The Calcutta High Court has directed the Central Government to resume the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) scheme in West Bengal, starting from 1st August 2025. This decision marks the end of a nearly three-year suspension of the scheme due to allegations of fund misappropriation.
A Division Bench comprising Chief Justice TS Sivagnanam and Justice Chaitali Chatterjee (Das) issued the directive while hearing a case related to the non-payment of wages under the MGNREGA scheme. The suspension was earlier triggered by allegations from the central government that funds disbursed under the scheme were embezzled.
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All these allegations are from before 2022, you do whatever you want, but implement the scheme, the Chief Justice stated orally during the hearing, emphasizing the need to move forward with the scheme’s implementation despite past disputes.
The central government had earlier flagged various irregularities in the disbursal of MGNREGA funds in West Bengal. These issues led to the recovery of funds, which were subsequently deposited in a special account maintained by the state’s nodal authority for the scheme.
The court observed that the recovered amount must be transferred to the Consolidated Fund of India. It noted that while legal proceedings may continue against individuals involved in the alleged embezzlement, these should not hinder the future rollout of the welfare program.
"The scheme of the act does not envisage a situation where it would be put to cold storage for eternity. The central government has sufficient means to enquire into the irregularity This in the opinion of this court, would be in the public interest and subserve the interest in which the act was enacted. Therefore, while allowing the central government to proceed with their enquiry, this court directs that the scheme be implemented prospectively from 1st August 2025," the bench stated in its order.
The Court clarified that the matter at this stage only concerns the prospective enforcement of the Act and not the previous financial discrepancies. It underlined that ensuring employment opportunities for rural workers under the MGNREGA scheme was in public interest and aligned with the original intention of the Act.
Furthermore, the Court allowed both the state and central governments to place special conditions on future disbursement of funds. This step, the Bench observed, would ensure transparency and prevent a repeat of the previous issues.
Advocates for the petitioners in WPA(P) 237/2023: Mr. Purbayan Chakraborty, Mr. Kuntal Banerjee
Case: PASCHIM BANGA KHET MAZDOOR SAMITY AND ANR. VS UNION OF INDIA AND ORS
Case No: WPA(P)/237/2023
