MAHATMA GANDHI NATIONAL RURAL EMPLOYMENT GUARANTEE ACT, 2005
(1) This Act may be called 5[the Mahatma Gandhi National Rural Employment Guarantee Act], 2005.
(2) It extends to the whole of India except the State of Jammu and Kashmir.
(3) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint;1 and different dates may be appointed for different States or for different areas in a
State and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision in such State or, as the case may be, in such area:
Provided that this Act shall be applicable to the whole of territory to which it extends within a period of five years from the date of enactment of this Act.
&n
In this Act, unless the context otherwise requires,--
(a) "adult" means a person who has completed his eighteenth years of age;
(b) "applicant" means the head of a household or any of its other adult members who has applied for employment under the Scheme;
(c) "Block" means a community development area within a district comprising a group of Gram Panchayats;
(d) "Central Council" means the Central Employment Guarantee Council constituted under sub-section (1) of section 10;
(e) "District Programme Coordinator" means an officer of the State Government designated as such under sub-section (1) of section 14 for implementation of the Scheme in a district;
(f) "hous
Legal Comments
"Section 2 - Definitions and Scope" - Section 2 provides key definitional framework for MGNREGA, including terms like 'adult member', 'unskilled manual work', 'Scheme', and the overarching object of the Act; it anchors functional interpretation of the rest of the Act as seen in various judgments discussing Scheme, Labour budget, and social audit. [Sources: Rayapureddy Srinivasa Rao S/o Bramaiah VS government of Andra Pradesh - 2021 0 Supreme(AP) 572; G. Ramesh VS Government of Tamil Nadu, Represented by its Secretary to Government, Rural Development Department, Secretariat, Chennai - 2021 0 Supreme(Mad) 3; Rani VS State by, The Inspector of Police, Cuddalore - 2022 0 Supreme(Mad) 2995]
"Preamble and Object of the Act" - The Act aims to enhance livelihood security by guaranteeing at least 100 days of wage employment in rural areas; Section 2 interpretation aligns with the Act’s object stated in the preamble, informing constitutional and policy considerations in adjudication. [Sources: Rayapureddy Srinivasa Rao S/o Bramaiah VS government of Andra Pradesh - 2021 0 Supreme(AP) 572; Adv. George Pulikuthiyil, (Former Ombudsman, Mgnrega, S/o. Ulahannan Pulikuthiyil vs State Of Kerala - 2025 0 Supreme(Ker) 2404; Rani VS State by, The Inspector of Police, Cuddalore - 2022 0 Supreme(Mad) 2995]
"Section 3 - Guarantee of Rural Employment" - Section 3(1) obligates States to provide at least 100 days of wage employment to rural households; Section 3(2) ensures wage entitlement, and Section 3(4) contemplates scope for work beyond 100 days within fiscal capacity. This underpins enforcement and budget considerations in several judgments. [Sources: Swaraj Abhiyan - (III) VS Union of India - 2016 3 Supreme 585; K. Raghava Reddy VS State of Andhra Pradesh - 2022 0 Supreme(AP) 975; Rani VS State by, The Inspector of Police, Cuddalore - 2022 0 Supreme(Mad) 2995]
"Section 6(1) - Wage Rate Power" - Central Government may specify wage rate; courts have held wage rate must not be less than state minimum wages for agricultural labour in the relevant area, balancing Centre's funding role with constitutional guarantees under Article 23; Section 6(2) is transitional. [Sources: Bharathiya Mazdoor Sangha VS Union of India - 2011 0 Supreme(Kar) 1114]
"Section 28 - Overriding Effect" - Section 28 provides overriding effect of MGNREGA over inconsistent provisions in other laws; this underpins doctrinal precedence in cases dealing with collateral statutes (e.g., payment, penalties, and enforcement). [Sources: G. Ramesh VS Government of Tamil Nadu, Represented by its Secretary to Government, Rural Development Department, Secretariat, Chennai - 2021 0 Supreme(Mad) 3; Rakesh Kumar son of Sri Surendra Sharma VS State of Jharkhand - 2023 0 Supreme(Jhk) 314]
"Section 30 - Protection for Actions in Good Faith" - Section 30 shields public servants from liability when acting in good faith under the Act; it is frequently cited in immunities while addressing cognizable offences linked to scheme implementation. [Sources: Veena Kumari VS State of Bihar - 2023 0 Supreme(Pat) 193; Gagan Bihari Patra VS State of Odisha, Union of India - 2022 0 Supreme(Ori) 592; Lalan Kumar VS State of Jharkhand - 2014 0 Supreme(Jhk) 980]
