CHENNAI: The Madras High Court has raised a question about how the Viksit Bharat-Guarantee for Rozgar and Aajeevika Mission (Gramin) Act, 2025 (VB-G RAM G Act) affects worker rights under the new labour code, following a plea challenging the Act.
It is worth noting that the VB-G RAM G Act replaced the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), which was originally enacted to enhance livelihood security in rural areas.
The case arose from a Public Interest Litigation (PIL) filed before the Madras High Court by advocate T Sivagnanasambandan, assailing eight provisions of the newly enacted statute.
The petition contended that under the earlier enactment, 90 per cent of the financial allocation for scheme implementation was borne by the Union Government, with the remaining 10 per cent contributed by the respective state governments.
However, under the new legislation, all states, except those in the North-Eastern and Himalayan regions, are required to contribute 40 per cent of the funding.
The petitioner has further submitted that the substantial autonomy conferred by the previous Act upon Gram Panchayats in the implementation of the scheme has been curtailed under the new Act. It contended that the revised statutory framework would adversely impact the livelihood of rural populations.
Further stating that the provisions compel the states to bear excess expenditure and unemployment allowance liabilities without financial autonomy or consent, the petition has sought a declaration that the impugned eight provisions be declared unconstitutional and void.
When the matter was taken up for hearing before a Division Bench comprising Chief Justice MM Shrivastava and Justice G Arul Murugan, the Chief Justice asked the petitioner's counsel how rights are affected under the new Labour Code.
The petitioner's counsel sought time to place additional materials on record. Acceding to the request, the Bench adjourned the matter to next week for further hearing.