andaman Nicobar 11.10.2017. Students from KSG College, Velammal took part in the Meeting as Chief Guest and delivered Engineering College, Sri Venkateswara College, Sri a special speech about RERA. Centre Chairman Jayaram Engineering College, S.R.M.University Mr.K.Venkatesan along with Office Bearers and participated. They spoke on the title “Build India Members were present and the Meeting concluded through Skill Development” and “Build India with vote of thanks by Hon.Secretary, of Southern through Infrastructure”. In this competition 25 Centre Mr. S.Rama Prabhu. students from the above Colleges took part in the competition and presented their ideas on innovative Awareness Programme on innovative building technology and low cost ideas on the above title. The product Slag Cement was organized 29.8.2017 at above competition was conducted with the Anna University. With the support of Training coordination of Dr.D.Thukkaram, Mr.O.K.Selvaraj Committee Chairman Mr.V.S.B.Sunder and in the capacity of Judges. Professor and Office Mr.B.Ramesh, the program was organized on behalf Bearers along with Members from Southern Centre of Southern Centre. DGM-Head – South India of JSW graced the Competition with their presence. Cement Ltd. participated in the program and explained about the usage & cost reduction, On commemoration of Builders’ Day celebrations, a durability of Slag Cement. More than 100 Members Special Medical Camp was conducted for our and Officers attended the Meeting. construction workers and Members at the venue. More than 500 workers & Members were scanned A Health Camp was conducted on 17.09.2017 at the and benefited with free distributions of medicines. work site of Stepsstone Promoters at Urapakkam. The Medical Team from Apollo Hospital, Saveetha Doctors from Apollo Hospital and Saveetha Dental Dental University & Ophthalmologists from College, Govt. Eye Hospital, Egmore with spot Government Eye Hospital were took part in the