"Section 7 & 19 - Welfare and Grievance Redressal" - Section 7 contemplates unemployment allowance mechanisms; Section 19 empowers State-level grievance redressal mechanisms; these provisions frame access to relief and the requirement to exhaust statutory remedies before writs, as seen in several judgments. [Sources: Project Director VS District Legal Services Authorities - 2016 0 Supreme(Gau) 18; Deeksha Dwivedi VS Union of India Thru' Secy. - 2014 0 Supreme(All) 2283; Siya Ram (P. I. L. ) VS Union of India - 2014 0 Supreme(All) 2324]
"Social Audit and Oversight" - Social audit (Section 17 and related Audit Rules) is mandated to be independent; composition issues and conflicts of interest have been raised, with directions to ensure independence and proper functioning of Social Audit Bodies. [Sources: Adv. George Pulikuthiyil, (Former Ombudsman, Mgnrega, S/o. Ulahannan Pulikuthiyil vs State Of Kerala - 2025 0 Supreme(Ker) 2404; Ramakrishnan K. M. S/o P. Chandu Nambiar Vs Union Of India - 2025 0 Supreme(Ker) 746]
"Grant of Writs and Public Interest Litigations" - Courts have emphasized exhaustion of statutory remedies (Section 19 grievance mechanism) before entertaining PILs on unemployment allowances or misfeasance; where alternate remedies exist, courts guide petitioners to pursue them first. [Sources: Deeksha Dwivedi VS Union of India Thru' Secy. - 2014 0 Supreme(All) 2283; BIBHUTI KUSHWAHA VS UNION OF INDIA - 2017 0 Supreme(All) 2872; Adv. George Pulikuthiyil, (Former Ombudsman, Mgnrega, S/o. Ulahannan Pulikuthiyil vs State Of Kerala - 2025 0 Supreme(Ker) 2404]
"Delays in Payment and Delay Compensation" - The jurisprudence recognizes delay in payment as a violation of Scheme obligations, with guidelines for compensation (0.05% per day) for delayed wages beyond the mandated timelines, ensuring timely wage disbursement and addressing Article 14/23 concerns. [Sources: Swaraj Abhiyan - (III) VS Union of India - 2016 3 Supreme 585; BIBHUTI KUSHWAHA VS UNION OF INDIA - 2017 0 Supreme(All) 2872; Swaraj Abhiyan - (III) VS Union of India - 2016 3 Supreme 585]
"Recovery and Penalty Provisions" - Section 25 and related recovery orders require adherence to statutory procedures (show cause, recommendations); courts have set aside unlawful recovery orders and required penalties or deposits where appropriate. [Sources: Atul S/o. Prakashrao Deshmukh VS Deputy Collector (MGNREGA) - 2022 0 Supreme(Bom) 835; BIBHUTI KUSHWAHA VS UNION OF INDIA - 2017 0 Supreme(All) 2872; Parvati Sewta, D/o. Balram Sewta VS State Of Chhattisgarh, Through Secretary, Department Of Panchayat And Rural Development - 2024 0 Supreme(Chh) 71]
"Transfer and Employment of GRS/GRS-like Roles" - Transfers of Gram Rozgar Sevaks (GRS) are governed by Section 18; courts have held transfers within district boundaries permissible for administrative reasons, provided not arbitrary or malafide. [Sources: Gagan Bihari Patra VS State of Odisha, Union of India - 2022 0 Supreme(Ori) 592; Jitendra Kumar Pati VS State of Orissa - 2017 0 Supreme(Ori) 833; Prakash Kumar Chhatoi, Son Of Bhramarbar Chhatoi vs State Of Orissa Represented Through The Principal Secretary To Government Department Of Panchayati Raj - 2026 0 Supreme(Ori) 50]
"Wage Rate Disputes – Karnataka and Karnataka-related Judgments" - Several judgments address Section 6(1) wage rate vs State minimums (MW Act), invalidating central wage rates that undercut state minima and directing compensation for deltas. [Sources: Bharathiya Mazdoor Sangha VS Union of India - 2011 0 Supreme(Kar) 1114]
"Unemployment Allowance Disputes" - Courts have required exhaustions under Section 19 before awarding unemployment allowances; where districts lack Ombudsman functioning, directions to State Government for remedy exist. [Sources: Project Director VS District Legal Services Authorities - 2016 0 Supreme(Gau) 18; Deeksha Dwivedi VS Union of India Thru' Secy. - 2014 0 Supreme(All) 2283]
"Ombudsman – Tenure and Policy Changes" - The 2023 guidelines on Ombudsman tenure and performance appraisal are recognized, with courts applying revised policies to extend tenure where appropriate and ensuring non-arbitrary application by the State. [Sources: Ramakrishnan K. M. S/o P. Chandu Nambiar Vs Union Of India - 2025 0 Supreme(Ker) 746; BIBHUTI KUSHWAHA VS UNION OF INDIA - 2017 0 Supreme(All) 2872]
"Civil Remedies and Private Contracts under MNREGA" - Disputes arising from MNREGA contracts or works where contractors engage in private law remedies (e.g., suits) remain private contracts; statutory remedies and public law controls prevail for scheme-related disputes. [Sources: Gramin Vikas Sewa Sansthan VS State of U. P. - 2016 0 Supreme(All) 2408; JAI BAHADUR YADAV VS UNION OF INDIA - 2009 0 Supreme(All) 850; Gramin Vikas Sewa Sansthan VS State of U. P. - 2016 0 Supreme(All) 2408]
