How do labour contractors (thekedars) work and how do I avoid being cheated?

A labour contractor (thekedar or mukadam) recruits and manages a gang, brings them to your farm and takes responsibility for the work in return for the contract rate plus his margin. The advance (peshgi) is normal practice and is how the gang is secured for your dates. To protect yourself: use a contractor known in your area or recommended by farmers who have used him, not a stranger. Fix everything clearly before any money changes hands, the rate, the scope of work, the dates, the quality standard and the payment schedule, ideally written and with a witness. Keep the advance reasonable and tied to the gang actually arriving and starting, do not hand over a large sum to someone with no local track record. Inspect the work as it goes so quality is maintained. Building a long term relationship with one or two trusted contractors is the best protection, they value the repeat work and will not risk it.