The Bonded Labour System (Abolition) Act, 1976 was enacted to provide for the abolition of bonded labour system with a view to preventing the economic and physical exploitation of the weaker sections of the people and for matters connected therewith or incidental thereto. It freed unilaterally all the bonded labourers from bondage with simultaneous liquidation of their debts. It made the practice of bondage a cognisable offence punishable by law.

The Act is being administered and implemented by the Ministry of Labour and the State Governments concerned. With a view to supplement the efforts of the State Governments, a Centrally Sponsored Plan Scheme for rehabilitation of bonded labour was launched by the Ministry. Under the Scheme, State Governments are provided Central assistance on matching grants (50:50) basis for the rehabilitation
of bonded labour.

The main provisions of the Act are:-

• The bonded labour system stood abolished and every bonded labourer stood freed and discharged free from any obligation to render bonded labour.



• Any custom, agreement or other instrument by virtue of which a person was required to render any service as bonded labour has been rendered void.



• Every obligation of a bonded labourer to repay any bonded debt, or such part of any bonded debt unsatisfied immediately before commencement of this Act, shall be deemed to have been extinguished.



• All property vested in a bonded labourer which was immediately before the commencement of this Act under any mortgage, charge, lien or other encumbrances in connection with any bonded debt shall, in so far as it is relatable to the bonded debt, stand freed and discharged from such mortgage, charge, lien or other encumbrances.



• No person who has been freed and discharged under this Act from any obligation to render any bonded labour, shall be evicted from any homestead or other residential premises which he/ she has been occupying immediately before the commencement of this Act as part of the consideration for the bonded labour.



• No creditor shall accept any payment against any bonded debt which has been extinguished or deemed to have been extinguished or fully satisfied by virtue of the provisions of this Act.



• The State Government may confer such powers and impose such duties on a District Magistrate as may be necessary to ensure that the provisions of this Act are properly carried out.



• The District Magistrate so authorised and the officer specified by him/ her shall promote the welfare of the freed bonded labourer by securing and protecting the economic interests of such bonded labourer.



• 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.



• The functions of each Vigilance Committee shall be:-
  
  
  • To advise the District Magistrate or any officer authorised by him/ her as to the efforts made and actions taken to ensure that the provisions of this Act or of any rule made there under are properly implemented;
  
  
  
  • To provide for the economic and social rehabilitation of the freed bonded labourers;
  
  
  
  • To co-ordinate the functions of rural banks and co-operative societies with a view to canalising adequate credit to the freed bonded labourer;
  
  
  
  • To keep an eye on the number of offence of which cognizance has been taken under this Act;
  
  
  
  • To make a survey as to whether there is any offence of which cognizance ought to be taken under this Act;
  
  
  
  • To defend any suit instituted against a freed bonded labourer or a member of his/ her family or any other person dependent on him/ her for the recovery of the whole or part of any bonded debt or any other debt which is claimed by such person to be bonded debt.
    
    



• Whoever, after the commencement of this Act, compels any person to render any bonded labour shall be punishable with imprisonment and fine. Similarly, whoever advances any bonded debt shall also be punishable.



• Every offence under the Act is cognisable and bailable and the powers of Judicial Magistrates are required to be conferred on Executive Magistrates for trial of such offences.