BUILDERS' ASSOCIATION OF INDIA126 77th Annual Report and Accounts – 2017-2018 camp. More than 40 faculties carried out the Medical Commissioner Thiru G.Ravindranath, IRS check-up. Free medicines were distributed to the Commissioner and his Associates. During interaction Members and workers to the tune of Rs.40,000/- with Commissioner clarified all the queries raised the the courtesy of Southern Builders’ Charitable Trust. Members and participants very patiently by postponing another meeting for one hour. Spent Builders’ Day celebration was conducted by BAI more time with our Members very friendly and Southern Centre at Mohan Garden, Korattur on crisply clarified all the questions by the gathering 16.10.2017 from 4.00 pm to 10 pm. The function was on the above subject. Before interaction, conducted with lot of entertainment programs and Mr.Ravindranath introduced Ms.Supriya, Asst. Mr.B.Manikandan, a leading orator particularly in Commissioner, Mr. Dilipan, Asst. Commissioner and Tamil spoke on the topic of Builders’ fraternity relief Superintend Mr.M.K.Madivanan, who had given from the stress. All India Vice President from South presentation on E-way bill. Mr. Ravindranath spoke Zone Mr.V.N.Varadharajan as Chief Guest and All on GST and clarified the queries raised by Members India Past President & Past Trustee and provided hints for filing of GST. Mr.R.Radhakrishnan attended the function. Welcome speech was given by Centre Chairman BAI Southern Centre organized ‘BAI Awards 2018’ Mr.K.Venkatesan in the function in which more than presentation ceremony of Kalaivanar Arangam on 700 workers and Members participated. Workers 26th February 2018. His Excellency the Governor of were served with food and given gifts. On Tamil Nadu Mr. Banwarilal Purohit presented the continuation of the Celebration, Mr.S.Ganapathy, awards to the outstanding Builders. Hon’ble Senior MC Member of Southern Centre was Governor was welcomed by Mr. R. Radhakrishnan, honoured with ‘The Best Participation Award’ for Past President & Past Trustee, BAI alongwith the his service and attending regularly the Meetings and senior functionaries of the Centre and stalwarts from Functions conducted by Southern Centre. All the the construction industry present on the occasion. employees were presented with gift. Hon’ble Governor Mr. Banwarilal presented the Awards to the Winners. The EXCON Road Show was organized by CII with the coordination of EXCON, the Machinery Telangana State Manufactures Association at Hotel Hilton on 17.11.2017. The above meeting was attended by our BAI Telangana State organized a ‘Seminar on GST’ Centre Chairman Mr.K.Venkatesan along with more in Hyderabad on 14th July 2017. Mr. Somesh Kumar, than 20 GC/MC Members. Chairman in his speech IAS, Principal Secretary, Commercial Taxes, insisted the Machinery Manufacturing Associations Government of Telangana was the Chief Guest and and CII to represent the Central Finance Ministry delivered keynote address. Mr. V. Anil Kuma, IAS, and GST Council to withdraw GST towards Commissioner, Commercial Taxes, Mr. Kasi transferring of machinery from one state to another Visweshwara Rao, Dy Commissioner, Commercial state for their own use. This was accepted by CII Taxes and Mr. P.Rajendar Kumar, Chief Engineer, President and President of EXCON Machinery R&B Roads, Government of Telangana also Manufacturing Association. addressed the delegates. Mr. S. Narsimha Reddy, Vice President, BAI, Mr. N. Sachitanand Reddy, The State Level Core Committee Meeting was held Trustee, BAI and Mr. B. Seenaiah, Past President also in Hotel Savera on 22.12.2017, 4 pm in the evening. graced the occasion. Mr. B. Sugunakar Rao, State Mr.R.Radhakrishnan, All India Past President& Past Chairman-Telangana co-ordinated the event with Trustee, Mr.K.Venkatesan, Chairman of Southern other office bearers & functionaries of BAI Centres Centre, Mr.S.Rama Prabu, Hon.Seretary of the in Telangana. BAI members from all over Telangana Centre, Members of Executive Committee and attended the seminar. General Council participated in that meeting. Thanjavur Centre Seminar on Goods & Service Tax (GST) was conducted on 31.01.2018 at Hotel Savera, Chennai Installation function of the office bearers of BAI on 31.01.2018. More than 150 Members and their Thanjavur Centre for the year 2017-18 was held on Company employees attended the Seminar. Centre 30th April 2017. Shri V.N. Varadharajan, Vice Chairman Mr.K.Venkatesan introduced the GST President, South Zone-II and Shri G. Ved Anand,

BUILDERS' ASSOCIATION OF INDIA127 77th Annual Report and Accounts – 2017-2018 State Chairman, Tamil Nadu & Andaman Nicobar, President & Past Trustee, BAI on 26th April 2017 in were also present on the occasion. the function which also attended by Mr. V. N. Varadharajan, Vice President, Mr. A. K. Yussouf, On 10th January 2018, a Memorandum of Past President and Mr. Mu Moahan, Imm. Past Vice Understanding (MOU) was executed between President. Other office bearers of the centre were also Builders’ Association of India (BAI) and Parisutham installed on the occasion. Institute of Technology and Science. Tirunelveli Centre Theni Centre A Thanks Giving Meet was organized by the Centre BAI Theni Centre organized the Installation Function on 28th March 2017 as a culmination of successful of Chairman & his team of office bearers on 2016-17 and Er. M. Olagantha Sankar, Chairman 17.06.2017 at BAI Trust Mahal, Theni. (2016-17), presided over the meet. Mr. V. S. Kesavan gave a ‘Unique ID’ to all the members. Senior Centre organized GST Demo Meet 23.06.2017 at members, office bearers and their families were also Hotel Theni International, Theni. present.