"Budget and Labour Budget – Agreed Budget Framework" - The concept of an "agreed to labour budget" is recognized as a funded mechanism under central supervision; governments must adhere to it to avoid fund underutilization and to ensure timely payments. [Sources: Swaraj Abhiyan - (III) VS Union of India - 2016 3 Supreme 585; Swaraj Abhiyan (VI) VS Union of India - 2018 0 Supreme(SC) 502]
"Judicial Emphasis on Livelihood and Article 21" - Courts repeatedly reaffirm Article 21 rights in context of livelihood and right to dignified work, when the scheme fails to deliver or payment is unduly delayed. [Sources: Prakash Kumar Chhatoi, Son Of Bhramarbar Chhatoi vs State Of Orissa Represented Through The Principal Secretary To Government Department Of Panchayati Raj - 2026 0 Supreme(Ori) 50; Gagan Bihari Patra VS State of Odisha, Union of India - 2022 0 Supreme(Ori) 592; Adapa Veerababu VS State of Andhra Pradesh - 2022 0 Supreme(AP) 1023]
"Misappropriation and Systemic Irregularities – PIL Focus" - PILs have directed high-level inquiries and independent committees to investigate misappropriation and governance failures within MNREGA schemes to safeguard scheme objectives. [Sources: Sanjay Sah, son of Ram Lagan Sah VS State of Jharkhand - 2024 0 Supreme(Jhk) 140; Santan Singh VS State of Bihar - 2012 0 Supreme(Pat) 1280; R. K. PREMJIT SING VS STATE OF MANIPUR - 2018 0 Supreme(Manipur) 23]
Notes and References- Core statutory text and definitions cited across sources include: Mahatma Gandhi National Rural Employment Guarantee Act, 2005 (MGNREGA); Sections 2, 3, 6(1), 6(2), 7, 12-13, 17-19, 21-25, 27-30, 28; Schedule II (Paragraph 29); Rules 2011; and related State amendments and Panchayati Raj provisions. See citations above for specific cases and contexts. [Source array provided]
(1) Save as otherwise provided, the State Government shall, in such rural area in the State as may be notified by the Central Government, provide to every household whose adult members volunteer to do unskilled manual work not less than one hundred days of such work in a financial year in accordance with the Scheme made under this Act.
(2) Every person who has done the work given to him under the Scheme shall be entitled to receive wages at the wage rate for each day of work.
(3) Save as otherwise provided in this Act, the disbursement of daily wages shall be made on a weekly basis or in any case not later than a fortnight after the date on which such work was done.
(4) The Central Government or the State Government may, within the limits of its economic capacity and development, make provisio
(1) For the purposes of giving effect to the provisions of section 3, every State Government shall, within1[one year] from the date of commencement of this Act, by notification, make a Scheme, for providing not less than one hundred days of guaranteed employment in a financial year to every household in the rural areas covered under the Scheme and whose adult members, by application, volunteer to do unskilled manual work subject to the conditions laid down by or under this Act and in the Scheme:
Provided that until any such Scheme is notified by the State Government, the Annual Action Plan or Perspective Plan for the Sampoorna Grameen Rozgar Yojana (SGRY) or the National Food for Work Programme (NFFWP) whichever is in force in the concerned area immediately before such notification shall be deemed to be the action plan for the Scheme for the purposes of this Act.
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(1) The State Government may, without prejudice to the conditions specified in Schedule II, specify in the Scheme the conditions for providing guaranteed employment under this Act.
(2) The persons employed under any Scheme made under this Act shall be entitled to such facilities not less than the minimum facilities specified in Schedule II.
( 1) Notwithstanding anything contained in the Minimum Wages Act, 1948, the Central Government may, by notification , specify the wage rate for the purpose of this Act:
Provided that different rates of wages may be specified for different areas.
Provided further that the wage rate specified from time to time under any such notification shall not be at a rate less than sixty rupees per day.
(2) Until such time as a wage rate is fixed by Central Government in respect of any area in a State, the minimum wage fixed by the State Government under section 3 of the Minimum Wages Act, 1948 for agricultural labourers, shall be considered as the wage rate applicable to that area.
(1) If an applicant for employment under the Scheme is not provided such employment within fifteen days of receipt of his application seeking employment or from the date on which the employment has been sought in the case of an advance application, whichever is later, he shall be entitled to a daily unemployment allowance in accordance with this section.
