Case Note & Summary
This Public Interest Litigation was filed to seek directions for the proper implementation of the Mahatma Gandhi National Rural Employment Guarantee Act, 2005 (the Act) and its associated schemes. The Act aimed to enhance livelihood security in rural areas by providing guaranteed wage employment. The petitioner highlighted issues of non-compliance and fund diversion, prompting the Court to issue several orders over time. On December 16, 2010, the Court noted significant discrepancies in the implementation of the Act, particularly by the State of Orissa, and ordered compliance reports from the Central and State Governments. The Court found that there were temporary diversions of funds and inadequate audits, leading to a lack of accountability. On March 14, 2011, the Court expressed concerns over corruption and misappropriation of funds, particularly in Orissa, and directed the Central Government to consider referring the matter to the Central Bureau of Investigation (CBI). Following this, the Government of Orissa consented to a CBI investigation into the alleged irregularities. The Court mandated that the CBI conduct a thorough investigation, focusing on specific districts and utilizing various reports, including those from the Comptroller and Auditor General of India and the National Institute for Rural Development. The Court also directed the State Governments to file affidavits regarding their compliance with operational guidelines and to cooperate fully with the CBI. The Court emphasized the need for timely completion of the investigation and warned of potential actions against defaulting officials. The matter was scheduled for further hearing in eight weeks.
Headnote
A) Public Interest Litigation - Implementation of Statutory Provisions - Directions for Compliance - Mahatma Gandhi National Rural Employment Guarantee Act, 2005 - The Court directed the Central and State Governments to ensure compliance with the provisions of the Act and investigate irregularities in fund utilization. The Court emphasized the need for accountability and transparency in the implementation of the Act (Paras 1-15).
Issue of Consideration
Whether the Central Bureau of Investigation should investigate the alleged irregularities in the implementation of the Mahatma Gandhi National Rural Employment Guarantee Act, 2005 in the State of Orissa.
Final Decision
The Court directed the CBI to conduct a free and fair investigation into the implementation of the Act in six districts of Orissa, considering various reports and ensuring cooperation from the State Government. The investigation was to be completed expeditiously, with a report to be filed within six months.
Law Points
- Public Interest Litigation
- Mahatma Gandhi National Rural Employment Guarantee Act
- 2005
- compliance
- investigation
- Central Bureau of Investigation
- fund utilization
- operational guidelines



