The Court maintained that provisions on payment of wages and unemployment allowance are separate. iStock
Governance

Calcutta High Court demands state, Centre response on stoppage of MGNREGA funds, unemployment allowance

The central government has stopped MGNREGA funds to West Bengal since March 9, 2022

Himanshu Nitnaware

The Calcutta High Court has directed the state and central governments to respond on the ongoing issue between the two parties over employment and non-payment of unemployment allowance under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).

The order was passed on October 7, 2024 by the division bench comprising of chief justice TS Shivagnanam and justice Bivas Pattanayak while hearing the plea submitted by a trade union Paschim Banga Khet Majoor Samity (PBKMS), who has raised issues of the MGNREGA workers in the state. 

On March 9, 2022, the central government under provisions of MGNREGA stopped payments to the state government alleging corruption and irregularities in the implementation of the scheme. 

The state government informed the court that the state was unable to effectively implement the MGNREGA due to stoppage of the funds. 

Advocate Purbayan Chakraborty, representing PBKMS, told the court that under the provisions of the Act, it is mandatory for the state government to provide employment under MGNREGA, irrespective of the central government's decision to release funds.

Chakraborty argued that the conflict between the central and state governments cannot deprive the beneficiaries of their right to work and it has already impacted the livelihoods of thousands of rural workers. He said the government had to implement the scheme.

The state government also argued that about 20 action taken reports have been submitted in compliance and multiple demands have been made to allow release of the funds. 

Taking note, the High Court sought a report from the central government of the claims made by the West Bengal government of compliance of the mentioned multiple Action Taken Reports.

It also asked why funds remained unreleased even after the state filed multiple action taken reports.

“The court directed the state government to answer as to why direction should not be issued to the state government for payment of unemployment allowance since admittedly employment is not provided to the unemployed for past two years,” Chakraborty said.

The Court maintained that provisions on payment of wages and unemployment allowance are separate and that the central government had not provided employment over the past two years. The onus, now, is on the state government to pay the unemployment allowance to those who sought work under MGNREGA.

In a press statement issued by PBKMS, it has urged both governments to immediately resume MGNREGA work and ensure that unemployment allowances are disbursed to all eligible workers without further delay.