During the month of July, conducted state level The Centre has started a programme ‘Smart Civil agitation on 6.7.2017 and distributed food for old age Engineer’, a three month programme, for which in Theni on 10.7.2017. classes for 20 Civil Engineering students are conducted every day from 4 pm to 6 pm and they Donated Water Purifying Plant to Government are taught CAD, Revit, Staad Pro, EDCR, site Higher Secondcary School, Odaipatti on 14.7.2017 exposure etc. so that so as to make them well suited on behalf of Builders Day. Also donated Rs.55,000/ for doing any civil engineering projects / office - worth Fibre Doors & Water Closets to Theni – successfully. It is a continuous program and is Allinagaram Municipality towards Prime Ministers conducted in Centre’s own Training Center called Swach Bharath Scheme on 16.08.2017. ‘Tirunelveli Builders Training Centre and the certificates for the 1st Batch of Students by State On behalf of Engineer’s Day Celebration, Interaction Chairman, Tamil Nadu & Andaman Nicobar,Mr. G. programme was conducted for Engineering Students Ved Anand on 7th December 2017 and the 2nd batch and appreciated. was welcomed.

During the year conducted 8 Executive Committee The Tirunelveli Centre founded a ‘Youth Wing’ of / Monthly meetings and Annual General Meeting its centre on 7th December 2017 to enable the budding on 14 & 15 March 2018 at Hotel Kodai International, to get involved & updated on the latest happenings Kodaikanal. in the building & Construction industry. Most of the youth members are siblings of existing BAI members. Thiruvallur Centre 34 budding engineers enrolled as members of the formally inducted by Mr. G. Ved Anand, State Mr. G.P. Ravi Chandran was installed as the Chairman-Tamil Nadu& Andaman Nicobar. Chairman of the Centre by Chief Guest Mr. R. Radhakrishnan, Past President & Past Trustee on 22nd Tirunelveli Centre celebrated “Builders’ Day 2017- April 2017. Mr. G. Ved Anand, State Chairman, 18" on 28th December 2017 at farm house of Mr. T. Tamil Nadu& Andaman & Nicobar was also the Raja, Chairman of the Centre. Mr.G. Ved Anand, Chief Guests. Senior members from the State also State Chairman, Tamil Nadu& Andaman Nicobar graced the occasion. Other office bearers &GC / EC was the Chief Guest. Mr. S. Shajakhan, Chairman, Members of the Centre were also installed in the BAI Kanyhakumari Centre was the Guest of ceremony. Honour.Mr. R.F Saravanan, Chairman, BAI Tuticorin Centre delivered the keynote address on the theme Tiruchirappalli Centre ‘Building India’. Various games, sports, cultural events were conducted and BAI members & their Mr. R. Murugesan was installed the Chairman of the families took part. Lunch/snacks were also served Centre for 2017-18 by Mr. R. Radhakrishnan, Past to the participants. Chairman and other senior

