A recent order by the Calcutta High Court has far-reaching implications not only for the biggest job scheme in the world, but also for cooperative federalism in the world’s largest democracy. A division bench of the court comprising Chief Justice T S Sivagnanam and Justice Chaitali Chatterjee Das has directed the Union government to resume payments under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) in West Bengal, whose clearances were stopped more than three years ago. By the Centre’s own submission in the Rajya Sabha in February 2024, its wage liabilities owed to the eastern state were `2,765 crore—the highest by far among all states and more than the combined dues owed to Tamil Nadu, Karnataka and Kerala.
The Centre withheld funds to West Bengal after alleging irregularities such as public money siphoned off through fake job cards. However, the court stated, “Only because of certain irregularities, the allotment of funds of a particular scheme cannot be sent to cold storage for years... As some apples were found rotten, the other apples cannot be deprived of their legitimate claims.” The court also allowed the Union government to transfer the funds directly to the beneficiaries’ accounts. Following multiple complaints of malpractice lodged with the Union rural development ministry, the Centre sent over 20 teams to investigate the anomalies in the state, which revealed irregularities in multiple districts. Subsequently, the Centre ordered the state to recover the siphoned funds and initiate police action against those involved.
Although the court order clarified that the ruling applies only to Bengal, at a time jobs—especially for those at the bottom of the pyramid—are increasingly hard to come by, it reflects on the kindness of the governing class. Funds have been blocked when the total allocation for MGNREGA has gone down from an actual spend of ₹88,751 crore in 2023-24 to an estimate of ₹85,428 crore for 2025-26. Even for other welfare schemes such as food distribution, the government has been advised not to stop handouts because of technical glitches or corruption. Direct benefit transfers, that were expanded to reduce the latter malaise, have contributed to the former. Large schemes such as MGNREGA are a lifeline for crores of Indians. While the fight against corruption must continue, essential support cannot be cut off to punish administrative lapses.