In a significant escalation of tensions between the Centre and the Punjab government, Union Agriculture Minister Shivraj Singh Chouhan has disclosed that more than 10,653 cases of financial irregularities were detected in the state's implementation of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). This revelation came on Tuesday, even as the Aam Aadmi Party (AAP)-led state government convened a special session of the Punjab Assembly to oppose the Centre's new rural employment law.
Centre's Allegations of Widespread Mismanagement
Shivraj Singh Chouhan, in a video statement posted on social media platform X, stated that social audits were conducted in only 5,915 of Punjab's over 12,000 villages. It was during these limited audits that the massive scale of alleged discrepancies came to light. The Union Minister accused the Punjab government of inaction, noting that despite the Centre seeking explanations, no recovery of misused funds has been made and no action taken against officials or contractors allegedly involved.
"There were a total of 10,653 cases of financial irregularities. Despite the Centre seeking explanations, the Punjab government has taken no action against the erring officials and contractors, nor has it recovered the misused funds," Chouhan asserted. He detailed that the irregularities included inflated project estimates, duplication of works in records, and execution of projects not permissible under MGNREGA guidelines.
Punjab's Countermove: Special Assembly Session
The statement from the Union Minister was timed with the Punjab government's special Assembly session, convened specifically to pass a resolution against the Centre's Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, or VB-G RAM G Act. Chouhan criticized this move, calling it a violation of the spirit of the Constitution and federalism. "This is against the spirit of federal structure. It appears the state is protesting merely for the sake of protest," he remarked.
Meanwhile, the Punjab Assembly pushed through a resolution opposing the VB-G RAM G Act, projecting it as a threat to rural employment guarantees. The Bharatiya Janata Party (BJP), in turn, accused the AAP government of using the issue to divert attention from what it called administrative failures and corruption in implementing the existing MGNREGA scheme in the state.
Ground Reports and Pending Actions
Chouhan referenced his visit to Punjab in November, where he claimed MGNREGA workers personally complained about a lack of work. "Workers told me that instead of providing employment to labourers, work was being done using machines and contractors," he said. Following complaints submitted by workers' unions in Jalandhar during his visit, the minister had ordered the state government to inquire into the anomalies and indicated a central team would also investigate.
BJP's state working president and Pathankot MLA, Ashwani Sharma, provided further data, alleging that mandatory social audits were not conducted in 6,095 gram panchayats in 2024-25 and 7,389 in 2025-26. He also claimed that Action Taken Reports were pending in 3,986 cases, and recovery orders worth Rs 2.35 crore issued after Lokpal inquiries had not been implemented by the state authorities.
Punjab Government's Defence and Counter-Charges
In response to the earlier allegations in November, Punjab's Rural Development and Panchayats Minister, Tarunpreet Singh Sond, had stated that many complaints pertained to a period before the current government took office. "We are also investigating into these complaints. In the past six months, we have suspended or dismissed several officials involved in corrupt practices, attached their properties, and recovered Rs 2 crore," Sond had said.
Minister Sond had also raised substantive issues with the Centre, highlighting a wage disparity where MGNREGA workers in Haryana receive Rs 400 daily compared to Rs 346 in Punjab. He said the Union Minister had agreed to correct this. Sond further pointed out that Rs 250 crore related to material payments under MGNREGA was still pending with the Centre, adding another layer to the ongoing financial tussle.
The clash underscores the deepening political and administrative rift between the BJP-led central government and the AAP government in Punjab, with the welfare of rural workers and the implementation of flagship schemes caught in the crossfire.
