Annual Report 2009-2010 working in granite processing units which used kerosene for cu�ing and polishing purposes. It was reported that prosecution had been launched against 119 persons under the Child Labour (Prohibition and Regulation) Act, 1986. The fact-finding team made some recommendations too for prevention of illegal mining and for ameliorating the conditions of child labourers. 4.241 The Commission considered the above report and directed to forward a copy of the report of the fact-finding team to the State of Karnataka for comments. 4.242 In response, the Chief Secretary, Government of Karnataka reported to the Commission that the State Department of Labour had taken appropriate steps in the ma�er. An action taken report prepared by the Labour Department was also forwarded to the Commission. It was observed by the Commission that while the report of the Labour Secretary, Government of Karnataka mentioned the number of raids conducted during the years 2006 and 2007, it did not disclose the number of children rescued. It did not even indicate whether a rehabilitation fund had been set-up as directed by the Supreme Court in the case of M.C.Mehta vs State of Tamil Nadu and others and whether the amount of Rs.20,000/- for each rescued child was recovered from the concerned employer. 4.243 In M.C.Mehta vs State of Tamil Nadu [1996 (6) SCC 756], the Supreme Court has held that the employer would be liable to pay compensation of Rs.20,000/- for every child employed in contravention of the provisions of the Child Labour (Prohibition and Regulation) Act, 1986. The amount so recovered from the employer is to be deposited in the Child Labour RehabilitationCum-Welfare Fund. Other than this, the Government is to provide employment to one adult member of the family of the child withdrawn from the work and if that is not possible an additional contribution of Rs.5, 000/- is to be made by the State Government to the Welfare Fund. The guardian of the child is entitled to be paid per month the interest earned on the corpus of Rs.20, 000/- or Rs.25, 000/- . 4.244 The Labour Department, Government of Karnataka, reported that 369 children were rescued during 2005-2006 and all of them had been rehabilitated in 8 National Child Labour Project (NCLP) schools. The report further stated 637 children were rescued during 2006-2007 and all these children were rehabilitated in 19 tent schools. Rehabilitation funds had been setup in all the Districts of the State. The contribution of District Bellary to the rehabilitation fund was Rs.60,000/- during 2005-2006 and Rs.40,000/- during 2006-2007. 4.245 On further consideration of the ma�er, the Commission observed that it was strange given the total number of children (369) who were rescued in Bellary during 2005-2006 only Rs.60,000/- was deposited towards the welfare fund. The State Government on its part clarified that majority of the rescued children were working with their parents who were migrant workers and in most of the cases no employers were found with regard to the rescued child labourers. The response of the State Government, the Commission felt was devoid of merits. The person on whose mines the child was found working should be liable to pay the amount of Rs.20, 000/- irrespective of whether the child was working with the consent of his parents or otherwise. It appeared the Government lacked the will to recover the amount from the errant employers. The Commission thus directed to the Government of Karnataka to recover the amount of Rs.20,000/- for each rescued child and deposit the amount so recovered along NHRC 55