50th anniversary of the Bonded Labour System (Abolition) Act, 1976

Context: February 2026 marks the 50th anniversary of the Bonded Labour System (Abolition) Act, 1976.

• Despite five decades of the law, recent reports from Odisha highlight a disturbing trend where rescued labourers are slipping back into bondage due to delayed rehabilitation

About 50th Year of Ending Bonded Labour:

What it is?

• The year 2026 commemorates half a century since India took a landmark legal step to eradicate modern-day slavery.
• While the Act successfully criminalized the practice, the milestone is a somber reminder of the gap between legal release and social rehabilitation, as thousands of workers in sectors like brick kilns and poultry farms still face debt-induced exploitation.;

Features of the Bonded Labour System (Abolition) Act, 1976:

• Abolition of Liability: All obligations of a bonded labourer to repay “bonded debt” were extinguished upon the commencement of the Act.
• Release and Freedom: Any labourer trapped in the system stands discharged from the obligation to provide forced labour.
• District Responsibility: The Act mandates District Magistrates (DMs) and Vigilance Committees to identify, release, and rehabilitate labourers.
• Cognizable Offense: Forcing someone into bondage is a punishable crime, intended to act as a deterrent for creditors and contractors (Thekedars).
• Caste and Economic Scope: The law specifically covers both economic debt-bondage and hereditary, caste-based servitude (such as customary services by barbers or washermen).

Data & Facts on Bonded Labour:

• National Release Figures: According to the SECC-2011, approximately 1.65 lakh bonded labourers were legally released across India.
• Odisha Specifics: In Odisha alone, over 8,304 bonded labourers (mostly from tribal communities) were identified and rescued as per the last major assessment.
• Financial Corpus: Every district is 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 depending on the severity of exploitation.
• Work Hours: Reports show that labourers in bondage often work 14–15 hours a day in makeshift shelters with restricted movement.

Challenges Associated with the Elimination of Bonded Labour:

• Relapse into Bondage: Rescue without immediate financial support forces victims back to their exploiters.

E.g. Panchanan Muduli of Odisha migrated back to a brick kiln just five months after his official rescue because promised help never arrived.

• Bureaucratic Delays & Accountability: Coordination gaps between source and destination states stall rehabilitation.

E.g. Labourers rescued in Andhra Pradesh or Telangana often wait years for the Odisha government to process their Release Certificates for financial aid.

• Lack of Awareness and Monitoring: Many districts fail to conduct the mandatory periodic surveys to identify hidden bondage.

E.g. The last comprehensive data source remains the SECC-2011, indicating a 15-year gap in updated national statistics on bonded labour.

• Caste-Based Institutionalization: Customary servitude is often denied by local officials, leading to the revocation of release certificates.

E.g. In Puri district, certificates of 1,283 people were revoked because officials claimed they stopped performing services, failing to recognize the systemic nature of caste-bondage.

• Debt Trap & Lack of Alternatives: Rescued workers lack land or skill-based livelihoods in their home villages.

E.g. Jayaraj Jagat received ₹19,000 in assistance but was forced to migrate again by 2017 because there were no sustainable income opportunities in his village.

Way Ahead:

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