The Supreme Court on October 27, 2025, dismissed the central government's special leave petition (SLP) challenging a Calcutta High Court order to resume Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) works in West Bengal, effectively upholding the directive to restart operations from August 1, 2025. The bench, comprising Justices Vikram Nath and Sandeep Mehta, heard arguments from Solicitor General Tushar Mehta representing the Union government.
This ruling ends a contentious standoff that had halted rural job schemes in the state for over three years, providing relief to millions of workers dependent on the programme for their livelihood. The decision reinforces the judiciary's role in ensuring the implementation of social welfare entitlements amid political disputes.
The dispute originated in December 2021 when the Centre first invoked Section 27 of the MGNREGA Act, empowering it to withhold funds in cases of alleged violations such as corruption and mismanagement. By March 2022, payments to West Bengal were fully suspended, with accusations of bogus beneficiaries and irregularities in scheme execution.
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The state countered that the Centre owed it approximately ₹7,500 crore, including ₹2,744 crore in labour wages, exacerbating financial strains on rural economies. Activists from groups like the Paschim Banga Khet Mazdoor Samity highlighted the human cost, noting widespread distress among landless labourers and marginalised communities who lost access to guaranteed 100 days of employment annually.
In June 2025, the Calcutta High Court intervened, mandating the resumption of works while granting the Centre leeway to address corruption through audits or other measures. However, neither government complied promptly, prompting the SLP. Civil society organisations alleged political motivations behind the fund freeze, viewing it as leverage in Centre-state tensions under the Trinamool Congress (TMC) dispensation. The Supreme Court's rejection of the appeal without detailed observations signals a swift resolution, potentially unlocking pending dues and revitalising stalled projects in agriculture, water conservation, and infrastructure across Bengal's rural belts.
The verdict drew immediate praise from TMC leaders, including Abhishek Banerjee, Mahua Moitra, Kirti Azad, and Derek O’Brien, who termed it a "clear and unequivocal" end to an "unjust and politically motivated financial blockade". The party accused the Centre of defying constitutional norms by depriving the rural poor of livelihoods for over three years. The Paschim Banga Khet Mazdoor Samity echoed the sentiment, hailing it as a "decisive victory for Bengal’s rural workers," but rebuked TMC for claiming credit, emphasising the judgement's roots in grassroots advocacy rather than partisan gains. As implementation begins, stakeholders anticipate enhanced oversight to prevent future lapses, underscoring MGNREGA's enduring importance in India's fight against rural poverty.
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