Nagpur: The Nagpur Bench of the Bombay High Court has questioned the State Government over the alleged disbursement of funds under the Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA) at the behest of local political representatives, instead of following the prescribed legal procedure.
The court was hearing a petition filed by the Akhil Bhartiya Gram Panchayat Association, which raised serious concerns over irregularities in the release of MNREGA funds. The petition alleged that certain gram panchayats with political connections were receiving preferential treatment, bypassing the seniority list and obtaining out-of-turn fund releases by influencing government officials.
Acting on the petition, the High Court had earlier issued notices to the State of Maharashtra, Commissioner, MNREGA, and the Deputy CEO, Zilla Parishad, Gondia.
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18 Oct 2025
Advocate Surabhi Godbole Naidu, appearing for the petitioners, informed the court that after every project is completed by a gram panchayat, a Fund Transfer Order (FTO) is generated and verified at various administrative levels — from the Panchayat Samiti to the Zilla Parishad — before being forwarded to the MNREGA Commissioner for final approval and fund release.
However, Naidu pointed out that FTOs amounting to approximately ₹150 crore (₹1500 lakh), approved between 2022 and 2024, were still pending disbursement. As a result, gram panchayats were unable to pay vendors who had supplied materials for community development works — causing severe financial hardship despite no fault of their own.
The petitioner alleged that certain gram panchayats with “influential nexus” to MLAs and political leaders managed to jump the queue by securing recommendation letters, resulting in the release of funds for works completed much later (January–March 2024), while older FTOs remained pending.
Interestingly, the Zilla Parishad, Gondia, in its reply, confirmed several of the petitioner’s allegations. During the hearing, the State sought additional time to respond, prompting the High Court to pass a sharp observation.
The bench directed the Additional Government Pleader to explain whether MNREGA funds could legally be released based on the recommendations of political representatives — individuals who hold no authority under the MNREGA Act, 2005, or its guidelines to influence such disbursements. The Court noted that the affidavit filed by the Panchayat Samiti, Gondia, was silent on this critical issue and granted the State a final opportunity to file a detailed reply.
Despite the High Court’s scrutiny, recent developments suggest that the practice of politically influenced disbursements may have continued. The State Government recently released ₹1,200 crore in MNREGA funds across Maharashtra, of which ₹40 crore was allocated to Gondia district. The petitioner claims that once again, politically connected gram panchayats secured preferential releases, sidestepping seniority norms even while the case remains sub judice.
Following this, the petitioners have issued a contempt notice to the Commissioner, MNREGA, and are moving to circulate the matter before the High Court for urgent hearing.
Advocates Surabhi Godbole Naidu, Prakash Naidu, Joseph Bastian, and Dhruv Sharma appeared on behalf of the petitioners.
