Fake demands under MGNREGA will not be entertained: Centre

The Rural Development Ministry informed the parliamentary standing committee on Monday (December 29, 2025) that it was coordinating with the State governments to ensure that no “fake demand” was raised under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) during the interim period before the implementation of The Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) VB – G RAM G Bill, 2025, the new legislation that would replace the rural employment guarantee scheme.

The Parliamentary Standing Committee on Rural Development, headed by Congress leader Saptagiri Ulaka, held its first meeting on Monday (December 29, 2025) after the repeal of the MGNREGA by Parliament on December 18. 

During the meeting, sources said, Samajwadi Party MP Ramashankar Rajbhar asked the Ministry to explain how it planned to tackle demand during the transition period when the new law was implemented and the MGNREGA was phased out. Since the MGNREGA was a demand-driven scheme, he pointed out, the government could not artificially suppress this demand. In response, Ministry officials reportedly said they were coordinating with the States to ensure that no “fake demand” was raised. Panel chairperson Mr. Ulaka and other members questioned the government on how it planned to distinguish between genuine and fake demand.

The meeting, which lasted nearly two hours, saw several BJP members criticising the MGNREGA. According to sources, several BJP members detailed various welfare schemes run by both the Centre and the States that provide “free health and free food,” arguing that in such a scenario, a rural employment scheme became redundant. Other BJP MPs, the sources said, flagged corruption cases affecting the rural employment scheme.

Dues of West Bengal

The government also informed the panel that it was in touch with the West Bengal government and would clear the dues it owed to the State. However, neither the amount owed nor the timeline for release was shared. Trinamool Congress members had staged an overnight dharna in Parliament after the Viksit Bharat G Ram G Bill was passed past midnight in the Rajya Sabha.

The release of funds to West Bengal under the scheme was stopped in March 2022 by the Centre, invoking provisions of Section 27 of the Mahatma Gandhi National Rural Employment Guarantee Act, 2005, owing to continued non-compliance with the Central government directives by the State. The Centre owes ₹3,082.52 crore to States, of which ₹1,457.22 crore was wages for completed work by registered workers.