Centre Challenges Calcutta HC Order on MGNREGA in SC

September 23, 2025

Centre Moves Supreme Court Against Calcutta High Court Order to Resume MGNREGA in West Bengal from August 1

Union government cites past irregularities, says special conditions needed before restarting rural jobs scheme in the state

High Court had ordered resumption after nearly three-year halt, calling indefinite suspension against public interest

By Our Legal Correspondent

New Delhi/Kolkata, September 23, 2025:
The Central Government has approached the Supreme Court of India challenging a Calcutta High Court directive to resume the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) scheme in West Bengal from August 1, 2025.

The High Court’s order, delivered on June 18, 2025, had instructed the Centre to restart the 100-day rural jobs programme in the state after a suspension of nearly three years, while allowing the imposition of special conditions to prevent a repeat of alleged irregularities.

Background: Three-Year Suspension

The MGNREGA scheme in West Bengal has been stalled since March 2022, when the Centre stopped wage payments citing large-scale corruption and misuse of funds under Section 27 of the Act.

Key events:

  • December 21, 2021: Centre halts wage payments, alleging irregularities in several districts.
  • March 2022: Issuance of new work permits stopped.
  • 2022–2025: Multiple petitions filed by workers’ unions and civil society groups claiming violation of the fundamental right to livelihood.

The halt affected an estimated 2.5 crore rural workers, leading to significant loss of income and economic hardship in rural Bengal.

Calcutta High Court’s June 18 Order

A division bench of Chief Justice T.S. Sivagnanam and Justice Chaitali Chatterjee (Das) directed the Centre to resume MGNREGA work in West Bengal from August 1, 2025.

The court’s key observations:

  • The scheme cannot be kept in “cold storage for eternity.”
  • Past irregularities should not permanently halt future implementation.
  • The Centre may impose special conditions, restrictions, and regulations — even if these are not applied in other states — to ensure corruption-free execution.
  • Investigations into past misconduct can continue but must be separated from future rollout.

The bench noted that recoveries had already been made and funds secured in the state nodal agency’s bank account.

Centre’s Grounds for Appeal

In its petition to the Supreme Court, the Centre has argued:

  1. Irregularities in Wage Disbursement: The High Court underestimated the scale and seriousness of the corruption uncovered.
  2. Need for Safeguards Before Resumption: Restarting without adequate checks could lead to further misuse of funds.
  3. Administrative Powers: The Centre claims it has the authority under MGNREGA to suspend implementation in cases of serious violations.
  4. Uniformity Across States: Imposing special conditions only in West Bengal could create administrative and legal complications.

Political Context

The dispute has deepened tensions between the Trinamool Congress (TMC)-led West Bengal government and the BJP-led Centre.

  • The state government accuses the Centre of withholding funds for political reasons.
  • The Centre insists the suspension is based solely on evidence of corruption and mismanagement.

MGNREGA, enacted in 2005, guarantees 100 days of wage employment per year to rural households whose adult members volunteer for unskilled manual work. In West Bengal, it has been a crucial source of livelihood, especially for marginalised communities.

Impact of Suspension

According to estimates by the NREGA Sangharsh Morcha, the halt in MGNREGA work in West Bengal caused:

  • Annual economic loss: ₹5,000 crore.
  • Livelihood disruption: Over 25 million rural workers affected.
  • Social consequences: Increased migration to other states, rise in rural indebtedness, and erosion of social dignity for workers.

Civil Society’s Role

The petition leading to the High Court’s order was filed by Paschim Banga Khet Majoor Samity (PBKMS), a rural workers’ union.

Advocate Purbayan Chakraborty, representing the petitioners, argued that indefinite suspension violated the fundamental right to livelihood under Article 21 of the Constitution.

Activist Anuradha Talwar from NREGA Sangharsh Morcha welcomed the High Court’s ruling as a “victory for rural labour rights” and credited persistent grassroots advocacy for the outcome.

Supreme Court Proceedings Ahead

The Supreme Court is expected to examine:

  • Whether the Centre’s suspension of MGNREGA in West Bengal was justified under Section 27.
  • The balance between preventing corruption and ensuring livelihood rights.
  • The legality of imposing state-specific conditions for scheme implementation.

The case could set an important precedent for how centrally funded welfare schemes are managed when allegations of misuse arise.

Key Legal Points

  1. Section 27 of MGNREGA: Allows the Centre to stop fund release if serious irregularities are found.
  2. Fundamental Rights: Petitioners argue suspension violates the right to livelihood.
  3. Judicial Oversight: High Court orders can be challenged in the Supreme Court, but interim relief depends on urgency and public interest.

Possible Outcomes

Legal experts suggest three possible scenarios:

  • Supreme Court Upholds HC Order: MGNREGA resumes from August 1 with special conditions.
  • Supreme Court Stays HC Order: Suspension continues until investigations conclude.
  • Modified Implementation: Scheme resumes with stricter monitoring and phased rollout.

Conclusion

The Centre’s challenge to the Calcutta High Court’s order has brought the future of MGNREGA in West Bengal into sharp focus.

For millions of rural workers, the Supreme Court’s decision will determine whether they regain access to the 100-day job guarantee programme — or face continued uncertainty.

The case underscores a broader question: how to protect welfare schemes from corruption without undermining the livelihoods they are meant to secure.

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