In Brief
This writ petition challenges implementation issues under the MNREGA, 2005, focusing on three areas: the legality of 'agreed to labour budgets' prepared by the Centre, alleged caps on funding, and delayed wage payments. The Supreme Court upheld the Centre's statutory authority to prepare agreed budgets in consultation with States and found no evidence of an arbitrary cap—multiple States exceeded approved budgets and received additional funds. However, the Court firmly rejected the Centre's view that its responsibility for wage payment ends after FTO generation. It held that wages must be paid within a fortnight of work completion, with compensation at 0.05% per day for delays. Both State and Centre bear joint responsibility for timely payment and compensation, which applies to all delays including those in payment agency processing stages. The Centre cannot escape liability by citing administrative constraints.
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