BUILDERS' ASSOCIATION OF INDIA128 77th Annual Report and Accounts – 2017-2018 members / office bearers co-ordinated organizing Thiruthuraipoondi Centre of the event. New office bearers of BAI - Thiruthuraipoondi Tirupur Centre Centre were installed by Tamilnadu, Puduchery and Andaman Nickobar Islands State Chairman Mr. G. BAI Tirupur Centre conducted a Seminar on’M Sand Vedanand on 25.04.2017 in in the installation and Foundation’ on 16th March 2018. Mr. A. ceremony held at Angai Mahal, Thiruthuraipoondi. Karthikeyan, ME, MIE, MICS FIV of M/s. GC Members, Chairmen and office bearers from Kathikeyan Associates, Chennai, was the keynote Thanjavur, Nagapattinam, Karaikal and speaker and delivered an interest talk with PPT, Mayiladudurai Centres also participated in function. which was followed by a question answer session. Mr. A. Kumar, Chairman & his other office bearers/ On 12.06.2017 in Regular meeting awareness about functionaries of the Centre co-ordinated in GST conducted by the Centre, Mr. V.Alagappan and organizing the event. his team participated and gave explanation about the GST. Members from the centre, Engineers, Tripunithura Centre Contractors and Trader are benefitted from this meeting. The Centre carried out an ambitious social cause work of building homes under the ‘Home for On 06.07.2017, Centre participated in a hunger strike, Homeless Project’. The key to the first recipient of a alongwith civil Engineers Associations of house Mrs. Devaki Krishnan was handed over to her Thiruthuraipoondi, Thiruvarur and Mannargudi, by Mr. V.P. Sajeendran, Member of Kerala Lorry owners association, Document Writers Legislative Assembly from Kunnathunadu. Mr.V. Association and All Building labours association to Santhosh Babu, State Chairman, Kerala, Adv. Jose reduce the cost of river sand and also to reduce the Valothil, Chairman of Centre and other senior document registration fees. The Chamber of functionaries from the Centre were also present on Commerce, Lions, Rotary, Jc’s Members also the occasion. supported and participated in the strike.. The event was covered in the print and electronic media. The Centre celebrated “Builders’ Day 2017-18" on 29th November, 2017. Mr. Kochouseph Chittilapilly, On 07.10.2017 all members of the Centre participated Founder, Chairman & CEO of M/s. V-Guard in the Road show organised by M/s. Schwing Industries was the Chief Guest and delivered the key Stetterin Kansu Hotel in a grand manner. note address onthetheme “Building India’. Mr. V. Santhosh Babu, State Chairman, Kerala and Mr. P. Vellore Centre K. Ramachandran, Past Vice President &Past Trustee were the Guests of Honour. On the occasion, a cake Mr. B. Ramamoorthi was installed as Chairman of was cut by Chairman Mr. George Thomas & Founder the Centre for 2017-18 on 10th April 2018 alongwith Chairman to commemorate completion of 10 years his team of office bearers. Mr. R. R. Gopaljee, of Centre. Other senior members from the center Associate Editor, Dinamalar & MD M/s. Malar were also present on the occasion. Energy & Infrastructure Pvt.Ltd. was the Chief Guest. Mr. S. Rajagopal is the General Council Member from Vellore Centre.

BUILDERS' ASSOCIATION OF INDIA129 77th Annual Report and Accounts – 2017-2018 BUILDERS’ ASSOCIATION OF INDIA

Builders’ Association Of India (All-India Association of Engineering Construction Contrators & Builders) G-1/G-20, 7th Floor, Commerce Centre, J. Dadajee Road, Tardeo, Mumbai - 400034  23514134, 23520507, 23514802 • Fax: 91-22-23521328 Website: www.baionline.in • E-mail: [email protected]

PROXY

Name of the Member ......

I/We, the undersigned ...... of...... being a Member of Builders’ Association of India hereby appoint ...... of...... or failing him/her ...... of...... or failing him/her ...... of...... as my/our proxy to vote for me/us and on my/our behalf at the 77th Annual General Meeting of the Association being held on Saturday 4th August 2018 at 4.00 P.M. at Saipriya Resorts, Rushikonda, Visakhapatnam - 530 045.

Signed this day of 2018.

Affix Re.1/- Revenue Stamp

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Note: Proxies, in order to be effective, must be received by the Association not less than 48 hours before the time of the Meeting.

BUILDERS' ASSOCIATION OF INDIA130 77th Annual Report and Accounts – 2017-2018 Builders' Association of India (All India Association of Engineering Construction Contractors & Builders)