(2) Subject to such terms and conditions of eligibility as may be prescribed by the State Government and subject to the provisions of this Act and the Schemes and the economic capacity of the State Government, the unemployment allowance payable under sub-section (1) shall be paid to the applicants of a household subject to the entitlement of the household at such rate as may be specified by the State Government, by notification, in consultation with the State Council:
Provided that no su
(1) If the Programme Officer is not in a position to disburse the unemployment allowance in time or at all for any reason beyond his control, he shall report the matter to the District Programme Coordinator and announce such reasons in a notice to be displayed on his notice board and the notice board of the Gram Panchayat and such other conspicuous places as he may deem necessary.
(2) Every case of non-payment or delayed payment of unemployment allowance shall be reported in the annual report submitted by the District Programme Coordinator to the State Government along with the reasons for such non-payment or delayed payment.
(3) The State Government shall take all measures to make the payment of unemployment allowance reported under sub-section (1) to the concerned household as expeditiously as possible.
An applicant who--
(a) does not accept the employment provided to his household under a Scheme; or
(b) does not report for work within fifteen days of being notified by the Programme Officer or the implementing agency to report for the work; or
(c) continuously remains absent from work, without obtaining a permission from the concerned implementing agency for a period of more than one week or remains absent for a total period of more than one week in any month,
shall not be eligible to claim the unemployment allowance payable under this Act for a period of three months but shall be eligible to seek employment under the Scheme at any time.
(1) With effect from such date as the Central Government may, by notification specify, there shall be constituted a Council to be called the Central Employment Guarantee Council to discharge the functions, and perform the duties, assigned to it by or under this Act.
(2) The headquarters of the Central Council shall be at Delhi.
(3) The Central Council shall consist of the following members to be appointed by the Central Government, namely:-
(a) a Chairperson;
(b) not more than such number of representatives of the Central Ministries including the Planning Commission not below the rank of Joint Secretary to the Government of India as may be determined by the Central Government;
(c) not more than such numbe
(1) The Central Council shall perform and discharge the following functions and duties, namely:--
(a) establish a central evaluation and monitoring system;
(b) advise the Central Government on all matters concerning the implementation of this Act;
(c) review the monitoring and redressal mechanism from time to time and recommend improvements required;
(d) promote the widest possible dissemination of information about the Schemes made under this Act;
(e) monitoring the implementation of this Act;
(f) preparation of annual reports to be laid before Parliament by the Central Government on the implementation of this Act;
(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.
(1) The Panchayat at district, intermediate and village levels shall be the principal authorities for planning and implementation of the Schemes made under this Act.
(2) The functions of the Panchayats at the district level shall be-
(a) to finalize and approve blockwise shelf of projects to be taken up under a programe under the Scheme;
(b) to supervise and monitor the projects taken up at the Block level and district level; and
(c) to carry out such other functions as may be assigned to it by the State Council, from time to time.
(3) The functions of the Panchayat at intermediate level shall be--
(a) to approve the Block level Plan for forwarding it to the di
(1) The Chief Executive Officer of the District Panchayat or the Collector of the district or any other district level officer of appropriate rank as the State Government may decide shall be designated as the District Programme Coordinator for the implementation of the Scheme in the district.
(2) The District Programme Coordinator shall be responsible for the implementation of the Scheme in the district in accordance with the provisions of this Act and the rules madethereunder.
(3) The functions of the District Programme Coordinator shall be--
(a) to assist the district Panchayat in discharging its functions under this Act and any scheme madethereunder;
(b) to consolidate the plans prepared by the Blocks and project proposals received from other imp
(1) At every Panchayat at intermediate level, the State Government shall appoint a person who is not below the rank of Block Development Officer with such qualifications and experience as may be determined by the State Government as Programme Officer at the Panchayat at intermediate level.
(2) The Programme Officer shall assist the Panchayat at intermediate level in discharging its functions under this Act and any Scheme madethereunder.
(3) The Programme Officer shall be responsible for matching the demand for employment with the employment opportunities arising from projects in the area under his jurisdiction.
(4) The Programme Officer shall prepare a plan for the Block under his jurisdiction by consolidating the project proposals prepared by the Gram Panchayats and the proposals received fro
(1) The Gram Panchayat shall be responsible for identification of the projects in the Gram Panchayat area to be taken up under a Scheme as per the recommendations of the Gram Sabha and the Ward Sabhas and for executing and supervising such works.
(2) A Gram Panchayat may take up any project under a Scheme within the area of the Gram Panchayat as may be sanctioned by the Programme Officer.
(3) Every Gram Panchayat shall, after considering the recommendations of the Gram Sabha and the Ward Sabhas, prepare a development plan and maintain a shelf of possible works to be taken up under the Scheme as and when demand for work arises.
(4) The Gram Panchayat shall forward its proposals for the development projects including the order of priority between different works to the Programme Officer for scru
(1) The Gram Sabha shall monitor the execution of works within the Gram Panchayat.
(2) The Gram Sabha shall conduct regular social audits of all the projects under the Scheme taken up within the Gram Panchayat.
