SC orders Centre to release MNREGS funds to states

The Supreme Court on Friday asked the central government to release adequate funds under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MNREGS) to states and pay delayed wages to farmers in drought-hit areas. It also directed the government to ensure that compensation for the delayed payment is given to workers whose wages have been delayed beyond 15 days.

"It is regrettable that the pending wage Bill for 2015-16 was cleared only during the pendency of this petition. The Government of India must shape up in this regard," the court said in the second and third part of its judgment, delivered on Friday. The first part was released on Wednesday.

The court regretted the "chicken and egg" situation prevailing now - the release of funds by the Centre is low because the performance of state governments is poor; and, the performance of state governments is poor because the release of funds by the central government is low.

"The suffering is of the unemployed unskilled manual labourer as an individual and the society as a whole," the judgment said.

The court set seven guidelines for the implementation of the Food Security Act. These were framed in the public interest petition moved by Swaraj Abhiyan. Justifying the unusual step taken by the court, it criticised the government for passing the law without setting up an implementing machinery.

"This is completely inexplicable. We fail to understand how a statute enacted by Parliament can be given effect to without appropriate rules and regulations. It is perhaps this tardiness in execution that enables some state governments to take it easy and implement the law whenever it is convenient to do so," the judgment written by judge Madan Lokur said.

The court directed each state before it to establish an internal grievance mechanism and appoint District Grievance Redressal Officers as postulated in the Act within one month. Each state shall also constitute a State Food Commission for monitoring the implementation of the Act within two months. All households in drought-hit areas shall be provided their monthly entitlement of foodgrain. They shall not be denied this benefit because they have no ration card. Bihar, Haryana and Uttar Pradesh must, within a month, make adequate provision for the supply of eggs or milk or any other nutritional substitute for children under the mid-day meal scheme. They shall be provided at least three days in a week, preferably five days.

"Keeping in mind the children of this country, financial constraints shall not be an excuse for not complying with this direction," the order emphasised. Regarding the implementation of the rural employment scheme, the court directed the states to release adequate funds in a timely manner so that the workers are paid well in time. The court told the state governments they ought to present a realistic budget which should then be considered by the Empowered Committee. This procedure will avoid any unnecessary controversy between the central and state governments about the release of funds under MNREGA.

Central and state governments have been directed to make all efforts to encourage needy persons to come forward and take advantage of the scheme.