FUNCTIONING CENTRES ANDHRA PRADESH STATE JHARKHAND STATE Nashik Tuticorin Amaravathi* Hazaribagh Nandurbar Vellore Nellore Jamshedpur Phalatan Rajahmundry Jharkhand (Ranchi) Pune TELAGANA STATE Ravulapalem Raigad* Adilabad Tanuku KARNATAKA STATE Sangli Greater Hyderabad Vijaywada Karnataka (Bangalore) Shahada* Hyderabad Visakhapatnam Chitradurga Satara Kamareddy Vizag Steel City Hasan Solapur Karimnagar Mysore Ulhasnagar Khammam ASSAM STATE Raichur Wai Mahaboobnagar Guwahati Shimoga Medak RAJASTHAN STATE Nalgonda Silchar Greater Jaipur* Tezpur KERALA STATE Nizamabad Alleppey Jaisalmer Ranga Reddy Jodhpur BIHAR STATE Aluva Warangal Rajasthan (Jaipur) Patna Angamalli Calicut TAMIL NADU STATE UTTAR PRADESH STATE CHATTISGARH STATE Changanacherry Chengalpet Agra Bilaspur Ettumanoor* Chettinadu Agra Cantt. Durg-Bhillai Kerala (Thiruvananthapuram) Coimbatore Aligarh Jagdalpur Kochi Dindigul Allahabad Kanker Kodungugallur Erode Baghpat Raipur Kallakurichi Bareilly Kottayam Kanyakumari Gautam Budha Nagar DELHI STATE Muvattupuzha Kodaikanal Ghaziabad Delhi North Malabar () Kumbakonam Greater Noida Delhi East Shahadara Thripunithura Madurai Hapur Delhi North Thrissur Madhuranthakam Loni Delhi South Thiruvalla Mayiladuthurai Lucknow Delhi West Nagapattnam Meerut MADHYA PRADESH STATE Namakkal Meerut Cannt. GOA STATE Bhopal Nilgiri Modinagar Goa Indore Neyveli Moradabad Jabalpur Perambalur Moradabad Northern Railway GUJARAT STATE Ponneri Muzaffarnagr Baroda MAHARASHTRA STATE Pudukkottai Sitapur Bharuch Ahmednagar Ramanathapuram* Kanpur Gandhinagar* Amravati Salem Kanpur-South Gujarat (Ahmedabad) Baramati Southern (Chennai) Western U.P. Electrical* Rajkot Butibori Thanjavur UNION TERRITORIES Surat Dhule Thenni Andaman & Nicobar Ichalkaranji Thiruthuraipoondi Karaikal HARYANA STATE Jalgaon Thiruvannamalai Pondicherry Gurgaon Kolhapur Thiruvarur* Karnal Malegaon Tiruchirapalli WEST BENGAL STATE Kundli* Mumbai Tirunelveli Durgapur Faridabad* Nagpur Tirupur Eastern Centre (Kolkata) Chandigarh* Nanded Tiruvallur Haldia AFFILIATED ASSOCIATIONS • Amravati District Contractors’ Association, Amravati • Latur District Builders’ Association, Latur • Association of Builders for Chennai Development • Mumbai Housing & Area Development Contractors’ Association, • Chennai Flat Promoters’ Association - North Mumbai • Chennai Suburban Builders Association • Nagpur Contactors Association • Confedeartion of Real Estate Developers Association of India • Pavers Finished Road Builders’ Association, Chennai (CREDAI), Karnataka • Singara Chennai Builders Association • Contractors and Builders Association of Vidarbha • Southern Region Petrolum Corporation Contractors Welfare • CPWD Civil Contractor Association Association • Earthmoving Contractors & Machinery Owners Association • The Association of Engineering Constractors CMWSS Board • Flat Promoters Association (Ambattur & Avadi) • Tamilnadu Fly Ash Bricks & Blocks Manufacturers Association, • Flat Promoters Association- Chennai South Chennai • Gujarat Contractors’ Association, Ahmedabad • Jharkhand Local Thekedar Sangh, Ranchi • Tamil Nadu Solid, Hollow & Paver Blocks Manufactures Association • Karnataka State Contractors’ Association, Bangalore • The Southern Railway Engineering Contractors Association • Kerala CPWD Conatractors Association • M/s. Telangana Electrical Contractors Association