Kolkata High Court Orders MGNREGA Revival In Bengal From August 1, Allows Centre To Decide Terms | India News

Last Updated:June 19, 2025, 10:20 IST

With the resumption of MGNREGA on the horizon, the scheme is expected to become a central issue in the upcoming 2026 state elections

The division bench noted: “If this scheme is implemented, the common people of the state will benefit.”

In a significant development, the Calcutta High Court on Wednesday directed the resumption of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) scheme in West Bengal from August 1. The court, however, allowed the Centre to impose specific conditions and restrictions in view of alleged financial irregularities in the disbursement of central funds.

The directive, which was issued by a division bench comprising Chief Justice TS Sivagnanam and Justice Chaitali Chatterjee (Das), came after a series of hearings on a petition filed last year by the Paschim Banga Khet Mazdoor Samity, a farmers’ organisation, which had challenged the Union government’s decision to halt payments under the scheme over allegations of embezzlement.

Key Observations from the Court

Chief Justice Sivagnanam remarked: “From the beginning, I have said — out of ten apples, a few may be rotten, but that doesn’t mean the rest aren’t fresh. There must be proper supervision. What happened in the past is done. But the scheme has remained stalled for nearly three years. It must be restarted. The Centre cannot indefinitely suspend it. Consider resuming the scheme in July or August. You may impose conditions, but implementation is necessary. It is an established fact that funds were misused in four districts.”

The division bench noted: “If this scheme is implemented, the common people of the state will benefit.”

Centre vs Bengal In Court

The Centre argued that it does not intend to withhold payments from genuine workers, but emphasised the need to verify whether work was actually completed. It also demanded that the state return the misused funds it had confiscated.

The Centre insisted on full oversight of the scheme to prevent future corruption and mentioned plans to establish a nodal office for better monitoring. A report was submitted detailing where lapses had occurred.

The Bengal government, however, countered that there is no need for a nodal officer as the entire scheme is already managed through an online portal.

The next hearing in the case will be after August 15.

Political Reactions

Following the court’s ruling, there was a positive mood in the corridors of the Bengal administration. Chief minister Mamata Banerjee said: “We welcome the judgment, but our government will review it. First, we will demand the arrears (central funds) that have been pending for over four years. Beneficiaries who worked should be paid in full. When our MPs and MLAs went to Delhi to demand the funds, police cases were filed against them. Have you forgotten that?”

On the other hand, the BJP maintained its position that the scheme was halted under Section 27 of the MGNREGA Act due to proven malpractice by the state government.

BJP IT Cell head Amit Malviya tweeted: “In a landmark ruling, the Calcutta High Court has ordered the MGNREGA scheme in West Bengal to restart from August 1, 2025 — a huge blow to the Mamata Banerjee government and a massive win in the fight against corruption. The scheme cannot be kept in abeyance indefinitely because of the state’s misuse. Monitoring will now rest with the Centre — Mamata Banerjee can no longer loot. No retrospective payments — only genuine beneficiaries will receive fresh entitlements. All recovered scam money will go to the Consolidated Fund of India, not TMC’s coffers. The Act hasn’t been scrapped, so benefits must reach the poor — and the Court has ensured that they will.”

“This is a tight slap on TMC’s corruption-ridden governance. The poor of Bengal will now get what is rightfully theirs. But make no mistake — Mamata Banerjee will do everything to stall its implementation because she cannot tolerate a system she cannot manipulate.”

TMC’s Political Capital

The court’s directive is being viewed as a major win for the Mamata Banerjee-led state government, especially after MGNREGA payments had been suspended since 2022. Government officials noted that no work had been conducted under the scheme for the past three years. A senior state official told News18, “It was the Bengal government that paid Rs 3,700 crore to workers who had already completed work. However, Rs 6,900 crore is still pending from the Centre. We hope the process will now move forward.”

The ruling is also being seen as political validation for the Trinamool Congress, which had led a major movement around the MGNREGA issue. TMC’s National General Secretary Abhishek Banerjee had held a dharna outside the Bengal Raj Bhavan, and the party’s entire MP delegation had travelled to Delhi to press for the release of funds.

According to TMC insiders, the party has successfully created public perception that the central government is deliberately attempting to block the state economically. TMC tweeted in celebration of the court’s observation, reinforcing their claim that this is a victory for the people of Bengal.

With the resumption of MGNREGA on the horizon, the scheme is expected to become a central issue in the upcoming 2026 state elections. Both the BJP and TMC will likely attempt to leverage the verdict to their political advantage — one as a win against corruption, the other as a fight for Bengal’s rights.

Kamalika Sengupta

Kamalika Sengupta, Editor, Digital East of News18, is a multilingual journalist with 16 years of experience in covering the northeast, with specialisation in politics and defence. She has won UNICEF Laadli Awar…Read More

Kamalika Sengupta, Editor, Digital East of News18, is a multilingual journalist with 16 years of experience in covering the northeast, with specialisation in politics and defence. She has won UNICEF Laadli Awar… Read More

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