The Calcutta High Court on Wednesday ordered the central government to resume implementation of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) in West Bengal starting August 1. The court clarified that while restarting the scheme, the Centre is permitted to impose special conditions to avoid a repeat of earlier irregularities. The decision comes after a two-year suspension of central funds to the state, which began in March 2022 due to allegations of widespread misuse in scheme implementation.

West Bengal had received over ₹7,500 crore under MGNREGA in 2021–22, but the Centre halted funding following inspection reports of inconsistencies at 31 of 63 worksites examined. Despite similar complaints of misappropriation in other states, West Bengal was the only one facing an extended freeze on funds. The High Court had earlier observed that the law does not permit an indefinite suspension and demanded an explanation for continued withholding of support, especially in districts not involved in the reported misappropriation, including areas outside Purba Bardhaman, Hooghly, Malda, and the Darjeeling GTA region.

The suspension has had severe social and economic consequences, including a rise in distress migration and setbacks in rural development, as highlighted by a recent parliamentary standing committee report. MGNREGA, a critical welfare scheme, guarantees 100 days of wage employment annually to rural households for unskilled manual work. With over 34 million registered workers in West Bengal alone, the resumption is expected to bring relief to millions. The Centre, which bears 90% of the scheme’s budget, must now act on the court’s directive and ensure fair implementation with proper safeguards in place.