Taking a tough stand, the Centre has asked the state authorities to "scrupulously" adhere to the legal mandate of making payment of wages under NREGA within the stipulated 15 days time-frame or else legal action could be taken against those found responsible for delaying it.
In cases where wage disbursement to administrative machinery or the financial institutions are delayed, the agency found responsible for it will have to pay compensation to the workers under the Act, rural development ministry said in a recent advisory to states.
"Any delay in wage payments by any agency or person or any unfair means in wage payment which deprives the workers of their due wage amount will be punishable under Section 25 of the Act," the ministry said.
Section 25 of Mahatma Gandhi NREGA stipulates that whoever contravenes the provisions of this Act "shall on conviction be liable to a fine which may extend to Rs1 thousand."
Ministry said that appropriate compensation will be payable to NREGA workers in case wages are paid beyond 15 days of work done.
"The institutional agency responsible for delay in wage payment to administrative machinery or the financial institution whichever the case may be, will be responsible for paying the compensation," it said.
The ministry also sought to tighten the noose around the district programme coordinators (DPCs), asking them to ensure that there were no backlogs in wage disbursements.
"DPCs will ensure that the Gram Rozgar Diwas will be held compulsorily every month on a pre-announced date at the gram panchayat level in which all the Mahatma Gandhi NREGA workers will be called and all issues pertaining to wage payments will be resolved," ministry said.
The DPCs will deploy the administrative resource available in the district for the monitoring of timely payments. "This system of monthly verification for the wage payment will be compulsorily implemented throughout the state," it said.
Ministry noted that wage disbursement to the NREGA workers through institutional accounts in banks or post offices was made a statutory requirement by an amendment in the Act with a view to infusing transparency and enhancing the integrity of wage payment under the Act and also to encourage savings among the rural poor.
However, pace of financial inclusion under the Act surpassed the pace of institutional outreach of banks and post offices as well as their current capacity to manage such a large number of accounts.
"This has led to delay in wage disbursements which legally entails payment of compensation," it underlined.
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