Case Note & Summary
The case involved a writ petition filed by the Centre for Environment & Food Security against the Union of India and various State Governments regarding the implementation of the National Rural Employment Guarantee Act, 2005. The petitioners alleged that the Act was not being properly implemented, particularly in the State of Orissa, where significant funds were reportedly misappropriated by government officials. The petitioners sought directions for the formation of appropriate schemes, proper utilization of funds, and a social audit of the activities under the Act. The court noted that while the right to employment is not explicitly stated as a fundamental right, it is encompassed within the right to life under Article 21 of the Constitution. The court emphasized the importance of the Act in providing livelihood security to rural households and highlighted the statutory obligations imposed on the State to ensure compliance with the Act's provisions. The court found that the allegations of corruption and mismanagement were serious and warranted further investigation. Consequently, it directed the Union of India and the State of Orissa to file compliance reports detailing the funds released, their utilization, and the employment provided under the Act. The court also called for a thorough inquiry into the allegations of misappropriation and the effectiveness of the schemes implemented under the Act. The decision underscored the need for accountability and transparency in the execution of welfare schemes aimed at alleviating poverty and ensuring employment for rural populations.
Headnote
A) Constitutional Law - Right to Livelihood - Inclusion under Article 21 - The right to livelihood is integral to the right to life under Article 21 of the Constitution. The court recognized that while the right to employment is not a fundamental right, it is a significant aspect of the right to life, necessitating legislative measures for its realization. The National Rural Employment Guarantee Act, 2005 aims to enhance livelihood security for rural households, mandating employment guarantees and unemployment allowances (Paras 1-2). B) Administrative Law - Implementation of Statutory Provisions - The court found serious irregularities in the implementation of the National Rural Employment Guarantee Act, particularly in the State of Orissa, where funds were allegedly siphoned off by officials. The court directed the Union of India and the State of Orissa to provide compliance reports and address the allegations of misappropriation and non-implementation of the Act (Paras 20-26).
Issue of Consideration
Whether the provisions of the National Rural Employment Guarantee Act, 2005 are being effectively implemented and if the allegations of corruption and misappropriation of funds are substantiated.
Final Decision
The Supreme Court directed the Union of India and the State of Orissa to file compliance reports regarding the implementation of the National Rural Employment Guarantee Act, 2005, addressing the allegations of misappropriation and providing detailed statistics on fund utilization and employment provided. The court emphasized the need for accountability and transparency in the execution of the Act's provisions.
Law Points
- right to livelihood
- National Rural Employment Guarantee Act
- 2005
- Article 21
- statutory obligation
- unemployment allowance
- social audit
- transparency
- accountability



