Calcutta HC directs Centre to resume MGNREGA in West Bengal from August

Centre suspended MGNREGA funding to West Bengal in March 2022, citing widespread irregularities in the scheme’s implementation.

Updated on: Jun 18, 2025, 16:41:37 IST

By HT News Desk | Reported by Abhishek Angad

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The Calcutta high court on Wednesday directed the Centre to implement the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) from August 1.

The Calcutta high court. (File Photo) (HT_PRINT)

The court said that the central government can impose any special condition to prevent the recurrence of past irregularities.

Centre suspended MGNREGA funding to West Bengal in March 2022, citing widespread irregularities in the scheme’s implementation. According to RTI replies, the decision followed inspections of 63 worksites, with inconsistencies reported in 31 locations.

Also Read | Mallikarjun Kharge backs recommendation for fixed MGNREGA wage, attacks govt

West Bengal received ₹7,507.80 crore in fiscal year 2021-22 under MGNREGA but has received no funds in the following three fiscal years.

In April, the Calcutta high court had observed that the National Rural Employment Guarantee (NREG) Act does not allow for indefinite suspension of the scheme’s implementation due to complaints. It had emphasised that appropriate remedial measures must be undertaken within a reasonable time frame.

Also Read | Opposition MPs protest in Lok Sabha over MGNREGA funds

The court had asked the Centre to clarify why the scheme should not be resumed across West Bengal — excluding Purba Bardhaman, Hooghly, Malda, and the Darjeeling (GTA) areas — where allegations of fund misappropriation have surfaced.

HT had earlier reported that even though the Centre halted funds under MGNREGA for West Bengal since March 2022, citing “financial misappropriation”, data obtained from the Union ministry of rural development showed a majority of states reporting misappropriation of the federal scheme funds, but none of them has faced restrictions in the last three fiscal years as the eastern state had.

A report by the standing committee on rural development, presented in the Lok Sabha in March, had highlighted the “severe consequences” of the continued suspension of funds to West Bengal, including increased distress migration and disruptions in rural development initiatives.

Also Read | Over 40% of embezzled MGNREGA funds recovered in Bengal, LS told

MGNREGA is a demand-driven employment scheme that guarantees 100 days of wage employment each financial year to rural households whose adult members volunteer for unskilled manual work. There are 34 million registered MGNREGA workers in West Bengal. Centre bears 90% of the scheme’s budget.

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