The Bonded Labour System

(Abolition) Act, 1976

It extends to the whole of India.
• According to the 2016 Global Slavery Index,
India has the most slaves in the world.
• There are an estimated 46 million people
enslaved worldwide with more than 18 million
of them in India
 Historical Background
• Anti-Slavery Abolition Act 1833: slavery illegal
• British Empire in 1843, through Act No.V of 1843 also
known as the Indian Slavery Act, 1843.: Abolish Slavery
• Indian Penal Code: 1860 dealing or trading of slaves is
criminal offence
• The Forced Labour (Abolition) Convention adopted by
the International La­bour Organisation (ILO) in 1919
was ratified by India only in November 1954.
• ILO Slavery Convention 1926
• Abolition of Forced Labour Convention 1957. India
ratified in 2000.
 DEFINITION OF BONDED LABOUR

• The term 'bonded labour' is not capable of any

precise definition. The Royal Commission on
Labour in India (1931) has defined bonded
labour as follows:
– "the labourer borrows money from the land lord
under a contract to work until the debt is repaid.
The debt tends to increase rather than diminish
and the man, and sometimes his family, is bound
for life."
 States abolish Bonded Labour
• the Bihar Kamianti Act was passed in 1920,
• the Madras Agency Debt Bondage Regulation in 1940,
• Kabadi System Regula­tion in Bastar in Madhya Pradesh in
1943,
• Hyderabad Bhagela Agreement Regulation in 1943,
• Orissa Debt Bonded Abolition Regulation in 1948,
• Rajasthan Sagri System Abolition Act in 1961 (which was
amended in 1975),
• and Bonded Labour System (Abolition) Act, Kerala in
1975.
• The Commissioner for Scheduled Castes and
Scheduled Tribes in his Report (1971-72 and
1972-73) has defined
– "a legal deed by which a person engages himself
and his representative to fulfil specific condition or
pay money".

– 20 points program in 1975

• The Bonded Labour System (Abolition)
Act, 1976 has defined bonded labourer
to mean
– "a labourer who incurs, or has, or is
presumed to have incurred a bonded debt."
• The Report of the Commissioner for Scheduled
Castes and Scheduled Tribes, 1975-76 and 1976-
77 has also attempted to redefine the bonded
labour system to mean that,
– "If persons belonging to any particular caste or
community are forced or partly forced to work for a
creditor under an agreement either without wages or
for nominal wages which are lesser than the
prescribed minimum wages. They would come under
the definition of bonded labour system."
• The survey highlights the main features of
the Bonded Labour System:
– debt incurred by the labourer himself or his
ancestor, the labourers enters into the contract
and ensures his labour with the landlord-cum-
moneylender, until the debt is repaid.
– period may be seasonal or for one entire
agricultural year or for several years.
– not free to go out anywhere
– does not get his due compensation
 Bonded Labour
• Common in developing countries because of
poverty and inequality
• India contribute 40 percent of world’s bonded
labour
– More than 92 percent are either lower caste or
tribals
 Fundamental Rights
– Article 14 guarantees equality before law and equal protection of
laws to all the persons residing within the territory of India.
– Article 21 secures right to life and human dignity.
– Article 23 prohibits, "Traffic in human being and prohibits begar and
other similar forms of forced labour".
– The provisions contained in Article 39 (e) and (f), 41 and 42 which
are enshrined in the chapter of Directive Principle of State Policy
mandate at the State to protect the health and strength of workers,
men and women, and the tender age of children against exploitation.
– Article 43 of the Constitution – This directive directs the State to
secure i.a. – conditions for work ensuring a decent standard of life.
• Scheme for Rehabilitation of Bonded Labour
--- is under implementation since 1978 under
which the Centre and states contribute Rs
10,000 each for cases of rehabilitation.
• The bonded labour is in our social system.
• The bondage through obligation may include
– debt bondage
– attachment to land,
– attachment to house site or
– customary obligation.

