The Union Rural Development Ministry has decided to withhold the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) funds for West Bengal for the financial year 2023-24, extending the imposition of Section 27 of the MGNREGA that allows for stoppage of funds for violation of rules in implementation of the scheme by the State.
The Centre had first invoked the rule in December 2021 based on ground surveys, which revealed large-scale corruption and violation of the guidelines. At present, the Union government owes ₹7,500 crore to the State, out of which labour wages alone amount to ₹2,744 crore. The workers, who remain unpaid for the work they have done, haven’t been paid compensation that they are entitled to under the Act.
The decision was taken last week after a meeting with the West Bengal administration and the Centre on March 13. The State, as per sources, asked for 32 crore person days. “So far, the Union government has not stated the reason for stopping the funds. We had submitted an action-taken report in September last year and a revised reply in December, answering the additional queries from the Ministry. Since then, we haven’t got any further questions nor an answer from the Ministry on whether they plan to lift Section 27 or not,” a West Bengal government official said.
The State’s latest demand is in line with its previous records. As per the statistics available with the Union Rural Development Ministry, in 2021-22 the State utilised 36 crore person days, in 2020-21 41 crore, in 2019-2020 27 crore and in 2018-19 33 crore person days.
West Bengal is the only State in the country against whom this Section was invoked. Section 27 of the Act says that, “the Central government may, on receipt of any complaint regarding the issue of improper utilisation of funds granted under this Act in respect of any scheme if prima facie satisfied that there is a case, cause an investigation into the complaint made by any agency designated by it and if necessary, order stoppage of release of funds to the scheme..” The Section however also states, “appropriate remedial measures for its proper implementation within a reasonable period of time” has to be taken.
