MGNREGA to resume in West Bengal as Supreme Court upholds Calcutta High Court decision

The Supreme Court on Monday refused to interfere with the Calcutta High Court's decision ordering the Centre to resume the employment guarantee scheme of MGNREGA in West Bengal, which was put on hold in 2022 following allegations of embezzlement of funds.

“We have heard Mr. Tushar Mehta, learned Solicitor General at length. However, we are not convinced that the impugned order requires any interference. Accordingly, the Special Leave Petition is dismissed,” a bench of Justices Vikram Nath and Sandeep Mehta observed.

Solicitor General Tushar Mehta appearing for Centre pointed out before the bench yesterday that the high court could not have directed the resumption of MGNREGA as widespread corruption in the implementation of the scheme had led to the decision of keeping it on hold. The bench however dismissed the appeal filed by Union of India.

In its judgment from June 18, 2025, the High Court had noted that certain irregularities had been pointed out by the Central Team in the matter of disbursement of the measures under the Central Sponsored Scheme and action had been initiated, recoveries made which was being remitted and the recovered amount is lying in the State Nodal Account of NMGNREGS, West Bengal.

"None can take a stand that the person who had obtained the benefit illegally should be allowed scot free and that he should be enjoyed the benefits which he had obtained by adopting illegal means. Such of those persons have to be dealt with firmly and whatever disbursement have been made in such persons or any fictitious persons favour have to be recovered and there can be no second opinion on the said decision", the high court had further said while noting that it was concerned about the implementation of the Scheme in the State of West Bengal prospectively.

"The Scheme of the act does not envisage a situation where the Scheme will be put to cold storage for eternity. There are sufficient powers vested with the Central Government to enquire into the irregularities or illegalities in the manner of disbursement of the wages or in the manner of approval have to be granted etc. However, there can be a line drawn between past actions and future steps to be taken to implement the Scheme", high court had added.

Therefore, while allowing the Central Government to proceed with the enquiries, the high court had directed that the Scheme be implemented prospectively with effect from 1st August, 2025.

"While doing so the appropriate authority of the Central Government is fully empowered to impose special conditions, restrictions and regulations etc. which have not been imposed in other States in the country so as to ensure that no illegality or irregularity occurs while the Scheme is being implemented prospectively from August, 2025 onwards....Necessary steps be taken in this regard and special directions be issued and communicated to the State Government and thereafter the directives which also shall contain the specific directions to the District Magistrates.", the impugned judgment had clarified.

Furthermore, the Central Government was allowed to impose any other special conditions that would warrant and ensure that the Scheme is effectively and properly implemented in the State without giving any room for any irregularity or illegality being committed.

"The State shall comply with the directives in a strict compliance and such directions which may be issued by the Central Government are non-negotiable and they have to be accepted ipso facto and the State Government be implemented only if this is done the citizens of the State of West Bengal will be benefitted and works can be performed and they can be paid the wages which are in effect minimum wages and the rural population which is to be benefitted out of this and this payment would be succor to the rural population in the State of West Bengal", the high court had observed in conclusion.

Case Title: Union of India vs. Paschim Banga Khet Mazdoor Samity and Ors

Hearing Date: October 27, 2025

Bench: Justices Nath and Mehta