– In the case of debt obligation, a labour usually takes a loan or advance from
an employer, and in consequence thereof he mortgages his labour with that
particular employer until the loan is repaid.
• This system which was largely confined to
– agricultural sector
– workers in stone quarries,
– brick klins,
– construction sites,
– forestry,
– carpet weaving,
– Chukri System in West Bengal
– fishing, bidi making, match box etc.
 Child bonded labour
• Below the 14 years are not to work in harzadous
work
• 1986 child labour act
• Every 11th child is bonded labour
• An average 33 lakh children are bonded child
labour
• In Indian children ages six to fourteen—roughly
two hundred million children working, in which
75 percent are bonded labour
• The largest single employer of children in India
is the agricultural sector where an estimated
twenty-five million children are employed; and
the second largest employer is the service
sector where children work in hotels and as
household maids.
• An additional five million Indian children are
employed in other labor-intensive industries.
• Article 14 and 21 protect rights of the child
• DM and SDM are responsible to protect
– Every year they form committee to protect and to
submit report that there is no child labour
 Origins and Causes of India’s Bonded Labor
Problem
• poverty and inequality,
• Caste System
• Feudal System
• Landless farmer
• an inadequate education system,
• unjust social relations,
• large families
• inadequate enforcement of labor laws
• and the government’s unwillingness to alter the status quo
• urban poor,
• natural calamities like drought, floods etc.,
destruction of men ‘ animals,
• absence of rains,
• drying away of wells,
• meagre income from forest produce,
• and inflation and constant rising prices.
 Eradication efforts

• Bandhua Mukti Morcha (BMM) or  Bonded

Labour Liberation Front (BLLF) founded in
1981 by Swami Agnivesh has taken immense
steps towards eradicating this social and
economic disgust from our country. Bandhua
Mukti Morcha has been credited with the
release of 1,24,000 bonded labourers so far
from the slavery. 
 Definitions
• Advance
– means an advance, whether in cash or in kind, or partly in cash
or partly in kind, made by one person (hereinafter referred to
as the creditor) to another person (hereinafter referred to as
the debtor);
• Agreement
– means as agreement (whether written or oral, or partly
written and partly oral)
– between a debtor and creditor, and includes an agreement
providing for forced labour, the existence of which is presumed
under any social custom prevailing in the concerned locality.
 Explanation
• an agreement between the debtor and
creditor is ordinarily presumed, under the
social custom, in relation to the following
forms of forced labour, namely: -
– Adiyamar, Baramasia, Basahya, Bethu, Bhagela,
Cherumar, Garru-Galu, Hali, Hari, Harwai, Holya,
Jana, Jeetha, Kamiya, Khundit-Mundit, Kuthia,
Lakhari, Munjhi, Mat, Munish system, Nit-Majoor,
Paleru, Padiyal, Pannayilal, Sagri, Sanji, Sanjawat,
Sewak, Sewakia, Seri, Vetti;
• Ascendant or Descendant
– in relation to a person belonging to a matriarchal society,
means the person who corresponds to such expression in
accordance with the law of succession in force in such society;
• Bonded debt
– means an advance obtained, or presumed to have been
obtained, by a bonded labourer under, or in pursuance of the
bonded labour system; (e)
• Bonded labour
– means any labour or service rendered under the bonded
labour system;
• Bonded labourer
– means a labourer who incurs, or has, or is presumed to have,
incurred a bonded debt;
 Bonded Labour System
• means the system of forced, or partly forced, labour under
which a debtor enters, or has, or is presumed to have, entered,
into an agreement with the creditor to the effect that,-
– (i) in consideration of an advance obtained by him or by any of his
lineal ascendants or descendants (whether or not such advance is
evidenced by any document) and in consideration of the interest, if
any, due on such advance, or
– (ii) in pursuance of any customary or social obligation,
– (iii) in pursuance of an obligation devolving on him by succession,
– (iv) for any economic consideration received by him or by any of his
lineal ascendants or descendants, or
– (v) by reason of his birth in any particular caste or community,-
• he would
– (1)render, by himself or through any member of his family, or any
person dependent on him, labour or service to the creditor, or for the
benefit of the creditor, for a specified period or for an unspecified
period, either without wages or for nominal wages, or
– (2) for the freedom of employment or other means of livelihood for a
specified period or for anunspecified period
– (3) forfeit the right to move freely throughout the territory of India
– (4) forfeit the right to appropriate or sell at market value any of his
property or product of his labour or the labour of a member of his
family or any person dependent on him,

– and includes the system of forced, or partly forced, labour under which a
surety for a debtor enters, or has, or is presumed to have, entered, into an
agreement with the creditor to the effect that in the event of the failure of
the debtor to repay the debt, he would render the bonded labour on behalf
of the debtor;
• Family
– in relation to a person, includes the ascendant and
descendant of such person;
• nominal wages
– in relation to any labour, means a wage which is less
than,-
– the minimum wages fixed by the Government in
relation to the same or similar labour, under any law
for the time being in force, and
– where no such minimum wage has been fixed in
relation to any form of labour , the wages that are
normally paid, for the same or similar labour, to the
labourers working in the same locality;
ABOLITION OF BONDED LABOUR SYSTEM

