The Enforcement Directorate conducted raids in West Bengal earlier this year as part of its probe into the alleged irregularities in the scheme. These developments have further strained relations between the Centre and the state government.

The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) became a flashpoint between the Centre and the Trinamool Congress (TMC) in the Lok Sabha on Tuesday. During the question hour in the Lok Sabha, TMC MP Kalyan Banerjee accused the central government of withholding MGNREGA funds meant for West Bengal for the fiscal years 2022-2023 and 2023-2024, claiming it was an act of discrimination against the state.

TMC Alleges Discrimination

Raising the issue, Kalyan Banerjee demanded answers on why West Bengal had been excluded from receiving MGNREGA funds. “Why has the West Bengal government been left out? Why wasn’t there any consultation? If you don’t like Bengalis, you won’t provide funds to Bengal?” Banerjee asked the union government during the question hour in the Lok Sabha, accusing the Centre of discriminating against the people of West Bengal. Banerjee charged, suggesting that the Centre’s actions violated Article 14 of the Constitution, which guarantees equality before the law.

He also questioned the rationale behind the union government’s decision, stating, “For the last year, we have been hearing about some irregularities. We insist that if there are any irregularities, you should detect and arrest those responsible. But you don’t do it. How can you discriminate against the people of West Bengal? Doesn’t that violate Article 14 (of the Constitution)?” Banerjee questioned.

Centre Cites Irregularities

Responding to the accusations, union agriculture and farmers’ welfare minister Shivraj Singh Chouhan detailed alleged mismanagement in the implementation of MGNREGA by the West Bengal government. Chouhan claimed that large-scale irregularities had been uncovered, prompting the suspension of funds.

“It has been demonstrated that non-beneficiaries have been registered as beneficiaries, and vice versa, under this scheme. The names of village development schemes were changed, which is not permissible. For instance, they committed an offence by renaming the Pradhan Mantri Awas Yojana as their own. Furthermore, benefits intended for beneficiaries have been given to non-beneficiaries,” Chouhan alleged in his response. Banerjee denied these claims.

The union minister for agriculture and farmers’ welfare, Shivraj Singh Chouhan  underscored that, as per the provisions of the MGNREGA Act, funds can be withheld if central allocations are misused.

Audit Revelations and Funds Freeze

The clash in Parliament comes amid an ongoing freeze on MGNREGA funds to West Bengal, which has been in place since March 2022. According to an earlier report in the Hindustan Times, two un-named senior officials had told the newspaper that audits revealed large-scale irregularities in the scheme’s implementation in West Bengal. The union government decided to halt disbursals after the state failed to take corrective measures despite being alerted.

“₹6,913 crore is due under MGNREGA since FY 2021-22,” the Hindustan Times quoted an unnamed senior West Bengal bureaucrat who said, “The chief minister ordered in February that the state should pay this amount to the beneficiaries in phases from its own funds. We have started the process.”

However, Chouhan highlighted that West Bengal is not the only state under scrutiny. “Some other states have also been alerted to certain irregularities in implementing the scheme, and they have assured the Centre that they will take corrective measures. If they don’t follow the stated guidelines, they will also face action as per provisions of the Mahatma Gandhi National Rural Employment Guarantee Act, 2005,” he said.

ED Investigation and State’s Rebuttal

Adding to the controversy, the Enforcement Directorate (ED) conducted raids in West Bengal earlier this year as part of its probe into the alleged irregularities in the scheme. These developments have further strained relations between the Centre and the state government.

West Bengal Chief Minister Mamata Banerjee, meanwhile, has consistently accused the central government of playing politics with welfare schemes. In a recent NITI Aayog meeting, she claimed she was stopped from raising issues related to the suspension of central funds, including those for MGNREGA.

The Broader Impact

The suspension of MGNREGA funds has had a significant impact on rural households in West Bengal, which rely on the scheme for employment and livelihood support. Banerjee argued that withholding funds punishes the state’s residents rather than addressing governance issues.

The state government has attempted to mitigate the fallout by using its own funds to pay beneficiaries. However, the delayed disbursal and allegations of corruption have clouded the state’s efforts.

Political Ramifications

The TMC’s allegations of bias against West Bengal have escalated into a larger debate on federalism and the constitutional obligations of the central government. As Banerjee put it, “Doesn’t this violate Article 14?”

The union government, on the other hand, has maintained that strict adherence to MGNREGA’s provisions is non-negotiable, insisting that accountability and transparency are paramount in managing public funds.

As the stalemate continues, both sides remain entrenched in their positions, leaving the future of MGNREGA disbursals to West Bengal uncertain. The issue not only underscores the challenges of cooperative federalism but also raises questions about the intersection of politics and welfare.