Supreme Court orders Centre to resume MGNREGA in West Bengal from August 2025, ending a three-year suspension and restoring livelihood for rural workers.
Supreme Court Clears the Way for MGNREGA Resumption in West Bengal
The Supreme Court of India on October 27, 2025, dismissed the Union Government’s petition against a Calcutta High Court directive, thereby clearing the path for the reinstatement of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) scheme—popularly known as the “100 Days Work Scheme”—in West Bengal from August 1, 2025.
A bench comprising Justice Vikram Nath and Justice Sandeep Mehta declined to intervene in the High Court’s earlier order, which directed the Centre to restart the MGNREGA programme after a nearly three-year suspension. The scheme had been withheld in Bengal since 2022, following allegations by the Central Government of embezzlement, fake job cards, and payment irregularities.
Key Supreme Court and High Court Findings on MGNREGA
The Calcutta High Court, while hearing petitions on delayed wage payments and halted work, ruled that although the Centre has the right to investigate corruption or irregularities, it cannot indefinitely freeze welfare schemes meant for the poor.
In a significant passage, the High Court observed:
“The scheme of the Act does not envisage a situation where it would be put to cold storage for eternity. The Central Government has sufficient means to enquire into irregularities… however, there can be a line drawn between past actions and future implementation. This would be in public interest and subserve the very purpose for which the Act was enacted.”
The Supreme Court, in upholding this reasoning, dismissed the Centre’s plea (Union of India v. Paschim Banga Khet Mazdoor Samity | Diary No. 42326/2025), thus affirming that the MGNREGA scheme must resume in West Bengal from the specified date.
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Background: Why MGNREGA Was Suspended in Bengal
Launched in 2005, MGNREGA is India’s flagship rural employment guarantee programme, promising at least 100 days of wage employment annually to every rural household willing to undertake unskilled manual work.
In March 2022, the Centre suspended MGNREGA funds to West Bengal under Section 27 of the Act, citing reports of fake job cards, fund diversion, and inflated muster rolls. The move left millions of registered beneficiaries without income, leading to widespread economic distress, rural stagnation, and migration.
State officials maintained that irregularities affected less than 1% of total allocations, and that punishing all beneficiaries amounted to collective injustice. The prolonged suspension sparked protests, petitions, and legal action by workers’ unions and social organizations such as the Paschim Banga Khet Mazdoor Samity.
What Happens Next: Centre to Resume Payments and Work
Following the Supreme Court’s order, the Central Government is obligated to restart MGNREGA operations in West Bengal from August 1, 2025.
While ongoing investigations into past fund misuse may continue, the court made it clear that such inquiries cannot be used as a pretext for future delays or fresh suspensions. The focus must now return to restoring work, releasing pending dues, and ensuring transparent wage disbursement for verified job card holders.
Officials estimate that more than 2.5 crore rural workers across Bengal stand to benefit immediately from the scheme’s reinstatement.
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Impact and Significance of the MGNREGA Verdict
The Supreme Court’s decision is being hailed as a landmark in welfare governance and labour rights. It reinforces the principle that social welfare schemes cannot be withheld indefinitely due to bureaucratic or political reasons, as long as remedial mechanisms are available.
Legal experts note that the verdict strikes a balance between accountability and welfare, ensuring both transparency in implementation and continuity of benefits for genuine workers.
Economists argue that the resumption of MGNREGA in Bengal will not only revive rural employment but also stimulate local development through small-scale public works—ranging from road repair to irrigation projects—that were previously stalled.
Political and Social Reactions
The ruling Trinamool Congress (TMC) celebrated the judgment as a “victory for Bengal’s poor”, while Chief Minister Mamata Banerjee termed it a “moral win for democracy and social justice”.
She announced plans to demand immediate release of pending MGNREGA funds and sought compensation for the prolonged suspension.
Another crushing defeat for the BOHIRAGOTO BANGLA-BIRODHI ZAMINDARS.
— Abhishek Banerjee (@abhishekaitc) October 27, 2025
The Hon’ble Supreme Court today dismissed the Central Government’s plea challenging the Calcutta High Court’s order directing the resumption of MGNREGA in Bengal. This is a HISTORIC VICTORY for the people of…
Opposition leaders, however, urged both Centre and State to ensure proper monitoring and fund utilization going forward, to prevent any repeat of the alleged irregularities that led to the suspension.
Conclusion: MGNREGA Restored, Right to Work Reaffirmed
The Supreme Court’s directive to resume MGNREGA in West Bengal is more than a legal decision — it is a reaffirmation of the constitutional right to livelihood. For millions of rural families, the revival of the 100 Days Work Scheme promises not just wages, but a return of dignity, self-reliance, and hope.
The judgment sets a powerful precedent for protecting welfare rights across India, reminding governments that accountability must not come at the cost of social justice.