In a major development, the Calcutta High Court has ordered the central government to restart the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)scheme across West Bengal from August 1, bringing an end to its suspension that began in **March 2022 due to alleged irregularities.

A Division Bench headed by Chief Justice TS Sivagnanam observed that centrally sponsored schemes cannot be kept in abeyance for an indefinite period. The court, however, granted the Centre the liberty to introduce special monitoring mechanisms in the state to ensure transparency and prevent future misuse of funds.

The Centre had stopped MGNREGA funding to West Bengal in 2022 after discrepancies were reported in project execution. Out of 63 inspected sites, irregularities were confirmed at 31. While the state received over ₹7,500 crore under the scheme in 2021–22, it has received no funds since.

In April, the High Court had asked the Centre to explain the prolonged suspension, asserting that the NREGA Act does not allow indefinite withdrawal of benefits, even if misappropriation is suspected. Initially, the court suggested restarting the scheme in unaffected districts, excluding areas like Purba Bardhaman, Hooghly, Malda, and the .GTA region in Darjeeling.

Chief Minister Mamata Banerjee welcomed the verdict and demanded that the Centre release all pending MGNREGA dues. She emphasized that the funds belonged to the people, not the government. Banerjee also clarified that the case was initiated by a civil society group, not her administration.