(3) The Gram Panchayat shall make available all relevant documents including the muster rolls, bills, vouchers, measurement books, copies of sanction orders and other connected books of account and papers to the Gram Sabha for the purpose of conducting the social audit.
The State Government shall make available to the District Programme Coordinator and the Programme Officers necessary staff and technical support as may be necessary for the effective implementation of the Scheme.
The State Government shall, by rules, determine appropriate grievance redressal mechanisms at the Block level and the district level for dealing with any complaint by any person in respect of implementation of the Scheme and lay down the procedure for disposal of such complaints.
(1) The Central Government shall, by notification, establish a fund to be called the National Employment Guarantee Fund for the purposes of this Act
(2) The Central Government may, after due appropriation made by Parliament by law in this behalf, credit by way of grants or loans such sums of money as the Central Government may consider necessary to the National Fund.
(3) The amount standing to the credit of the National Fund shall be utilised in such manner and subject to such conditions and limitations as may be prescribed by the Central Government.
(1) The State Government may, by notification, establish a fund to be called the State Employment Guarantee Fund for the purposes of implementation of the Scheme.
(2) The amount standing to the credit of the State Fund shall be expended in such manner and subject to such conditions and limitations as may be prescribed by the State Government for the purposes of implementation of this Act and the Schemes made thereunder and for meeting the administrative expenses in connection with the implementation of this Act
(3) The State Fund shall be held and administered on behalf of the State Government in such manner and by such authority as may be prescribed by the State Government.
(1) Subject to the rules as may be made by the Central Government in this behalf, the Central Government shall meet the cost of the following, namely:--
(a) the amount required for payment of wages for unskilled manual work under the Scheme;
(b) up to three-fourths of the material cost of the Scheme including payment of wages to skilled and semi-skilled workers subject to the provisions of Schedule II;
(c) such percentage of the total cost of the Scheme as may be determined by the Central Government towards the administrative expenses, which may include the salary and allowances of the Programme Officers and his supporting staff, the administrative expenses of the Central Council, facilities to be provided under Schedule II and such other item as may be decided by the Central Government.
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(1) The District Programme Coordinator and all implementing agencies in the District shall be responsible for the proper utilization and management of the funds placed at their disposal for the purpose of implementing a Scheme.
(2) The State Government may prescribe the manner of maintaining proper books and accounts of employment of labourers and the expenditure incurred in connection with the implementation of the provisions of this Act and the Schemes made thereunder.
(3) The State Government may, by rules, determine the arrangements to be made for the proper execution of Schemes and programmes under the Schemes and to ensure transparency and accountability at all levels in the implementation of the Schemes.
(4) All payments of wages in cash and unemployment allowances shall be made directl
(1) The Central Government may, in consultation with the Comptroller and Auditor General of India, prescribe appropriate arrangements for audits of the accounts of the Schemes at all levels.
(2) The accounts of the Scheme shall be maintained in such form and in such manner as may be prescribed by the State Government.
Whoever contravenes the provisions of this Act shall on conviction be liable to a fine which may extend to one thousand rupees.
(1) The Central Government may, by notification, direct that the powers exercisable by it (excluding the power to make rules) may, in such circumstances and subject to such conditions and limitations, be exercisable also by the State Government or such officer subordinate to the Central Government or the State Government as it may specify in such notification.
(2) The State Government may, by notification, direct that the powers exercisable by it (excluding the power to make rules and Schemes) may, in such circumstances and subject to such conditions and limitations, be exercisable also by such officer subordinate to it as it may specify in such notification.
(1) The Central Government may give such directions as it may consider necessary to the State Government for the effective implementation of the provisions of this Act.
(2) Without prejudice to the provisions of sub-section (1), the Central Government may, on receipt of any complaint regarding the issue or improper utilisation of funds granted under this Act in respect of any Scheme if prima facie satisfied that there is a case, cause an investigation into the complaint made by any agency designated by it and if necessary, order stoppage of release of funds to the Scheme and institute appropriate remedial measures for its proper implementation within a reasonable period of time.
The provisions of this Act or the Schemes made thereunder shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force or in any instrument having effect by virtue of such law:
Provided that where a State enactment exists or is enacted to provide employment guarantee for unskilled manual work to rural households consistent with the provisions of this Act under which the entitlement of the households is not less than and the conditions of employment are not inferior to what is guaranteed under this Act, the State Government shall have the option of implementing its own enactment:
Provided further that in such cases the financial assistance shall be paid to the concerned State Government in such manner as shall be determined by the Central Government, which shall not exceed what t
(1) If the Central Government is satisfied that it is necessary or expedient so to do, it may, by notification, amend Schedule I or Schedule II and thereupon Schedule I or Schedule II, as the case may be, shall be deemed to have been amended accordingly.
(2) A copy of every notification made under sub-section (1) shall be laid before each House of Parliament as soon as may be after it is made.
