The Calcutta High Court ordered the restart of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) in West Bengal from August 1, 2025. This follows a three-year suspension by the Union government citing irregularities. The Centre has appealed to the Supreme Court, keeping the issue legally unsettled. The scheme’s revival depends on addressing administrative, technological, and trust deficits to ensure effective implementation.
Background of MGNREGA Suspension
MGNREGA guarantees 100 days of paid rural work annually. It is a vital support for millions, including women, Dalits, Adivasis, and landless workers. In March 2022, the Centre halted funds to West Bengal over alleged irregularities found at 31 worksites. This was despite the state receiving over ₹10,000 crore in 2020–21. The suspension caused a loss of ₹4,000 to 6,000 crore in wages in the first year alone.
Impact on Rural Workforce and Institutions
The suspension not only cut wages but damaged institutional capacity. Restarting requires more than funding; it needs trust, planning, and administrative readiness. State governments must identify and prepare work projects at village level ahead of time. Without this groundwork, the scheme risks becoming ineffective.
Technological Reforms and Compliance Issues
During West Bengal’s exclusion, the Centre introduced reforms like the Aadhaar-Based Payment System (ABPS). This system links worker payments to Aadhaar authentication through the National Payments Corporation of India. As of June 2025, over 43 lakh registered workers in West Bengal are not ABPS-compliant. Among active workers, 2.3 lakh remain ineligible. A temporary allowance for account-based payments could prevent exclusion.
Worker Deletions and Administrative Bottlenecks
Over 83 lakh workers were deleted from West Bengal’s recent-findings/" target="_blank" rel="noopener">MGNREGA rolls in 2022–23, about 15% of national deletions. Reinstating them is crucial but hindered by limited login access for officials. The National Mobile Monitoring System, requiring real-time geo-tagged attendance, is another hurdle. A temporary exemption and use of paper-based attendance are suggested until officials are trained.
Human Resource and Institutional Strengthening
Many field supervisors have left due to inactivity and low pay. Re-engagement through incentives and training is essential. Strengthening grievance redressal, ensuring timely payments, conducting social audits, and maintaining transparent dashboards will improve accountability. A revitalised State Employment Guarantee Council could provide a platform for dialogue and corrective action.
Legal and Political Uncertainty
The Centre’s Supreme Court appeal prolongs legal uncertainty. Regardless of the outcome, reviving MGNREGA in West Bengal demands building trust and capacity rather than mere procedural compliance. Immediate coordinated action by the Centre, State, and local bodies is critical to restore this lifeline for rural workers.
Questions for UPSC:
- Critically discuss the role of MGNREGA in rural socio-economic development and analyse the impact of its suspension on vulnerable communities in West Bengal.
- Examine the challenges and benefits of implementing Aadhaar-Based Payment Systems in social welfare schemes in India. How can technology improve transparency and what are its limitations?
- Point out the institutional reforms necessary for effective implementation of large-scale rural employment programmes like MGNREGA. Estimate the role of local governance in this context.
- Analyse the legal framework governing centre-state relations in India with reference to social welfare schemes. How do judicial interventions influence policy implementation?
