In a major relief for lakhs of rural workers, the Calcutta High Court has directed the central government to resume implementation of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) in West Bengal starting August 1. The Centre had stopped funding the scheme in the state since March 2022 over alleged irregularities, leaving over three crore registered workers without access to the guaranteed employment safety net. The court’s decision brings hope to thousands of rural households who had been severely impacted by the funding freeze.
Court allows resumption with safeguards
The court clarified that while the Centre is obligated to restart the scheme, it is within its rights to impose special conditions to ensure there is no repeat of past irregularities. The funding was suspended two years ago following inspections that revealed inconsistencies at 31 out of 63 inspected sites. During the financial year 2021–22, West Bengal had received ₹7,507.80 crore under MGNREGA. However, since then, it has received no funds for three consecutive fiscal years, even as other states with similar complaints continued to get central assistance.
Earlier in April, the court had observed that the National Rural Employment Guarantee Act does not permit indefinite suspension of the scheme. It had directed the Centre to explain why the programme should not be resumed in most districts of the state, except in areas such as Purba Bardhaman, Hooghly, Malda, and the Darjeeling Gorkhaland Territorial Administration (GTA) region, where financial misappropriation allegations were most prominent.
Disparity in treatment and rural impact
The Calcutta High Court’s observations also pointed out an apparent disparity in the Centre’s response. According to data from the Union rural development ministry, many other states had reported misappropriation of MGNREGA funds, but none had their funding suspended. The decision to single out West Bengal drew criticism from rights groups and opposition leaders who termed it politically motivated.
A report tabled in the Lok Sabha by the Standing Committee on Rural Development warned of the severe socio-economic consequences of the fund suspension. It cited increased distress migration and a breakdown in rural infrastructure works in West Bengal. MGNREGA, a demand-based programme, guarantees 100 days of wage employment to rural households whose adult members are willing to do unskilled manual labour. The Centre funds 90% of the scheme, making its support vital for the survival of millions.
