Supreme Court Dismisses Centre's Plea Against High Court Direction To Resume MGNREGA Scheme In West Bengal

The Supreme Court on Monday (October 27) dismissed a petition filed by the Union Government challenging an order of the Calcutta High Court directing the prospective implementation of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) scheme in the State of West Bengal, from 1st August 2025. The scheme was put on hold in the State since 2022 over allegations of embezzlement.

A bench comprising Justice Vikram Nath and Justice Sandeep Mehta dismissed the matter. "We are not convinced that the impugned order requires any interference. The SLP is dismissed," the bench stated.

The High Court had passed the order in a matter on the non-payment of dues to daily wage labourers under the MGNREGA scheme. The High Court had observed that the irregularities in paymnet cannot be a ground to put on hold the scheme for eternity. While allowing the Centre to continue its inquiry into the allegations of embezzlement, the High Court directed it to resume it from August 1, 2025.

"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," the High Court observed.

Solicitor General of India Tushar Mehta appeared for the Centre in the Supreme Court.

Senior Advocate Kapil Sibal appeared for the State of West Bengal. Senior Advocate Dr S Muralidhar and AoR Prasanna S appeared for Paschim Banga Khet Mazdoor Samity, the organisation which filed the petition in the High Court.

Case : Union of India v. Paschim Banga Khet Mazdoor Samity | Diary No.42326/2025