No suit, prosecution or other legal proceedings shall lie against the District Programme Coordinator, Programme Officer or any other person who is, or who is deemed to be, a public servant within the meaning of section 21 of the Indian Penal Code in respect of anything which is in good faith done or intended to be done under this Act or the rules or Schemes made thereunder.
(1) The Central Government may, by notification, and subject to the condition of previous publication, make rules to carry out the provisions of this Act.
(2) In particular, and without the prejudice of the foregoing power, such rules may provide for all or any of the following matters, namely:--
(a) the number of representatives of the State Governments under clause (e) of sub-section (3) of section 10;
(b) the terms and conditions subject to which the Chairman and other members of the Central Council may be appointed, and the time, place and procedure of the meetings (including the quorum at such meetings) of the Central Council, under sub-section (4) of section 10;
(c) the manner in which and the conditions and limitations subject to which the Na
(1) The State Government may, by notification, and subject to the condition of previous publication, and consistent with this Act and the rules made by the Central Government, make rules to carry out the provisions of this Act.
(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:--
(a) the terms and conditions upon which eligibility for unemployment allowance may be determined under sub-section (2) of section 7;
(b) the procedure for payment of unemployment allowance under sub-section (6) of section 7;
(c) 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
(1) Every rule made by the Central Government under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both the Houses agree that the rule should not be made, the rule shall have thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.
(2) Every rule or Scheme made by the State Government under this Act shall, as soon as may be after it is made, be laid before each Ho
(1) If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order published in the Official Gazette, make such provisions, not inconsistent with the provisions of this Act, as appear to it to be necessary or expedient for removing the difficulty:
Provided that no order shall be made under this section after the expiry of three years from the commencement of this Act.
(2) Every order made under this section shall be laid; as soon as may be after it is made, before each House of Parliament.
SCHEDULE I
[See section 4(3)]
MINIMUM FEATURES OF A RURAL EMPLOYMENT GUARANTEE SCHEME
1[1A. The scheme notified under Section 4 by all the States shall be called 'National Rural Employment Guarantee Scheme' followed by the name of the relevant State. All documents pertaining to National Rural Employment Guarantee Act must have mention of National Rural Employment Guarantee Scheme (NREGS)]
1. The focus of the Scheme shall be on the following works in their order of priority:--
(i) water conservation and water harvesting;
(ii) drought proofing (including afforestation and tree plantation);
(iii) irrigation canals inclu
SCHEDULE II
(See section 5)
CONDITIONS FOR GUARANTEED RURAL EMPLOYMENT UNDER A SCHEME AND MINIMUM ENTITLEMENTS OF LABOURERS
1. The adult members of every household who--
(i) reside in any rural areas; and
(ii) are willing to do unskilled manual work,
may submit their names, age and the address of the household to the Gram Panchayat at the village level (hereafter in this Schedule referred to as the Gram Panchayat) in the jurisdiction of which they reside for registration of their household for issuance of a job card.
2[2. (1) It shall be the duty of the Gram Panchayat to register the household, after making such
Legal Comments
"Preamble & Purpose" - The Act aims to enhance livelihood security in rural areas by guaranteeing at least 100 days of wage employment per financial year to every household; Scheme is central to implementation [Source: Rayapureddy Srinivasa Rao S/o Bramaiah VS government of Andra Pradesh - 2021 0 Supreme(AP) 572], [Source: SACHCHIDANAND GUPTA (SACHCHEY) VS UNION OF INDIA - 2014 0 Supreme(All) 242], [Source: Project Director VS District Legal Services Authorities - 2016 0 Supreme(Gau) 18].
"Scope of Section" - Section 3 establishes the guarantee of rural employment; Section 3(1) requires States to provide not less than 100 days of work; Section 3(3)/(2) addresses registration, action plans, and wage disbursement timing (weekly/fortnightly) per Schedule II provisions [Source: Akhil Bharatiya Ashanghathit Rozandari Kamgar Sanghathana, Through its President Ankush M. Pawar VS State of Maharashtra, Through The Secretary, The Ministry of Rural Development - 2012 0 Supreme(Bom) 1991], [Source: Swaraj Abhiyan - (III) VS Union of India - 2016 3 Supreme 585], [Source: Swaraj Abhiyan - (III) VS Union of India - 2016 3 Supreme 585].
"Labour Budget & Funds" - There is no statutory cap on funds; states may utilize beyond agreed labour budgets depending on utilization; central scrutiny of funds release; agreed labour budget is non-arbitrary but not a hard cap [Source: Swaraj Abhiyan - (III) VS Union of India - 2016 3 Supreme 585(b)], [Source: Swaraj Abhiyan - (III) VS Union of India - 2016 3 Supreme 585(a)].
