In a major relief to rural workers in West Bengal, the Calcutta High Court on Wednesday ordered the resumption of the MGNREGA scheme in the state from August 1, 2025. The decision comes after a prolonged deadlock between the Centre and the Bengal government over allegations of fund misuse. While directing the restart of the rural employment scheme, the court also allowed the Centre to impose conditions to ensure transparency and prevent future irregularities.
Court pushes for scheme revival with safeguards
The verdict was delivered by a division bench of Chief Justice TS Sivagnanam and Justice Chaitali Chatterjee Das, following a petition by the Paschim Banga Khet Mazdoor Samity. The farmers’ group had challenged the Centre’s move to halt MGNREGA payments to Bengal over alleged embezzlement of central funds. Chief Justice Sivagnanam noted that while instances of corruption were acknowledged in four districts, this could not justify a complete and indefinite suspension of the scheme. “Out of ten apples, a few may be rotten, but that doesn’t mean the rest aren’t fresh,” he observed, adding that implementation must resume with better supervision. The court stated that beneficiaries across the state should not suffer due to past mismanagement.
Centre, state clash over monitoring and dues
The Union government maintained that it has no objection to paying genuine workers but stressed the need to verify past work and recover misused funds. It also proposed setting up a nodal office to oversee MGNREGA implementation in Bengal, citing earlier lapses in monitoring. A detailed report was submitted in court to support its claims. However, the Bengal government argued that such oversight is unnecessary since the scheme already runs through an online portal.
Chief Minister Mamata Banerjee welcomed the court’s decision but asserted that the Centre must release the pending Rs 6,900 crore in dues. She also questioned the legality of police action against TMC MPs and MLAs who had protested in Delhi for the release of funds. On the other hand, BJP leaders celebrated the order as a victory for accountability, insisting that only genuine workers should benefit and that recovered scam money should return to the Consolidated Fund of India.
The scheme, suspended since 2022, is now expected to emerge as a key political battleground ahead of the 2026 state elections, with both TMC and BJP seeking to frame the narrative in their favour.
