MNREGA impasse in West Bengal: Legal and political hurdles

(General Studies Paper-2: Functions and responsibilities of the Union and the States, Issues and challenges related to the federal structure, Devolution of powers and finances to the local level and challenges thereof.)

Context

Despite a recent order of the Calcutta High Court directing the resumption of MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act) payments in West Bengal, both the state and central governments have shown reluctance to act, affecting lakhs of rural workers.

Background

In March 2023, the Union Rural Development Ministry had stopped funds to West Bengal under MGNREGA, citing violations of guidelines and allegations of corruption.
The Calcutta High Court (July 2025) ordered the resumption of payments and wage disbursement to genuine beneficiaries, criticising the delay as affecting the right to livelihood.

Centre-State allegations

The central government has stressed on physical verification of job cards and rectification of irregularities before releasing funds.
The state government has accused the Centre of withholding funds for political reasons and demanded immediate release of funds following the Calcutta High Court order.

Implications

Livelihood crisis

The non-implementation of MNREGA affects over 1 crore rural households, many of whom depend on MNREGA as a primary source of income after the agricultural period.

Federal tensions

Highlights tensions in Centre-State relations and cooperative federalism, especially in the implementation of centrally sponsored schemes.

Legal oversight versus executive will

Questions executive compliance with judicial orders and enforcement mechanisms.

Governance and accountability

Highlights issues of corruption, delays in verification and bureaucratic bottlenecks in the delivery of welfare schemes.

Know this also

MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act)

National Rural Employment Guarantee Act (NREGA) was notified in the year 2005.
This Act was implemented from 2 February, 2006. Under this, in the first phase, it was notified in 200 districts.
In the year 2007, 130 other districts were included under it. On 1 April, 2008, the remaining districts were also included in it.
At present, this scheme is applicable in the whole country except the districts with 100% urban population.
The Government of India amended this Act on 31 December, 2009 and renamed it as Mahatma Gandhi National Rural Employment Guarantee Act.

Objective of the scheme

To enhance livelihood security and provide social security to rural families by providing guaranteed employment of at least 100 days in a financial year to each family.
To empower socially disadvantaged sections; especially women, Scheduled Caste and Scheduled Tribe communities through legal process.
To strengthen democracy at the grassroots level by strengthening Panchayati Raj institutions.