The independence of the social audit mechanism under the Mahatma Gandhi NREGA must be preserved, prohibiting members of the Employment Guarantee Council from serving on the Social Audit Society to ensure transparency and accountability.

JUDGMENT :

Nitin Jamdar, C.J.

This petition, filed in public interest, seeks to emphasise the need to strengthen the social audit mechanism under the Mahatma Gandhi National Rural Employment Guarantee Act, 2005, and calls upon the State of Kerala to take proactive measures in that regard.

2. The Petitioner, being one of the first Ombudsman of the Mahatma Gandhi National Rural Employment Guarantee Act Kerala State Mission, asserts that he has first-hand knowledge of the vulnerabilities and lacunae in the implementation of the Mahatma Gandhi National Rural Employment Guarantee Schemes in the State of Kerala and from his experience, he claims that the process of Social Audit of the Schemes is always being undermined by the State by inclusion of those who are not qualified and by those connected with the implementation of the Scheme, nullifying the object of independent Social Audit.

3. The Mahatma Gandhi National Rural Employment Guarantee Act, 2005 (Act of 2005) was enacted to improve livelihood security in rural areas. The earlier schemes did not guarantee employment on demand and had a limited reach. The Act of 2005 provides for the establishment of a Central Employment Guarantee Council and State Employment Guarantee Councils to oversee implementation. The National Employment Guarantee Fund is to be created by the Central Government, and State Governments may set up similar funds. The Act of 2005 includes provisions to ensure transparency, regular audits, grievance redressal, and penalties for non-compliance. It also lays down the minimum conditions and entitlements under the scheme. The Act of 2005 confers a statutory right of at least 100 days of wage employment in a financial year to every rural household whose adult members are willing to do unskilled manual work. If employment is not provided within the stipulated period, an unemployment allowance has to be paid. The Act envisions the establishment of large and complex machinery to alleviate rural unemployment, with substantial public funds being expended.

4. The State Employment Guarantee Council is specified under Section 12 of the Act of 2005, which reads as under:-

“12. State Employment Guarantee Council.—(1) For the purposes of regular monitoring and reviewing the implementation of this Act at the State level, every State Government shall constitute a State Council to be known as the......(name of the State) State Employment Guarantee Council with a Chairperson and such number of official members as may be determined by the State Government and not more than fifteen non-official members nominated by the State Government from Panchayati Raj institutions, organisations of workers and disadvantaged groups:

Provided that not less than one-third of the non-official members nominated under this clause shall be women:

Provided further that not less than one third of the non- official members shall be belonging to the Scheduled Castes, the Scheduled Tribes, the Other Backward Classes and Minorities.

(2) The terms and conditions subject to which the Chairperson and members of the State Council may be appointed and the time, place and procedure of the meetings (including the quorum at such meetings) of the State Council shall be such as may be prescribed by the State Government.

(3) The duties and functions of the State Council shall include—

(a) advising the State Government on all matters concerning the Scheme and its implementation in the State;

(b) determining the preferred works;

(c) reviewing the monitoring and redressal mechanisms from time to time and recommending improvements;

(d) promoting the widest possible dissemination of information about this Act and the Schemes under it;

(e) monitoring the implementation of this Act and the Schemes in the State and coordinating such implementation with the Central Council;

(f) preparing the annual report to be laid before the State Legislature by the State Government;

(g) any other duty or function as may be assigned to it by the Central Coun