• After the commencement of this Act, no

person shall-
– (a) make any advance under, or in pursuance of,
the bonded labour system, or
– (b ) compel any person to render any bonded
labour or other form of forced labour.
 EXTINGUISHMENT OF LIABILITY TO REPAY
BONDED DEBT
• Liability to repay bonded debt to stand
extinguished
– On the commencement of this Act every
obligation of a bonded labourer to repay any
bonded debt or such part of any bonded debt as
remains unsatisfied immediately before such
commencement, shall be deemed to have been
extinguished.
• After the commencement of this Act, no suit
or other proceeding shall lie in any civil court
or before any other authority for the
recovery of any bonded debt or any part
thereof.
• Every decree or order for the recovery of bonded
debt, passed before the commencement of this Act
and not fully satisfied before such commencement,
shall be deemed, on such commencement, to have
been fully satisfied.
• Every attachment made before the
commencement of this Act, for the recovery
of any bonded debt, shall, on such
commencement, stand vacated; and, where,
in pursuance of his custody and kept in the
custody of any court or other authority
pending sale thereof, such movable property
shall be restored, as soon as may be
practicable after such commencement, to the
possession of the bonded labourer.
• Where, before the commencement of this Act,
possession of any property belonging to a
bonded labourer or a member of his family or
other dependent was forcibly taken over by
any creditor for the recovery of any bonded
debt, such property shall be restored, as soon
as may be practicable after such
commencement, to the possession of the
person from whom it was seized.
• If restoration of the possession of any property
referred to in sub-section (4) or sub-section (5) is
not made within thirty days from the
commencement of this Act, the aggrieved person
may, within such time as may be prescribed,
apply to the prescribed authority for the
restoration of the possession of such property
and the prescribed authority may, after giving the
creditor a reasonable opportunity of being heard,
direct the creditor to restore to the applicant the
possession of the concerned property within
such time as may be specified in the order .
• An order made by any prescribed authority,
under sub-section (6), shall be deemed to be
an order made by a civil court and may be
executed by the court of the lowest pecuniary
jurisdiction within the local limits of whose
jurisdiction the creditor voluntarily resides or
carries on business or personally works for
gain.
• For the avoidance of doubts, it is hereby declared that,
where any attached property was sold before the
commencement of this Act, in execution of a decree or
order for the recovery of a bonded debt, such sale
shall not be affected by any provision of this Act.
– Provided that the bonded labour, or an agent authorised by
him in this behalf, may, at any time within five years from
such commencement, apply to have the sale set aside on
his depositing in court for payment to the decree-holder,
the amount specified in the proclamation of sale, for the
recovery of which the sale was ordered, less any amount, as
well as mesne profits, which may, since the date of such
proclamation of sale, have been received by the decree-
holder.
• Where any suit or proceeding, for the
enforcement of any obligation under the
bonded labour system, including a suit or
proceeding for the recovery of any advance
made to a bonded labourer, is pending at the
commencement of this Act, such suit or other
proceeding shall, on such commencement,
stand dismissed.
• On the commencement of this Act,
every bonded labourer who has
been detained in civil prison,
whether before or after judgment,
shall be released from detention
forthwith.
 Other important provisions
• Property of bonded labourer to be freed from
mortgage, etc
• Freed bonded labourer not to be evicted
from homestead, etc
• Creditor not to accept payment against
extinguished debt.
 IMPLEMENTING AUTHORITIES
• District Magistrate
– The District Magistrate authorised by the State
Government under section 10 and the officer
specified by the District Magistrate under that
section shall, as far as practicable, try to promote
the welfare of the freed bonded labourer by
securing and protecting the economic interests of
such bonded labourer so that he may not have
any occasion or reason to contract and further
bonded debt.
 VIGILANCE COMMITTEES
• Every State Government shall, by notification in the
Official Gazette, constitute such number of Vigilance
Committees in each district and each Sub-Division as
it may think fit.
• For a district, shall consist of the following members:
– (a) the District Magistrate, or a person nominated by him,
who shall be the Chairman;
– (b) three persons belonging to the Scheduled Castes or
Scheduled Tribes and residing in the district, to be
nominated by the District Magistrate;
 Cont….
• (c) two social workers, resident in the district, to be
nominated by the District Magistrate;
• (d) not more than three persons to represent the
official or non-official agencies in the district
connected with rural development, to be nominated
by the State Government;
• (e) one person to represent the financial and credit
institutions in the district, to be nominated by the
District Magistrate.
 Each Vigilance Committee :
for a Sub-Division
• (a) the Sub-Divisional Magistrate, or person nominated by him, who shall be
the Chairman;
• (b) three persons belonging to the Scheduled Castes or Scheduled Tribes
and residing in the Sub-Division, to be nominated by the Sub-Divisional
Magistrate;
• (c) two social workers, resident in the Sub-Division, to be nominated by the
Sub-Divisional Magistrate;
• (d) not more than three persons to represent the official or non-official
agencies in the Sub-Division connected with rural development to be
nominated by the District Magistrate;
• (e) one person to represent the financial and credit institutions in the Sub-
Division, to be nominated by the Sub-Divisional Magistrate;
• (f) one officer specified under section 10 and functioning in the Sub-Division.
 Each Vigilance Committee shall regulate its own
procedure and secretarial-assistance

