Calcutta High Court orders Centre to restart MGNREGA in West Bengal from August

The Calcutta High Court has ordered the Centre to restart the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) in West Bengal starting August 1. The court also said the government can put in place special measures to avoid the mistakes that led to the scheme’s suspension in the first place.

Back in March 2022, the Centre stopped funding MGNREGA in West Bengal after inspections found serious irregularities at almost half the work sites. The state had received over ₹7,500 crore under the scheme in 2021-22 but hasn’t received any funds since then.

In April, the court made it clear that the law behind MGNREGA doesn’t allow the scheme to be suspended indefinitely just because of complaints. It urged the Centre to take timely action to fix the problems and asked why the program shouldn’t be resumed across most of West Bengal, except for a few districts where issues still remain.

What’s notable is that while many states have reported some misuse of MGNREGA funds, none have faced a suspension as long as West Bengal.

A recent parliamentary report also pointed out the serious consequences of cutting off funds — including more people leaving rural areas because of distress and disruption to local development work.

Each year to rural families, MGNREGA guarantees 100 days of work, who volunteer for unskilled labor. With 34 million workers registered in West Bengal, the scheme is a vital source of income for many. Since the Centre funds 90% of the program’s budget, restarting it will be crucial to support rural livelihoods and development in the state.