Bonded Labour

Bonded Labour

Context

February 2026 marks the 50th anniversary of the Bonded Labour System (Abolition) Act, 1976. Despite five decades of legislation, recent reports, particularly from states like Odisha highlight a disturbing trend where rescued labourers relapse into bondage due to systemic delays in rehabilitation.

About the 50th Year of Ending Bonded Labour

Background: The year 2026 commemorates half a century since India took a landmark legal step to eradicate modern-day slavery. While the 1976 Act successfully criminalized the practice, this milestone serves as a somber reminder of the persistent gap between legal release and social rehabilitation.

Key Features of the 1976 Act:

• Abolition of Liability: All obligations to repay "bonded debt" were extinguished upon the commencement of the Act.
• Release and Freedom: Any labourer trapped in the system is legally discharged from the obligation to provide forced labour.
• Administrative Responsibility: District Magistrates (DMs) and Vigilance Committees are mandated to identify, release, and rehabilitate labourers.
• Cognizable Offense: Forcing individuals into bondage is a punishable crime to deter creditors and contractors (Thekedars).
• Scope: The law covers both economic debt-bondage and hereditary, caste-based servitude (e.g., customary services by barbers or washermen).

Data and Facts:

• National Scale: Per SECC-2011, approximately 1.65 lakh bonded labourers were legally released across India.
• Regional Focus (Odisha): Over 8,304 bonded labourers (mostly from tribal communities) were identified in the last major assessment.
• Financial Gaps: Districts are required to maintain a ₹10 lakh corpus fund for immediate relief; however, nearly 50% of districts in Odisha lack this fund.
• Rehabilitation Scale: The 2022 revised Central Scheme provides graded assistance ranging from ₹1 lakh to ₹3 lakh based on the severity of exploitation.
• Conditions: Reports indicate labourers often work 14–15 hours a day in makeshift shelters with severely restricted movement.

Challenges in Elimination

• Relapse into Bondage: Rescue without immediate financial support forces victims back to exploiters. (e.g., Panchanan Muduli of Odisha migrated back to a kiln just five months after rescue due to lack of aid).
• Bureaucratic Delays: Coordination gaps between source and destination states stall the issuance of Release Certificates, which are essential for financial aid.
• Lack of Monitoring: Many districts fail to conduct mandatory periodic surveys. The 15-year gap since the SECC-2011 data indicates a lack of updated national statistics.
• Caste-Based Institutionalization: Local officials often deny the existence of customary servitude. In Puri, certificates for 1,283 people were revoked as officials failed to recognize the systemic nature of caste bondage.
• The Debt Trap: Rescued workers often lack land or skill-based livelihoods in their home villages, making migration and re-exploitation inevitable.

Way Forward

• Immediate Relief: Ensure every district activates its ₹10 lakh corpus fund to provide spot payments to survivors within 48 hours of rescue.
• Convergence of Schemes: Link survivors to MGNREGS, PMAY (Housing), and Ration Cards immediately to prevent distress migration.
• Digital Tracking: Implement a real-time inter-state tracking portal to monitor the status of release certificates and fund transfers.
• Skill Development: Provide vocational training (e.g., masonry, tailoring) to help survivors establish sustainable local businesses.
• Strengthening Vigilance: Reconstitute District and Sub-divisional Vigilance Committees with active participation from Civil Society Organizations (CSOs).

Conclusion

The 50th anniversary of the Act emphasizes that Rehabilitation is just as critical as Rescue. Legal freedom remains hollow without economic dignity. To break the cycle of bondage, India must transition from a reactive, law-enforcement approach to a proactive, welfare-driven model of permanent social reintegration.