• (a) the District Magistrate, in the case of a

Vigilance Committee constituted for the
district;
• (b) the Sub-Divisional Magistrate, in the case
of a Vigilance Committee constituted for the
Sub-Division.
Functions of Vigilance Committees
• to advise the District Magistrate or any officer
authorised
– For effort, action, rule making
– to provide for the economic and social rehabilitation
– to co-ordinate the functions of rural banks and co-
operative societies with a view to analising adequate
credit to the freed bonded labourer;
– to keep an eye on the number of offences
– to make a survey
– For the recovery
 three years and also with fine which may
extend to two thousand rupees
• Punishment for enforcement of bonded labour
• Punishment for advancement of bonded debt.
• Punishment for extracting bonded labour
under the bonded labour system
• Punishment for omission or failure to restore
possession of property to bonded labourers (1
year and 1000 fine)
 Rehabilitation of Bonded Labour Scheme-
2016 
• The salient features of the Scheme are as
under:
– The revised scheme is a Central Sector Scheme.
The State Government is not required to pay any
matching contribution for the purpose of cash
rehabilitation assistance.
• Financial assistance has been increased from Rs. 20,000/- to
one lakh per adult male beneficiary, Rs. 2 lakh for special
category beneficiaries such as children including orphans or
those rescued from organized & forced begging rings or other
forms of forced child labour, and women and Rs. 3 lakh in
cases of bonded or forced labour involving extreme cases of
deprivation or marginalization such as trans-genders, or
woman or children rescued from ostensible sexual exploitation
such as brothels, massage parlours, placement agencies etc.,
or trafficking, or in cases of differently abled persons, or in
situations where the District Magistrate deems fit.
• The amount of assistance for survey of bonded
labourers is Rs. 4.50 lakh per district.
•  The release of rehabilitation assistance has been
linked with conviction of the accused.   In cases
where the trial has not been concluded, but the
District Administration has arrived at a prima facie
finding and proof of bondage, then the proposal for
cash assistance shall not be stopped for want of
details of conviction. However, final disbursement
of cash assistance and non-cash assistance shall be
made upon proof of bondage and other legal
consequences as per judicial process.
• Scheme provides for creation of a Bonded
Labour Rehabilitation Fund at District level by
each State with a permanent corpus of at least
Rs. 10 lakh at the disposal of the District
Magistrate for extending immediate help to
the released bonded labourers.
• The fund is released by the Ministry under the
Scheme to the District National Child Labour
Project Society and the District Project Society
in turn releases the fund to the implementing
agencies including the district administration.
• Special care is made available by the State
for addressing the needs of the disabled persons, 
female freed bonded labourers and bonded child
labour by providing safe and secure environment for
the capacity building of child bonded labourers, 
facilities for ensuring their proper education, short
stay home till education upto class 12th, skill
development, marriage assistance etc.
• The benefits prescribed above shall be, in addition
to, other cash or non-cash benefits which a
beneficiary under this scheme is entitled to, by or
under any other scheme or law applicable for the
time being in force. 
• Further, the above benefits would be additionality
to other land and housing elements etc. as
mentioned below:
– Allotment of house-site and agricultural land.
–  Land development.
–  Provision of low cost dwelling units.
–  Animal husbandry, dairy, poultry, piggery etc.
– Wage employment, enforcement of minimum wages
etc.
–  Collection and processing of minor forest products.
–  Supply of essential commodities under targeted public
distribution system.
–  Education for children.
 Neerja Chaudhury v. State of Madhya
Pradesh,
•  the Supreme Court ruled – “It is the plainest
requirement of Articles 21 and 23 of the
Constitution that bonded labourers must be
identified and released and on release, they must be
suitably rehabilitated… Any failure of action on the
part of the State Government[s] in implementing
the provisions of [the Bonded Labour System
(Abolition) Act] would be the clearest violation of
Article 21 and Article 23 of the Constitution.”
 People’s Union for Democratic Rights v.
Union of India, 
• the Supreme Court of India delivered the
judgement stating –  “Where a person
provides labour or service to another for
remuneration which is less than minimum
wage, the labour or service provided by him
clearly falls within the scope and ambit of the
word `forced labour’…”