Calcutta High Court asked the Union government on Thursday to file a report within three weeks, stating why the Centre had stopped disbursing funds under the MGNREGA for Bengal in the past few years.

A division bench led by Chief Justice T.S. Sivagnanam issued the directive to the secretary of the Union rural development ministry.

"I just want to know whether the Union government can stop disbursing the funds for some reason," the Chief Justice remarked while hearing a petition moved by CPM-backed Paschim Banga Khet Majoor Samity.

The organisation complained that its members were not getting their legitimate claim under the Act that assures 100 days of job for the rural populace across the country.

The advocate appearing for the state government alleged that despite repeated requests, the Centre was not releasing the funds.

Additional solicitor-general of eastern India, Ashok Chakrabary, alleged that the state administration had misappropriated the funds released under the 100 days' job scheme by producing fictitious muster rolls.

"The nodal officer appointed by the Union ministry had submitted a report to this court saying that funds were grossly misused in the state. Inquiries were conducted in four different districts of the state. The districts were East Burdwan, Hooghly, Malda and GTA ( Darjeeling). It was found that ₹2.39 crore was misappropriated out of ₹5.37 crore sent to these districts,” said Chakrabarty.

Appearing for the petitioner organisation, senior advocate Bikash Ranjan Bhattacharyya told the court that the recovered amount had already been refunded to the Centre.

The bench fixed the matter for hearing again on May 15, when the Centre will file its report.

The development, sources said, brought some relief to the state government that had been claiming that the Centre was holding up the release of funds even though Bengal had submitted a series of action-taken reports to the Narendra Modi government since it stopped sending the funds in April 2022.

“The state was repeatedly saying the Centre was holding back the release of funds under the 100 days' job scheme even after the state followed all the instructions given by the ministry. Now, it will be interesting to see what reason the Centre submits in its reply in the court,” said a senior state government official.

Trinamool Congress insiders said the court's directive to the Centre to cite reasons for not releasing funds under the 100 days' job scheme over the past few years would give the ruling party an added advantage ahead of the Assembly polls.

BJP leaders said it would not be uncomfortable for them as the state could not follow the instructions issued by the Centre after it was revealed that crores of rupees were misappropriated under the scheme.

“The Centre had asked the state to recover all the funds misappropriated under the scheme. But the state could not recover money from the ruling party leaders at the block and panchayat levels who misappropriated the funds, depriving the poor. This is why the state did not get funds in the past few years,” said a BJP leader.

Sources in the panchayat department said the Centre did not approve any labour budget under the scheme for Bengal, dropping a hint that the state would not get any funds in the ongoing financial year.

“The state can get funds to run the scheme only if Calcutta High Court issues an order. We are hopeful of getting an order in favour of the poor people in Bengal so that they don't get deprived any further,” said an official.