KVC alleges illegal deduction under MGNREGA scheme

Kacharigaon (Phevima) Village Council (KVC) has leveled serious allegations against the Rural Development (RD) department for demanding illegal deductions from funds under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) scheme.
Addressing a press conference at KVC Panchayat Hall on Saturday, KVC chairman Vitho Zao claimed that the RD department had instructed the Village Development Board (VDB) to collect and remit 30% of the wage component from Job Card holders and 50% of the material component to the department- which he described as “daylight extortion.”
Zao disclosed that the KVC had earlier convened an emergency general meeting on May 31, where the villagers unanimously resolved not to comply with the department’s demands. He said that the resolution was formally communicated to the Project Director of the District Rural Development Agency (DRDA), Dimapur, vide a letter dated June 3.
He pointed out that under the MGNREGA guidelines, job card holders are legally entitled to Rs. 234 per day, currently disbursed through Direct Benefit Transfer (DBT).
“How can a village council be expected to collect wage money from the workers?” asked Zao.
He also revealed that during 2023–24, the KVC handed over Rs. 6,78,255 to the department in hard cash, but no receipt was issued by the RD officials. Owing to lack of transparency on the part of the RD department of not issuing money receipts, Zao said villagers begun to suspect that the council had misappropriated funds.
He said this suspicion was understandable given the absence of any official acknowledgment or documentation.
Zao urged upon the state government to take urgent note of the issue while questioning whether there was any such official directive from the central government to arbitrarily deduct money from wage component and also material component?
The KVC chairman also appealed to all 1,285 village councils across Nagaland to raise their voices against what he described as systemic corruption. He warned that – “If we succumb to their corruption now, this will continue until the end of MGNREGA scheme,”
Responding to queries, Zao informed that while Kacharigaon (Phevima) comprised of over 400 households, only 140 genuine beneficiaries were registered under MGNREGA. He also lamented that if the council failed to comply with the demand of a 30% deduction from wages, then the shortfall would be adjusted from the material component (meaning 30%+ 50%= 80%) of the fund.
On the implementation of the Jal Jeevan Mission (JJM) in the village, Zao disclosed that although water pipes had arrived last year, they were still lying at the village council hall. He added that the council had not received any funds for civil construction under the scheme thus, leaving the project in a limbo.
VDB secretary Kevishel Viswentso explained that failure to comply often resulted in job cards not being uploaded- effectively depriving villagers access to work and funds. He further alleged that the RD department use to force VDB secretaries to sign declarations to state that villagers have received the full amount, even after portion of the fund was collected in cash without any receipts being issued.
Expressing a moral dilemma, Kevishel said, “My conscience doesn’t allow me to steal money from the villagers. I am even prepared to resign from the VDB if this continues.”
He clarified that the council’s grievance was not directed at any individual official but rather at the deep-rooted corruption in the system.
He also claimed: “If we file FIRs or RTIs, we are denied funds, and the villagers are blackmailed.”
Kevishel said that “Out of 1285 villages no village has voiced out against this issue, except our village. It is starting now”.
He also disclosed that the demand for the deductions was conveyed directly to him by the department, and the money deducted was handed over to Rural Development (RD) staff.
When asked whether the VDB Association was aware of the issue, he said he was unaware of any meeting being convened to discuss the matter.