Centre vs West Bengal: SC Directs Govt To Release Funds, Orders Immediate Resumption Of MGNREGA

Last Updated:October 27, 2025, 15:25 IST

Trinamool Congress General Secretary Abhishek Banerjee hailed the judgment as a “historic victory” for Bengal’s people.

Centre Faces Setback as Supreme Court Clears Way for MGNREGA Works in West Bengal. (Image: PTI)

In a significant legal and political development, the Central Government has faced a major setback in the Supreme Court over the 100-day work (MGNREGA) scheme in West Bengal. The apex court on Monday upheld the Calcutta High Court’s directive ordering the immediate resumption of rural employment works across the state from 1 August.

The Centre had challenged the High Court’s June ruling, which held that while corruption in the implementation of the scheme must be addressed, genuine workers could not be deprived of employment. However, a bench comprising Justices Vikram Nath and Sandeep Mehta dismissed the Centre’s plea, asking pointedly, “Will you withdraw your petition, or should we dismiss it?" before rejecting the appeal outright.

Centre ordered to release funds

With the Supreme Court’s dismissal of the petition, the Central Government must now release the pending funds to West Bengal under the MGNREGA scheme. The verdict removes the final barrier to restarting the scheme in the state after a four-year hiatus.

Senior Trinamool Congress MP and advocate Kalyan Banerjee, representing West Bengal, said, “The Central Government withheld funds for 100 days’ work against the interests of the people of West Bengal. The Supreme Court dismissed the appeal in just 30 seconds today. People have seen who stopped their wages."

What do we know about the MGNREGA dispute?

The West Bengal Agricultural Labourers’ Association had approached the Calcutta High Court, alleging that workers had not received wages under the 100-day scheme since December 2021. The Centre had frozen funds, citing large-scale corruption, fake job cards, and irregularities in beneficiary lists. It claimed that money meant for genuine workers was diverted to ineligible accounts.

On Monday, the association’s counsel Bikash Ranjan Bhattacharya welcomed the Supreme Court verdict, saying, “The Centre wrongfully withheld funds. With this order, poor people will finally get work again."

What TMC said?

The ruling triggered a strong political response. Trinamool Congress General Secretary Abhishek Banerjee hailed the judgment as a “historic victory" for Bengal’s people. Accusing the Centre of imposing an “economic blockade," he wrote on X that the verdict was a “democratic slap" to those who sought to “punish the people for standing by Maa, Mati, Manush."

Banerjee, who had earlier led protests in Delhi over the issue and staged a five-day sit-in outside Kolkata’s Raj Bhavan, said the verdict reaffirmed Bengal’s fight for its rightful dues.

Another crushing defeat for the BOHIRAGOTO BANGLA-BIRODHI ZAMINDARS.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…— Abhishek Banerjee (@abhishekaitc) October 27, 2025

The Calcutta High Court’s earlier ruling had allowed the Centre to impose safeguards to curb corruption but prohibited the suspension of the entire programme.

Shuddhanta Patra

Shuddhanta Patra, a seasoned journalist with eight years of experience, serves as Senior Sub‑Editor at CNN News 18. With expertise across national politics, geopolitics, business news, she has influenced public...Read More

Shuddhanta Patra, a seasoned journalist with eight years of experience, serves as Senior Sub‑Editor at CNN News 18. With expertise across national politics, geopolitics, business news, she has influenced public...

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