In Brief
This case addresses implementation of the Mahatma Gandhi National Rural Employment Guarantee Act, 2005. The petitioner challenged the Central Government's practice of approving a 'labour budget' different from State projections, alleged an informal cap on fund releases, and complained of delayed wage payments without compensation. The Court upheld the Central Government's statutory power to assess and approve budgets through an Empowered Committee, finding no arbitrary cap on funds. However, the Court held that workers have an inviolable right to wages within a fortnight of work completion, with compensation of 0.05% per day for delays. Both Central and State Governments share responsibility for timely payment and compensation; neither can disclaim responsibility. The Court directed preparation of an urgent, mandatory program for wage and compensation payments.
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