Context
The Supreme Court (SC) in October 2025, cleared the way for the resumption of the MGNREGS Scheme in West Bengal after being suspended since March 2022 due to alleged misuse of funds and poor implementation.
What is MGNREGS Scheme?
- Full Form: Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS).
- Enactment: Under the MGNREGA Act, 2005.
- Nodal Ministry: Ministry of Rural Development (MoRD).
- Objective: To provide 100 days of guaranteed wage employment per year to every rural household whose adult members volunteer to do unskilled manual work.
- Funding Pattern: 90:10 ratio between Centre and State (Centre bears full wage cost).
Why was it Introduced?
- To enhance livelihood security in rural areas.
- To reduce rural poverty and migration to cities.
- To create durable rural assets such as roads, ponds, wells, etc.
- To empower rural women, who constitute nearly 50% of beneficiaries.
How does it operate?
- Households register at Gram Panchayat level.
- Job cards are issued to eligible families.
- Work must be provided within 15 days of demand, failing which unemployment allowance is paid.
- Wages are paid directly into bank/post office accounts through DBT (Direct Benefit Transfer).
- Transparency tools: NREGASoft (MIS portal), Social audits, and public disclosure.
What is the Progress Till Now?
- Beneficiaries in West Bengal (households working):
- 51 lakh (2014-15) → 6 lakh (2020-21) → 76 lakh (2021-22).
- West Bengal was among top-performing states before the suspension in 2022.
- The scheme has created millions of person-days of employment nationwide every year.
What Dispute Happened in West Bengal?
| Phase | Details |
| Before Suspension (2014-2021) | 51-80 lakh families availed work annually. The scheme ran smoothly with Centre-State coordination. |
| Suspension (March 2022) | Centre stopped releasing funds under Section 27 of MGNREGA citing non-compliance and financial irregularities (like fake job cards, non-permissible activities, lack of transparency). |
| State’s Response | West Bengal Govt protested and requested Centre to resume funds and ensure workers’ payments. |
| Legal Battle | The Calcutta High Court (June 2025) ordered the scheme’s resumption from August 1, 2025. The Centre challenged it in the Supreme Court. |
| After SC Order (Oct 2025) | SC dismissed the Centre’s plea, paving way for immediate resumption of the scheme in the state. |
What Order has SC Given and What are its Implications?
- Order: SC refused to interfere with Calcutta High Court’s directive to restart MGNREGS in West Bengal.
- Implications:
- The Centre must resume fund flow to the state.
- A setback for the Union Rural Development Ministry (MoRD), which earlier resisted resumption.
- West Bengal’s rural workers will soon regain wage employment rights.
- May set a precedent for Centre-State relations in welfare scheme governance.
What are the Procedural Requirements for the Scheme to Resume Again?
- Approval of Labour Budget: West Bengal must get its labour budget cleared by MoRD’s Empowered Committee.
- Labour budget: Anticipated demand for unskilled manual work for the execution of a list of work identified to be taken up during a financial year.
- Reactivation on NREGASoft: After approval, the state can raise fund demands through the NREGASoft portal (Management Information System [MIS] of the scheme).
- Fund Release: MoRD releases funds based on the agreed labour budget and performance.
Associated Challenges and Way Forward
| Challenges | Way Forward |
| Alleged corruption and fund misuse | Strengthen social audits, IT-based monitoring, and real-time transparency portals. |
| Delayed fund release and wage payments | Ensure timely central fund transfers and automated DBT systems. |
| Political friction between Centre and State | Promote cooperative federalism and joint monitoring mechanisms. |
| Lack of accountability at the local level | Conduct capacity building and fix responsibility of Gram Panchayats. |
| Outdated job cards and data mismatch | Regular verification and digitisation of records through Aadhaar seeding. |
Conclusion
The Supreme Court’s ruling offers relief to lakhs of rural workers in West Bengal. Effective coordination, transparency, and accountability between the Centre and State are essential to ensure MGNREGS fulfills its goal of rural livelihood security.
| Ensure IAS Mains Question Q. The MGNREGS has been a cornerstone of India’s rural livelihood strategy. Discuss how the West Bengal episode highlights the challenges of Centre-State coordination in welfare implementation and suggest measures to strengthen accountability and transparency. (250 words) |
| Ensure IAS Prelims Question Q. Under the MGNREGS, which of the following statements is/are correct? 1. It provides a legal right to 100 days of wage employment to every rural household. 2. The Centre bears the entire cost of wages under the scheme. 3. The scheme is implemented by the Ministry of Labour and Employment. Select the correct option from the codes given below: a) 1 and 2 only b) 2 and 3 only c) 1 and 3 only d) 1, 2 and 3 Answer: a) 1 and 2 only Explanation: Statement 1 is correct: MGNREGS provides a legal right to 100 days of wage employment. Statement 2 is correct: Centre bears the full wage cost (90:10 sharing for other expenses). Statement 3 is incorrect: Implemented by the Ministry of Rural Development, not Labour and Employment. |
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