Monday, January 12, 2026

Jharkhand High Court shocked by low industry registration, orders state-wide compliance by June 2026

Ranchi: Jharkhand High Court expressed serious concern over the fact that only 1,324 industrial units are registered with Industry Department across state. Taking a strict view, Chief Justice Tarlok Singh Chauhan and Justice Rajesh Shankar directed all industrial units operating in Jharkhand to get themselves registered with Industry Department by June 2026.

Court also voiced strong displeasure over reluctance to extend social security benefits under Employees’ Provident Fund and Miscellaneous Provisions Act, 1952 to contractual, daily wage and casual workers. Matter arose from a public interest litigation filed in 2023 by Pankaj Kumar Barnwal, seeking EPF coverage for such workers in state.

During hearing, court had earlier directed Regional Provident Fund Commissioner in August 2025 to obtain list of industrial units registered with Industry Department. In compliance, RPFC sought details from department, but instead of providing complete information, department shared only names and IDs of units. Court viewed this as a serious lapse and observed that it appeared as an attempt by Industry Department to assert dominance over RPFC. Court even warned of contempt proceedings against Industry Director. Following this, Industry Director Vishal Sagar appeared before court and placed facts on record, after which contempt action was dropped.

Court was further surprised to learn that out of 1,324 registered industrial units, only 231 were providing EPF social security benefits to employees. Terming situation grave, court ordered registration of all industrial units along with number of workers employed, within stipulated timeline ending June 2026.

Court also expressed dissatisfaction over inaction by state government on facts mentioned in affidavit filed by Joint Labour Commissioner in August 2025. In affidavit, it was stated that a proposal had been prepared to extend EPF benefits to contractual, daily wage and casual workers engaged in various government departments and sent to Finance Department for approval. Court noted that even after four months, no progress had been made.

Status of compliance with earlier court order granting EPF coverage to Home Guard personnel was also reviewed. Court had directed in August 2025 that Home Guards be provided social security under EPF provisions within eight weeks. However, government informed court that a committee was formed only on December 2, 2025.

Expressing strong displeasure, court observed that providing social security under EPF is a statutory obligation of government and questioned purpose of forming committees instead of implementing clear legal mandate. Matter has now been listed for next hearing on January 30, 2026.

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