VidhiSangh

Supreme Court of India · 18/05/2018

SWARAJ ABHIYAN (VI) versus UNION OF INDIA & ORS.

[2018] 5 S.C.R. 398 · 2017 INSC 660

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Summary

The Supreme Court upheld the statutory process of agreeing annual MGNREGA labour budgets and found the alleged informal funding cap unestablished. It nevertheless rejected the Union’s attempt to exclude wage-payment delays after Fund Transfer Orders from compensation. Both levels of government must secure timely wages and prescribed compensation. The Ministry was directed to frame an urgent, time-bound mandatory payment programme in consultation with States and Union Territories; all issues concerning the Act were closed.

Issues

  1. Whether the agreed labour-budget process and the alleged cap on funds violated the employment-guarantee framework.
  2. Whether compensation excludes delays after Fund Transfer Orders and which governments bear compliance duties.

Provisions considered

Held

Result

Directions issued for an urgent, time-bound mandatory programme securing wage and compensation payments. Challenges to the agreed labour-budget process and alleged informal cap rejected; all issues pertaining to the Act closed.

Judgment PDF: Supreme Court of India, [2018] 5 S.C.R. 398.