"Delay & Delay Compensation" - Schedule II paragraph 29 provides compensation for delayed wage payments; workers should be paid within a fortnight and delay attracts compensation; courts have recognized delay compensation under the Act and linked it to Article 14/23 implications where applicable [Source: Swaraj Abhiyan - (III) VS Union of India - 2016 3 Supreme 585(a,b)], [Source: Velivela Nagendram VS State of Andhra Pradesh - 2022 0 Supreme(AP) 1004], [Source: Ravuri Venkateswarlu VS State of Andhra Pradesh - 2022 0 Supreme(AP) 985].
"Wage Rate & Minimum Wages" - Central Government wage rate under Section 6(1) cannot be below the State minimum wage; Karnataka case held Central rate cannot undercut state minimums; subsequent adjustments required [Source: Bharathiya Mazdoor Sangha VS Union of India - 2011 0 Supreme(Kar) 1114].
"Monitoring & Ombudsman" - The Act contemplates Ombudsman mechanisms; Section 27-28 address Ombudsman tenure and central-state directions; several judgments emphasize that revised policy on Ombudsman tenure should govern extensions where implemented; statutory remedy includes grievance redressal under Section 19 rules [Source: BIBHUTI KUSHWAHA VS UNION OF INDIA - 2017 0 Supreme(All) 2872], [Source: Ramakrishnan K. M. S/o P. Chandu Nambiar Vs Union Of India - 2025 0 Supreme(Ker) 746].
"Grievance Redressal" - Section 32 and corresponding Rules (Ombudsman) provide statutory grievance redressal; Courts admonish exhausting statutory remedies before invoking writs; direction to consider Ombudsman or State Government representations with expeditious processing [Source: Shailendra Singh VS State of M. P. - 2021 0 Supreme(MP) 250], [Source: Deeksha Dwivedi VS Union of India Thru' Secy. - 2014 0 Supreme(All) 2283].
"Natural Justice in Recovery Orders" - Recovery of misappropriated funds under the Act must adhere to audi alteram partem; social audit mechanisms enable response before recovery decisions; show cause and proper procedure are required in recovery actions [Source: Parvati Sewta, D/o. Balram Sewta VS State Of Chhattisgarh, Through Secretary, Department Of Panchayat And Rural Development - 2024 0 Supreme(Chh) 71].
"Payment Disputes & Memos" - Several judgments direct payment of principal bills within weeks, clarify the limited applicability of certain memos to works under MGNREGA; interest may be awarded where delays persist; guidance clarifies applicability of Memos to works under the Scheme only [Source: Palakolanu Ravi Chandra Reddy VS State of Andhra Pradesh - 2022 0 Supreme(AP) 986], [Source: Ravuri Venkateswarlu VS State of Andhra Pradesh - 2022 0 Supreme(AP) 985], [Source: Kuppireddy Ashok Reddy VS State of Andhra Pradesh - 2022 0 Supreme(AP) 1003].
"Misappropriation & Public Interest" - Courts have directed high-level committees and state action to investigate misappropriation; emphasis on proper implementation to prevent undermining the Act’s objective; social audit units and independent bodies (State Quality Monitor) may be used to check abuses [Source: Santan Singh VS State of Bihar - 2012 0 Supreme(Pat) 1280], [Source: BIBHUTI KUSHWAHA VS UNION OF INDIA - 2017 0 Supreme(All) 2872], [Source: SACHCHIDANAND GUPTA (SACHCHEY) VS UNION OF INDIA - 2014 0 Supreme(All) 242].
"Transfer & Administrative Powers" - Transfer of Gram Rozgar Sevaks/GRS is within scope of Section 18; Collector authority to transfer within districts for administrative reasons is recognized; transfers should not be arbitrary or violate natural justice [Source: Gagan Bihari Patra VS State of Odisha, Union of India - 2022 0 Supreme(Ori) 592], [Source: Jitendra Kumar Pati VS State of Orissa - 2017 0 Supreme(Ori) 833].
"Contractual vs. Statutory Employment" - Employment under the Act is typically contractual through schemes; not every post is automatically regularized; regularization requires a specific Scheme or policy framework; courts have emphasized the contractual nature unless a dedicated statutory scheme provides for regularization [Source: Sanjay Sah, son of Ram Lagan Sah VS State of Jharkhand - 2024 0 Supreme(Jhk) 140], [Source: G. Ramesh VS Government of Tamil Nadu, Represented by its Secretary to Government, Rural Development Department, Secretariat, Chennai - 2021 0 Supreme(Mad) 427], [Source: G. Ramesh VS Government of Tamil Nadu, Represented by its Secretary to Government, Rural Development Department, Secretariat, Chennai - 2021 0 Supreme(Mad) 3].
"Unemployment Allowance & Social Services" - Unemployment allowances under Section 7 can be contested; courts emphasize fund availability and the need to follow grievance rules; directions often require funds and works to be provided rather than denying unemployment benefits, subject to budgetary constraints [Source: Project Director VS District Legal Services Authorities - 2016 0 Supreme(Gau) 18], [Source: Deeksha Dwivedi VS Union of India Thru' Secy. - 2014 0 Supreme(All) 2283].
