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MGNREGA in West Bengal (2021-2025): An Analysis of Suspension, Impact, and the Calcutta High Court's Intervention

MGNREGA in West Bengal: A 3-Year Analysis

The 3-Year Freeze

An interactive analysis of the MGNREGA fund suspension in West Bengal, its human cost, and the landmark court intervention that followed.

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Million Registered Workers Affected

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Crore Estimated Annual Economic Loss (₹)

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Crore in Pending Dues to WB (₹)

The Human Cost of the Halt

The suspension was not just a line item in a budget; it triggered a humanitarian crisis for millions. The halt of guaranteed wages forced thousands into debt, hunger, and distress migration in search of work.

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Distress Migration

Thousands of families were compelled to migrate to states like Andhra Pradesh, Tamil Nadu, and Karnataka, seeking work as construction or factory laborers.

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Rising Debt & Hunger

With daily wages gone, families fell into debt to afford basic meals. Reports indicated rising hunger and an increase in school dropouts across rural Bengal.

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Stalled Development

The freeze not only affected wages but also halted crucial rural development projects, impacting local infrastructure and economic activity.

Timeline of the Standoff

Explore the key events from the initial suspension to the High Court's landmark order. Click on each date to reveal more details.

The Financial Disconnect

Visualizing the drastic funding cuts and the disproportionate relationship between alleged corruption, recovered amounts, and the immense financial toll on the state and its workers.

MGNREGA Funds to West Bengal

Funding dropped from over ₹7,500 crore to zero for three consecutive fiscal years.

Corruption vs. Consequence (₹ in Crores)

The total pending dues and annual economic loss dwarf the amounts related to alleged irregularities.

The Court's Verdict

On June 18, 2025, the Calcutta High Court delivered a landmark judgment, prioritizing the right to livelihood over administrative and political disputes.

"From the beginning, I’ve said one thing— out of 10 apples, a few may be rotten, but the rest are still fresh... What has happened is in the past. But the scheme has remained shut for nearly three years. Now it must be restarted. The Centre cannot indefinitely suspend this programme."

— Chief Justice T S Sivagnanam
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Resume Work by Aug 1, 2025

The court mandated the full resumption of MGNREGA, declaring that the scheme "does not envisage a situation where it would be put to cold storage for eternity."

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Continue Investigations

The Centre was permitted to continue its investigations into past irregularities independently, without holding the entire scheme hostage.

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Allow Special Monitoring

The court granted the Centre flexibility to introduce special monitoring mechanisms to ensure future transparency and prevent misuse of funds.

The Path Forward

The court's order is a critical step, but the road ahead is fraught with challenges of compliance and requires a renewed commitment to cooperative federalism and worker welfare.

  • Lack of Compliance: Reports from August 1, 2025, indicate that both Central and State governments have been slow to act, with block offices illegally rejecting job applications.
  • Bureaucratic Inertia: The NREGA Commissioner reportedly stated no work would commence without fresh instructions from the Centre, undermining the court's direct order.
  • Erosion of Trust: The prolonged standoff and post-order defiance have deepened the crisis of trust between the Centre and the State, harming the principles of cooperative federalism.
  • Worker Vulnerability: Workers and union members attempting to apply for jobs have reportedly faced obstruction and threats, highlighting systemic barriers to accessing their legal rights.

Interactive analysis based on the report "MGNREGA in West Bengal (2021-2025): An Analysis of Suspension, Impact, and the Calcutta High Court's Intervention".

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