Nagpur: In a troubling development, despite the High Court issuing notices and calling for replies, it has been reliably learned that funds for the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) scheme have been released from the state secretariat and have reached Nagpur. These funds are reportedly being distributed in an arbitrary manner, ignoring the seniority and date-wise allocation. Instead, they are being given to influential, politically recommended Gram Panchayats whose work was completed recently, with bills from January to March 2024. Questions arise about who will compensate the affected parties, and there is growing demand for government officials to be held accountable.
Earlier, serious allegations were raised regarding irregularities in MGNREGA payments. According to a petition filed by the state vice-president of the All India Gram Panchayat Council, certain Gram Panchayats, under political influence, manipulated the payment process. This led to pending bills for completed projects from 2022, 2023, and 2024 amounting to approximately ₹1,500 lakhs. These delays have caused significant financial strain on suppliers who provided materials for developmental projects.
Gold Rate
24 Sept 2025
The High Court responded to these allegations by issuing notices to the Secretary of the State Government’s Rural Development Department, the MGNREGA Commissioner, and the CEO of the Gondia Zilla Parishad, demanding explanations.
High Court’s Involvement
Advocates Prakash Naidu, Joseph Bastian, and Surbhi Godbole, representing the petitioner, highlighted that funds transfer orders (FTOs) for completed works were pending for distribution. The delay has hampered payments for development materials, affecting suppliers adversely.
The petitioners revealed that some Gram Panchayats, leveraging their influential political connections, managed to expedite fund releases for works conducted between January and March 2024, sidelining the long-pending payments from earlier years. This forced the petitioners to seek judicial intervention.
Demand for Accountability
Advocate Naidu emphasized the malicious intent behind the selective fund distribution and called for punitive measures against the responsible officials and departments. The MGNREGA scheme aims to improve the living standards of rural inhabitants by providing employment through developmental projects managed by Gram Panchayats. However, the alleged manipulation and favoritism in fund allocation have thwarted these objectives, causing significant setbacks in rural development.
The petitioners argued that Gram Panchayats had to procure materials on credit for community projects like road and sewer construction, and building projects, due to their inability to source funds independently. Post-completion, FTOs are reviewed and prepared by the Panchayat Committee, approved by the District Council, and sent to the MGNREGA Commissioner for final approval.
Urgent Call for Transparency
In light of the recent revelations about the arbitrary fund distribution, there is an urgent need for transparency and accountability in the MGNREGA fund allocation process. The misuse of power and favoritism not only undermines the scheme’s integrity but also jeopardizes the livelihoods of those dependent on timely payments for their work and supplies. The government must ensure that the officials responsible for these discrepancies are held liable and take immediate corrective measures to restore fairness and trust in the system.