"Seniority vs. Appointment Rights" - Seniority alone does not guarantee appointment under NREGS; candidates must meet all scheme requirements including interviews where applicable; authorities may rely on compliance with selection criteria [Source: Rani VS State by, The Inspector of Police, Cuddalore - 2022 0 Supreme(Mad) 2995], [Source: G. Ramesh VS Government of Tamil Nadu, Represented by its Secretary to Government, Rural Development Department, Secretariat, Chennai - 2021 0 Supreme(Mad) 427].
"Ombudsman Tenure & Renewal" - The 2023 guidelines on Ombudsman tenure require performance appraisal for renewal; state cannot terminate without appraisal if the policy says so; equitable application of revised policy is required to protect the incumbents [Source: Ramakrishnan K. M. S/o P. Chandu Nambiar Vs Union Of India - 2025 0 Supreme(Ker) 746], [Source: BIBHUTI KUSHWAHA VS UNION OF INDIA - 2017 0 Supreme(All) 2872].
"Constitutional Context" - Preamble and constitutional principles anchor the Act in livelihood security and right to life; Article 21 (livelihood) and Article 14/23 considerations frequently appear in jurisprudence when evaluating delayed payments, misappropriation, and fair implementation [Source: Rayapureddy Srinivasa Rao S/o Bramaiah VS government of Andra Pradesh - 2021 0 Supreme(AP) 572], [Source: Swetapadma Dash VS State of Odisha - 2019 0 Supreme(Ori) 557], [Source: G. Ramesh VS Government of Tamil Nadu, Represented by its Secretary to Government, Rural Development Department, Secretariat, Chennai - 2021 0 Supreme(Mad) 427].
"Public Interest Litigations & Remedies" - PILs under the Act often direct remedial measures or require reflexive state action, but courts reiterate exhaustion of statutory mechanisms and the Act’s own grievance channels prior to broad relief; misappropriation cases often invoke High-Powered Committees or CBI references [Source: Shailendra Singh VS State of M. P. - 2021 0 Supreme(MP) 250], [Source: Manish Kumar Singh VS State of U. P. - 2023 0 Supreme(All) 1673].
"Fund Release & Fiscal Oversight" - Central Government has statutory role in scrutinizing funds release; agreed labour budgets are not arbitrary; delays in fund release affect wages and cause compensation obligations; timely provision and rational budgeting are court concerns [Source: Swaraj Abhiyan - (III) VS Union of India - 2016 3 Supreme 585(a,b), Swaraj Abhiyan - (III) VS Union of India - 2016 3 Supreme 585].
"Social Audit Framework" - The Act envisions social audit facilitated by designated bodies to ensure transparency; social audit formats, training, and public disclosure are parts of audit rules; proper social audits support accountability in funds and works [Source: HARENDRA YADAV VS STATE OF U. P. - 2017 0 Supreme(All) 2468], [Source: Adv. George Pulikuthiyil, (Former Ombudsman, Mgnrega, S/o. Ulahannan Pulikuthiyil vs State Of Kerala - 2025 0 Supreme(Ker) 2404].
"Judicial Direction on Implementation" - Courts frequently direct state authorities to publish schemes, ensure timing of payments, and mitigate misappropriation; directions often require coordination among central, state, and district authorities and hold districts/collectors accountable for proper execution [Source: Swaraj Abhiyan - (III) VS Union of India - 2016 3 Supreme 585], [Source: Sapam Ranadev Singh VS The State of Manipur - 2020 0 Supreme(Manipur) 30], [Source: R. K. PREMJIT SING VS STATE OF MANIPUR - 2018 0 Supreme(Manipur) 23].
"Key Statutory References" - Core statutory anchors referenced across cases include Section 3 (guarantee of rural employment), Schedule II (delayed payment, facilities), Section 6 (wage rate), Section 18 (transfer), Section 19/Rules (grievance mechanisms), Section 27-28 (Ombudsman), Section 25 (recovery provisions) and the preamble (object and scope) [Source: multiple entries including Rayapureddy Srinivasa Rao S/o Bramaiah VS government of Andra Pradesh - 2021 0 Supreme(AP) 572, Swaraj Abhiyan - (III) VS Union of India - 2016 3 Supreme 585, Bharathiya Mazdoor Sangha VS Union of India - 2011 0 Supreme(Kar) 1114, Parvati Sewta, D/o. Balram Sewta VS State Of Chhattisgarh, Through Secretary, Department Of Panchayat And Rural Development - 2024 0 Supreme(Chh) 71, BIBHUTI KUSHWAHA VS UNION OF INDIA - 2017 0 Supreme(All) 2872, SACHCHIDANAND GUPTA (SACHCHEY) VS UNION OF INDIA - 2014 0 Supreme(All) 242].
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