Supreme Court Praises MGNREGA, Disposes 2015 Wage Plea, Allows Challenge to VB-G RAM G Act

The Supreme Court has disposed of a decade-old public interest litigation concerning delayed wage payments under the Mahatma Gandhi National Rural Employment Guarantee Act, while simultaneously granting the petitioners liberty to file a fresh challenge to the legislation that has replaced the rural employment framework. A three-judge bench comprising Chief Justice of India Surya Kant, Justice Joymalya Bagchi, and Justice V Mohana heard the PIL filed by activist Aruna Roy in 2015, which sought directions for compensation for delayed wages and payment of state-prescribed minimum wages under MGNREGA. The court noted that the issues raised were already covered by its earlier judgment in the Swaraj Abhiyan case, but allowed a new petition in light of the enactment of the Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025.

A Scheme That 'Did a Wonderful Job'

During the hearing, Chief Justice Surya Kant took a moment to highlight the transformative impact of MGNREGA in rural India. He described the scheme as a "very selfless scheme, a good, effective welfare scheme" that was "not a freebie kind of scheme" nor "a case of exploitation." The CJI observed that rural communities had genuinely appreciated MGNREGA , noting that "thousands and millions of people who had no source of livelihood" were provided a respectful means of earning through work. While lauding the scheme’s comprehensive design, he also acknowledged the difficulty of examining the petition’s specific grievances without any directly aggrieved individuals coming forward.

Advocate Prashant Bhushan, appearing for the petitioners along with Cheryl D’Souza and Neha Rathi, argued that the central issue remained whether state-notified minimum wages must be paid to workers. He contended that the Supreme Court had already held that failure to pay state-prescribed minimum wages amounts to forced labour, a violation of Article 21. Bhushan pointed out that under the new VB-G RAM G Act, employment generation has dropped by nearly half, and states are now required to bear 50% of the funding, compared to the earlier 90:10 Centre-State ratio. He also highlighted that the new Act sets a floor wage of ₹300 per day, which, while cannot be lower than the MGNREGA rate, still falls short of many state minimum wages.

The Right to Work: Fundamental Right or Democratic Aspiration?

Justice Joymalya Bagchi raised a fundamental constitutional query during the hearing. He noted that the right to work is not a fundamental right under the Constitution but rather a "democratic aspiration" enshrined in Part IV ( Directive Principles ). Justice Bagchi cautioned against treating the rural employment guarantee with the same judicial rigor as Article 18 (prohibition of titles), warning that such an approach could lead the state to contract its social welfare activities. "Should we trade it on par with Article 18 rigor? That is a very big question which we need to answer," he remarked. He further questioned whether the court could issue a mandamus requiring the government to implement MGNREGA or the VB-G RAM G Act , given the policy discretion of the state.

Bhushan countered by invoking the Supreme Court’s consistent reading of Article 21 to include the right to live with dignity. He argued that dignified employment necessarily implies payment of at least the minimum wage. Citing the Swaraj Abhiyan ruling, he submitted that the court had already directed such payments, but they remained unfulfilled. The judges, however, remained unconvinced that the PIL was the appropriate vehicle to address these issues under the new statutory framework.

A Fresh Start Under New Legislation

Justice V Mohana observed that the VB-G RAM G Act had replaced the MGNREGA framework, stating, "We have to see fresh details, fresh statistics." The bench concluded that the matters raised in the 2015 PIL could not be adjudicated without examining the provisions of the new Act in a properly framed petition. Consequently, the court disposed of the existing PIL but expressly granted the petitioners the liberty to file a fresh challenge against the VB-G RAM G Act . Chief Justice Surya Kant noted, "Some petition will come then definitely we will examine."

The decision leaves open the possibility of a renewed legal battle over the adequacy of wages under the new rural employment law. The shift from MGNREGA to the VB-G RAM G Act has brought significant changes, including a revised funding formula, a different wage calculation mechanism, and a reduction in the scale of employment generation. The petitioners’ central contention—that state-mandated minimum wages must override the floor wage set by the central law—remains unresolved and may now be tested in a fresh proceeding.

Legal Implications and Broader Impact

The Supreme Court’s ruling has important implications for social welfare jurisprudence. By refusing to examine the new Act’s provisions in the absence of a direct challenge, the court has effectively reset the clock on litigation concerning rural employment guarantees. Labour law practitioners will need to closely monitor any fresh petitions, as they could shape the interpretation of the right to work under the new statutory regime. The case also highlights the tension between non-justiciable directive principles and enforceable fundamental rights, particularly in the context of minimum wages and forced labour. The question of whether the state’s social welfare policies can be judicially enforced through Article 21 remains open, and the apex court’s eventual examination of the VB-G RAM G Act may provide much-needed clarity.

For now, the bench’s praise for MGNREGA serves as a reminder of the scheme’s historical significance, even as the legal framework evolves. The petitioners, led by Aruna Roy, are expected to pursue a fresh challenge, potentially setting the stage for a landmark ruling on the constitutional status of wages in state-sponsored employment programmes.

Conclusion

The Supreme Court’s disposal of the 2015 PIL marks the end of one chapter and the beginning of another in the long-running debate over fair wages under rural employment laws. While the court acknowledged the virtues of MGNREGA, it declined to adjudicate on the new Act without a properly framed petition. As the legal community awaits the next move, the core issues—minimum wages, compensation for delays, and the very nature of the right to work—remain alive and pressing. The coming months may see the apex court revisit these questions in the context of the VB-G RAM G Act, potentially reshaping India’s social welfare landscape.