Calcutta HC Restores MNREGA For Bengal, FM Points To Irregularities

The Calcutta High Court directed the Union government to resume implementing the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) in West Bengal from August 1. The scheme, which provides 100 days of wage employment to rural households, had remained suspended in the State since March 2022. A Division Bench comprising Chief Justice TS Sivagnanam and Justice Chaitali Chatterjee noted that the Ministry of Rural Development had invoked Clause 27 of the MGNREGA Act to withhold funds to the State, a provision that permits stoppage of fund flow for a reasonable period of time. Though the court pointed out that the Union government was within its rights to impose special conditions for implementation to avoid irregularities, Justice Sivagnanam stated that the Act “does not envisage a situation where the scheme would be put to cold storage for eternity.” The Bench also took note of irregularities in wage disbursement flagged by Central teams. Responding to the HC order the finance minister Nirmala Sitharaman, in an interview to The Business Line, pointed out that there should be some rationale with which money is to be distributed. “It’s also a question of how based on the BE (Budget Estimates), within the first half year itself, everything gets exhausted. If it is a demand-driven scheme, a certain BE is announced so that money can be apportioned. How does the BE get exhausted every year in every state much before the first half of the year? This is a scheme which has got to be in force when it is the non-agricultural season. So, come the rains, you shouldn’t have demand coming. But the demand is still in place even during the rain.”  Pointing out how there are states where senior citizens taking money out of MGNREGA–it is a C&AG’s observation–she wanted to know if they are productive enough to be employed and given payment?