Calcutta High Court Directs Central Govt To Prospectively Implement MGNREGA Scheme In Bengal After 3 Yr Hiatus

The Calcutta High Court has directed the prospective implementation of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) scheme in the state of West Bengal, from 1st August 2025, after an almost three-year hiatus over allegations of embezzlement.

A division bench of Chief Justice TS Sivagnanam and Justice Chaitali Chatterjee (Das) was hearing a continuing matter on the non-payment of dues to daily wage labourers under the MGNREGA scheme over allegations by the central government of embezzlement of funds.

In directing the implementation of the scheme, the Chief Justice orally remarked, "All these allegations are from before 2022, you do whatever you want, but implement the scheme."

There were certain irregularities that were pointed out by the central government regarding the disbursal of funds related to the scheme. The bench noted that based on this, action was initiated and funds were recovered and placed in an account, which is lying with the state's nodal account of MGNREGA.

The court noted that this fund would need to be remitted to the consolidated fund of India. It held that the court's endeavour at this stage would be to implement the scheme, regardless of the fact that those who illegally obtained the funds would have to be dealt with legally.

It stated that the issue was the prospective implementation of the Act. The bench held:

"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 in the disbursement of wages...however, there can be a line drawn between past actions and future steps to be taken for implementation. This in the opinion of this court, would be in the public interest and subserve the interest in which the act was enacted. Therefor,e while allowing the central government to proceed with their enquiry, this court directs that the scheme be implemented prospectively from 1st August 2025."

Thus, the Bench concluded that both the state and the centre would be free to impose special conditions on the disbursement of funds to ensure that what had occurred in the past shall not take place again.

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